Accounts Payable Overview DFAS/CO Samantha Rohrbacher Defense Finance and Accounting Services Accounts Payable, EBS Entitlements Supervisor August 18, 2009 Integrity - Service - Innovation
Agenda Organization Structure Entitlement Processing Branch Certification and Audit Branch Funds Requirement Branch Accounts Payable Maintenance Branch IPAC Entitlement System Overview Magnitude of Operations Payment Process Invoicing Requirements 9/9/2009 Integrity - Service - Innovation 2
Accounts Payable Operations Division Don Don Gullett, Gullett, Acting Acting Director Director Accounts Accounts Payable Payable USMC/Defense USMC/Defense Agencies Agencies Secretary Secretary Don Don Gullett Gullett AP AP Operations Operations Division Division Chief Chief Accounts Accounts Payable Payable Support Support Division Division Pam Pam Vogel Vogel Entitlement Entitlement Branch Branch Rick Rick Harris Harris Funds Funds Requirements Requirements Karen Karen John John Certification Certification Branch Branch Shelley Shelley Long Long AP AP Maintenance Maintenance Branch Branch 9/9/2009 Integrity - Service - Innovation 3
Entitlement Processing Branch Entitlement Systems AVEDS FABS CAPS-W FAS EBS SAVES Supporting Systems Functions: Review contracts, invoices, and receiving reports for propriety IAW regulatory requirements. Match contract, invoice, and receiving report to initiate proper payment. Verify vendor CCR registration and remittance data CCR/BEIS EDA EDI EDM Powertrack SRD-1 WAWF Perform entitlement/computation actions necessary to generate payments to vendors and individuals for services performed and/or goods/materials received. Process payments into the applicable entitlement system (Systems vary depending on customer) 9/9/2009 Integrity - Service - Innovation 4
Funds Requirement Branch Accounting Systems BOSS FAMIS Functions: Ensure obligations are recorded prior to disbursement of funds DBMS DFAMS DIFMS DWAS EBS FAS IAPS SABRS STARS WAAS Research and correct prevalidation reports generated each night. Resolve prevalidation issues referred by Entitlement Section personnel as outlined by the DoDFMR. 9/9/2009 Integrity - Service - Innovation 5
Certification Audit Branch Entitlement Systems AVEDS FABS CAPS-W FAS EBS SAVES Supporting Systems ACL EDM CCR/BEIS Powertrack EDA SRD-1 Functions: Payment Certification: Duly Appointed Certifying Officials. Ensure accuracy of entitlement prior to disbursement. Ensure entitlement is legal, proper, and correct. Perform pre-pay & post pay audits. EDI WAWF Manage EFT reject process. 9/9/2009 Integrity - Service - Innovation 6
Accounts Payable Maintenance Branch Supporting Systems DBMS EBS DFAMS FAMIS Functions: Responsible for expenditure processing, clearing undistributed transactions, intransits, researching and clearing problem disbursements. DO22D DWAS FAS WAAS Research and monitor travel advances, research and post refund receivables. Accrue for and recognize liabilities, establish payables, reconcile and post payrolls. Participate in joint reviews with customers. Accounts Payable/Eliminations Entries. 9/9/2009 Integrity - Service - Innovation 7
Intragovernmental Payment and Collection (IPAC) Supporting Systems DBMS IAPS DFAMS IPAC DIFMS SABRS Functions: Transfer funds from government to government consolidating this process for both incoming and outgoing transactions. DWAS EBS STARS WAAS FAS 9/9/2009 Integrity - Service - Innovation 8
AP Systems Defense Agencies/USMC FABS SAVES AVEDS/ FAS Columbus CAPS-W EBS 9/9/2009 Integrity - Service - Innovation 9
Vendor Pay Magnitude of Operations Vendor Pay Network 5 Vendor Pay Sites 150,000 Contractors / Vendors 13.6 Million Total Invoices Paid in FY08 $126.0 Billion PPA $ Disbursed in FY08 4.8 Million Total Invoices Paid in FYTD Jan09 $42.0 Billion PPA $ Disbursed in FYTD Jan09 FY09 Paid Invoices Army, 7% Navy, 7% Air Force, 5% USMC, 1% DLA, 68% DA, 12% 9/9/2009 Integrity - Service - Innovation 10
