[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR1315.7]

[Page 151]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
              CHAPTER III--OFFICE OF MANAGEMENT AND BUDGET
 
PART 1315_PROMPT PAYMENT--Table of Contents
 
Sec. 1315.7  Discounts.

    Agencies shall follow these procedures in taking discounts and 
determining the payment due dates when discounts are taken:
    (a) Economically justified discounts. If an agency is offered a 
discount by a vendor, whether stipulated in the contract or offered on 
an invoice, an agency may take the discount if economically justified 
(see discount formula in Treasury Financial Manual (TFM) 6-8040.40) \3\ 
but only after acceptance has occurred. Agencies are encouraged to 
include discount terms in a contract to give agencies adequate time to 
take the discount if it is determined to be economically justified.
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    \3\ The Treasury Financial Manual is available by calling the Prompt 
Payment Hotline at 800-266-9667 or the Prompt Payment web site at http:/
/www.fms.treas.gov/prompt/index.html.
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    (b) Discounts taken after the discount date. If an agency takes the 
discount after the deadline, the agency shall pay an interest penalty on 
any amount remaining unpaid as prescribed in Sec. 1315.10(a)(6).
    (c) Payment date. When a discount is taken, payment will be made as 
close as possible to, but no later than, the discount date.
    (d) Start date. The period for taking the discount is calculated 
from the date placed on the proper invoice by the vendor. If there is no 
invoice date on the invoice by the vendor, the discount period will 
begin on the date a proper invoice is actually received and date stamped 
or otherwise annotated by the designated agency office.