Formatting Instructions for Federal Program Agencies (FPAs) Making Postage Payments to the U.S. Postal Service (USPS)

• Non-Treasury-Disbursed Agencies
• Payment Formats: Check and EFT

Formatting Instructions for Treasury-Disbursed Agencies

1. Overview

Effective December 31, 2003, Federal Program Agencies (FPAs) must make postage payments to the United States Postal Service (USPS) by Electronic Funds Transfer (EFT) mechanisms or the Intra-governmental Payment and Collection (IPAC) system. The Department of the Treasury (Treasury), Financial Management Service (FMS), has established these payment mechanisms to eliminate the use of Treasury checks or cash for postage payments and to maximize funds held in Treasury's account. In accordance with the Treasury Financial Manual (TFM) Bulletin No. 2006-07, FPAs using commercial mail processes in accordance with the 41 Code of Federal Regulations (CFR) Part 102-192, as amended, must use Automated Clearing House (ACH) credits for postage payments when funding their USPS PostalOne!® account and postage meter services.

2. Instructions for Preparing Payment Files Transmitted to the Financial Management Service (FMS)

Prior to submitting payment files for postage payments to an FPA servicing Regional Financial Center (RFC), the FPA must contact the RFC to test the record format by submitting a zero dollar transaction with the formatted addenda record through their system to verify the information required by the USPS. FPAs will authorize ACH credit transactions and use the correct FMS ACH payment file formats to transmit their payment instructions for both tape/electronic submissions to the Electronic Certification System (ECS) or the Secure Payment System (SPS). FPAs must use the payment formats required by FMS. FMS' payment formats can be found at the following web site:

http://fms.treas.gov/bulktransfers/index.html.

It is expected that the majority of the agencies will use the CCD+ ACH format for making postage payments (one payment, one addenda record). For this format, agencies will use FMS Tape Record Layout CPSS: 08.90.017.05 and the Tape Record Layout CPSS: 08.90.017.19.

NOTE: If an FPA chooses to use the CTX ACH format, the FMS Tape Record Layout can be found at the following web site:

http://fms.treas.gov/CTX/format_CTXvendorexample.html.

The FMS Record CPSS: 08.90.017.05 is the record that moves the funds from the paying FPA to the USPS for payment of postage. FMS translates this record into the ACH CCD+ Entry Detail Record (page 48 of the Operating Rules of the 2004 ACH Rules book). The FMS Record CPSS:08.90.017.19 is the record that moves the remittance-related information (e.g., specific FPA postage account number). FMS translates this record into the ACH CCD+ Addenda Record (page 48 of the Operating Rules of the 2004 ACH Rules book) for ACH system processing.

3. Relationship Between FMS and ACH

Treasury-disbursed agencies must send their payment files to the Treasury Regional Finance Center (RFC) that services them. The RFC serves as an Originating Depositary Financial Institution (RDFI) in the ACH system. The RFC processes the payment files provided by the agencies, converts the payment data into the National Automated Clearing House Association (NACHA) ACH standard formats, and sends the payment data through the Federal Reserve ACH system for payment. FPAs must format addenda records correctly so that USPS and postage meter providers can post funds to the correct accounts. If an FPA uses incorrect ACH credit formats or information in its payment files or addenda records, money can be misapplied or not applied to FPA accounts, resulting in delays in mailings or non-receipt of the FPA funds for postage.

Treasury-Disbursed Payments--FMS Tape Record Layouts

Formatting Instructions for Non-Treasury-Disbursed Agencies

1. Overview

Effective December 31, 2003, Federal Program Agencies (FPAs) must make postage payments to the United States Postal Service (USPS) by Electronic Funds Transfer (EFT) mechanisms or the Intra-governmental Payment and Collection (IPAC) system. The Department of the Treasury (Treasury), Financial Management Service (FMS), has established these payment mechanisms to eliminate the use of Treasury checks or cash for postage payments and to maximize funds held in Treasury's account. In accordance with the Treasury Financial Manual (TFM) Bulletin 2006-07, FPAs using commercial mail processes in accordance with the 41 Code of Federal Regulations (CFR) Part 102-192, as amended, must use Automated Clearing House (ACH) credits for postage payments when funding their USPS PostalOne!® account and postage meter services.

2. Instructions for Preparing Payment Files Transmitted through a Respective Payment Processing Site

Prior to submitting payment files for postage payments, the FPA should test the record format by submitting a zero dollar transaction with the formatted addenda record through their system to verify the information required by the USPS. FPAs will authorize ACH credit transactions and use the correct ACH payment formats for transmitting their payment instructions. It is expected that the majority of the agencies will use the CCD+ ACH format for making postage payments (one payment, one addenda record).

NOTE: If an FPA chooses to use the CTX ACH format, the ACH Record Layout can be found at the following website:

http://fms.treas.gov/CTX/format_CTXvendorexample.html.

ACH CCD Records are found in Subsection 2.1.7, Sequence of Records for CCD Entries, on page 48 of the Operating Rules of the 2004 ACH Rules book. The ACH CCD Entry Detail Record is the record that moves the funds from the paying FPA to USPS for payment of postage. The ACH CCD Addenda Record is the record that moves the remittance-related information (e.g., specific FPA postage account number).

3. Relationship Between Formatting the ACH Records and Receiving Postage

FPAs must format addenda records correctly so that USPS and postage meter providers can post funds to the correct accounts. If an FPA uses incorrect ACH credit formats or information in its payment files or addenda records, money can be misapplied or not applied to FPA accounts, resulting in delays in mailings or non-receipt of the FPA funds for postage. Additionally, non-Treasury disbursed agencies must send their payment files for processing to the respective payment processing site.

Non-Treasury-Disbursed Payments--FMS Tape Record Layouts

Payment Formats: Check and EFT

Bulk Data Formats for Salary and Vendor/Miscellaneous Payments

Updated June 2006

The following formats are for Treasury disbursed agencies to transmit via bulk data to their servicing Regional Financial Center (RFC).

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For additional information, please contact your servicing Regional Financial Center (RFC) listed below: