1. 1 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT Finance FPRC Chair Topics Bob Hammond Chair, Finance Process Review Committee HQFinance@dla.milHQFinance@dla.mil 703-767-2117 March 4 - 5, 2015

2. 2 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 2 -DLMS Changes o ADC 280. (New Type of Bill codes for SDR & PQDR. Can we stagger implementation?) ADC 280 o ADC 386. (Navy BRAC; uses Navy DoDAACs bill to DLA via signal code C;) ADC 386 o ADC 1009. (EMALL Credit Card bill; uses signal code C/L & fund code XP) ADC 1009 o ADC 328, ADC 1068 & ADC 1068B (DODEMALL/GSA Funds Availability/Obligation Recording) ADC 328ADC 1068ADC 1068B o ADC 1043. (SLOA; DLMS Implementation and Web Fund Code;) ADC 1043 o ADC 1043A. (SLOA; updates guidance for rejecting transactions) ADC 1043A o ADC 1043B. (SLOA; adds “Program Year”) ADC 1043B o ADC 1043C. (SLOA; corrects in which DLMS ICs LOA elements are modifiable; corrects 810L) ADC 1043C o PDC 1043D UNDER DEVELOPMENT. (SLOA; Sub Allocation. Is it the same as Limit/Subhead ?) o ADC 1103. (SLOA; DLMS 824R to reject 810L bills failing DAAS edits; legacy 80 RP procedures) ADC 1103 o ADC 1134. (Admin Corrections to MILSBILLS) ADC 1134 o ADC 1136. (Unique Item Tracking; defers to NARA for retention times; removes IUID from 810L) ADC 1136 o PDC 1035. (Withdrawn - Increased frequency of billing/Treasury reporting) PDC 1035 o PDC 1050A WORKING DRAFT. (EMALL credit card failures ) - “ Rolled-up” Interfund Detail Bills -Multi-Year Appropriations -Credit Adjustment Process -Default Lines of Accounting -Bills Failing DAAS DoDAAC Edits Agenda

3. 3 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 3 Do we see the whole or only a part? The Blind Men and the Elephant

4. 4 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 4 ADC 280 Background: –General codes existed to capture PQDR/SDR/TDR credits, but they needed to be more specific –Capturing new codes on the detail billing record allows instantaneous identification of a PQDR/SDR/TDR credit Issues: –ADC required simultaneous implementation. Can we stagger implementation? –Can we add Storage Quality Control Report (SQCR) to Type Bill Code WU & Billing Advice Code 26 or do we need new, separate codes?

5. 5 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 5 ADC 280 Continued APPENDIX 2.3. BILLING ADVICE CODES (From billed office to request adjustment) Code Description 21 TDR (SF 361) submitted over 60 days ago; adjustment bill not received. Request credit. 24 Reply to Product Quality Deficiency Report (SF 368) indicated adjustment authorized, request refund 26 Reply to Supply Discrepancy Report (SF 364) indicated adjustment authorized; however, adjustment billing not received. Request credit status. APPENDIX 2.5. TYPE OF BILL CODES (From billing office - optional) Code Description QD Bill to refund amount, return to a PQDR. Bill to adjust the amount previously billed due to approval of a PQDR. WP Bill to adjust the amount previously billed due to approval of an SDR. WU Bill to adjust the amount previously billed due to approval of a discrepancy report. Use until codes QD, WP and TD are implemented. TD Bill to adjust the amount previously billed due to approval of a TDR.

6. 6 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 6 ADC 368 Background: -In support of Navy BRAC, this ADC allows DLA to requisition Navy controlled material for BRAC sites and to bill DLA -It establishes N--DLA DoDAACs and Navy Fund Code (J5) associated with DLA DoDAAC SL4701 for Signal Codes C/L to direct bills to DLA Issue: -Components have not properly implemented and bills are going to Navy -Manual work is being done to redirect bills to DLA -There may be systems issues

7. 7 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 7 ADC 1009A Background: –Allows use of ship-to DoDAAC when other than requistioner, vice relying of clear text addressing for EMALL Credit Card Issue: –DLA currently uses SUPPAD field to identify EMALL credit card as bill-to, which prevents using a ship-to DoDAAC in the SUPPAD when ship-to is other than the requisitioner –Change relies on third party billing (Signal Code C/L) and Fund Code “XP” to identify EBS credit card. Signal code L allows ship-to DoDAAC in the SUPPAD when other than requistioner, while directing non-Interfund bill to DLA for suppression –Components have not all added XP Integrate into DOD EMALL/GSA Advantage migration to FEDMALL Implementation status pending

