DRAFT - 3/9/2020 i 
 DRAFT - 3/9/2020 ii 

Table of Contents

Table of Contents...................................................................................................................................ii

Table of Figures....................................................................................................................................iv

Listed Abbreviations..............................................................................................................................v

Foreword..............................................................................................................................................vii

Introduction............................................................................................................................................8

1.1. Background...................................................................................................................8

1.2. Purpose and Scope of This Document ..........................................................................9

1.3. FMLoB Business Process within Context of Core Requirements..............................10

Funds Control Processes......................................................................................................................11

2.2 Funds Control Allotment ............................................................................................11

2.3 Funds Control Sub-Allotment.....................................................................................11

2.4 Funds Control Commitment .......................................................................................11

2.5 Funds Control Obligation ...........................................................................................11

2.6 Funds Control Expenditures .......................................................................................11

2.7 Funds Control Disbursements.....................................................................................11

2.8 Funds Control Payroll Expense...................................................................................11

2.9 Funds Control Monitoring Controls............................................................................11

Payment Management Processes.........................................................................................................12

3.0. Payment Management Processes................................................................................12

3.1 Ordering of Goods and Services.................................................................................14

3.2 Funds Check Prior to Obligation ................................................................................22

3.3 Receipt and Acceptance of Goods..............................................................................26

3.4 Receipt and Acceptance of Services...........................................................................35

3.5 Accounts Payable and Invoicing Processes................................................................41

3.6 Disbursements – Bulk Files (ACH/EFT, PPD, CCD+, CTX, and Checks)................53

3.7 Disbursements – Small Volume and Same or Next Day Payments............................61

3.8 Data Objects and Data Elements.................................................................................67

3.9 Summary Data Objects and Data Elements................................................................92

Receivables Management Processes....................................................................................................99

Reports Management Processes......................................................................................................... 100

Appendix A - Approach..................................................................................................................... 101

Appendix B - Contributors................................................................................................................. 102

Appendix C – Business Process Flowcharts, Symbols, and Definitions........................................... 103

Glossary ............................................................................................................................................. 111
 DRAFT - 3/9/2020 iii 

Laws and Regulations........................................................................................................................ 120
 DRAFT - 3/9/2020 iv 

Table of Figures
 DRAFT - 3/9/2020 v 

Listed Abbreviations

ACH Automated Clearing House

ALC Agency Location Code

BETC Business Type Event Code

BRM Business Reference Model

BFELoB Budget Formulation and Execution Line of Business

CCD Cash Concentration Disbursement

CCD+ Cash Concentration Disbursement Plus Addendum

CCR Central Contractor Registry

CFO Chief Financial Officer

CFR Code of Federal Regulations

CIO Chief Information Officer

CO Certifying Officer

CFS Core Financial System

CFSR Core Financial System Requirements

CPIC Capital Planning and Investment Control

CTX Corporate Trade Exchange

DEO Data Entry Operator

DUNS Dun and Bradstreet Number

EDI Electronic Data Interchange

EFT Electronic Funds Transfer

FAR Federal Acquisition Regulation

FASAB Federal Accounting Standards Advisory Board

FBWT Fund Balance With Treasury

FEA Federal Enterprise Architecture

FEAF Federal Enterprise Architecture Framework 

FFMIA Federal Financial Management Improvement Act of 1996

FFMSR Financial Management Systems Requirements

FISMA Federal Information Security Management Act of 2002

FMLoB Financial Management Line of Business

FMS Financial Management Service

FOMF Financial Organization Master File

FSIO Financial Systems Integration Office

GAO Government Accountability Office

GPRA Government Performance and Results Act of 1993

ID Identification

IDD International Direct Deposit

IPAC Intra-Governmental Payment and Collection
 DRAFT - 3/9/2020 vi 

IPP Internet Payment Platform

IRM Information Resource Management

IT Information Technology

JFMIP Joint Financial Management Improvement Program

NACHA National Automated Clearing House Association

NIST National Institute of Standards and Technology

OCR Optical Character Recognition

OFFM Office of Federal Financial Management (OMB)

OMB Office of Management and Budget

PMA President’s Management Agenda

PMD Payment Management Disbursing

PO Purchase Order

PPA Prompt Payment Act

PPD Prearranged Payment and Deposit

PPD+ Prearranged Payment and Deposit Plus Addendum

RTN Routing Transit Number

SFFAS Statement of Federal Financial Accounting Standards

SPS Secure Payment System

TAFS Treasury Appropriation Fund Symbol

TAS Treasury Account Symbol

TPA Trading Partner Agreement

TFM Treasury Financial Manual

USSGL U.S. Standard General Ledger
 DRAFT - 3/9/2020 vii 

Foreword

Under Review with the Funds Control Chapter currently 

released as an Exposure Draft 
 DRAFT - 3/9/2020 8 

Introduction

1.1.BACKGROUND

Under Review with the Funds Control Chapter currently released as an 

Exposure Draft 
 DRAFT - 3/9/2020 9 

1.2.PURPOSE AND SCOPE OF THIS DOCUMENT

Under Review with the Funds Control Chapter currently released as an 

Exposure Draft 
 DRAFT - 3/9/2020 10 

1.3.FMLOB BUSINESS PROCESS WITHIN CONTEXT OF 

CORE REQUIREMENTS

Under Review with the Funds Control Chapter currently released as an 

Exposure Draft 
 DRAFT - 3/9/2020 11 

Funds Control Processes

2.2 FUNDS CONTROL ALLOTMENT

2.3 FUNDS CONTROL SUB-ALLOTMENT

2.4 FUNDS CONTROL COMMITMENT

2.5 FUNDS CONTROL OBLIGATION

2.6 FUNDS CONTROL EXPENDITURES

2.7 FUNDS CONTROL DISBURSEMENTS

2.8 FUNDS CONTROL PAYROLL EXPENSE

2.9 FUNDS CONTROL MONITORING CONTROLS

Under Review with the Funds Control Chapter currently released as an 

Exposure Draft 
 DRAFT - 3/9/2020 12 

Payment Management Processes

3.0.PAYMENT MANAGEMENT PROCESSES

The Payment Management processes detailed in this chapter are:

