Tennessee Prompt Pay Act & UT Procedures

The Tennessee Prompt Pay Act generally requires state agencies, including the University of Tennessee, to pay undisputed invoices within 30 days after receipt of a proper invoice and acceptance of the goods or services, unless otherwise specified by contract or applicable University procedures.

To support compliance:

• Procurement Services ensures appropriate procurement methods are followed, purchase orders and contracts are established when required, and suppliers are properly onboarded.
• Departments are responsible for promptly confirming receipt of goods or services, completing receiving in the ERP system, reviewing invoices, and resolving discrepancies without delay.
• Accounts Payable reviews invoices for compliance and processes payments in accordance with University policy, contract terms, and applicable state law.

Timely invoice processing is a shared responsibility and helps ensure compliance with state law, avoids late payment interest, and maintains positive supplier relationships.

-Procurement Services