E-rate Update - Billing Procedures
Message Posted March 18, 1998
The following are a few insights regarding billing and invoicing procedures that I learned on Monday from the presentation given by the Schools and Libraries Corporation at the PDE Vendor E-rate Conference. I think they answer many questions that schools and libraries have raised over the last three months. The official SLC procedures are due to be release very shortly.
-- Julie
The SLC will be submitting two funding committment letters -- one to the applicant and one to the service provider which the applicant has named on their Form 471. Included in this letter will probably the Universal Service Control Number, the size of the discount, the amount of the discount, and the Service Provider Identification Number.
Because the service provider will be receiving notice of the amount and size of discount, they will invoice the school or library for the undiscounted portion of the bill. For example, if you sign a contract with an ISP for $10,000 and your committment letter indicates a discount of 40%, your invoice from the ISP should be for $6,000. The ISP would then invoice the SLC for $4,000.
After the school or library begins to receive services, or after a product has been received, the school or library will complete and submit Form 486 to confirm that the contracted services are being received. This form will be VERY simple and will serve as the trigger for payment of invoices.
For services that are commonly paid on a monthly or quarterly basis, schools and libraries WILL NOT be required to submit new Form 486s each time they are billed. The vendor, however, will be required to invoice the SLC at the same time it invoices the school or library.
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