Tuesday Jul 31, 2012

Accelerating Payments to Small Business for Goods and Services

On September 14, 2011, the Office of Management and Budget (OMB) issued Memorandum 11-31, "Accelerating Payments to Small Business for Goods and Services.”  That memorandum established, “the Executive Branch policy that, to the full extent permitted by law, agencies shall make their payments to small business contractors as soon as practicable, with the goal of making payments within 15 days” or receipt of relevant documents.  That said, this memorandum does not affect the application of the Prompt Pay Act’s late-payment interest penalty provisions.

Fortunately, there is a method to systematically satisfy this memorandum in EBS today. 

For example:

Invoice Received Date:  01-MAY

Goods Accepted Date:  01-MAY
Invoice Due to be paid Date (per OMB memo you mention):  16-MAY
Date Interest should start accruing:  31-MAY

One method agencies can satisfy the guidance of the memorandum would be to record or carry forward from the PO the applicable Pay Terms.
  In the example, they would be 'Net 30'.  By using the standard payment terms this allows the agency to start accruing interest on 31-MAY, if necessary.  In addition, when the agency runs its 16-MAY pay, they should set the 'pay through' value to 31-MAY for small business payments.  This will select all invoices which are due within the 15 day window.  Users can also get more complex through the use of pay groups.

I hope this helps.

If you have any topics you would like to see addressed in the blog, please leave them in the comments section.

Thank you for reading.

Tuesday Apr 03, 2012

Welcome to the Oracle FedApps blog

Congratulations, you have stumbled upon Oracle’s newest blog: The Federal Applications Blog. Periodically I plan to provide some insight into how Oracle’s application solutions are being applied, or how they can be applied, within the Federal Government.

If you are a user of, or just interested in, Oracle’s applications in the Federal space and have questions/topics you would like to see addressed in this blog, please post a comment.

So bear with me as I take a bit of time to refine the content, look and feel of this blog.

http://www.oracle.com/us/industries/public-sector/038044.htm

http://www.oracle.com/us/industries/public-sector/038046.htm

-- JMW

About

The author, Jeff Waterman, has been with Oracle since 1996 in various roles, but always working to apply Oracle Application solutions assist the US Federal Government with fulfilling its mission to its citizens. Presently, he serves as a Master Principal Applications Sales Engineer within North America Public Sector.

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