What is 'Prompt Payment Act' in SAP PSM-FG - Functions for U.S. Federal Government?

Prompt Payment Act - Overview

• Component: PSM-FG

• Component Name: Functions for U.S. Federal Government

• Description: The Prompt Payment Act PPA is federal legislation requiring agencies of the US 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"

Prompt Payment Act - Details

• 
  Key Concepts: 
  The Prompt Payment Act is a U.S. federal law that requires the government to pay its bills on time. It was enacted in 1982 and applies to all federal agencies, including the Department of Defense, the Department of Energy, and the Department of Veterans Affairs. The law requires that all invoices be paid within 30 days of receipt, unless otherwise specified in a contract. 
  
  How to use it: 
  The Prompt Payment Act is implemented in SAP through the PSM-FG Functions for U.S. Federal Government component. This component provides a set of functions that enable federal agencies to comply with the Prompt Payment Act. It includes features such as automatic payment processing, invoice tracking, and payment reconciliation. 
  
  Tips & Tricks: 
  When using the PSM-FG Functions for U.S. Federal Government component, it is important to ensure that all invoices are processed within 30 days of receipt. This will help ensure compliance with the Prompt Payment Act and avoid any potential penalties or fines. 
  
  Related Information: 
  For more information about the Prompt Payment Act and how it is implemented in SAP, please refer to the official SAP documentation on PSM-FG Functions for U.S. Federal Government.