Transcript Returned Invoices Rebecca Beck Chief, Contract Input August 2003 Your Financial Partner @ Work.

Returned Invoices
Rebecca Beck
Chief, Contract Input
August 2003
Your Financial Partner @ Work
Topics

MOCAS Payment Process

Impact of Returned Invoices

Top Four Reasons for Returns

Get Well Plan
Your Financial Partner @ Work
2
Contract Input
ACO/PCO
Tier II Queue/
EDM
DFAS Columbus
Contract Input
Problems
Hardcopy or
Electronic
Purchasing
Office
DD1716
(Deficiencies)
ACO
Your Financial Partner @ Work
3
Production & Delivery of Goods
MATERIAL
AND
INSPECTION
RECEIVING
REPORT 3.DATE
SHIPPED
HPC0001
1 MAR 96
9.PRIME CONTRACTOR
1.PROC. INSTRUMENT IDEN.(CONTRACT)
CODE
9N585
S
LORAIN GENERAL
CORP
1350 CHESTER INDUSTRIAL
AVON, OH 44011
PKY
FOB:
OF
1
1
8.ACCEPTANCE POINT
S
CODE
DCMAO
CLEVELAND
FEDERAL OFFICE
BLDG
1240 E. NINTH ST.
CLEVELAND, OH
44199
12.PAYMENT WILL BE MADE BY
CODE
S3603A
DESCRIPTION
0001
DFAS Columbus
SC1016
CODE
14.MARKED
FOR
(Indicate number of shipping containers-type
container-container
of
number.)
17.
QUANTITY
SHIP/REC'D*
18.
19.
UNIT
17
EA
20.
UNIT PRICE
$615.95
AMOUNT
$10,471.15
FREIGHT
236.52
1075-01-045-1778 WHEEL
ASSY
YPG95100000822
P/N 40-122
____________________
_
TOTAL
$10,707.67
A SKID 1/1
22.
PROCUREMENT QUALITY ASSURANCE
21.
7.PAGE
9675792
1 MAR 96
10.ADMINISTERED BY
DFAS-COLUMBUS
CENTER
ATTN: DFAS-CO BUNKER
P.O. Box 182362
HILL
Columbus, OH 432182362
CODE
W62T2T
XU DEFENSE DISTRIBUTION REGION
WEST
DISTRIBUTION DEPOT SAN
JOAQUIN
TRANS OFC BLDG 330
CRP
LATHROP, CA 953310130
16.STOCK/PART NO
ITEM
NO.
6.INVOICE
5.DISCOUNT TERMS
1/4% 10
33269
11.SHIPPED FROM(if other than 9)
13.SHIPPED TO
(ORDER)NO.
SP0440-95-MHA30
4.B/L
CODE
PARKER-HANNIFIN
CORP
AEROSPACE
GROUP
1160 CENTER RD P.O. BOX
AVON, OH 44011
158
B. DESTINATION
A. ORIGIN
PQA
ACCEPTANCE of listed items has been
made by me or under my supervision and they
conform to contract,except as noted herein or on
supporting documents.
RECEIVER'S USE
Quantities shown in column 17 were received
in apparent good condition except as noted.
DATE
RECEIVED
SIGNATURE OF AUTH GOV'T
REP
TYPED NAME
AND TITLE
DATE
SIGNATURE OF AUTH GOV'T
Dennis Racmanoff
REP
DATE
SIGNATURE OF AUTH GOV'T
REP
S3603A
TYPED NAME
AND TITLE
22.
TYPED NAME
AND TITLE
*If quantity received by the Government is the
same as quantity shipped,indicate by ( )
mark,if different,enter actual quantity received below quantity shipped and encircle.
CONTRACTOR USE ONLY
ORIGINAL INVOICE
P.O. 29826/000
S.O. 055171-003
DD Form 250
Sample 3, Transportation Charges Example
Contractor
DD250
(Material Inspection/
Receiving Report)
Material Produced and Shipped
Your Financial Partner @ Work
CAO
Destination
4
Acceptance of Goods
Destination
SPN
(Shipment Performance
Notice)
Buying Command or
Inventory Manager
Consignee
and
Acceptance
Alert
DD250
MATERIAL
AND
INSPECTION
RECEIVING
REPORT 3.DATE
SHIPPED
HPC0001 1 MAR 96
9.PRIME CONTRACTOR
1.PROC. INSTRUMENT IDEN.(CONTRACT)
4.B/L
CODE
(ORDER)NO.
CODE
9N585
S
LORAIN GENERAL
CORP
1350 CHESTER INDUSTRIAL
AVON, OH 44011
PKY
13.SHIPPED TO
1
S
CODE
S3603A
DCMAO
CLEVELAND
FEDERAL OFFICE
BLDG
1240 E. NINTH ST.
CLEVELAND, OH
44199
CODE
12.PAYMENT WILL BE MADE BY
SC1016
DFAS-COLUMBUS
CENTER
ATTN: DFAS-CO BUNKER
P.O. Box 182362
HILL
Columbus, OH 432182362
CODE
CODE
14.MARKED
FOR
DESCRIPTION
(Indicate number of shipping containers-type
container-container
of
number.)
0001
17.
QUANTITY
SHIP/REC'D*
18.
19.
UNIT
17
EA
Shipment
Acceptance
20.
UNIT PRICE
$615.95
AMOUNT
$10,471.15
FREIGHT
236.52
1075-01-045-1778 WHEEL
ASSY
YPG95100000822
P/N 40-122
____________________
_
TOTAL
Ready
To Begin
Payment
Process
$10,707.67
A SKID 1/1
22.
PROCUREMENT QUALITY ASSURANCE
21.
OF
1
5.DISCOUNT TERMS
10.ADMINISTERED BY
FOB:
W62T2T
XU DEFENSE DISTRIBUTION REGION
WEST
DISTRIBUTION
DEPOT SAN
JOAQUIN
TRANS OFC BLDG 330
CRP
LATHROP, CA 953310130
16.STOCK/PART NO
ITEM
NO.
7.PAGE
8.ACCEPTANCE POINT
1/4% 10
33269
PARKER-HANNIFIN
CORP
AEROSPACE
GROUP
1160 CENTER RD P.O. BOX
AVON, OH 44011
158
11.SHIPPED FROM(if other than 9)
6.INVOICE
9675792
1 MAR 96
SP0440-95-MHA30
B. DESTINATION
A. ORIGIN
PQA
ACCEPTANCE of listed items has been
made by me or under my supervision and they
conform to contract,except as noted herein or on
supporting documents.
RECEIVER'S USE
Quantities shown in column 17 were received
in apparent good condition except as noted.
DATE
RECEIVED
SIGNATURE OF AUTH GOV'T
REP
TYPED NAME
AND TITLE
DATE
SIGNATURE OF AUTH GOV'T
Dennis Racmanoff
REP
DATE
SIGNATURE OF AUTH GOV'T
REP
S3603A
TYPED NAME
AND TITLE
22.
TYPED NAME
AND TITLE
*If quantity received by the Government is the
same as quantity shipped,indicate by ( )
mark,if different,enter actual quantity received below quantity shipped and encircle.
CONTRACTOR USE ONLY
ORIGINAL INVOICE
P.O. 29826/000
S.O. 055171-003
DD Form 250
Sample 3, Transportation Charges Example
SPN
Accounts
Payable
Source
Your Financial Partner @ Work
5
Invoice Input
Invoice Receipt
Tier II
•Hard Copy
•Electronic
(CLR)
Contingent
Liability
Record
Contract
Payment
Provision
File
Invoice Types
API Payment
Process
Invoice
Master
File
•Commercial
Invoice
•DD250 Invoices
Accounts
Payable
File
•Contract
Financing
Requests
Manual
Payment
Process
•Public Vouchers
Your Financial Partner @ Work
6
Disbursement
Checks Validity
of Payment
Disbursing
OK
Full
Entitlement
Division
Back to Entitlement
Your Financial Partner @ Work
CPN
Payment Notices
Reports to
Accounting Stations
7
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
8
Impact of Returned Invoices

