Prompt Payment Processes
Prompt Payment features enable federal agencies to comply with the requirements of the Prompt Payment Act. These features include the Prompt Payment Date Calculation process, the Discount Calculation process, and the Interest Calculation process.
Prompt Payment Due Date Calculation Process
The Prompt Payment Due Date Calculation process updates the due date and the discount date on open invoices consistent with the Prompt Payment rules. While determining due dates and discount dates, this process takes these invoice and receipt attributes into account:
Invoice Attributes |
Receipt Attributes |
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This process also considers the constructive acceptance date and adjusts the due dates that fall on weekends or holidays.
Discount Calculation Process
The Discount Calculation process determines whether a discount is economically beneficial by comparing the discount rate to the Treasury's Current Value of Funds Rate (CVFR). If a discount is economically beneficial, it's automatically applied during the payment processing.
Interest Calculation Process
The Interest Calculation process calculates interest on late payments according to the Prompt Payment rules. This process also creates interest invoices as part of the payment process if the Create Interest Invoice setting is enabled for the payment term.