Prompt Payment Interest

CIT is obliged to pay Prompt Payment on all invoices paid after 30 days under the Prompt Payment of Accounts Act 1997. The purpose of this is to have reasonable payment terms with our suppliers.

Prompt Payment is made up of:

1. Interest – A percentage of the invoice is calculated using the daily rate of 0.022%

2. Compensation Charge – A fix penalty fee is applied to payments made outside the 30 day credit terms as per invoice value:

  • Under €1,000 €40.00
  • Between €1,000 and €10,000 €70.00
  • Exceeding €10,000 €100.00

Common pitfalls:

  • Routine Login would be encouraged on a daily basis for approval of invoices.
  • Anything exceeding the 30 day limit due to external issues requires an email sent to accountspayable@cit.ie in order to avoid prompt payment being applied.
  • Requisition stage – please ensure that the correct subaccounts are given at requisition stage. Changes to subaccounts after receipt of invoice cause delays and possible prompt payment.
  • Club Travel invoices can be paid in advance of the trip.
  • Where you are unsure about approving an invoice for a reason e.g. you’ve seen it before, or are getting error messages, give us a call as opposed to leaving or rejecting the invoice so is can be resolved quickly.
  • Monthly reports will have a separate line for prompt payment for all Departments to monitor.
  • Quarterly prompt payment reports are given to the finance committee of governing body • Annual leave – Substitutes should be organised prior to annual leave.
    • 1.  Self-service substitute under options on agresso online
    • 2. Email accountspayable@cit.ie with your dates and alternative approver’s name

It is a common misconception that Prompt Payment Interest is calculated on the invoice date but in fact it is calculated on the date stamp on the invoice, ie the date that invoice was received by accounts payable.

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