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Payment Terms and Disbursements

Payment Terms


UC Davis Allowed Payment Terms

Method Payment Terms
Payment Plus Virtual Card (through US Bank)

Net Due

The invoice is paid immediately upon approval.
Automated Clearing House (ACH), through the PaymodeX network

2/10 NET 30

If the UC pays the invoice within 10 days, the payment amount will automatically be reduced by a 2% discount. If we are unable to pay within 10 days, we will pay the full amount due in 30 days.

Automated Clearing House (ACH), through the PaymodeX network

NET 60

*The invoice is paid 60 days after the invoice is received by the UC.1

Benefits of Payment Plus

  • Supplier receives an email from US Bank with a link to a one-time credit card number which is a more secured method than receiving a paper check via mail
  • Supplier benefits from faster receipt of their money
  • UC Davis benefits through US Bank incentives and more efficient processing

Benefits of Automated Clearing House

  • Supplier receives direct deposit into their bank account from an Automated Clearing House (ACH)
  • Supplier benefits from faster receipt of their money
  • UC Davis benefits from early payment discounts and more efficient processing

Enrollment is Easy


Payment Terms (by exception only)

Method Payment Terms

Paper Check2

2/10 NET 45

If the UC pays the invoice within 10 days, the payment amount will automatically be reduced by a 2% discount. If we are unable to pay within 10 days, we will pay the full amount due in 45 days.

Paper Check

NET 60

The invoice is paid 60 days after the invoice is received by the UC.

Why Paper Checks are Discouraged

  • Supplier receives a paper check in the mail, which increases the risk for fraud and theft
  • Costly for supplier, as they have to deposit checks and wait for available funds from their bank
  • Costly for UC Davis, as we have to print, handle, and mail paper checks

Early Payment Discounts

When Discounts Apply

  • Discounts are applied if the payment is approved within the number days allowed by the payment terms selected on the Purchase Order
  • (Approval Date) – (Invoice Date) <= Discounts Days Allowed
  • The Disbursement Date, or payment date, is the maximum allowed to receive a discount, or the maximum allowed by the payment
  • If the Purchase Order and the Invoice have conflicting payment terms, UC Davis will take the more advantageous terms when processing the payment
  • Discount terms are not available on sub-award invoices

What is Discounted?
Early payment discounts apply to the entire order, less shipping or freight charges.
Sales tax is calculated after discounts are applied.

Example: $100 invoice line, $10 shipping, 7.5% tax rate, 2% discount
$100 x .02 = $2 discount = $98 line amount after discount
$98 x .075 = $7.35 sales tax
$100 line + $7.35 tax + $10 shipping - $2 discount = $115.35 net

  • 1. Invoices must reference a valid UC Davis Purchase Order and be transmitted through our electronic invoicing platform (Transcepta) or emailed to invoicing@ucdavis.edu.
  • 2. To request an exception to receive payment by paper check, please send an email to aphelp@ucdavis.edu.