2024FN3-083advancepayments

Advance Payments

It’s Possible but not Encouraged

  • In most cases, the Postal Service pays for supplies or services after delivery. Paying for supplies or services before they’re delivered is strongly discouraged.
  • However, in instances where the common trade practice is to pay in advance and the supplier refuses delivery otherwise, advance payments are permitted under the guidelines found in Management Instruction, Advance Payments (MI FM-610- 2010-2).
  • Where paying in advance is a regular practice, it’s justified to expect that to continue. Examples include facility rentals, magazine subscriptions, booth space at conventions, tuition and software maintenance.
  • Advance payments have different approval thresholds.

Get to know the advance payment policy. It ensures proper management of USPS funds.

And that’s smart business.

Find the MI (MI FM-610-2010-2) on advance payments at: http://blue.usps.gov/cpim/ftp/manage/fm610102.pdf