OVERVIEW  

The Texas Comptroller of Public Accounts (TCPA) is authorized by statute to set justifiable limits for the payment of restocking charges that may be incurred when merchandise is returned to a vendor for a refund. Texas Woman's University Purchasing Department supports this TCPA ruling. Restocking charges of more than 15 percent require substantial justification from the vendor. Departments are not authorized to obligate TWU by agreeing to pay restocking fees of more than 15 percent.

PROCEDURE

When a vendor insists on charging a restocking fee of more than 15 percent, the additional amount must be justified in writing by the vendor.  If the requesting department agrees with the additional amounts, departmental approval of the charges and the documentation from the vendor must be forwarded to the Purchasing Office.  This information will be submitted to the Accounts Payable department for payment.