Oracle U.S. Federal Financials lets federal agencies comply with the Prompt Payment Act regarding when and how to pay commercial obligations.
You can use the Due Date Calculation process to complete these tasks:
Compare the Invoice Received Date to the Goods/Services Acceptance or Receipt Date.
Compare the Goods/Services Acceptance Date to the Constructive Acceptance Date.
Calculate the due dates when improper supplier invoices are not returned to suppliers within the allotted time.
Calculate the Discount Date for supplier invoices that have discount terms.
Recalculate Payment Schedules to use the correct Discount Date based on the Invoice Date.
Recalculate Payment Schedules to use the later of the Invoice Received Date, Goods/Services Acceptance Date, or Constructive Acceptance Date.
Recalculate Payment Schedules to correct the due date if the original due date falls on a weekend or holiday.
Assign different payment terms to different groups of suppliers to comply with the payment terms in the Prompt Payment Act.
The payment terms default to each purchase order or invoice for that supplier.
If the supplier offers a discount, the Economically Beneficial Discount process performs these tasks:
Determines whether it is economically beneficial to take the discount.
Eliminates payments with a discount that is not economically beneficial from the payment process request.
Automatically updates the Assign Reason Codes window if a discount is lost.
The Invoice Returns process lets agencies perform these tasks:
Calculate Prompt Payment Act due dates when defective supplier invoices are returned.
Capture and store the original invoice information for future reference.
Capture the reason code for the invoice return.
The Invoice Returns window captures the original invoice received date and the original invoice returned date for invoices that are deemed improper and returned to the supplier. The Due Date Calculation process checks to make sure that the improper invoice was returned to the supplier within the allotted time. The allotted time is set up in the payment Terms Types window. If the invoice is not returned within the allotted time, the due date for the new invoice is offset by the number of days over the allotted time it took an agency to return the original invoice to the supplier.
The Prior Period Receipts process lets agencies capture the actual receipt or acceptance date information that is used in the Prompt Payment due date calculation.
The Prior Period Receipts window records receipts or acceptance transactions that were received in a prior period that is now closed.
The Assign Reason Codes process lets agencies assign reason codes to invoices with interest paid, invoices with discounts lost, cancelled invoices, and credit memos.
The Assign Reason Codes window assigns reason codes to discount lost, interest paid invoices, cancelled invoices, and credit memos.
Related Topics
Prompt Payment Report Procedures.
Before using the prompt payment features, you must:
Access to Payables and Payments is required to enter invoices and process payments.
Set up Reason Codes in the Define Federal Financials Lookups window.
Complete Setup steps, including defining payment terms types and setting financials options, to process payments using the Prompt Payment features.
Enter a current value of funds rate in the Define Fund Rates window before processing payments for the first time and update the rate whenever the Department of Treasury publishes a new current value of funds rate.
Note: If a current value of funds rate has never been entered, Payables takes all available discounts, whether economically beneficial or not.
If the current value of funds rate is not updated, the last current value of funds rate entered is used to determine the economically beneficial discount.
Set the terms date basis to Invoice Received Date in Payables.
If the invoice is returned, enter the original invoice that is being returned to the supplier in Payables.
Enter the payment terms in Payables.
Select Prompt Pay as the payment terms type for the payment terms associated with the invoices to be processed.
Note: If Prompt Pay is not selected as the payment terms type for the payment terms used, the invoices are not included in the Due Date Calculation process, and the terms date basis is used as the due date.
Enter Constructive acceptance days and invoice return days in the Define Payment Terms Types window.
Set the site level profile options, FV:USE INTEREST REASON CODES and FV:USE DISCOUNT LOST REASON CODES, to Yes to capture and report reason code data.
Use automatic Interest Invoice creation.
Enter Receipt and acceptance transactions in Oracle Purchasing.
Enter Holidays and non-working dates for the Due Date Calculation process to accurately calculate prompt payment information.
Note: If holidays and non-working dates are not entered, the dates are not used in the Due Date Calculation process.
Enter the operating unit in the Define Federal Options window.
Related Topics
Federal Seed Data Setup,Oracle U.S. Federal Financials Implementation Guide
Oracle U.S. Federal Financials Setup Overview,Oracle U.S. Federal Financials Implementation Guide
Payment Terms, Oracle Payables Implementation Guide
Current Value of Funds Setup,Oracle U.S. Federal Financials Implementation Guide
Payment Terms Types Setup,Oracle U.S. Federal Financials Implementation Guide
Specify Profile Options,Oracle U.S. Federal Financials Implementation Guide
Automatic Interest, Oracle Payables User Guide
Receiving Transactions, Oracle Purchasing User Guide
Entering and Viewing Purchase Order Acceptances, Oracle Purchasing User Guide
Holiday and Non-Working Dates Setup,Oracle U.S. Federal Financials Implementation Guide
Federal Options Setup,Oracle U.S. Federal Financials Implementation Guide
To apply the correct due dates to the payment schedule before creating payment process requests:
Using the Submit Request window, select Due Date Calculation.
