An agency establishes a paying entity to achieve default values for processing invoices, credit memos, employee advances, and payment transactions. A paying entity defines the set of rules that will govern the purchasing and accounts payable transactions generated within the entity.

A paying entity is a unique code that contains the agency name and address and the type of vendor that will be processed.

Each agency has at least two paying entities. They have the following structure:

XXPT and XXPE

XX = Agency identification number

P = Paying

T = Trade vendor transactions

E = Employee vendor transactions

For example,

• DOI uses 12PT to pay a trade vendor.
• The OSC uses 14PE to pay employee advances.

Note: Your agency may use additional paying entities if it has unique business requirements. For example, the Department of Revenue established a third paying entity, 45PN, to pay non-trade vendors. Additional paying entities must be reviewed and approved by the OSC to ensure compliance with the NCAS business model.