Necessary for use of certain peptides as sole nitrogen source. May also cleave intracellularly generated peptides to recycle amino acids for protein synthesis. Release of a C-terminal amino acid from a peptide in which glycine is the penultimate amino acid, e.g. Z-Gly-|-Leu. Binds 2 Zn(2+) ions per subunit. yscS is synthesized as one polypeptide chain precursor which after carbohydrate modification in the secretory pathway yields two active precursor molecules. The proteolytically unprocessed forms are associated with the membrane, whereas the mature forms of the enzyme are soluble. Lysosome-like vacuoles. The transmembrane domain contains polar residues that mediate the recognition by TUL1. Glycosylated. Ubiquitinated. Ubiquitination mediates sorting into internal vesicles in late endosomes. TUL1 is required for ubiquitination. Present with 721 molecules/cell in log phase SD medium. Belongs to the peptidase M20A family.