Claims Payment Period
Public entities should review vendor invoices to determine when payments are due. Some vendors set payment periods of less than 30 days.
Generally the governing body of a public entity must approve the payment of all claims prior to payment being made. Shortened payment periods may make it difficult to present claims to the governing body for approval at a regularly scheduled meeting. Public entities should contact vendors for clarification if a shortened payment period appears on an invoice.
Payment periods are often set by contract. If the contract does not specify payment periods, standard payment periods are found in Minn. Stat. § 471.425.
Date this Avoiding Pitfall was most recently published: 05/29/2020