8. 8 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 8 ADC 328/1068/1068B Background : –Implements a standard funds verification process for “off-line” requisitioning systems and Component systems –Under ADC 328, DOD EMALL and GSA Advantage implemented point-point interface with Army Funds Control Module –Under ADC 1068/1068B, GSA Advantage and GCSS- Army implemented a standard web service protocol –Intent is to expand this to FEDMALL and other Component systems

9. 9 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 9 ADC 328/1068/1068B Continued Background (continued): –When deployed in an ERP, this interface will allow the requisitioning and receiving Service to develop internal procedures to support: ensuring funds are available prior to submission of the requisition establishing Interfund bill obligations validating authorized customers ensuring obligations accurately reflect price establishing due-ins processing materiel receipts

10. 10 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 10 ADC 328/1068/1068B Continued Status: -DOD EMALL – Implement in FEDMALL -Army Implemented point to point interface with Army funds control module for legacy; Implemented Web service between GSA Advantage and GCSS Army Plan to migrate activities from FCM to GCSS-Army -Marine Corps Plan to implement with SABRS Awaiting deployment of FEDMALL -Others Available for others to implement with DOD EMALL/GSA Advantage Potentially available for other processes lacking upfront funds verification and obligation recording (e.g., post-post)

11. 11 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 11 ADC 1043 Background: –Implements DCMO and USD(C) mandate to carry Standard Line of Accounting (SLOA) data as discrete elements in select DLMS transactions initiating a financial event –Establishes SFIS Fund Code Table for select data elements needed by Treasury that don’t vary by transaction –Establishes DAAS edits to add data to DLMS from the SFIS Fund Code Table when it is missing; reject DLMS transactions with SLOA data that conflicts Issue: –Component implementation/testing is just beginning –Transaction Services is still working 810L edit logic

12. 12 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 12 ADC 1043A Background: Updates SLOA guidance for rejecting transactions; staffed in conjunction with ADC 1103 Issue: As DLA TS prepared to implement ADC 1043 edit to match discrete SLOA data to Fund Code, they noted that not all of the transactions would normally be rejected using the 870S (DIC AE9 Supply Status) with “CF” rejection status Resolution/Status: -DAAS will use 824R, 870S and 842 A/W, as applicable, for rejecting transactions failing 1043 edits back to the originator -810L Logistics Bill will continue to use 824

13. 13 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 13 ADC 1043B Background: Adds the data element “Program Year” to be carried in the “Beginning Period of Availability” field for no-year funds with Availability Type Code X (which would not have a beginning period of availability), as applicable Issue: –Program Year was not accommodated in the ODCMO/OUSD(C) SLOA guidance –Dual field use stipulated in BEA; programming done –Systems will have to recognize dual use of this field –BEA rules must be updated for “Beginning Period of Availability”

14. 14 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 14 ADC 1043C Background: –Corrects DLMS notes erroneously applying or omitting references to the line of accounting data elements being modifiable in certain ICs –Changes DLMS 810L, Logistics Bill, loop 2/FA1/350 from must use to used, as non-Interfund bills may not provide SLOA data and lack of data would cause the transactions to fail Inclusion of SLOA data is the purpose of the loop Issue: Preclude transaction failure and inappropriate LOA modification. Action complete.

15. 15 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 15 PDC 1043D UNDER DEVELOPMENT Background: -SLOA established Sub Allocation as a new data element to replace Limit/Subhead -Limit/Subhead is a data element on the Fund Code Table, but it was unclear during PDC 1043 staffing if it is synonymous with Sub Allocation -There is a limit of 1296 possible fund code combinations for each service code to be considered -Sub Allocation has not been mapped to Limit/Subhead on the Fund Code Table Issue: -Can Limit/Subhead be mapped to Sub Allocation on the Fund Code table and the data element name changed to Sub Allocation?

16. 16 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 16 ADC 1103 Background: –DLA Transaction Services uses an 824R to communicate rejected bills using narrative messages, though this was not documented in the DLMS –PDC 1103 expands the scope of the 824R to include logistics bills and addresses a number of administrative edits to better document the intended uses of the 824R Issue: –Documents Logistics Bill rejection procedures in DLMS –Adds reject advice codes in addition to narratives

17. 17 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 17 ADC 1103 MILSBILLS: C6.2.2.2. Rejected bills will be reported back to the originating activity using DLMS 824R (Reject Advice Transaction) citing the applicable Reject Advice Code from DLM 4000.25-2, MILSTRAP, Appendix 2.8. Rejected bills may include a narrative description indicating the reason for rejection, in addition to the Reject Advice Code. In addition, the second record position of the Reject Advice Code will be inserted in rp 4 of the MILSBILLS legacy DIC FS_/GS_ Summary Bill and displayed in MILSINQ, hyperlinked to the narrative reason for rejection.

