Run Prompt Payment Interest Calculation (30.3.6)

1

Run Prompt Payment Calculation

A Voucher is created in Florida PALM and the date the invoice was received, the date the goods and services were received, and the date the goods and services were approved is recorded on the voucher. These dates are required on the voucher for reporting prompt payment compliance and calculating interest due to suppliers, when applicable.

2

Generate Interest Vouchers

Once the Payment Creation Process is complete the system will use the later of the three dates as the Basis Date. The Basis Date is used to automatically calculate Prompt Payment interest due. An interest voucher is generated if interest is due.

Based on 215.422 F.S interest accrues after 35 days for any non-paid invoices for health-related services and 40 days for all other invoices. Florida PALM uses the Account ChartField values to determine if a voucher is health related.

3

Review interest Vouchers

The Agency AP Processor reviews the Interest Voucher and the Prompt Pay Compliance Report to verify interest is due. Occasionally dates have been entered incorrectly and the interest calculation is incorrect.

4

Delete Interest Voucher

Interest vouchers that are incorrect may be deleted by the DFS AP Maintainer. The Agency AP Processor may request the DFS auditing team to delete the interest voucher. The Agency AP Processor may be asked to provide supporting documentation to the DFS auditing team.

5

Update Interest Voucher Line Distribution

Interest vouchers that require a change in the Distribution Line may be updated by the Agency AP Processor. The Agency AP Processor may not delete the voucher or update an incorrect date. The Agency AP Processor may request the DFS AP Maintainer to delete the voucher and to correct a date.

6

Recalculate Basis Date

If a date was added incorrectly and the Basis date should be re-calculated the Agency AP Processor may request the DFS AP Maintainer to delete the interest voucher and update the incorrect date on the initial voucher. Once the date is corrected the system will re-calculate the Basis date and create a new interest voucher.

7

Approve Interest Vouchers

The Agency AP Processor approves interest vouchers that are due to the supplier.

8

Run Budget Check

Budget Check runs and validates the current budget for each voucher against ChartField values entered in the expenditure distribution. If the interest voucher passes budget check the voucher is posted.

9

Post Interest Vouchers

The Post Voucher step indicates that the interest voucher completed the required steps and is approved for payment.

When the voucher is posted, an accounting entry is generated to recognize an account payable (i.e., a liability) to the supplier, and to recognize the associated expense/expenditure accrual.

10

Outbound Voucher and Payment Extract File
(API031)

An Outbound interface flat file containing voucher accounting, voucher status and payment information is available for agency business systems, source systems, and transparency sites.

11

Manage Budget Exceptions

Internal agency policy should guide the Agency AP Processor regarding transaction processing when a budget error is returned. Depending on your agency policy the Agency AP Processor can update the ChartField string or contact the Agency KK Budget Maintainers.

Please see 20.2 Budget Execution and Management for more information.

Transactions that fail budget check do not consume appropriations. Budget check exceptions continue to be systematically checked until they are resolved. Budget Check is re-run after updates have been made to the voucher.

12

Generate GL Journals

Journal Generator (JGEN) processes posted accounting entry data from the Florida PALM source modules, summarizes the data, and creates journals in the General Ledger. The Journal Generator process will edit check, budget check, and post the journal entries created during the process. Please see 10.2 Enter and Process Journals for more information on source module journal entries.

Decreases Encumbrance 

Increases Available Appropriations

Debit: Expenditures (U)

Credit: Accounts Payable (S)

Decreases Available Appropriations 

Decreases Allotments Decreases Releases 

Debit: Expenditures

Credit: Accounts Payable

Decreases Available Appropriations 

Decreases Allotments Decreases Releases 

R2

APR001

Prompt Payment Compliance Report – a report that measures the time elapsed between receipt of invoice, receipt of goods and services, approval of goods and services, and payment date by Business Unit

Data Warehouse

Daily, Monthly

Agency, DFS

N/A

API031

Outbound Voucher and Payment Extract – Outbound interface containing voucher accounting, voucher status and payment information to source systems, transparency sites and Vendor History

Daily

Florida PALM

Agency Business Systems, MFMP, STMS, Works

N/A

N/A

N/A