Select an operating unit.
Select Final or Preliminary.
Note: When the report is run in Preliminary mode, it provides a list of invoices to be updated by the procedure. When the report is run in Final mode, the due dates and discount dates are updated for the invoices selected. Once the report is run in Final mode, the invoices are not selected again.
Note: The Prompt Payment Due Date Report is automatically printed on completion of the Due Date Calculation process.
Related Topics
See: Prompt Payment Report Procedures
See: Using Standard Request Submission, Oracle Applications User Guide
No separate procedure is required to run the Economically Beneficial Discount process. For users of Oracle U.S. Federal Financials, the Economically Beneficial Discount process occurs transparently as part of the Payment Selection process during normal payment request processing in Payables.
To record returned invoices, navigate to the Invoice Returns window.
The following table describes selected fields on the Invoice Returns window.
| Field Name | Description |
|---|---|
| Operating unit | Operating unit of the record.
Note: The list of values include operating units assigned to the MO: Security profile. |
| Original Invoice Date | Original date of invoice |
| Original Invoice Received Date | Date invoice received |
| Invoice Returned Date | Date defective invoice was returned to supplier
Note: Date must be greater than or equal to the original invoice received date. Note: When the invoice is returned to the supplier, the supplier must resubmit the invoice using the same invoice number. (If the invoice is not placed on hold) Warning: If the invoice is approved and returned to the supplier, the invoice will be paid. |
| Invoice Return Reason Code | Select the reason code for returning invoice |
To record Prior Period Receipts information, navigate to the Find Prior Receipts window.
The following tables describes selected fields on the Find Prior Receipts window.
| Field Name | Description |
|---|---|
| Operating Unit | Operating unit of the record.
Note: The list of values include operating units assigned to the MO: Security profile. |
| Receipt Number | Receipt number
Note: If receipt information is not known, select purchase order or blanket purchase agreement in the PO number field. |
| Release | Release number associated with every planned purchase order and every blanket purchase order
Note: The Release field is available only if the purchase order number associated with a planned purchase order or a blanket purchase order agreement is entered. |
| Line | Line number
Note: The line field is available only if the purchase order of type Standard is entered. |
| Shipment | Shipment number
Note: The Shipment field is available only if the PO number, Release, and Line are specified. |
| Find | Opens the Prior Period Receipts window |
| Actual Date | Enter the date used for the Due Date Calculation process. |
To assign reason codes to invoices, navigate to the Assign Reason Codes window, add the invoices and assign the reason code.
Note: Only unpaid invoices can be added to the Assign Reason Codes window in the Interest or Discount tab without a payment process request.
To assign reason codes to individual invoices in a payment process request in the Interest or Discount tab, navigate to the Assign Reason Codes window. Query the payment process request and assign the reason codes to the invoices automatically populated in the window.
To assign reason codes to all invoices in a payment process request in the Interest or Discount tab, navigate to the Assign Reason Codes window. Query the payment process request, enter a reason code in the Default Reason Codes field and select the Default Values button.
Note: The Prompt Payment Reason Codes for invoices in payment process requests can only be modified on an individual basis after defaulting.
The following table describe selected fields on the Assign Reason Codes window, Interest tab.
| Field Name | Description |
|---|---|
| Operating Unit | Operating unit of the record.
Note: The list of values include operating units assigned to the MO: Security profile. |
| Original Invoice Number | Original invoice number |
| Interest Reason Code | Interest reason code |
| Interest Invoice Number | Interest invoice number |
The following table describe selected fields on the Assign Reason Codes window, Discount tab.
| Field Name | Description |
|---|---|
| Operating Unit | Operating unit of the record.
Note: The list of values include operating units assigned to the MO: Security profile. |
| Invoice Number | Invoice number |
| Discount Lost Reason Code | Discount lost reason code |
The following table describe selected fields on the Assign Reason Codes window, Cancelled tab.
| Field Name | Description |
|---|---|
| Operating Unit | Operating unit of the record.
Note: The list of values include operating units assigned to the MO: Security profile. |
| Invoice Number | Invoice number |
| Cancelled Reason Code | Cancelled reason code |
The following table describe selected fields on the Assign Reason Codes window, Credit Memo tab.
| Field Name | Description |
|---|---|
| Operating Unit | Operating unit of the record.
Note: The list of values include operating units assigned to the MO: Security profile. |
| Invoice Number | Invoice number |
| Credit Memo Number | Credit memo number |
| Credit Memo Reason Code | Credit memo reason code |