• PM 3.1 – Ordering of Goods and Services

• PM 3.2 – Funds Check Prior to Obligation

• PM 3.3 – Receipt and Acceptance of Goods

• PM 3.4 – Receipt and Acceptance of Services

• PM 3.5 – Accounts Payable and Invoicing Processes

• PM 3.6 – Disbursements – Bulk Files (ACH/EFT, PPD, CCD+, CTX, and Checks)

• PM 3.7 – Disbursements – Small Volume and Same or Next Day Payments

• PM 3.8 – Data Objects and Data Elements

• PM 3.9 – Summary Data Objects and Data Elements

Included are key steps in the processes from requisition to payment for commercial contracts and small 

acquisitions disbursed by Treasury. The steps are depicted in flowcharts. Following each flowchart are 

descriptions of the steps and related business rules. These steps reflect best practices in an electronic 

environment, sound internal controls, and compliance with Office of Federal Financial Management (OFFM) 

Core Financial System Requirements (CFSR).

Excluded from the scope of this chapter are the following:

• Payment management processes for payments not disbursed by Treasury

• Policies, procedures, and requirements detailed in authoritative guidance are not repeated in this document

• Acquisition processes

• Processes for maintenance of the Central Contractor Registry

• Intra-Governmental Payment and Collection (IPAC) transactions

• Reimbursable activity

• Travel

• Payroll

• Employee awards

• Credit card payments

• Grants
 DRAFT - 3/9/2020 13 

• Loans

• Cooperative agreements

• Canceled funds

• Foreign currency

• Internal offsets between Accounts Payable and Accounts Receivable.
 DRAFT - 3/9/2020 14 

3.1 ORDERING OF GOODS AND SERVICES 

This section presents key steps for ordering goods and services that result in outputs to the Accounts Payable and 

Invoicing processes. Acquisition processes, procedures, and related laws and regulations by which vendors are 

solicited and selected are excluded from the scope of this chapter.

PM 3.1 – Ordering Goods and Services Flowchart 

PM 3.1 – Ordering Goods and Services Vendor / Payee Finance Business Unit Receiving Acquisition

No

Yes

Yes

No

Perform 

Acquisition 

Process

PM 3.1.8

 Award 

DocumentBusiness 

Unit View

PM 3.1.20

To 

Step 

PM 3.5.9

 Award 

DocumentReceiving 

View

PM 3.1.19

To 

Step 

PM 3.4.1

Funds 

Available?

PM 3.1.3

Federal 

Vendor ?

PM 3.1.9

IPAC Procedures

PM 3.1.10

Obligation 

Posts to 

General 

Ledger

PM 3.1.17

 Award 

DocumentVendor 

Copy

PM 3.1.22

Commitment 

Posts to 

General 

Ledger

PM 3.1.6

Funded

Requisition

PM 3.1.7

To

Step 

PM 3.5.1

Authorized 

Requisition

PM 3.1.2

Initiate and 

Authorize

Obligation 

PM 3.1.11

Prepare 

Requisition

PM 3.1.1

To Step

PM 3.2.1

To 

Step 

PM 3.3.20

From Step

PM 3.2.8

To 

Step 

PM 3.3.2

Rejected 

Requisition

PM 3.1.4

 Award 

DocumentFinance 

View

PM 3.1.21

Distribute

Award Document

PM 3.1.18

Initiate Obligation 

Not Requiring 

Commitment

PM 3.1.12

Funds 

Available?

PM 3.1.14

Yes

Reject 

Obligation

PM 3.1.15

No

Authorize 

Obligation

PM 3.1.13

Rejected 

Obligation

PM 3.1.16

Resolve Issue

PM 3.1.5

See Appendix C – Business Process Flowcharts, Symbols, and Definitions for an enlarged version of the flowchart.
 DRAFT - 3/9/2020 15 

The Payment Management Ordering of Goods and Services process steps are described as follows:

Step ID Step Name Step Description Business Rules OFFM 

Req.

PM 3.1.1 Prepare

Requisition

Personnel authorized by the 

Business Unit prepare a 

requisition for purchase of 

goods or services.

A requisitioner has been previously 

designated requisitioning

responsibilities by a supervisor, listed 

with the Acquisition Office as an 

authorized Requester, and assigned 

authority within the system to initiate 

a requisition.

PM 3.1.2 Authorized

Requisition

The Business Unit requisitioner

enters required information on 

the requisition including the 

following: 

• Suggested or recommended 

vendors (or a justification 

for a specific vendor)

• When the goods or services 

are needed

• For services, the necessary 

period of performance

• An estimate of the cost to 

procure the goods or 

services

• An appropriate Common 

Government-wide 

Accounting Classification 

(CGAC) Structure

• Point-of-contact information 

for the Agency official(s) 

ordering and/or receiving the 

goods or services.

The requester signs the form 

electronically to authorize the request.

For certain types of acquisition

requests (e.g., property, information 

technology), the requisition must be 

authorized by an applicable official.

Personnel with funding authority must 

review the Common Governmentwide Accounting Classification 

(CGAC) Structure. 

Capital assets need to be identified 

and classified at the earliest possible 

stage of the asset life cycle.

The Acquisition System maintains a 

unique identifier label for each 

requisition and documents the 

pertinent information associated with 

each requisition.

A manager with funding authority 

reviews and electronically authorizes 

commitment of funds for the 

requisition. This occurs 

simultaneously with step PM 3.1.3, 

“Funds Available?”

PM 3.1.3 Funds 

Available?

The Core Financial System 

(CFS) checks whether funding 

is available to commit funds 

from applicable budgetary 

resources.

The system certifies availability of 

required funding prior to committing 

budgetary resources.
 DRAFT - 3/9/2020 16 

Step ID Step Name Step Description Business Rules OFFM 

Req.

PM 3.1.4 Rejected 

Requisition

Requisition is rejected due to 

lack of applicable funding.

The requisitioner is electronically 

notified that the requisition has been 

rejected due to lack of available 

funding. 