Approximately 11K Invoices are Returned
Monthly


Represents Rework for Us and You



Downward trend this FY
Resubmission of Invoices
Reprocessing of Invoices
Causes Delays in Payment
Your Financial Partner @ Work
9
Returned Code Variables
Code
E-01
E-02
E-03
E-05
E-06
E-07
E-08
E-09
E-10
E-11
E-12
E-13
E-14
E-17
E-19
Description
DFAS Not the Paying Office
Awaiting a Definitizing Modification
Contract Number on Invoice is Missing or Invalid
Duplicate Invoice/Shipment Number
Shipment Number is Missing or Incorrect
Evidence of Shipment Required
Invoice Requires Approval
Per Instructions of TO/ACO/PCO
Item Number Requires Verification
Invoice Not Billed IAW the Contract
Error on DD250
Inspection/Acceptance Problem
Unauthorized Overshipment
Transportation
As Required
Your Financial Partner @ Work
10
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
11
Top 4 Reasons for Returns - FY03

E-12: Error on DD250

Distribution Not Made to Terminal


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 ensure proper distribution of the
DD250 is made to the CAO terminal prior to resubmitting
the invoice for payment.
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
12
Returned / Recycled Invoices
Returned/ Recycled - Contract Pay
120,000
70.00%
60.00%
100,000
50.00%
80,000
40.00%
60,000
30.00%
40,000
20.00%
20,000
10.00%
0
0.00%
Jun-02
Jul-02
Aug-02
Sep-02
Oct-02
Invoices Processed:
Nov-02
Dec-02
Jan-03
Feb-03
CED Returned/ Recycled #
Mar-03
Apr-03
May-03
Jun-03
CED Returned/ Recycled %
Returned/ Recycled
CED Returned/ Recycled %
CED Returned/ Recycled #
Invoices Processed:
Jun-02
12.29%
10,226
83,234
Jul-02
11.75%
10,788
91,838
Aug-02
11.88%
10,997
92,531
Sep-02
10.96%
7,481
68,259
Oct-02
11.65%
10,704
91,912
Nov-02
12.19%
10,782
88,416
Dec-02
12.26%
11,205
91,372
Jan-03
12.65%
11,092
87,712
Feb-03
11.58%
8,800
76,007
Mar-03
12.40%
12,392
99,904
Apr-03
11.50%
11,327
98,473
May-03
11.61%
11,581
99,747
Jun-03
10.73%
10,042
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
Your Financial Partner @ Work
76,620
67,207
87,512
87,146
88,166
13
83,528
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
14
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
Your Financial Partner @ Work
15
DFAS
Your Financial Partner @ Work