Invoicing, Payment and Net Terms

As a UC San Diego supplier you have the opportunity to select the invoice and payment option that best meets your business needs. In efforts to meet our sustainability goals, UC San Diego is focused on moving away from paper invoices and requesting all invoices be submitted via an electronic method. Review Invoicing Options and Best Practices for details. Payment options have been customized to also align with sustainability goals by transitioning away from paper payments such as checks and promoting electronic payment solutions. Our payment options are classified as Preferred, Standard, Alternative, and Exceptions.  Refer to Payment Options and Terms for details.

Invoicing Options

We offer various forms of electronic invoice solutions supporting sustainability best practices and our institutional goals. Depending on your organization’s annual invoice submission volume, you may be contacted by a member of our Accounts Payable team to discuss the best option. For more information on invoicing options or to figure out what option is best for you, contact our team at disbursements@ucsd.edu

Options:

  • Third Party Invoicing Partner, Transcepta: This is UC San Diego’s preferred invoicing option. Learn more about Transcepta.
  • Email invoice to disbursements@ucsd.edu
  • Payment Compass: Submit invoices via our supplier registration portal and track your payments. Learn more about Payment Compass. Coming Soon!

Invoicing Best Practices

Regardless of the invoice option you select, ensure your invoices get processed by including the following:

  • Invoice number must be unique, minimum of 4 digits in length, and not contain any special characters such as: / - _ # %, etc. If an adjustment is made to an existing invoice, the new invoice must be contain a different invoice number.
  • Invoice Date
  • Bill to Name
  • Bill to Address
  • Payment terms – as defined in our purchase order
  • PO Number is required, must be 8 alpha-numeric characters, and start with “9”.
  • Item: Purchase order line item number, description of goods/services, catalog/part number, unit price, quantity, and extended price should be an ­exact match to the purchase order
  • Tax, Freight, and additional charges must be listed separately.
  • Invoice total

 

In order to facilitate smooth processing of electronic invoices, please adhere to these guidelines.  Failure to comply can delay payment.

  • Invoice number, invoice date, and purchase order number are required data elements for every invoice. Without this information, invoices cannot be processed and will be returned to the supplier.
  • Signs of all dollar amounts must be the same. For example, all line items must be (+) or (-).
  • If the PO line item number is not an exact match, there will be a delay in processing.
  • Freight should not be listed as a line item.  It should be itemized with the additional charges.

Payment Options and Net Terms

As a UC San Diego supplier you will have an opportunity to select the payment option and associated terms that best meets your business needs. Payment net terms (number of days from invoice date to payment issuance) will vary depending on the payment option selected by you. UC San Diego’s standard payment type is Direct Deposit ACH with payment terms of net 45. Your payment options are classified as Preferred, Standard, Alternative, and Exceptions.  These options are detailed as follows:

 

Preferred Payment Options:


  • Virtual Card, Payment Plus payments issued within 10 days (standard credit card processing fees apply). Learn more about Virtual Card, Payment Plus.
  • Direct Deposit ACH with 2%, 10 net 30: Suppliers will receive payment in the form of Direct Deposit ACH to their domestic bank account. Direct Deposit ACH 2% 10, net 30 means a supplier agrees to provide a 2% discount if payment is issued within 10 days. If UC San Diego cannot process remit payment by the 10th day, no discount will be deducted and payment will be issued to the supplier by the 30th day.

Standard Payment options:


  • Direct Deposit ACH with terms of net 45: Direct Deposit ACH is an electronic funds transfer issued to the supplier’s domestic bank account. Payment will be issued within the 45th day.

Alternative Payment Option:


  • Paymode-X® ACH/Direct Deposit payments issued within 30 days. UC San Diego has partnered with Paymode-X’s robust payment network to offer suppliers convenient and secure payment management. Learn more about Paymode-X® payments.  Network enrollment fees may apply.

Exception Payment options:


  • Check payments with 1% 20, net 60: Checks are UC San Diego’s least preferred payment option. Check 1% 20, net 60 means a supplier agrees to provide a 1% discount if payment is issued within 20 days. If UC San Diego cannot issue payment by the 20th day, no discount will be deducted and payment will be issued by the 60th day. 
  • Check payments with terms of net 60: Checks are UC San Diego’s least preferred payment option. Payment via this method is issued 60 business days from the supplier invoice date.
  • Wire transfer payments: Wire transfer payments are only issued on a case by case basis. Wire transfer payments are allowed for suppliers who only have a foreign bank account.

Additional Resources:

Supplier Payment Matrix