your financial partner @ work returned invoices rebecca beck chief, contract input august 2003
TRANSCRIPT
Your Financial Partner @ Work
Returned Invoices
Rebecca Beck
Chief, Contract Input
August 2003
Your Financial Partner @ Work 2
Topics
MOCAS Payment Process
Impact of Returned Invoices
Top Four Reasons for Returns
Get Well Plan
Your Financial Partner @ Work 3
Contract Input
PurchasingOffice
DD1716(Deficiencies)
DFAS ColumbusContract Input
Hardcopy or Electronic
ACO/PCO
ACOPro
ble
ms
Tier II Queue/EDM
Your Financial Partner @ Work 4
DD250(Material Inspection/
Receiving Report) Contractor
Material Produced and Shipped Destination
CAO
DFAS Columbus
Production & Delivery of Goods
PARKER-HANNIFINCORPAEROSPACEGROUP1160 CENTER RD P.O. BOX158AVON, OH 44011
LORAIN GENERALCORP1350 CHESTER INDUSTRIALPKYAVON, OH 44011
XU DEFENSE DISTRIBUTION REGIONWESTDISTRIBUTION DEPOT SANJOAQUINTRANS OFC BLDG 330CRPLATHROP, CA 95331-0130
33269
9N585S
W62T2T
MATERIALINSPECTIONAND
RECEIVINGREPORT
1.PROC. INSTRUMENT IDEN.(CONTRACT) (ORDER)NO. 6.INVOICE 7.PAGE OF
8.ACCEPTANCE POINT
3.DATESHIPPED
4.B/L 5.DISCOUNT TERMS
9.PRIME CONTRACTOR
11.SHIPPED FROM(if other than 9)
CODE
CODE
CODE
FOB:
10.ADMINISTERED BY
12.PAYMENT WILL BE MADE BY
CODE
CODE
CODE14.MARKEDFOR
17. 18. 19. 20.QUANTITYSHIP/REC'D* UNIT UNIT PRICE AMOUNT
13.SHIPPED TO
ITEM
NO.
16.STOCK/PART NO DESCRIPTION(Indicate number of shipping containers-typeof container-container
number.)
21. PROCUREMENT QUALITY ASSURANCE
A. ORIGIN B. DESTINATION
PQA ACCEPTANCE of listed items has beenmade by me or under my supervision and theyconform to contract,except as noted herein or on
supporting documents.
DATEDATE SIGNATURE OF AUTH GOV'TREP
SIGNATURE OF AUTH GOV'TREP
SIGNATURE OF AUTH GOV'TREP
TYPED NAMEAND TITLE
TYPED NAMEAND TITLE
TYPED NAMEAND TITLE
22. CONTRACTOR USE ONLY
22. RECEIVER'S USE
Quantities shown in column 17 were receivedin apparent good condition except as noted.
DATERECEIVED
*If quantity received by the Government is thesame as quantity shipped,indicate by ( )mark,if different,enter actual quantity re-ceived below quantity shipped and encircle.