18. 18 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 18 ADC 1134 Background: –As part of researching a billing issue for DLA Energy, the FPRC Chair noted that the legacy DIC FJR/FJS format for Reply to Request for Adjustments for Fuel Billing and Follow-Up for Adjustments had a typographical error related to the quantity field –No known misinterpretation of the quantity field in the Request for Adjustment or Reply Issue: Initial problem was Component improper mapping during system implementation of financial transactions; quantity field can vary in length by transaction.

19. 19 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 19 ADC 1136 Background: (Unique Item Tracking Procedures) –Removes IUID capability from 810L s not needed –Eliminates specific reference to finance document retention times, deferring to approved agency records schedule or the NARA General Records Schedule (GRS) The National Archives and Records Administration (NARA) is the Executive Agency with authority to set retention periods for Federal Records. These retention periods are developed jointly by NARA, the Military Department and Agency Records Officers based on input from Program Officers and business process owners based on the business needs of the organization; they have the force and effect of Federal law. Issue: Components/Transaction Services must coordinate with their agency records manager

20. 20 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 20 Withdrawal of PDC 1035 Background: –PDC 1035 supports increased frequency of Interfund reporting to Treasury vice monthly –Would require process and systems changes Issue: –There is an ongoing OUSD(C) sponsored Interfund Working group to consolidate Interfund billing that must be accomplished first –There are also systems & process issues to be resolved –Withdrawn by OUSD(C) –Re-Staff the PDC upon completion of WG and as directed by OUSD(C)

21. 21 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 21 PDC 1050A UNDER DEVELOPMENT Background: –EBS subsumed credit card billing & collection for EMALL and changed the billing process to align with policy: Non-Federal Customers pay up front Federal customers pay on drop from inventory or vendor delivery The old way was for everyone to pay up front EMALL must now perform checks against the credit card at the time of order and shipment and the customer must be notified of status if the credit card authorization fails Issue: –At the time of billing the credit card may no longer be valid, over it’s limit or there may be other issues –DOD EMALL experiencing on average 400 Credit Card charge failures per month (around $350K). Revenue recognition is delayed/lost on approximately 5% of EMALL orders.

22. 22 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 22 PDC 1050A UNDER DEVELOPMENT Continued Issue (continued): –Following failed attempts to charge customer’s credit card, customer's bill is converted to a manual SF1080 bill. DFAS-CO is having difficulty collecting. Also, there is a disconnect between the DLA bill and the customer's obligation, since the customer is expecting a credit card charge. Customers have to establish a new manual obligation in order to clear the bill. Resolution/Status: -DLA is considering multiple options, including a DLMSO proposed option -Goals are to alert customers early; resolve credit card issues to pay by credit card; bill via Interfund (if possible) or noninterfund as a last resort

23. 23 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 23 Background: –Interfund bill may contain a Summary Bill and up to 495 detail bills linked by common bill number –In some processes for some customers, Source of Supply suppresses the detail lines and uses a single pseudo document number for multiple lines –There are business processes in which no original document number is generated for each line item –Component obligates and clears bill based on the pseudo document number, quantity 1ea, invalid NSN/part number and invalid unit price –Multiple Summary Bills may be issued with no document number suffixing for later receipts or more than 495 line items –Any documentation supporting the detail bill would be manual and not contained in the Interfund bill “Roll-up” Detail Billing

24. 24 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 24 Issue: –Interfund bill does not contain true Detail Bills and is not auditable at the transaction level; no policy or procedures, nor is this appropriate Current Interfund billing policy requires a single original document number (ODN) in the detail bill for each line item, with item identification, unit of issue, quantity, unit cost, etc. In this way, the Interfund bill (together with supporting logistics transactions) is fully auditable at the transaction level, showing what was ordered, what was received, any supply discrepancy report adjustments, remaining balance due, what is being paid for, etc. –Any business process not using unique individual document numbers for each line item ordered in not appropriate for Interfund billing DLMS could support qualifiers (such as MIPR, contract and call number) in conjunction with unique ODN for each line item to support these business processes; DLMS Change required Resolution/Status: –Determine customer base, reason for using and what is needed for future compliance “Roll-up” Detail Billing Continued

