Contract Payments

Some vendors must be paid on the basis of a contract. This happens for a number of reasons, but is most often because the purchase is of a large archival collection, or personal library; the contract sets out and guarantees the seller’s and Harvard’s obligations and rights. Contract payment will likely be via check or Zelle transfer (if a US-based vendor), or via check or wire (if a non-US vendor). A contract may result in a one-time payment or may consist of multiple payments at specified dates. Because contracts are both high-value and the result of much negotiation and curatorial contact, we want to be certain nothing goes awry with them.

The staff responsible for these activities in Houghton are the Acquisitions Assistant and Technical Services Librarian (referred to collectively as Acquisitions).

Contract Pre-Work and Set-up

In order for a contract to be paid expeditiously, vendor set-up should be completed at least 30 days before any payment is made. The Curator making the purchase should inform Acquisitions of an upcoming contract, and forward contact information to Acquisitions. This information should include a draft of the contract which includes:

• Vendor name and remittance address

• Price for the purchase

• Terms of the purchase, including due dates, and amount(s) due

• Relevant banking information

Acquisitions will begin the vendor set-up process with the vendor, following established workflows appropriate to the purchase.

In negotiations with the vendor the Curator should make the following clear:

• Payment is dependent on account set-up; any delay by any party (including the seller) will result in delay

• Payment will be projected at 30 days from the date of the last signature on the contract, provided that vendor set-up has occurred prior to that date

Acquisitions will monitor available account set-up information in B2P, and report any difficulties or delays to the Curator and vendor.

Making the Contract Payment

When a signed contract is received for payment from a curator it should contain the following:

• Vendor name and remittance address (which must agree in all details with the account data as set-up by Acquisitions)

• Price for the purchase

• Terms of the purchase, including due dates, and amount(s) due

• Relevant banking information

• Funds for all payments

• Provisional inventory

• Instructions for routing

Acquisitions will follow established procedures for payment, including Alma processes, based on the type of payment (check, Zelle payment, or wire transfer).

Acquisitions will monitor Accounts Payable data in Oracle every three days to insure there are no holds or other impediments to successful payment. Acquisitions will report and monitor any delays with the Financial Administration and Operations Manager.

Arrival

Contract collection material may arrive at Pusey or it may be delivered to HD.

Upon notification of receipt, the TS Assistant will follow established procedures for receipt of material. TSA should liaise with Manuscripts regarding handling of material which arrives in Pusey. If an updated box list or inventory is received, a copy should be scanned by Acquisitions and added to the SharePoint file for the purchase. 

Since most contract purchases occur prior to receipt, Acquisitions will not perform customary data entry or payment activities.

Post-arrival, the Accessioning Archivist will follow established procedures for Alma and ArchivesSpace processing.

Known Issues

• Delay in vendor setting self up in B2P: vendor must create an account in a timely manner.

• Delay in contract delivery for payment: Curator must forward signed contract in order for payment to be processed.

• Expectation of fast or immediate turnaround: a month’s lead time for set-up must be communicated by curator to vendor, and reinforced by Acquisitions.

• Holds: many personal accounts experience a hold on first payment, and Acquisitions will monitor Oracle every third day to insure no hold persists. Any difficulties with holds should be communicated to the Financial Administration and Operations Manager.

• Wire transfer delays: wire transfers should be processed for immediate payment, but in practice this seldom occurs. Acquisitions will monitor payment status, and communicate significant delays to the Financial Administration and Operations Manager.

• Slowdowns: financial operations are typically unavailable between December 7-January 7, and June 7-July 7. All payments must be scheduled before these date, with the expectation that payments cannot be made during these gaps. Payment by PCard is available during these times, but most contracts fall well outside the ability for a PCard to suffice.

• 30 days: if any contract is within a week of the 30-day payment window, Acquisitions will reach out to the Financial Administration and Operations Manager, with a copy to the Houghton Head of TS and Houghton Director of Operations and Finance.