PM 3.1.5 Resolve Issue Business Unit and/or 

Acquisition will resolve the 

funding issue. 

Designated personnel resolve 

applicable funding issues in 

accordance with applicable rules, 

regulations, and Agency guidelines 

(e.g. FAR, Agency policies and 

procedures).

PM 3.1.6 Commitment 

Posts to 

General 

Ledger

After the requisition is entered 

into the system and approved by 

appropriate personnel, a 

commitment transaction posts to 

the General Ledger.

A commitment is posted to the 

General Ledger using the USSGL 

posting logic provided in the Treasury 

Financial Manual (TFM).

The recommended transaction codes 

from the current TFM, Volume I, Part 

2, Supplement, USSGL, Section III 

are:

TFM-B302 To record a commitment 

of unobligated amounts in programs 

subject to apportionment. 

TFM-B304 To record a commitment 

of unobligated balances in programs 

exempt from apportionment. 

PM 3.1.7 Funded

Requisition

The funded requisition is 

automatically routed to 

Acquisition.

Acquisition officials who 

have completed standardized training 

programs are certified to act as 

purchasing agents on behalf of the 

Agency and have been granted access 

to the Agency Acquisition System.

Upon receipt of a requisition, 

Acquisition reviews it to determine 

whether it has been appropriately 

completed and authorized.

If the Acquisition official notes errors 

or omissions in the requisition, it is 

returned to the Business Unit for 

corrective action.
 DRAFT - 3/9/2020 17 

Step ID Step Name Step Description Business Rules OFFM 

Req.

PM 3.1.8 Perform 

Acquisition 

Process

Once the contractor has been 

chosen, an Acquisition official 

prepares the award documents 

(such as contracts, purchase 

orders, and delivery orders).

Although multiple steps 

comprise this part of the 

process, such steps are beyond 

the scope of this document. This 

flowchart illustrates the 

origination of commitments, 

obligations, and applicable 

award documents that become 

inputs to the Accounts Payable 

and Invoicing processes.

Acquisition performs the procurement 

process in accordance with applicable 

regulations (e.g., FAR, Agency

guidelines).

PM 3.1.9 Federal 

Vendor?

The contractor/vendor is 

identified as either a Federal or 

Non-Federal Vendor. If Federal, 

the process moves to step PM 

3.1.10, “IPAC Procedures.” If 

Non-Federal, the process moves 

to step PM 3.1.11, “Initiate and 

Authorize Obligation.”

PM 3.1.10 IPAC 

Procedures

Applicable Intra-Governmental 

Payments and Collection system 

(IPAC) procedures are 

performed to process a Federal 

Vendor transaction.

PM 3.1.11 Initiate and 

Authorize 

Obligation

The Acquisition official

prepares an electronic award 

document and signs it to 

indicate approval.

Vendor information for the contractor 

must be loaded from the Central 

Contractor Registration (CCR) 

database system and maintained in the 

CFS. The vendor information 

maintained in the CFS must include 

the data elements and definitions used 

in the CCR database. Required vendor 

information is documented in 

Requirement PMA-01 of the OFFM 

CFSR. 

A unique obligation number is 

assigned to the award document

record. The number must reference 

the commitment number. 

The obligation number, document ID, 

and CGAC Structure must be included 

PMA-01
 DRAFT - 3/9/2020 18 

Step ID Step Name Step Description Business Rules OFFM 

Req.

in the obligation data maintained in 

the General Ledger. 

As applicable, include third-party 

payee information in the Agency

vendor information database.

The CFS must associate vendor and 

customer records representing the 

same entity.

The CFS must prevent new 

obligations to inactive or debarred 

vendors or vendors with expired CCR 

registrations.

An award document must not be 

distributed to end-users until an 

obligation is recorded in the General 

Ledger. Once the Acquisition official

electronically prepares and authorizes 

the award document, funds checks are 

performed in the General Ledger 

module to determine whether required 

funding is available for each line item 

of the obligation.

The requested obligation amounts are 

subjected to tolerance checks against 

committed funds.

PMA-02

PMA-03

PMA-16

PMA-17

PM 3.1.12 Initiate 

Obligation 

Not 

Requiring 

Commitment

The Business Unit official has a 

bona fide need for a small 

acquisition and generates an 

obligation in the system to 

record the goods or services 

ordered.

Vendor information for the contractor 

must be loaded from the Central 

Contractor Registration (CCR) 

database system and maintained in the 

CFS. The CCR information must 

include the data elements and 

definitions used in the CCR. Required 

vendor information is documented in 

Requirement PMA-01 of the OFFM 

CFSR. 

A unique obligation number is 

assigned to the obligation document 

recorded.

The obligation number, document ID, 

and CGAC Structure must be included 

PMA-01
 DRAFT - 3/9/2020 19 

Step ID Step Name Step Description Business Rules OFFM 

Req.

in the obligation data maintained in 

the General Ledger. 

As applicable, include third-party

payee information in the Agency

vendor information database.

The CFS must associate vendor and 

customer records representing the 

same entity.

The CFS must prevent new 

obligations to inactive or debarred 

vendors or vendors with expired CCR 

registrations.

Once the Business Unit official 

electronically prepares the obligation, 

funds checks are performed in the 

General Ledger system to determine 

whether required funding is available 

for each line item of the obligation.

PMA-02

PMA-03

PMA-16

PMA-17

PM 3.1.13 Authorize 

Obligation

A request for authorization is 

electronically routed to the 

appropriate individual within the 

Business Unit to authorize the 

obligation.

Another official within the Business 

Unit must review the obligation to 

ensure it is an authorized and valid 

obligation.

PM 3.1.14 Funds 

Available?

The CFS checks whether 

funding is available to obligate

funds from applicable budgetary 

resources.

PM 3.1.15 Reject 

Obligation

The obligation is rejected due to 

lack of available funding.

The originator of the obligation 

request is electronically notified that 

the obligation has been rejected due to 

lack of available funding.

PM 3.1.16 Rejected 

Obligation

The rejected obligation is 

transmitted to the Business Unit.

