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FAR and DFARS › FAR Part 32: Contract Financing › Subpart 32.9

FAR 32.902 Definitions.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section defines key terms used in the prompt payment subpart of the FAR. It explains what a discount for prompt payment, a mixed invoice, a payment date, and a settlement date mean. These definitions matter because they determine how and when contractors get paid and how discounts are handled.

Applies to: Contractors and contracting officers involved in invoice payments under this subpart

Key terms: Discount for prompt payment · Mixed invoice · Payment date · Settlement date · Electronic funds transfer

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As used in this subpart—

Discount for prompt payment means an invoice payment reduction offered by the contractor for payment prior to the due date.

Mixed invoice means an invoice that contains items with different payment due dates.

Payment date means the date on which a check for payment is dated or, for an electronic funds transfer (EFT), the settlement date.

Settlement date, as it applies to electronic funds transfer, means the date on which an electronic funds transfer payment is credited to the contractor's financial institution.

Sections that refer to it

  • 52.232-25 Prompt payment.
  • 52.232-26 Prompt Payment for Fixed-Price Architect-Engineer Contracts.
  • 52.232-27 Prompt Payment for Construction Contracts.
  • 252.232-7011 Payments in Support of Emergencies and Contingency Operations.

← 32.901 Applicability. · 32.903 Responsibilities. →

Rule changes for FAR Part 32

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 32.902 Definitions · SpendQuery