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eXpendit

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Prompt Payment – USAS Instructions
Accounts That May Be Charged With Interest

USAS, by default, generates interest payments using the same coding block – fund, appropriation, program cost account (PCA), index, and grant and project account – as was used on the principal transaction.

State agencies can control how their interest payments are funded. Agencies can profile different coding blocks for potential interest transactions based on the PCAs that are used on the principal transactions.

Example
Agencies may predetermine that whenever a certain PCA is used on a principal payment transaction, USAS must use the “default interest PCA” to make an interest payment.

Comptroller Object Code (COBJ):

  • COBJ 7806, “Interest on Delayed Payments,” is used for all interest payments computed and generated out of USAS.
  • The Comptroller’s office prohibits agencies from using expenditure transfer vouchers to transfer balances from this COBJ to any other COBJ for interest paid under the prompt payment law.

    See also: Payments to Other Agencies

Encumbrances:

  • If a principal payment transaction that generates an interest transaction is charged against an encumbrance, then the interest payment is not automatically charged against that encumbrance.
  • No additional liquidation will occur.

Grant and/or Project:

  • If a principal payment transaction is charged against a specific grant or project in USAS, then those accounts may automatically be charged with any resulting interest payments.
  • Whether interest is charged against a specific grant or project depends on whether the principal payment coding block is used on the interest transaction or a default interest PCA is used.
  • If a default interest PCA is used for the interest transaction, the grant and/or project may or may not infer based on how that default interest PCA is profiled.

Index Code:

  • Like the project and grant numbers, this is an optional data entry element.
  • Agencies can require an index to be used if the AGY BUD BY ORG field on the Agency Control Profile (25) screen is Y.
  • If a principal payment transaction is charged against a specific index code and the PCA on that transaction allows interest to be charged against it, then the same index code is used on the potential interest transaction.
  • If a default interest PCA is used, then in order for an index code to be used on the potential interest transaction, it must be inferred from the default interest PCA.
  • If an agency requires an index code based on the 25 profile edit and the default interest PCA does not infer an index code, then the potential interest and principal payment will not generate in USAS.

Definitions

Payment
Money owed to a vendor.
Prompt payment law
Chapter 2251, Government Code.
State agency
  • A board, commission, department, office or other agency in the executive branch of state government created by the constitution or a statute of this state, including an institution of higher education as defined by Texas Education Code Section 61.003.
  • The Legislature or a legislative agency.
  • The Supreme Court, the Court of Criminal Appeals, a court of appeals, a state judicial agency or the State Bar of Texas.