The process proceeds to step 

PM 3.1.5, “Resolve Issue.”
 DRAFT - 3/9/2020 20 

Step ID Step Name Step Description Business Rules OFFM 

Req.

PM 3.1.17 Obligation 

Posts to 

General 

Ledger

An obligation is posted to the 

General Ledger.

Once an obligation document passes 

funding and tolerance checks, it is 

posted to the General Ledger and the 

appropriate amount of the 

commitment is liquidated. 

The requester in the Business Unit is 

notified electronically of the 

obligation.

An obligation is posted using USSGL 

posting logic provided in the Treasury 

Financial Manual.

The recommended transaction codes 

from the current TFM, Volume I, Part 

2, Supplement, USSGL, Section III,

are:

TFM-B306 To record current-year 

undelivered orders without an 

advance. 

TFM-B308 To record current-year 

undelivered orders with an advance. 

TFM-B310 To record a current-year 

undelivered order without an advance 

where the commitment is more than 

the undelivered order for 

commitments in programs subject to 

apportionment. 

TFM-B312 To record a current-year 

undelivered order without an advance 

where the commitment is more than 

the undelivered order for 

commitments in programs exempt 

from apportionment.

TFM-B314 To record a current-year 

undelivered order without an advance 

where the commitment is less than 

the undelivered order for 

commitments in programs subject to 

apportionment.
 DRAFT - 3/9/2020 21 

Step ID Step Name Step Description Business Rules OFFM 

Req.

TFM-B316 To record a current-year 

undelivered order without an advance 

where the commitment is less than the 

undelivered order for commitments in 

programs exempt from apportionment.

PM 3.1.18 Distribute 

Award 

Document

The system-generated award 

document is distributed through 

the system to the Receiving, 

Business Unit, Finance, and 

vendor areas.

The document should be 

electronically distributed/made 

viewable to applicable offices that 

perform the receipt, acceptance, and 

invoice processing activities as well as 

the vendor. 

The award document copy should 

include the obligation number, line 

item information, CGAC Structure, 

applicable vendor information, and 

contract terms.

PM 3.1.19 Award 

DocumentReceiving 

View

The Receiving View includes 

information fields applicable to 

the receipt of goods and/or 

services.

The CFS must enable access to the 

Receiving View of the award 

document to applicable authorized 

personnel. 

PM 3.1.20 Award 

DocumentBusiness 

Unit View

The Business Unit View 

includes information fields 

applicable to the receipt and 

acceptance of goods and/or 

services.

The CFS must enable access to the 

Business Unit View of the award 

document to applicable authorized 

personnel.

PM 3.1.21 Award 

DocumentFinance 

View

The Finance View includes 

information fields applicable to 

the Finance functions.

The CFS must enable access to the 

Finance View of the Award Document 

to applicable authorized personnel.

PM 3.1.22 Award 

DocumentVendor Copy

The vendor copy includes 

information fields applicable to 

the vendor’s transactions with 

the Agency.

The vendor copy of the award is sent 

to the vendor.
 DRAFT - 3/9/2020 22 

3.2 FUNDS CHECK PRIOR TO OBLIGATION

The following flowchart provides the steps taken to perform a funds check prior to obligation of funds. Section PM 

3.2 applies to contractual acquisitions for which commitments and obligations are required. Included are steps to 

compare an obligation request to an underlying commitment, assess availability of funds, and liquidate commitments 

at the time of obligation.

PM 3.2 – Funds Check Prior to Obligation Flowchart

PM 3.2 – Funds Check Prior to Obligation Finance

No

Yes

Yes

No

Yes

No

Yes

No

To Step 

PM 3.1.17

Is this the Final 

Obligation on this 

Commitment?

PM 3.2.6

Pass Funds 

Check?

PM 3.2.4

Issue Resolved? 

PM 3.2.5

Entire 

Commitment 

Liquidated in 

General 

Ledger

PM 3.2.8

Obligation Amount 

Equal to 

Commitment? 

PM 3.2.1

From Step

PM 3.1.11

Pass Tolerance 

Check?

PM 3.2.3

Obligation Amount 

Less than the 

Commitment?

PM 3.2.2

Liquidate 

Portion of 

Commitment 

that is 

Obligated

PM 3.2.7

Yes

No

Yes

See Appendix C – Business Process Flowcharts, Symbols, and Definitions for an enlarged version of the flowchart.
 DRAFT - 3/9/2020 23 

The Payment Management Funds Check Prior to Obligation process steps are described as follows:

Step ID Step Name Step Description Business Rules OFFM 

Req.

PM 3.2.1 Obligation 

Amount 

Equal to 

Commitment?

The amount of the prospective 

obligation is compared to the 

amount of the applicable 

commitment.

Once the CFS determines a 

commitment exists related to this 

obligation, it determines if the 

obligation amount equals the 

commitment amount. 

PM 3.2.2 Obligation 

Amount Less 

than the 

Commitment?

The amount of the prospective 

obligation is compared to the 

amount of the applicable 

commitment.

If the obligation amount is not 

equal to the commitment amount, 

determine if the obligation amount 

requested is less than the 

commitment posted in the CFS. 

PM 3.2.3 Pass 

Tolerance 

Check?

The amount by which an 

obligation exceeds a 

commitment is compared to 

predetermined tolerance levels 

for quantities and prices of 

goods or services. 

Agencies should determine 

tolerance levels for prices and 

quantities of goods or services that 

can be processed with no further 

approval.

PM 3.2.4 Pass Funds 

Check?

The amount that an obligation 

exceeds a commitment amount,

but is within tolerance is 

checked to determine whether 

sufficient funds are available 

for the amount by which the 

obligation exceeds the 

commitment.

The CFS must ensure sufficient 

applicable funding is available 

prior to allowing the obligation to 

post. 

The amount by which the 

obligation exceeds the commitment 

(while within a preset tolerance 

level) is funded directly from 

available budgetary resources. An 

additional commitment of funds is 

not required prior to posting the 

additional amount of the 

obligation. 

PM 3.2.5 Issue

Resolved?

