Prompt Payment Act 
Purpose
The Prompt Payment Act (PPA) is federal legislation requiring agencies of the U.S. federal government to:
· Pay for consumed goods and services on time
· Pay interest penalties if payments for goods and services are made late
· Take discounts offered by vendors, if these are “economically justified”
Our Public Sector solution includes features specifically designed to help you meet the requirements of the PPA.
Integration
Our PPA solution is closely integrated with the SAP Materials Management (MM) and Financial Accounting (FI) application components.
Features
Our PPA solution includes functions enabling you to deal with:
· Paying for goods per the requirements of the legislation, including Fast Pay and Accelerated Pay
· Dealing with penalties, interest, and other charges relating to payments that fall outside the dates set
· Reporting
For detailed information, see the following:
· Prompt Payment Act: Definitions explains some of the terminology specific to the PPA functions.
· Prompt Payment Act: Customizing describes the configuration work you must do before you can use the PPA functions.
PPA processing is described in a series of scenarios, as follows:
¡ Using PPA: Scenario 1 – Ordinary Goods
¡ Using PPA: Scenario 2 – Invoice Received Before Goods
¡ Using PPA: Scenario 3 – Special Goods (1)
¡ Using PPA: Scenario 4 – Special Goods (2)
¡ Using PPA: Scenario 5 – Economic Justification
The dates used in the scenarios are based on the 2001 calendar year.
· Fast Pay and Accelerated Pay