Foreign Vendor Payments

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Disbursements!

Foreign Vendor Payments

Procedures for paying foreign vendors vary based on how the department/unit and the vendor request the information. The department/unit will need to contact the vendor to determine exactly what format the vendor will expect payment in. Many foreign vendors accept US checks for the conversion rate on the date of the payment. Others accept a US check at a rate agreed upon by the department/unit and vendor (ex: date of order, date of delivery, etc). Some foreign vendors require the funds be paid in US dollars via wire transfer and others require wire transfers in the foreign currency (ex: EUR, GBP, etc).

Departments/Units must provide Disbursements with clear instructions on the agreed upon terms.

Paying via US check – If paying a vendor with a US check, you must provide a copy of a currency conversion that was used to determine the amount to pay the vendor. Please indicate what date you are using for the conversion process (ex: date of payment, date of order, date of delivery, etc).
a. Set up an L-doc for the US amount based on the currency conversion.
b. Submit the invoice to Disbursements for payment processing.
Paying via wire transfer – If paying a vendor via wire transfer, a wire transfer form, the vendor’s banking information and the type of currency to be wired must be provided. When wiring funds to a foreign bank, Texas A&M Agriculture's financial institution charges $40, this fee is passed to the department requesting the wire transfer.
1. If wiring a foreign currency:
  Set up an L-doc for the US amount estimated on a currency conversion, round up to the next $50 or $100 increment. Your account will be charged for the actual amount of the currency conversion after the funds are wired. The L-doc should be made payable to the vendor.
  Include the $40 fee as a separate line item on the document.
  Ensure that invoicing and receiving are complete.
  Submit the invoice to Disbursements for payment processing.
2. If wiring US funds:
  Set up an L-doc for the US amount based on the currency conversion (agreed upon amount with the vendor). The L-doc should be made payable to the vendor.
  Include the $40 fee as a separate line item on the document.
  Ensure that invoicing and receiving are complete.
  Submit the invoice to Disbursements for payment processing.

Any mail that we have for foreign address, we send via US air mail. Mailing via US air mail often takes a week or more to reach the final destination. Depending on when the vendor deposits the funds, actual payment information could be even longer. When sending payments via wire transfer, we generally try to initiate the wire within two days of receipt of the invoice and wiring information. The wired funds could take anywhere from one day to four weeks to reach the vendor depending on the country’s financial institution system.

For any questions regarding payments to foreign vendors and/or wire transfers please contact Disbursements:

Kim Payne
kpayne@ag.tamu.edu
979-845-4764

Shiao-Yen Ko
sko@ag.tamu.edu
979-845-4778

Shiao-Yen Ko
Manager, Accounting Services

Our Address:
Texas A&M Agriculture
Disbursements
2147 TAMU
College Station, TX 77843-2147

Physical Address:
Wells Fargo Bldg.,
3000 Briarcrest Dr., Suite 540,
Bryan, TX 77802

phone: 979/845-4778
fax: 979/458-3242

Last update: 1/9/2006
Page maintained by: Gwen Tucker

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