If the amount of the obligation 

request exceeds the tolerance 

level for commitment posted in 

the CFS and/or funds are not 

available, research must be 

performed to identify and 

resolve the funding issue.

The CFS should route the funding 

issues to applicable authorized 

personnel who will either 

discontinue the transaction or make 

funds available. 
 DRAFT - 3/9/2020 24 

Step ID Step Name Step Description Business Rules OFFM 

Req.

PM 3.2.6 Is this the 

Final 

Obligation on 

this 

Commitment?

Determine if this is the last 

obligation to be made on this 

commitment. If yes, the process 

moves to step PM 3.2.8 “Entire 

Commitment Liquidated in 

General Ledger.”

The CFS should check whether 

funds will remain on the 

commitment after the obligation is 

made and whether the requester 

has indicated in the system that 

remaining funds should be decommitted.

PM 3.2.7 Liquidate 

Portion of 

Commitment 

that is 

Obligated

The portion of the commitment 

applicable to the obligation is 

liquidated.

The CFS must liquidate the 

commitment using USSGL posting 

logic documented in the current 

TFM:

The Agency reverses the following 

previously recommended ( PM 

3.1.6, “Commitment Posts to 

General Ledger”) transaction codes 

from the current TFM, Volume I, 

Part 2, Supplement, USSGL, 

Section III:

TFM- B302 To record a 

commitment of unobligated 

amounts in programs subject to 

apportionment. 

TFM-B304 To record a 

commitment of unobligated 

balances in programs exempt from 

apportionment.

PM 3.2.8 Entire 

Commitment 

Liquidated in 

General 

Ledger

If the obligation and 

commitment are equal, the 

entire commitment is liquidated 

in the General Ledger.

If the obligation has been identified 

as the final one to be made on the 

commitment, the remaining 

amount of the commitment is 

liquidated in the General Ledger.

The Agency must develop and 

implement procedures for 

appropriate personnel to deobligate obligations that will not be 

used.

The Agency reverses the following 

previously recommended 

transaction codes from the current 

TFM, Volume I, Part 2, 

Supplement, USSGL, Section III:
 DRAFT - 3/9/2020 25 

Step ID Step Name Step Description Business Rules OFFM 

Req.

TFM-B302 To record a 

commitment of unobligated 

amounts in programs subject to 

apportionment. 

TFM-B304 To record a 

commitment of unobligated 

balances in programs exempt from 

apportionment. 
 DRAFT - 3/9/2020 26 

3.3 RECEIPT AND ACCEPTANCE OF GOODS

The following flowchart provides the steps related to the processes for receipt and acceptance of goods. The steps 

contained in flowchart PM 3.3 describe procedures necessary for the inspection, acceptance, and recording of receipt 

and return of goods.

PM 3.3 – Receipt and Acceptance of Goods Flowchart

PM 3.3 – Receipt and Acceptance of Goods Finance Business Unit Receiving

Yes

Yes

Yes

No

Yes

No

Yes

Yes

No

No

Reject Goods 

for Overage

PM 3.3.13

Quantity Received 

Greater than Allowable 

Tolerance Level? 

PM 3.3.8

From 

Step 

PM 3.1.20 and 

3.5.12

Business Unit and 

Acquisition 

Evaluate Issue 

PM 3.3.10

From 

Step 

PM 3.1.19

Return Goods?

PM 3.3.6

Reject Goods

and Resolve 

Inspection 

Issues

PM 3.3.5

Return Goods

PM 3.3.7

Receiving 

Document

PM 3.3.17

Return Goods

PM 3.3.29

Adjust 

Expense in 

General 

Ledger 

PM 3.3.30

To 

Step 

PM 3.5.13

Receive Goods

PM 3.3.1

System 

Generated 

Invoice?

PM 3.3.18

System

Generated 

Invoice

PM 3.3.19

To 

Step 

PM 3.5.13

Message 

Sent to 

Business Unit 

and Acquisition 

PM 3.3.9

Passes 

Inspection for 

Damage?

PM 3.3.4

Acceptance 

Recorded

PM 3.3.23

Reject Goods

PM 3.3.28

Acceptance 

Procedures for 

Goods Received

PM 3.3.20

Inspection

For Damage

PM 3.3.3

Match Goods to 

Award 

Document

PM 3.3.2

Passes 

Funds Check?

PM 3.3.24

Expense 

Posts to 

General 

Ledger

PM 3.3.25

Final Receipt 

of Goods on Award 

Document?

PM 3.3.14

Message 

Sent to 

Business Unit 

and Acquisition 

PM 3.3.26

Record Receipt 

of Goods as 

Final

PM 3.3.16

Issue 

Resolved?

PM 3.3.11

Accept 

Goods?

PM 3.3.21

Update 

Obligation

PM 3.3.12

Yes

Resolve 

Issue?

PM 3.3.27

No

Yes

Yes

No

No

Goods 

Receipt 

Process 

PM 3.3.15

Yes

Issue with 

Goods Resolved?

PM 3.3.22

To 

Step 

PM 3.3.14

No

From

Step 

PM 3.3.12 & 

3.3.24 No

To

Step 

PM 3.3.14

No

See Appendix C – Business Process Flowcharts, Symbols, and Definitions for an enlarged version of the flowchart.
 DRAFT - 3/9/2020 27 

The Payment Management Receipt and Acceptance of Goods process steps are described as follows:

Step ID Step Name Step Description Business Rules OFFM

Req.

PM 3.3.1 Receive 

Goods

In the case of physical 

goods, goods are received at 

a designated Receiving area.

Goods must be delivered according 

to delivery information on the award 

document. Agency procedures 

should call for rejecting delivery of 

goods brought to locations other 

than the appropriate Receiving site. 

The Receiving personnel must 

record information including the 

Receiving official, dates of delivery, 

quantity/amount received, vendor 

ID number and name, ship to 

locations.

Receiving of goods may occur at the 

receiving dock or in the Business 

Unit.

PM 3.3.2 Match Goods 

to Award 

Document

When goods are received, 

Receiving personnel match 

the items to the award 

document. Any 

discrepancies or damages 

are noted electronically.

