Handling Exceptions to the Prompt Payment Act 

Use

Certain transactions between vendors and the agencies of the US Federal Government are not subject to the Prompt Payment Act (PPA) and can be handled using the exclustion procedure described below.

Examples include the following:

·        Contract financing payments

·        Utility payments where state, local, or foreign authorities impose generally applicable late payment rates

·        Where a particular payment is disputed

·        When amounts are withheld temporarily in accordance with the contract – for example, holdbacks on construction contracts

Prerequisites

The PPA feature is active for your company code.

Procedure

To exclude whole invoices from PPA calculations, proceed as follows:

...

       1.      In the Easy Access menu, choose Account ®  Financial Account  ® Accounts Payable ® Document ® Entry Invoice.

       2.      Make the usual entries. In addition, however, check the Exclude Invoice from PPA Calculations box.

       3.      Save your entries.

Result

The resulting document is not subject to PPA requirements.

You can uncheck the box at any time before the document is posted. However, after the document is posted, the only way you can include an excluded invoice into the PPA calculation is to cancel it and enter a new document.