Getting Paid by the Government

The Prompt Payment Act (PPA) offered by SAP includes features to handle the Fast Pay and Accelerated Pay requirements stipulated by Federal legislation.

The Prompt Payment Act - The Prompt Payment Act ensures that federal agencies pay for goods and services on time and requires federal agencies to automatically pay interest on late payments to vendors.
Prompt Pay Requirements:
The Government will make payments on time.
The Government will take discounts only when appropriate.
The Government will pay interest penalties when payments are late.

Invoices will be scheduled for payment as per the terms of the contract. This is usually Net 30 or 15. For example if the contract is Net 30, the vendor will get paid 30 days from the Invoice Received Date or the Acceptance Date, which ever is the later of the two dates, if the Material Received Date and the Acceptance Date are within the 7 days. If the Material Received Date and the Acceptance Date are greater than 7 days apart, then the vendor will get paid 30 days from the later of the Material Received Date plus 7 days ("constructive acceptance") and the Invoice Received Date.

Use the links below to access detailed information on these features. The documentation includes scenarios, giving examples of how processing in Fast Pay and Accelerated Pay takes place.

Fast Pay

Direct Deposit

Credit Card

 

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