Access to the Receiving system 

must be restricted to authorized 

personnel. 

The Receiving personnel must 

record full or partial receipt and/or 

acceptance of goods by document 

line, including partial quantities on 

each line item. 

Goods must be recorded in the 

Agency Asset Management system.

PMB-01

PM 3.3.3 Inspection for 

Damage

Inspection of the goods for 

damage is done once the 

goods are received and 

matched to the award 

document.

Inspection for damage should be 

performed at the time of delivery by 

applicable Receiving personnel. 

PM 3.3.4 Passes 

Inspection for 

Damage?

Confirm that the goods are 

free of visible damage and 

note that the goods pass 

inspection.

Receiving personnel assess visible 

damage to goods in accordance with 

applicable rules and regulations 

(e.g., FAR, Agency guidelines).
 DRAFT - 3/9/2020 28 

Step ID Step Name Step Description Business Rules OFFM

Req.

PM 3.3.5 Reject Goods 

and Resolve 

Inspection 

Issues

If the goods are determined 

to be damaged, return the 

damaged goods to the 

appropriate originator.

Inspection issues with the 

goods must be resolved, if 

applicable.

Return of goods is recorded in the 

Agency Asset Management system. 

Partial receipt of goods would result 

in only part of the goods being 

rejected. 

PM 3.3.6 Return 

Goods?

If the goods are determined 

to be damaged and repair or 

replacement of parts is not 

appropriate, all or a portion 

of the goods should be 

returned.

The return of goods must be within 

the contract terms.

In accordance with the contract 

terms, replacement components or 

parts may be obtained from the

vendor to correct the issue.

PM 3.3.7 Return Goods All or a portion of the goods 

are returned to the originator 

as applicable under the 

terms of the contract.

The return of goods must be within 

contract terms.

PM 3.3.8 Quantity 

Received 

Greater than 

Allowable 

Tolerance 

Level?

If the quantity received 

exceeds the quantity 

ordered, the excess is 

compared to an allowable 

tolerance level.

If the quantity received is 

within the allowable 

tolerance level, the process 

continues to step PM 3.3.14, 

“Final Receipt of Goods on 

Award Document?” If the 

quantity received exceeds 

the allowable tolerance 

level, the process goes to 

step PM 3.3.9 “Message 

Sent to Business Unit and 

Acquisition.”

The Agency sets tolerance levels in 

accordance with Agency policies 

and guidelines.

PM 3.3.9 Message Sent 

to Business 

Unit and 

Acquisition 

If the quantity received 

exceeds the allowable 

tolerance level in step PM 

3.3.8, “Quantity Received 

Greater than Allowable 

Tolerance Level,” a message 

is sent to the appropriate 

personnel in the Business 

The Agency designates appropriate 

personnel responsible for review 

and authorization of quantities and 

amounts in excess of allowable 

tolerance levels in accordance with 

rules and regulations (e.g., FAR, 

Agency policies and procedures).
 DRAFT - 3/9/2020 29 

Step ID Step Name Step Description Business Rules OFFM

Req.

Unit and/or Acquisition.

PM 3.3.10 Business Unit 

and 

Acquisition 

Evaluate 

Issue

Appropriate personnel 

determine whether the 

excess quantity of goods 

should be kept and funding 

is modified as appropriate.

Designated personnel determine 

whether an excess quantity of goods 

will be approved and funded in 

accordance with rules and 

regulations (e.g., FAR, Agency 

policies and procedures).

PM 3.3.11 Issue 

Resolved?

Based on the review 

performed in step PM 

3.3.10, “Business Unit and 

Acquisition Evaluate Issue,”

if the excess quantity of 

goods is not to be kept the 

process goes to step PM 

3.3.13, “Reject Goods for 

Overage”.

If the excess quantity of 

goods is to be kept, the 

process goes to step PM 

3.3.12, “Update Obligation.”

If designated personnel determine 

an excess of quantity of goods is to 

be rejected, the goods are rejected in 

accordance with rules and 

regulations (e.g., FAR, Agency 

policies and procedures).

PM 3.3.12 Update 

Obligation

If the issue was resolved 

(yes) in the “Issue 

Resolved?” step PM 3.3.11, 

“Issue Resolved,” then the 

obligation is modified to 

reflect revised quantities 

and/or amounts.

FAR and Agency guidelines are 

followed for the modification of the 

obligation.

PM 3.3.13 Reject Goods 

for Overage

If the appropriate personnel 

in the Business Unit and/or 

acquisition determine the 

excess quantity of goods 

should not be kept, the 

process proceeds to step, 

PM 3.3.29, “Return Goods.”

If designated personnel determine 

an excess of quantity of goods is to 

be rejected, the goods are rejected in 

accordance with rules and 

regulations and procedures (e.g., 

FAR, Agency policies).

PM 3.3.14 Final Receipt 

of Goods on 

Award 

Document?

Determine if this is the final 

receipt of goods for this 

award document.

Personnel designated to perform 

acceptance procedures for receipt of 

goods indicate in the CFS whether 

this is the final receipt of goods for 

the award document.
 DRAFT - 3/9/2020 30 

Step ID Step Name Step Description Business Rules OFFM

Req.

PM 3.3.15 Goods 

Receipt 

Process

Goods are processed for 

receipt.

Policies and procedures must 

comply with FAR. The receipt and 

acceptance of goods must be 

performed within the contract terms.

PM 3.3.16 Record 

Receipt of 

Goods as 

Final

If the receipt of goods 

represents the final

outstanding obligation on 

the award document, it is 

recorded as the final receipt 

of goods.

Appropriate procedures should be 

performed to reconcile the award 

document to documentation of 

goods received. 

PM 3.3.17 Receiving 

Document

Receiving personnel enter 

receiving data to the 

applicable system to create a 

receiving document. The 

system accesses and 

populates applicable fields 

of the receiving document

with information from the 

award document.

The receiving document becomes 

available to the Business Unit. The 

Receiving system electronically 

notifies the requester/end user in the 

Business Unit that goods have been 

received.