DD Form 250
SP0440-95-M-HA30
HPC0001 1 MAR 96 1/4% 10
96757921 MAR 96
0001
1075-01-045-1778 WHEELASSYYPG95100000822P/N 40-122
A SKID 1/1
17 EA $615.95 $10,471.15
1 1
S
DCMAOCLEVELANDFEDERAL OFFICEBLDG1240 E. NINTH ST.CLEVELAND, OH44199
DFAS-COLUMBUSCENTERATTN: DFAS-CO BUNKERHILLP.O. Box 182362Columbus, OH 43218-2362
S3603A
SC1016
Sample 3, Transportation Charges Example
13 Jun 96 DennisRocmanoff
Dennis Racmanoff
S3603A
FREIGHT236.52
_____________________TOTAL$10,707.67
P.O. 29826/000
S.O. 055171-003
ORIGINAL INVOICE
Your Financial Partner @ Work 5
Destination
AcceptanceAlert
SPN(Shipment Performance
Notice)
Buying Command or
Inventory Manager
Consignee
ShipmentAcceptance
Source
ReadyTo
BeginPaymen
tProcess
AccountsPayable
SPN
and
DD250PARKER-HANNIFINCORPAEROSPACEGROUP1160 CENTER RD P.O. BOX158AVON, OH 44011
LORAIN GENERALCORP1350 CHESTER INDUSTRIALPKYAVON, OH 44011
XU DEFENSE DISTRIBUTION REGIONWESTDISTRIBUTION DEPOT SANJOAQUINTRANS OFC BLDG 330CRPLATHROP, CA 95331-0130
33269
9N585S
W62T2T
MATERIALINSPECTIONAND
RECEIVINGREPORT
1.PROC. INSTRUMENT IDEN.(CONTRACT) (ORDER)NO. 6.INVOICE 7.PAGE OF
8.ACCEPTANCE POINT
3.DATESHIPPED
4.B/L 5.DISCOUNT TERMS
9.PRIME CONTRACTOR
11.SHIPPED FROM(if other than 9)
CODE
CODE
CODE
FOB:
10.ADMINISTERED BY
12.PAYMENT WILL BE MADE BY
CODE
CODE
CODE14.MARKEDFOR
17. 18. 19. 20.QUANTITYSHIP/REC'D* UNIT UNIT PRICE AMOUNT
13.SHIPPED TO
ITEM
NO.
16.STOCK/PART NO DESCRIPTION(Indicate number of shipping containers-typeof container-container
number.)
21. PROCUREMENT QUALITY ASSURANCE
A. ORIGIN B. DESTINATION
PQA ACCEPTANCE of listed items has beenmade by me or under my supervision and theyconform to contract,except as noted herein or on
supporting documents.
DATEDATE SIGNATURE OF AUTH GOV'TREP
SIGNATURE OF AUTH GOV'TREP
SIGNATURE OF AUTH GOV'TREP
TYPED NAMEAND TITLE
TYPED NAMEAND TITLE
TYPED NAMEAND TITLE
22. CONTRACTOR USE ONLY
22. RECEIVER'S USE
Quantities shown in column 17 were receivedin apparent good condition except as noted.
DATERECEIVED
*If quantity received by the Government is thesame as quantity shipped,indicate by ( )mark,if different,enter actual quantity re-ceived below quantity shipped and encircle.
DD Form 250
SP0440-95-M-HA30
HPC0001 1 MAR 96 1/4% 10
96757921 MAR 96
0001
1075-01-045-1778 WHEELASSYYPG95100000822P/N 40-122
A SKID 1/1
17 EA $615.95 $10,471.15
1 1
S
DCMAOCLEVELANDFEDERAL OFFICEBLDG1240 E. NINTH ST.CLEVELAND, OH44199
DFAS-COLUMBUSCENTERATTN: DFAS-CO BUNKERHILLP.O. Box 182362Columbus, OH 43218-2362
S3603A
SC1016
Sample 3, Transportation Charges Example
13 Jun 96 DennisRocmanoff
Dennis Racmanoff
S3603A
FREIGHT236.52
_____________________TOTAL$10,707.67
P.O. 29826/000
S.O. 055171-003
ORIGINAL INVOICE
Acceptance of Goods
Your Financial Partner @ Work 6
Tier II
(CLR) Contingent
LiabilityRecord
Contract PaymentProvision
File
AccountsPayable
File
API PaymentProcess
ManualPaymentProcess
Invoice Master
File
Invoice Receipt
•Hard Copy
•Electronic
Invoice Types
•Commercial Invoice
•DD250 Invoices
•Contract Financing Requests
•Public Vouchers
Invoice Input
Your Financial Partner @ Work 7
Checks Validityof Payment
Disbursing
Back to Entitlement Pro
ble
m
OK
Full
Payment NoticesReports toAccounting Stations
CPN
Payment, Subvoucher, and Invoice
Disbursement
EntitlementDivision
Your Financial Partner @ Work 8
Magnitude of Business
Number of Active Contractors - 16K
Number of Active Contracts - 329K
Total Obligated - $881.3B
