Fast Pay 

Purpose

The function is designed to satisfy the Fast Pay requirement in the Prompt Payment Act (PPA).

Prerequisites

·        You have installed the SAP Federal Government solution and have the PPA feature activated.

For detailed information on how to set up the PPA in the SAP System, see Prompt Payment Act.Note that, for Fast Pay, you are best advised to select automatic splitting of invoices.

·        You have installed, configured, and activated the SAP Materials Management (MM) application component.

Process Flow

Before you can use the Fast Pay (FP) function, there is some customizing you need to do in addition to the MM and general PPA customizing. Proceed as follows:

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       1.      In the Fast Pay and Accelerated Pay section of the Public Sector Management IMG, choose Maintain Material Groups for Fast Pay.

The Change View: “Fast Pay Material Groups”: Overview screen appears.

       2.      Enter the material groups, defined as part of MM customizing, for which you want to use FP function. An error message appears if you enter a group that is already used in PPA.

       3.      Save your work.

       4.      Next, you need to enter maximum amounts per company code. To do this, return to the Fast Pay and Accelerated Pay IMG and choose Maintain Payment Amounts for Fast Pay/Accelerated Pay.

The Change View: “Fast/Accelerated Pay Maximum Amount”: Overview screen appears.

       5.      Choose New Entries and enter:

¡        Your company code

¡        Fast Pay

¡        The amount and currency you want to apply as the maximum

       6.      Save your work. The name of your company appears in the Name column.

       7.      Finally assign payment terms to FP. To do this, return to the IMG and choose Maintain Payment Terms for Fast Pay/Accelerated Pay.

The Change View: “Fast/Accelerated Pay Payment Term Maintenance”: Overview screen appears.

       8.      To add payment terms to the list, choose New Entries and enter the ID for the term(s), stipulating Fast Pay in the payment type column.

Result

Customizing in the IMG is now complete. See below for an example of how purchase orders subject to Fast Pay are processed.

Example

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       1.      You stipulate the following:

¡        USFG as one of your Fast Pay material groups

¡        7 days as the Fast Pay terms for ID FAST with 5% discount.

¡        A maximum amount of $5000 for Fast Pay.

       2.      Next, you create a purchase order for 10 widgets in material group USFG. The widgets cost $200 each. For Fast Pay to apply, you must:

¡        Enter FAST as the payment terms

¡        Check the GR non-valuated box

       3.      When you have entered your data, save the purchase order. The system issues a document number.

       4.      You receive the invoice for $2000 and post it. Since Fast Pay does not require that the goods ordered should be received before the invoice, the system flags the transaction as Free for Payment.

The accounting document shows the Fast Pay terms, including the discount percentage.

       5.      This completes Fast Pay processing. You can view details of the transaction in the Business Warehouse (if installed).