The receiving document becomes 

available to CFS to be matched with 

the invoice and award document 

information.

Final document notice is sent to the 

Agency procurement system.

As described in step PM 3.3.25, 

“Expense Posts to General Ledger”,

the General Ledger is updated to 

record a proprietary expense and 

budgetary expenditure for delivered 

goods. Applicable obligations, 

advances, or prepaid expense 

balances are liquidated.

PM 3.3.18 System 

Generated 

Invoice?

For applicable transactions 

for receipt of goods for 

which a vendor invoice is 

not required for payment, an 

invoice is created within the 

CFS. 

Award documents should indicate 

whether a vendor invoice is required 

for payment. (The vendor invoice 

may be required by Finance prior to 

payment but is not required as part 

of the Receiving process. Rather, it 

may be made available to applicable 

personnel in the Business Unit for 

informational purposes.)

In the event a vendor invoice is not 

required, the CFS should create an 
 DRAFT - 3/9/2020 31 

Step ID Step Name Step Description Business Rules OFFM

Req.

internal invoice based on vendor, 

obligating, and receiving

information.

PM 3.3.19 System 

Generated 

Invoice

A system generated invoice 

is created within the CFS. 

PM 3.3.20 Acceptance 

Procedures 

for Goods 

Received

The Business Unit or person 

with authority to certify 

acceptance of goods inspects 

the goods. This person 

reviews the electronic 

Receiving document and is 

responsible for validating 

goods are in compliance 

with contractual 

requirements.

The following additional 

information must be captured in the 

CFS:

Acceptance official

Delivery dates

Acceptance/rejection dates

Quantity/amount accepted/rejected

Vendor ID number and name

Ship to locations.

Depending on contractual terms and 

FAR guidelines, “constructive 

receipt” may apply to certain goods.

Under this scenario, acceptance 

procedures may not be required as 

the goods are considered “accepted”

after an applicable amount of time.

The receipt and acceptance of goods 

must be done within the contract 

terms.

PMB-05

PM 3.3.21 Accept 

Goods?

If the certifier accepts all or 

a portion of the goods 

received, the applicable 

quantities of line items from 

the award document are 

accepted. The electronic 

documentation of 

acceptance is available to 

the Finance area.

If a required invoice has yet to be 

received in Finance, certification of 

receipt and acceptance of goods is 

stored in the system pending receipt 

of the invoice.

Resolve inspection issues, if 

applicable.

PM 3.3.22 Issue with 

Goods 

Resolved?

The issue with the goods is 

either resolved and moves to 

step PM 3.3.23, 

“Acceptance Recorded,” or 

is not resolved and proceeds 

In accordance with rules and 

regulations (e.g., Agency policies 

and procedures, FAR), designated 

officials review applicable issues 

related to goods and determine steps 
 DRAFT - 3/9/2020 32 

Step ID Step Name Step Description Business Rules OFFM

Req.

to step PM 3.3.28 “Reject 

Goods .”

to be taken to resolve these issues.

PM 3.3.23 Acceptance 

Recorded

Personnel document 

acceptance for goods that 

have been received.

Appropriate personnel should be 

authorized for documenting 

acceptance of goods. 

PM 3.3.24 Passes Funds 

Check?

The amount that a receiving 

document exceeds an 

obligation is subjected to an 

edit check to determine 

whether sufficient funds are 

available for the additional 

funding.

If funds are available (yes),

the process goes to step PM 

3.3.25, “Expense Posts to 

the General Ledger.” If 

funds are not available (no), 

notification is sent to

Business Unit and 

Acquisition to resolve the 

issue.

The CFS must ensure sufficient 

applicable funding is available prior 

to allowing an expense to post to the 

General Ledger.

PM 3.3.25 Expense 

Posts to 

General 

Ledger

The General Ledger is 

posted to record a 

proprietary expense and 

budgetary expenditure for 

received goods. Applicable 

advances or prepaid expense 

balances are liquidated.

Expenses are reviewed periodically 

by supervisory personnel in the 

Finance area. Appropriate personnel 

should follow-up on items for which 

receipt and/or acceptance are 

missing. 

The recommended transaction codes 

from the current TFM, Volume I, 

Part 2, Supplement, USSGL, 

Section III, are:

TFM-B402 To record the delivery 

of goods or services and accrue a 

liability.

TFM-B404 To record the delivery 

of goods and services in the same 

year the order was placed and 

PMB-02

PMB-03
 DRAFT - 3/9/2020 33 

Step ID Step Name Step Description Business Rules OFFM

Req.

accrue a liability. The current-year 

expended authority is less than the 

original obligation.

TFM-B406 To record the delivery 

of goods and services in the same 

year the order was placed and 

accrue a liability. The current-year 

expended authority is more than the 

original obligation.

TFM-B408 To reclassify payable 

schedules for disbursements to “intransit” until the payment schedule 

is confirmed.

TFM-B410 To record the delivery 

of goods or services for 

construction.

TFM-B412 To record an obligation 

and Accounts Payable in an 

unexpired appropriation for a valid 

bill related to a canceled 

appropriation.

TFM-B416 To record the collecting 

Agency estimated accrued tax 

refunds payable and related interest.

TFM-B418 To record the accrual of 

interest expenses incurred, not yet 

paid.

PM 3.3.26 Message 

Sent to 

Business Unit 

and 

Acquisition

If the funds check edit fails, 

a message is sent to 

Business Unit and 

Acquisition for notification 

to resolve the issue. 

The message should be initiated 

electronically once a transaction 

fails step PM 3.3.24, “Passes Funds 

Check?”

PM 3.3.27 Resolve 

Issue?

Business Unit and/or 

Acquisition will resolve the 

funding issue. If the issue is 

resolved (yes), the process 

moves to step PM 3.3.24,

“Passes Funds Check?” If 

“yes,” the process moves to 

step PM 3.3.14, “Final 

Designated personnel resolve 

applicable funding issues in 

accordance with applicable rules, 

regulations, and Agency guidelines 

(e.g. FAR, Agency policies and 

procedures).
 DRAFT - 3/9/2020 34 

Step ID Step Name Step Description Business Rules OFFM

Req.

