Applying Prompt Payment Protocols
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Page Name |
Definition Name |
Usage |
|---|---|---|
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VCHR_DT_CALC_SBP |
(USF) Define the date calculation basis for U.S. Federal prompt payment due date requirements and enable enforcement of valid reimbursable periods for project-related vouchers. |
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PYCYCL_MGR |
Run and manage the Pay Cycle process, from Payment Selection through output processing (printing checks and advices, producing EFT files, and so forth). Transfer to pay cycle exceptions pages and pay cycle detail and summary data pages, where you can handle exceptions and hold, exempt, or separate payments. View Pay Cycle processing status and results. |
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AP_VOUCHER_INQUIRY |
Search for and review status of a voucher and any payment information. |
If you are using federal payment schedules, you have two options to help you meet Prompt Payment Act obligations:
Prompt payment due date calculation, also known as Date Calculation Basis.
Late interest charge calculation.
Prompt Payment Due Date Calculation
Prompt payment due date calculation helps you determine the best dates to pay vouchers. The system weighs early payment discounts against interest you could earn by leaving the money in the bank until the due date. If you represent a U.S. Federal agency, payment scheduling by prompt due date helps you fulfill the Prompt Payment Act obligation to pay bills promptly and at the time of greatest savings.
When you elect to apply prompt payment due date calculation, you can establish rules for determining a voucher's federal payment basis date based on the invoice date, goods receipt date, services receipt date, and acceptance date. You specify these rules for a voucher on the Date Calculation page (an auxiliary page accessed from the Invoice Information page). The system uses these rules to derive the basis date and, in turn, uses the basis date, payment terms, and holiday processing options to determine the payment due date.
You can view the discounts taken and discounts lost for scheduled voucher payments that were subject to prompt payment date calculation on the Prompt Payment Inquiry page and on the Prompt Pay Report (APS2001).
Late Interest Charge Calculation
PeopleSoft Payables can also calculate interest charges for late payments to suppliers automatically. PeopleSoft Payables follows Prompt Payment Act protocols:
Late interest is assessed on a payment made after the voucher due date.
Late interest is calculated using the U.S. Treasury interest rate for the period.
Late interest is not assessed on a payment to a government entity or employee.
Late interest of less than 1.00 USD is not paid.
You maintain the U.S. Treasury interest rate on the Late Interest Charges page. This page is effective-dated so that you can enter a new interest rate whenever the rate changes. As delivered, the system follows current U.S. Treasury guidelines:
Payments made 1 to 30 days late are subject to simple interest late charges.
Payments made 31 to 360 days late are subject to compound interest charges.
Payments outstanding for more than one year are subject to a maximum of 360 days calculated interest.
The Pay Cycle process calculates late interest based on the Late Charge Code for vouchers subject to late interest charges that have passed the payment due date. The Pay Cycle process also determines whether the calculated interest falls within the threshold for payment. The system tracks interest that is below the minimum interest threshold amount, but does not pay it. The Pay Cycle process generates interest lines using either the original distribution or a specified set of distributions, depending on the setup.
You can view the late interest charges applied to scheduled voucher payments on the Prompt Payment Inquiry page.
You can also calculate late interest for individual vouchers using various potential payment dates in the Late Interest Analysis section of the Voucher Inquiry page.
To set up prompt payment due date calculation:
Access the Installation Options - Payables page and select Enable Date Calc Basis and Evaluate Discount Rate.
(Optional) To specify date calculation basis defaults for a supplier, access the Supplier Information - Federal page and enter your defaults in the Date Calculation Basis group box.
(Optional) To specify date calculation basis defaults for a SetID, access the Payables Options - Payment Options page and enter your defaults in the Date Calculation Basis group box.
(Optional) To specify date calculation basis defaults for a voucher origin, access the Voucher Origin - Accounting and Pay Options page and enter your defaults in the Basis Date group box.
The date calculation basis rules you set up at these levels in the hierarchy default through the hierarchy to the voucher, where you can override them on the Date Calculation page.
To set up late interest charge calculation:
Access the Installation Options - Payables page and select Enable Late Charge.
Access the Accounting Entry Template page and enter default ChartField values for late interest charges.
Access the Late Interest Charges page to define interest rates.
(Optional) Access the Late Chrg Chartfield Override page to override the ChartFields that the late charge accounting entries will be generated against.
If you don't override the late charge ChartFields, the accounting entries will be generated based on the late charge ChartFields defined on the Accounting Entry Template and inheritance. If you do override it, ChartFields will be determined by override as well. For example, if your budget has expired, you could override the late charge ChartFields and replace them with those for an active budget.
Access the Payment Reason Codes page to define reason codes for late payments.
Access the Procurement Control - General Controls page to specify your Late Payment Allocation Policy.
To specify late charge defaults for a supplier, access the Supplier Information - Payables Options page and enter your defaults in the Late Charges group box.
To specify late charge defaults for a business unit, access the Payables Definition - Payments page and enter your defaults in the Late Interest Charges group box.
To specify late charge defaults for a voucher origin, access the Voucher Origin - Accounting and Pay Options page and enter your defaults in the Late Charges group box.
To specify late charge information for a voucher, access the Late Charge Information page from the Voucher - Payments page in the Voucher component and enter your late charge specifications.
Use the Date Calculation page (VCHR_DT_CALC_SBP) to (USF) Define the date calculation basis for U.S. Federal prompt payment due date requirements and enable enforcement of valid reimbursable periods for project-related vouchers.
Navigation:
Click the Basis Date Calculation link on the Invoice Information page.
Accept or override the default date calculation basis.
This value determines the date calculation rules that apply to a transaction under the U.S. Prompt Pay Act. Select one of the following:
(none)
Agricultural Commodities
Dairy
Meat
Poultry
Prompt Pay Basis 7 days
Prompt Pay Basis 14 days
Enter the dates that the system will use to calculate the payment basis date.
You can enter an invoice date, goods receipt date, services receipt date, and acceptance date. The system uses these dates to calculate the federal payment basis date, depending on the date calculation basis.
Click Calculate to populate the Fed Pymnt Basis Date (federal payment basis date), which the system uses as the basis date for calculating the payment due date for the scheduled payment (based on the payment terms).
Use the Pay Cycle Manager page (PYCYCL_MGR ) to run and manage the Pay Cycle process, from Payment Selection through output processing (printing checks and advices, producing EFT files, and so forth).
Transfer to pay cycle exceptions pages and pay cycle detail and summary data pages, where you can handle exceptions and hold, exempt, or separate payments. View Pay Cycle processing status and results.
Navigation:
Run the Pay Cycle process; the late charge will automatically be added to the payment according to your setup.
Note: Late charges are calculated on the voucher gross amount (in the invoice currency) and, once calculated, converted from the invoice currency to the payment currency, if necessary.
Use the Late Interest Analysis collapsible section on the Voucher Inquiry page to calculate potential late fees.
Enter the Payment Date on which you anticipate making your payments, click the Calculate button, and the system displays late interest details for all vouchers that would be overdue if you paid them at that time.
To view discounts taken, discounts lost, and late charges on scheduled payments, use the Prompt Payment Inquiry page.