Prompt Payment Discount program saved Commonwealth $11.75 million in FY2020
Updated: Oct 21, 2020
Departments throughout the Commonwealth saved $11.75 million in FY2020 by taking advantage of Prompt Payment Discounts. The entirety of those savings were credited back to the departments' accounts that realized the discount. The Commonwealth lost the opportunity during FY2020 to save an additional $4.21 million due to delayed payment (invoice) processing by departments. Vendors who are not offering discounts should be approached and asked to enroll in the Prompt Payment Discount program. With tight budgets, Prompt Payment Discounts are a sensible way for departments to save money and to provide a timely cash flow to vendors. Please be advised that during the fourth quarter of 2020, departments may have lost opportunities to take discounts as they were dealing with the initial COVID-19 mitigation strategies and moving staff and business procedures to remote procedures. Therefore, while the amount of lost opportunities increased, it is CTR’s hope that agencies are more accustomed to the interim business procedures required under the pandemic that they will find ways to recapture these savings.