1. DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Defense Logistics Management Standards Office (DLMSO) Orders Outside of Component Systems Bob Hammond Chair, Finance Process Review Committee HQFinance@dla.milHQFinance@dla.mil 703-767-2117

2. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 2 Purpose To provide a brief overview of: –DLMSO Mission –Functional Transaction Life-Cycle (Traditional) Transactions that would normally be available as evidentiary matter Enterprise applications for viewing transactions –Audit Issues –Policy for recording obligations –Candidate Business Processes/Systems –Parallel Approaches for Recording Obligations No one solution evident for every process

3. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 3 DLMSO Mission –Serves as the DoD Executive Agent for logistics information exchange and serves as a DoD Enterprise Service Provider supporting the OSD Supply Chain Integration Office, the OSD Defense Procurement and Acquisition Policy Office, and the OSD Comptroller office –Is responsible for the operation, formal collaboration, process improvement, and publication of revised guidance developed by DoD Process Review Committees (PRC) –Administers DoD policy regarding the management of logistics transactions supported by both MILS Legacy 80 RP transactions, and the Defense Logistics Management Standards (DLMS) variable length transactions 97 Process Improvements via DLMS Last Year

4. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 4 DLMSO Mission - Continued –Serves as logistics advisor on multiple DoD, Federal Agency and DLA committees, working groups, integrated product teams (IPTs) and continuous process improvement (CPI) projects –Is formally tasked in DoD publications to manage the Joint Physical Inventory Working Group (JPIWG), the Joint Small Arms/Light Weapons Coordinating Group (JSA/LWCG), the web-based Supply Discrepancy Reporting Program (WebSDR), the Finance Process Review Committee (PRC), Supply PRC, and the DoD Activity Address Directory (DoDAAD/Military Assistance Program Address Directory (MAPAD) PRC –Facilitates Enterprise Integration and continuous improvement of operations by developing and maintaining the DoD logistics Information Exchange Infrastructure and publishing detailed guidance that identifies who does what, when, and how along the DoD logistics chain

5. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 5 DLMS Functional Transaction Life-Cycle Overview All transactions pass through DAAS routing hub Available as evidentiary matter Visible to DoD/Trading Partners (WEBVLIPS, LDG, MILSINQ, WEBSDR)

6. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 6 Distribution Depot or Vendor Retail Base Defense Finance and Accounting Service Source of Supply (SOS) ICP/IMM USTRANSCOM DLMS Requisition Cycle

7. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 7 DLMS Requisition Cycle SOS Retail Base 1. Requisition DLMS 511R MILS/DICs A0_, A3_, A4_ & C0_, CH_, CQ_, YRZ

8. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 8 DLMS Requisition Cycle SOS Distribution Depot or Vendor Retail Base 2b. Material Release Order 2a. Supply Status 1. Requisition DLMS 940R DICs A5_ DLMS 870S DICs AE_

9. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 9 DLMS Requisition Cycle SOS Distribution Depot or Vendor Retail Base 3b. Shipment Status 3a. Material Release Confirmation 2b. MRO 2a. Supply Status 1. Requisition DLMS 856S DICs AS_ DLMS 945A DICs AR_

10. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 10 DLMS Requisition Cycle SOS Distribution Depot or Vendor Retail Base 3b. Shipment Status 3a. MRC 2b. MRO 2a. Supply Status 4. Movement Document Transaction Materiel Shipment 1. Requisition

11. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 11 DLMS Requisition Cycle SOS Distribution Depot or Vendor Retail Base 3b. Shipment Status 5. Material Receipt Acknowledgement 3a. MRC 2b. MRO 2a. Supply Status 1.Requisition 4. Movement Document Transaction Materiel Shipment DLMS 527R DIC DRA

12. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 12 DLMS Requisition Cycle SOS Distribution Depot or Vendor Retail Base 3b. Shipment Status 5.MRA 3a. MRC 2b. MRO 2a. Supply Status DFAS (Acting as Customer’s Agent) $ 6. Logistics Bill 1.Requisition 4. Movement Document Transaction Material Shipment DLMS 810L DICs GS_

13. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 13 DAAS BUYERBUYER Finance Supply Finance SELLERSELLER Supply 4b (856S) 1 (511R) 2 (870S) Distribution Depot 511R: Requisition (Order) 527R Material Receipt Acknowledge 810L Logistics Bill 856S Shipment Status 867I Issue 870S: Supply Status Retail Base 1 Seller CAO Buyer CAO Treasury 4a (945A) 4c Item shipped 5 (527R) 1 (511R) Order Submission and Fulfillment 3 (940R) 4b (856S) 4d (867I) 5 (527R) *6 (810L) 6 (810L) 940R: Material Release 945A: Material Release Confirmation * Stock – bill on drop from inventory; DVD - bill on receipt acknowledgement/acceptance

14. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 14 DAAS BUYERBUYER Finance Supply Finance SELLERSELLER Supply Distribution Depot Retail Base 1 Seller CAO Buyer CAO Treasury 6 (810L) 6b (810L) 6 Seller Interfund Report 6a ( 810L) 7 Stm of Trans 8 Buyer Interfund Report Billing and Interfund Payment 9 Stm of Trans 8 Collection 810LLogistics Bill 6c (810L)

15. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 15 Discrepancy related Request (812R) 5 *Return Wrong Item (*Sequence for US. For FMS materiel is returned prior to credit) Bill (Credit) (810 L) SDR Reply 842AR Bill (Credit) (810 L) DAAS Seller CAOBuyer CAO BUYERBUYER Finance Supply Finance SELLERSELLER Supply Distribution Depot Treasury Retail Base Billing and Discrepancy Report Adjustment Requests and Replies Request (812R) 5 SDR Discrepancy Report Submission (842AW) SDR Reply 842AR 1 1 SDR (842 AW) 2a Reply (812 L) 6 Financial related 2 2b 3 3 4 Reply (812 L) 6

16. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 16 Viewing Transaction Status via WEBVLIPS Logistics Data Gateway MILSINQ

17. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 17

18. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 18 WEBVLIPS Requisition Details

19. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 19

20. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 20 WEBVLIPS Transaction History A0A, Requisition AE8, Supply Status A5A, Materiel release Order AS8, Shipment Status AR0, Materiel Confirmation DRA, Materiel receipt Acknowledgement

21. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 21 Logistics Data Gateway LDG Overview –Logistics Data Gateway (LDG) is a data warehouse environment that provides users the ability to access Transaction Services-managed data/information using business intelligence tools or a web browser. –Data is generally retained for 3 years –Billing transactions are retained as far back as 1 April 2005 –LDG queries are restricted to a 31-day search range. –Unlike WEBVLIPS, LDG can query all Document Identifier Codes (DIC) that route through DAAS (not restricted to requisitions ). –Retransmitted bills are visible in LDG (unlike MILSINQ) –Password is required due to the COTS software. –Reports can be saved in several formats: e.g., PDF,.CSV, Crystal Reports, etc.

22. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 22 Logistics Data Gateway

23. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 23 Logistics Data Gateway

24. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 24 MILSINQ Summary bill Detail bill

25. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 25 eDAASINQ DODAAC Query Bills that route to W91000 will be delivered via Bill COMMRI RUSAJUA If no BILL COMMRI exists, the billing transaction will be delivered to the DP COMMRI. All other transactions that route to W91000 will be delivered to DP COMMRI RUQAJCP

26. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 26 eDAASINQ DODAAC Query (cont) Depending on the S/A, the Bill COMMRI is associated with an ADSN/FSN in line 1 of TAC 3 Army uses Fiscal Station Number (FSN) Air Force uses Account Disbursing Station Number (ADSN) FSN

27. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 27 When orders are not originated in a Component’s ordering system: –Traditional logistics transactions to support audit evidentiary matter may be suppressed/not initiated Examples: STORES, DMLSS, EMALL, GSA Advantage, Self-service Stores, DLA Tailored Vendor Relationship, DLA Troop Support C&E –A single document number may be used to order multiple line items, which is non-compliant and does not support (any) traditional logistics transactions –DoDAACs & Fund Codes used may not be appropriate or valid Not subject to DAAS edits prior to seller processing Seller "customer profiles” may not be not current due changes in DoDAAC authority code or fund code. May result in unmatched financial transactions, failed bills, costly resolution, delayed revenue, journal voucher entries, erroneous reporting to Treasury Audit issues

28. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 28 –Receipt and Materiel Receipt Acknowledgement (MRA) may not be processed in Component systems –MRA may not contain a unique document number for each line item (uses contract number, call number, CLIN) –Obligations may not be recorded at the line item level to support compliant Interfund detail bills at the line item level Exceptions are: Funds verification process developed for EMALL /GSA Advantage Web service (seller to buyer to seller) - verifies financial data, funds availability and posts obligation before order is placed Point to point user defined files (UDF) for DLA fuels and KYLOC process for uniforms. Components preload obligation data for DLA customer master Audit issues

29. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 29 –GAO audit GAO-15-198 of USMC 2012 Schedule of Budgetary Activity. For DLA situational awareness, this audit Notes department-wide material weakness with DLA business systems/processes with resulting inability [of Components] to provide evidentiary matter related to obligations, orders, receiving reports and invoices” [Situation is not unique to DLA] USMC Clean Audit Opinion Withdrawn –DFAS Columbus initiated Interfund Business Diagnostic to address audit concerns and unsustainable cost of manual bill processing for non-compliant Interfund bills associated with business processes where orders are initiated outside of USAF (Component) ordering systems Audit issues

30. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 30 DoD 7000.14-R Financial Management Regulation Volume 11A, Chapter 3 030404. Appropriation Policy A. Obligation. An Economy Act order obligates the applicable appropriation of the requesting agency or unit upon acceptance of the order by the servicing agency. The entire properly made amount of a reimbursable order should be obligated by the requesting agency when the order is accepted. FMR Policy Obligations

31. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 31 DLM 4000.25, Volume 4, MILSBILLS: C2.1.7. Obligations for Requisitioned Materiel. Establishing an obligation for the proper amount under the requisition document number is essential for the timely and automated processing of interfund bills. Failure to do so is a violation of financial management procedures and may delay processing and increase workload for both DFAS and submitting Component personnel. DoD Components that either (1) establish business processes for requisitioning outside their customer's Component sponsored supply system, e.g., via internet ordering applications, or (2) authorize their own Component personnel to satisfy requirements through the use of external ordering processes, will support adherence to standard DoD financial business processes. C2.1.7.1 DoD Components may authorize manual recording of the financial obligation by the customer as a separate action until such time as an automated interface between the ordering application and a Component- sponsored financial system is available. Where an interface is not available, external ordering applications will alert users to comply with their Component- directed financial procedures. DLMS Procedures Obligations

32. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 32 Some Processes/Systems of Interest Call Centers Bearer Walk-through STORES (Subsistence) DMLSS (Medical) EMALL DLA Tailored Vendor Relationship (TVR) DLA Fuels DLA KYLOC DHA/DLA Tricare Pharmacy Program (Express Scripts) GSA Self Service Stores GSA Advantage Some Processes

33. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 33 1. Funds Verification and Obligation Process. Records obligation and validates LOA and funds availability via DAAS web service before EMALL/GSA Advantage shopper checks out to initiate the order. In use by Army; USMC to follow near term; others considering. a. Available today, subject to Component funding and programming. 2. Buyer Records Obligation on First Status Transaction From Seller. Believe Army systems do this. Works well in cases where there is an NSN or manufacturer cage and part number, but not well for non-cataloged items where item identification would be problematic. a. Available today. Enterprise implementation unknown by DLMSO. 3. User Defined File (UDF). Point-to-point files from DLA to Buyer for fuels and uniforms (KYLOC process). DLA returns to buyer information needed to record the obligation before DLA bills. Components pre-stage obligation data. Automated processes. a. In use today. Parallel Approaches

34. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 34 4. Initiate Order in Component Ordering System. Army, DLA and DLMSO exploring taking all of the data requirements associated with orders initiated through DLA Prime Vendor process and having DLA pass back to buyer (Army) the information needed to create a DLMS variable length transaction with extended data in order for buyer (Army) to initiate the order in their system and seller (DLA) to process order with vendor. Traditional Supply/Finance transactions would follow. a. Requires Proposed DLMS Change to add data content to DLMS 511R requisition. Staggered implementation. 5. New DLMS 821 Financial Reporting Obligation Transaction. Seller returns to buyer info needed to record obligation. Currently being explored with USAF, SOCOM, DEAMS PM based on fuels and KYLOC processes. Potentially useable in many processes. Gathering functional and data requirements; may require seller and buyer maintaining tables of data buyer needs for recording obligations. DLA committed. SOCOM and USAF extremely interested. Briefed at a high level to DOD Finance Process Review Committee; considerable interest. a. Staff as a Proposed DLMS Change to DOD and federal trading partners for staggered implementation by agreement as Components are ready. Realistically, a year or more out for most Components.. Parallel Approaches