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.

Monday Apr 09, 2012

Announcement: Federal Financial Briefing

Dear Oracle/PeopleSoft Federal Financial Management Customers: Oracle is pleased to announce that we will conduct the next Federal Financial Management Briefing on Tuesday, April 17th from 8:30 am until 2:00 pm at the Oracle Campus in Reston, Virginia. The Registration Link and Agenda can be found at the web site below:

Federal Financial Briefing: Register Here

Directions to Oracle Reston: From the Beltway take the Dulles Toll Road (Route 267 West). Do not get on the Dulles Access Road or you will not be able to exit until you get to the airport. Take the Reston Parkway Exit (Exit 12). At the end of the exit ramp, turn right onto Reston Parkway. Make your first right onto Sunset Hills Road. Take a Right turn onto Oracle Way and park in Visitor Parking. The receptionist will direct you to the CAB.

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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