Discounts on Payments
Though vendors may offer a discount to federal agencies, they are not required to do so.
Under the Prompt Payment rule, agencies may take an offered discount if it is economically justified and if the agency has accepted the good or services, but they are not required to do so.
If the agency takes the discount, payment is due in accordance with the discount terms. If the agency does not take the discount, payment is due within 30 days of receipt of a proper invoice, unless the agency uses an accelerated payment.
To calculate if a discount is economically justified, use our Discount Calculator.View Discount Calculator
When Does the Discount Period Start?
If the vendor submits a proper and valid invoice with an invoice date, that date starts the discount period.
If the invoice is proper and valid but does not have an invoice date, the discount period starts on the date the agency received the invoice.
For further information, visit the Accelerated Payments or FAQs page.
Last modified 09/05/19