Approximately 90K Invoices Go Through the Payment Process Monthly
79K Pay
Approximately 12% End Up Returned to the Contractor or Recycled
Your Financial Partner @ Work 9
Impact of Returned Invoices
Approximately 11K Invoices are Returned Monthly Downward trend this FY
Represents Rework for Us and You Resubmission of Invoices Reprocessing of Invoices
Causes Delays in Payment
Your Financial Partner @ Work 10
Returned Code Variables
Code Description
E-01 DFAS Not the Paying OfficeE-02 Awaiting a Definitizing ModificationE-03 Contract Number on Invoice is Missing or InvalidE-05 Duplicate Invoice/Shipment NumberE-06 Shipment Number is Missing or IncorrectE-07 Evidence of Shipment RequiredE-08 Invoice Requires ApprovalE-09 Per Instructions of TO/ACO/PCOE-10 Item Number Requires VerificationE-11 Invoice Not Billed IAW the ContractE-12 Error on DD250E-13 Inspection/Acceptance ProblemE-14 Unauthorized OvershipmentE-17 TransportationE-19 As Required
Your Financial Partner @ Work 11
Prompt Pay Requirement
In accordance with the Prompt Pay Act, DFAS is required to return the invoice to the contractor for correction within 7 days of receipt.
Your Financial Partner @ Work 12
Top 4 Reasons for Returns - FY03
E-12: Error on DD250 Distribution Not Made to Terminal
The contractor must ensure proper distribution of the DD250 is made to the CAO terminal prior to resubmitting the invoice for payment.
E-11: Invoice Not Billed IAW Contract Item Information/ACRN Missing/Incorrect
The contractor should review contractual terms and submit a corrected invoice for payment.
E-06: Shipment Number Missing/Incorrect The contractor must annotate the invoice with a correct
shipment number. The invoice may then be resubmitted for payment.
E-01: DFAS Not the Paying Office The contractor should resubmit their invoice to the
appropriate pay office, as stated in their contract.
Your Financial Partner @ Work 13
Returned / Recycled Invoices
Returned/ Recycled - Contract Pay
0
20,000
40,000
60,000
80,000
100,000
120,000
Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Invoices Processed: CED Returned/ Recycled # CED Returned/ Recycled %
Returned/ Recycled Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03
CED Returned/ Recycled % 12.29% 11.75% 11.88% 10.96% 11.65% 12.19% 12.26% 12.65% 11.58% 12.40% 11.50% 11.61% 10.73%
CED Returned/ Recycled # 10,226 10,788 10,997 7,481 10,704 10,782 11,205 11,092 8,800 12,392 11,327 11,581 10,042Invoices Processed: 83,234 91,838 92,531 68,259 91,912 88,416 91,372 87,712 76,007 99,904 98,473 99,747 93,570
Paid Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03
CED 73,008 81,050 81,534 60,778 81,208 77,634 80,167 76,620 67,207 87,512 87,146 88,166 83,528
Returned/ Recycled - Contract Pay
0
20,000
40,000
60,000
80,000
100,000
120,000
Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Invoices Processed: CED Returned/ Recycled # CED Returned/ Recycled %
Your Financial Partner @ Work 14
Get Well Plan
Partnering with DCMA (E12A) Quarterly Scorecard to Commanders Coordination of “A” List Reports Ensuring Contact with CMO is Made Prior to
Return Encourage WAWF
Feedback to Contractors (E11, E01, E06) Identify Problem Areas Discuss Recurring Problems
Your Financial Partner @ Work 15
Get Well Plan (Continued)
Look In Our Own Backyard (E16)
Identify Root Causes, True Error vs. “Requests”
Ensure Accountability
Provide Training
Track Progress
Encourage EDI
DFASYour Financial Partner @ Work