25. 25 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 25 Issue: –The fund code table relies on # (use - Req’n date) and * ( use - Bill date) to compute beginning and ending periods of availability –Prone to error for multi-year appropriations –Seller reports incorrectly; buyer must adjust his LOA at Treasury Resolution/Status: –Web Fund Code has a Multi-year to Indicator identify applicable fund codes –Proposal: new FC & replace # with numeric FY on Fund Code Table; enter true POA; discontinue use of old Fund Code –Army working to be compliant this FY. Others TBD –Army also working single year appropriations – flip to # –Full DLMS implementation of SLOA by all will resolve this Multi-year Appropriations

26. 26 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 26 Multi-year Appropriation Adjustment Fund Code Table (old) BILLED SERVICE CODE = D,E,F (AIR FORCE) 1. SIGNAL CODE IS A, B, J, OR K: Fund CodeFund AccountEff Date/Action 11 57*3010 1986314 ADD USAF Billing Adjustment at Treasury (Department Code 057) Appropriation Reimbursements Disbursements 57 2005 2007 3010 000.00 -143,216.28 57 2007 2009 3010 000 00 55,848.27 57 2008 2010 3010 000 00 191,193.53 57 2009 2011 3010 000 00 364,775.27 57 2010 2012 3010 000 00 1,387,974.05 57 2011 2013 3010 000 00 -2,682,147.90 ** For a bill in 2007, which appropriation applies?

27. 27 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 27 Credit Adjustments Issue: –The DLMS credit adjustment process (Legacy DIC FAE/FAR) is not being used or is not being used effectively by ERPs –DLA, largest Source of Supply, did not initially implement in EBS (ERP), then experienced early IDOC failures –Manual process is extremely labor intensive, prone to error and does not provide Audit evidential matter Resolution/Status: –Components must implement functionality in ERPs Current status of DLA implementation? Component implementation status?

28. 28 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 28 Billing Adjustments By Billing Office Annual Totals

29. 29 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 29 Billing Adjustments By Billing Office DLA TS LOGISTICS REPORTS

30. 30 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 30 Billing Adjustments By Billing Office Month of December 2014 - Still an Issue BAC 34: Requisitioned material received. Request billing status. Seller - delayed revenue Buyer – unliquidated obligation

31. 31 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 31 Default Lines of Accounting Background: –MILSTRIP & MILSBILLS allow use of blank fund code –MILSBILLS: “When a fund code is not found on the fund code to disbursement fund account conversion table the appropriation charged shall be assigned as follows: Organization (Billed Service Code) Interfund Default Appropriation Contractor (C, E, L, Q, U)Not applicable, noninterfund Non-DoD (G, Z, HX, Numeric)Not applicable, noninterfund Army (A, W)21*2020 Air Force (D, F)57*3400 Navy (N, P, R, V)17*1804 Marine Corps (K, M)17*1106 Defense Logistics Agency (S, T)97X4930.5999 O ther Defense Agency (H) Not applicable, non-Interfund. Issue: Not auditable & may require buyer adjustment

32. 32 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 32 Default Lines of Accounting Continued DocID Billing OfficeDollar Value Transaction Count FS1FGZ$750,436.967 FS1FHZ$629,106.975 FS1FLZ$1,874,991.0810 FS1NRP$3,453,851.92474 FS1NUA$1,518.459 FS1SMS$2,598,049.11826 Total $9,307,954.491331 FS2B16$4,585.001 FS2B17$6,891.952 FS2FGZ$525,014.338 FS2FHZ$503,184.526 FS2FLZ$266,147.004 FS2N35$223,452.007 FS2NRP$4,911,268.69680 FS2NUA$5,654.262 FS2SMS$814,638.00193 Total $7,260,835.75903

33. 33 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 33 DLMS Bills Failing DAAS DoDAAC Edits Background: –DoDAAC authority codes were established to allow Components to limit the authority/roles for some DoDAACs to less that full requisitioning, bill-to or ship-to authority: 00 full authority, 01 ship-to only, 02 bill-to only, 03 – do not ship to, 04 – DLA Disposition Services (requisitioning) only, 05 – non- requisitioning, 06 Free issue (only), 07 Administrative only –All DoDAACs initially set to Authority Code 00, full authority Component designated DoDAAC CSPs to maintain and update –DAAS edits reject transactions where DoDAAC authority code is inconsistent with use/role in the transaction or DoDAAC is invalid ; Front end edits on orders, back end edits on Interfund bills –Not all orders pass through DAAS first –Orders may be in the pipeline at the time of a DoDAAC change Approved DLMS Change issued to address DoDAACs deleted after order submitted, but not to address authority code changes –All Interfund bills pass through DAAS edits and many fail authority code edit; a small number are invalid (not in DAAS database)

