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PSM, US Federal: PPA and Payments 3 Locate this document in the navigation structure

 

Technical Data

Technical Name of Business Function

PSM_USFED_PPAP_3

Type of Business Function

Enterprise Business Function

Available As Of

SAP enhancement package 5 for SAP ERP 6.0

Technical Usage

Public Sector Accounting (EA-PS)

Application Component

Functions for the US Federal Government (PSM-FG)

Directly Dependent Business Function Requiring Activation in Addition

PSM, Funds Management 2 (PSM_FM_CI_2

)

PSM, US Federal PPA and Payments 2 (PSM_USFED_PPAP_2)

You can use this business function to take advantage of newly streamlined processes around earmarked funds, down payments, invoices, and credit memos. The rules in the Prompt Payment Act (PPA) have been made more flexible and more information is provided about PPA calculations.

Prerequisites

You have installed the following components as of the version mentioned:

Type of Component

Component

Is Needed Only for the Following Features

Software Component

EA-PS 605

In addition to the above, to use any of the features in the PSM-FG solution, you must first activate it. To do this, go to Customizing and choose   Public Sector Management   Functions for US Federal Government   General Settings   Activate Federal Government Functionality  

Features

Enhancements to Payment Warehouse Report

The Payment Warehouse report lists invoice documents that are waiting for payment. It provides many features to improve the review and verification of invoices prior to actual payment. You can improve processing efficiency by using additional selection criteria that select fewer documents at a time. In addition, the report now provides many more details about proposed PPA due date and interest amount calculations.

Enhancements to Earmarked Funds Documents with Down Payments

  • Auto-transfer lines are generated for an FI invoice document to automatically clear a down payment (advance) on an earmarked fund (EF) document even when an earmarked line item referenced on the invoice's expense line does not have enough down payment or has no down payment at all. Available and open down payment may be transferred automatically from another EF line item of the same EF document.

  • If an EF line item has been completed and if there is still an open down payment amount on the EF line item, you can run the new program RFFMFG_TRANS_DP_EF_TO_CUST_REC to clear the down payment and transfer the remaining open down payment amount to a customer receivable account.

  • If an EF line item has been completed (that is, the completion indicator has been set) and if there is still an open down payment request amount on the EF line item, you can run the new program RFFMFG_REV_DPR_EF to reverse the down payment request.

Enhancements to US Federal Government Open Item Clearing Program for FI Down Payments

The US Federal open item clearing program can now automatically clear vendor invoice lines (posting key 31 - credit) and down payment transfer lines (posting key 26 - debit) on invoices related to earmarked funds documents. If a net amount remains after clearing, a residual item is created with reference to the invoice to improve payment processing.

Enhanced Account Assignment Determination Rules for Credit Memos

A new budgetary ledger area has been added to the SAP-delivered default configuration for Federal accounting rules. With it, you can specify how vendor credit memos (and customer credit memos) are to be shown on the trial balance and financial statements. They can be displayed as offsetting adjustments to their "normal" accounts, such as negative payables for vendors and; negative receivables for customers, or as adjustments to a reciprocal account (on the other side of the balance sheet), such as receivables, payables, or advances.

Extensions to PPA Functions

  • PPA logic has been added to transactions used for processing manual payments.

  • Existing functions now provide options you can use to exclude sources of payment terms from the most advantageous payment term determination for specified payees

  • PPA interest penalties are now posted to alternate account assignment for payments in expired funds.

  • You can now post PPA interest penalties and discounts to an asset account instead of an expense account for payments related to fixed assets.

Enhancements to Payment Warehouse Report

The payment warehouse report now includes information on payments made and more details about proposed PPA due date and interest amount calculations. Additional selection criteria allow you to select fewer documents at a time.

More Information

For full details of these and other features, see the Prompt Payment Act documentation.