Magnitude of Operations COLUMBUS CENTER Vendor Pay, FY07-FYTD09 $300 $200 $100 $232 Interest $ Per Million $179 FY09 Goal $224 $126 $60 $30 Prompt Pay Act $ Disbursed $64.8 Billions $45.7 $36.3 $0 $15 FY07 FY08 FY09 Millions Interest Paid $0 3% FY07 FY08 FY09 Overage Invoice Percentage $10 $5 $10.6 $11.6 $4.5 2% 1% FY09 Goal 2% 1.29% $0 FY07 FY08 FY09 FY09 Data as of EOM Jan 09, unless otherwise noted. 0% 1.02% 0.26% FY07 FY08 FY09 9/9/2009 Integrity - Service - Innovation 11
Accounts Payable Process Reports/Analysis & Trial Balance DoD Contract Goods & Services Vendor Invoice (hard copy) Check/EFT Accounting System Invoice WAWF DFAS Entitlement Systems Disbursing Station Disbursements Data Receiving report Validate Entitlement Prevalidate Disbursement Pymt File Contract & Hard Copy Receipt MyInvoice Preval 9/9/2009 Integrity - Service - Innovation 12
Prompt Payment Terms Net 30 Days = Normal Payment Terms Net 7 Days Meat, Meat Food Products, including Poultry, Fresh Eggs, Seafood or Shellfish Net 10 Days Perishable Agricultural commodities, Fresh Bakes Goods, Dairy Products, Fats and Oils Net 14 Days Construction Contracts Fast Pay 15 Days Early Payment based upon the receipt of a valid invoice FAR Clause 52.213-1 9/9/2009 Integrity - Service - Innovation 13
Proper Invoice A proper invoice must have the following: Invoice Date Name and Address of the vendor Invoice number, Account number, and/or any other identifying number agreed to by contract Contract Number or other authorization for delivery Description, Price and Quantity Shipping, Payment, and Discount Terms Taxpayer Identifying Number (TIN), unless agency procedures provide otherwise Contact Name (where practicable) of person to be notified in event of a defective invoice Banking information, unless agency procedures provide otherwise, or except in situations where the EFT requirement is waived under 31 CFR 208.4 Other substantiating documentation or information required by the contract 9/9/2009 Integrity - Service - Innovation 14
Proper Invoice Common Problems with Invoices Wrong or incomplete contract (PO) number Missing call/delivery order number Vendor sends statements and not invoice Billing for past due amounts on current charges instead of submitting original invoice where balance is due Missing invoice number and date Billing description is incomplete or incorrect Failure to mark DD250 as an original invoice Invoice is submitted by a vendor (sub contractor) other than the vendor named on the contract 9/9/2009 Integrity - Service - Innovation 15
Returning Invoices An invoice is returned under the following conditions: An invoice will not be returned when: An invoice is received prior to a service period. There is no contract number provided. The invoice is not a proper invoice. There is a destination acceptance and no receiving report. An incorrect line of accounting data. 9/9/2009 Integrity - Service - Innovation 16
Acronyms from Pages 4-9 ACL AVEDS BEIS BOSS CAPS-W CCR DBMS DFAMS DIFMS DOD22D DWAS EBS EDA Application Control Language Automated Voucher Examination & Disbursing System Business Enterprise Information Services Base Operating Support System Computerized Accounts Payable System-Windows Central Contractor Registration Defense Business Management System Defense Fuels Automated Management System Defense Industrial Fund Management System Missile Fuels Accounting System Defense Working Capital Accounting System Enterprise Business System Electronic Data (Document) Access 9/9/2009 Integrity - Service - Innovation 17
Acronyms from Pages 4-9 EDI EDM FABS FAMIS FAS IAPS IPAC SABRS SAVES SRD-1 STARS WAAS WAWF Electronic Data (Document) Interchange Electronic Data (Document) Management Financial Accounting & Budget System Financial Accounting Management Information System Fuels Automated System Integrated Accounts Payable System Intra-Governmental Payment and Collection Standard Accounting Budget Reporting System Standard Automated Voucher Examination System Standard Finance System Redesign, Sub System-1 Standard Accounting and Reporting System (Navy) Washington Headquarters Services Allotment Acctg System Wide Area Workflow 9/9/2009 Integrity - Service - Innovation 18
Questions? 9/9/2009 Integrity - Service - Innovation 19