34. 34 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 34 DLMS Bills Failing DAAS DoDAAC Edits Issues: –Seller’s DLMS bills fail DAAS DoDAAC edits. Seller has already taken revenue on books and must make a journal voucher entry Auditor Red Flag $$ Unrealized/delayed revenue for seller – cash flow No appropriate to resolve the bill –Typical resolution (find a workable DoDAAC) - impacts buyer $$ Delayed credit for buyer - cannot re-obligate if credit is received after appropriation expires May result in unmatched financial transactions –Costly manual work for buyers, sellers, DFAS (DFAS ~$78/hr.) –Indicative of systemic DoDAAD/Supply process & systems issues –GSA reports Funds Transfer to Treasury; buyer never got a bill –DAAS rejects for DLA - $33M in in one calendar year Buyers and Sellers both have responsibility

35. 35 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 35 DLMS Bills Failing DAAS DoDAAC Edits Continued DLA Rejects – One year We can improve this together over time

36. 36 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 36 DLMS Bills Failing DAAS DoDAAC Edits Continued Causes When Component changes DoDAAC authority code from requisitioning/billing authorized (normally 00) to another code: –DoDAAC user may be unaware and continue to use –DoDAAC may be tied to linked to fuel credit cards and Vehicle Identification Link fuel processes and not subsequently replaced by authorized DoDAAC –Requisitions may be in the pipeline with authority codes that were valid Some Components/Agencies have not implemented processes to receive all current DoDAAD data, including authority codes

37. 37 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 37 DLMS Bills Failing DAAS DoDAAC Edits Continued Causes continued Sellers have not integrated DoDAAC and Authority Code edits in ordering processes where order transactions do not pass through DAAS edits first –e. g. call centers, post-post, self service stores, fuel cards –DAAS edits only performed on the front end, if sent through DAAS Other systems/process issues: – signal codes –processes using default “customer master” data, –“internal process using identifiers that are not true DoDAACs; some get into bills –MAPACs vice DoDAAC designated as bill-to party

38. 38 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 38 CSPs consider impact of authority code changes –Explore options as a team within DoDAAD/Supply/Finance PRCs –Potential strategy might be to consider deleting existing DoDAAC and assigning a new one Existing backorders might be cancelled by Source of Supply –Bills and shipment transactions would still pass DAAS edits for deleted DoDAAC, but no new requisitions would processes through DAAS –Involve Component DoDAAC owner, Supply/Finance in changes DLMS Change is pending to validate DoDAAC authority codes on backorders and provide supply status then reject Validate/revalidate authority codes in all ordering processes Implement Approved DLMS Changes –ADC 226, Revision of MILSTRIP, MILSBILLS and DLMS to add DODAAC Authority Code EditsADC 226, Revision of MILSTRIP, MILSBILLS and DLMS to add DODAAC Authority Code Edits –ADC 262, Deleted Department of Defense Activity Address Code (DoDAAC), Cited on Open OrdersADC 262, Deleted Department of Defense Activity Address Code (DoDAAC), Cited on Open Orders –354, DOD Activity Address Code (DoDAAC) Edits on Logistics Bills and Requisitions354, DOD Activity Address Code (DoDAAC) Edits on Logistics Bills and Requisitions DLMS Bills Failing DAAS DoDAAC Edits Continued Way Ahead – Solving the Problem

39. 39 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 39 DLA Proposed DLMS Change concept (under development): –DLA will cancel all requisitioning orders with invalid authority codes when: –Changes are made to the authority code by the customer without the proper notification of an AM_ transaction to change the bill-to (or ship-to) DoDAAC when order is on backorder. Won’t work if the requistioner DoDAAC does not have ordering authority –Orders are submitted through an offline entry system without the proper upfront authority code validation, authority code is incorrect –The DLA Contact Information Center (CIC) will ensure that proper authority code is in place before entering orders into EBS; otherwise, the order cannot be submitted –DLA will notify the customer with a "Rejection Status Code" via AE9 transaction that will allow the customer 7 days to submit an AM_ before cancellation is made. After 7 days the order will be cancelled. DLMS Bills Failing DAAS DoDAAC Edits Continued Way Ahead – Solving the Problem

40. 40 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 40 https://www.transactionservices.dla.mil/daasinq DLMS Bills Failing DAAS DoDAAC Edits DoDAAC Search

41. 41 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 41 No BILL COMMRI. DAAS cannot route bill. DLMS Bills Failing DAAS DoDAAC Edits DoDAAC Search DAAS will reject IFB

42. 42 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 42 https://www2.dla.mil/j-6/dlmso/CertAccess/SvcPointsPOC/allpoc.asp DLMS Bills Failing DAAS DoDAAC Edits DoDAAC Search