Using Penalty Reason Codes 

Use

Penalty reason codes explain why penalty interest arising from the requirements of the Prompt Payment Act (PPA) is being calculated.

Prerequisites

·        Before following the procedure described below, you need to have defined the penalty reason codes. To do this, go to the Public Sector Management section of the Implementation Guide and choose Functions for the US Federal Government ® Payment Processing ® Prompt Payment Act ® Create Penalty Interest Reason Codes.

·        The invoice(s) for which you want to process reason codes must be subject to the PPA.

Procedure

Proceed as follows:

...

       1.      In the Public Sector Management section of the Easy Access menu, choose Functions for US Federal Government ® Payment Processing ® Prompt Payment Act ®Maintain Penalty Reason Codes.

       2.      In the resulting selection screen, make the following selections:

¡        Company codes or range of company codes (required)

¡        Vendor or range of vendors

¡        Document number or range of numbers

¡        Whether cleared and/or uncleared documents are to be processed. You can also restrict this selection to a range of dates.

¡        You choose between processing documents that already have reason codes and those that do not.

       3.      When you choose Execute, the system displays a list of the documents and document items that satisfy the criteria you entered. The Old Reason Code column shows the reason code currently entered for an item. The New Reason Code column is where you enter any changes.

       4.      When you have finished, save your entries.