1. Implementing U.S. Federal Financials
  2. Overview of Prompt Payment

Overview of Prompt Payment

Federal agencies must comply with the Prompt Payment Act. The Prompt Payment Act governs how and when federal agencies pay their commercial obligations.

The Prompt Payment Act regulates how agencies perform these functions:

  • Determine payment due dates and discount dates

  • Calculate interest for late payments

  • Take discounts based on whether they're economically beneficial

The Prompt Payment Date Calculation process and the processes to calculate Prompt Payment interest and discounts support meeting these Prompt Payment requirements.

The Discount Calculation process and Interest Calculation process are initiated by the payment process for invoices with payment terms that are Prompt Payment-enabled.