Receipt of Goods on Award 

Document?”

If issue is not resolved (no), 

then the process moves to 

step PM 3.3.28, “Reject 

Goods.”

PM 3.3.28 Reject Goods The certifier of acceptance 

electronically records the 

items being rejected and the 

expenses recorded at the 

time of receipt of goods are 

adjusted accordingly (step 

PM 3.3.30, “Adjust Expense 

in General Ledger”). 

If goods or services are deemed 

unacceptable, an Acquisition 

official is notified to administer the 

process of resolving the applicable 

issue in accordance with FAR 

and/or Agency guidelines.

PM 3.3.29 Return Goods Return goods to the 

appropriate originator.

Return of goods must be 

appropriately recorded in the 

Agency Asset Management system.

PM 3.3.30 Adjust 

Expense in 

General 

Ledger

For goods being rejected, 

expenses recorded at the 

time of receipt of goods are 

adjusted accordingly.

Based on the specific financial 

event, the expense is adjusted in 

accordance with the current TFM, 

Volume I, Part 2, Supplement, 

USSGL, Section III.
 DRAFT - 3/9/2020 35 

3.4 RECEIPT AND ACCEPTANCE OF SERVICES

The following flowchart depicts the steps for the Payment Management process for the receipt and acceptance of 

services. Steps include receipt and acceptance of services and related actions in the Business Unit and Finance 

functional areas.

PM 3.4 – Receipt and Acceptance of Services Flowchart

PM 3.4 – Receipt and Acceptance of Services Finance Business Unit

Receipt 

and 

Acceptance 

Documents

PM 3.4.3

Do Not Accept 

Services

PM 3.4.6

Services 

Performed

PM 3.4.1

Services

Accepted?

PM 3.4.2

From 

Steps 

PM 3.1.20,

PM 3.5.12

Expense 

Posts to 

General 

Ledger

PM 3.4.9

Issues 

Resolved?

PM 3.4.4

No

To

Step 

PM 3.5.13

System

Generated 

Invoice

PM 3.4.13

System 

Generated 

Invoice?

PM 3.4.12

Services 

Amount Within 

Tolerance?

PM 3.4.7

Passes 

Funds Check?

PM 3.4.8

Message 

Sent to 

Business Unit 

and Acquisition

PM 3.4.10

Yes

No

No Yes

Resolve 

Issue?

PM 3.4.11

No

Yes

No

Yes

Accept 

Partial Quantity 

of Services?

PM 3.4.5

Yes

Yes

No

Yes

No

See Appendix C – Business Process Flowcharts, Symbols, and Definitions for an enlarged version of the flowchart.
 DRAFT - 3/9/2020 36 

The Payment Management Acceptance of Services process steps are described as follows:

Step ID Step Name Step Description Business Rules OFFM 

Req.

PM 3.4.1 Services

Performed

Services are performed on 

behalf of the applicable 

Business Unit.

Authorized officials in the 

Business Unit and/or Acquisition 

monitor services for compliance 

with contractual agreements.

Receipt of services should be 

documented in the CFS by the 

time the invoice for the services is 

received. 

PM 3.4.2 Services 

Accepted?

Authorized officials in the 

Business Unit access an 

electronic award document

and vendor invoice for 

services provided. The 

authorized official in the 

Business Unit is 

electronically notified by 

Finance of the receipt of an 

invoice for services. 

Depending on contractual terms 

and FAR guidelines, “constructive 

receipt” may apply to certain 

goods. Under this scenario, 

acceptance procedures may not be 

required as the services are 

considered “accepted” after an 

applicable amount of time.

The receipt and acceptance of 

services must be performed within 

the contract terms.

PM 3.4.3 Receipt and 

Acceptance 

Documents

Based on appropriate 

monitoring of vendor 

performance, the authorizing 

official electronically 

performs receipt and 

acceptance of services. 

The Receiving personnel must 

record full or partial receipt and/or 

acceptance of goods by document 

line, including partial quantities 

on each line item. 

Supervisory review and 

authorization is documented. 

Acceptance data must be captured 

including acceptance official, 

dates services were 

provided/accepted, 

quantity/amount provided, date 

and quantity/amount of services 

rejected, vendor ID number, and 

name.

PMB-01

PMB-05

PM 3.4.4 Issues 

Resolved?

Appropriate notifications to 

Business Unit, Acquisition, 

and Finance personnel are 

transmitted and appropriate 

actions are taken to resolve 

the issue. If appropriate 

Issues must be evaluated and 

resolved within the guidelines and 

requirements of applicable laws 

and regulations, including the 

Prompt Payment Act and FAR.
 DRAFT - 3/9/2020 37 

Step ID Step Name Step Description Business Rules OFFM 

Req.

actions are taken and 

appropriate personnel 

determine the billing issue is 

resolved, the process returns 

to step PM 3.4.2, “Services 

Accepted?” for acceptance of 

services to be re-evaluated 

and accepted as applicable. 

The authorized official may 

decline to accept services due 

to concerns that contractual 

criteria have not been met.

The process moves to step 

PM 3.4.6, “Do Not Accept 

Services.”

PM 3.4.5 Accept 

Partial 

Quantity of 

Services?

If the services are not 

accepted in step PM 3.4.2, 

“Services Accepted,” and the 

issues are not resolved in PM 

3.4.4, “Issues Resolved?,” it 

must be determined if there is 

partial acceptance of the 

services.

If there is partial acceptance 

(yes), then the process moves 

to step PM 3.4.3, “Receipt 

and Acceptance Documents,”

for the portion of services 

accepted.

If there is not a partial 

acceptance (no), then the 

process moves to step PM 

3.4.6 “Do Not Accept 

Services.”

Partial receipt (measurement of 

quality of services) of services is 

possible for certain types of 

services and can be governed by 

the “Service Level Agreement”

(SLA) for acceptance of services 

and possible “partial” receipt of 

services.

Partial receipt and acceptance of 

services may result from variances 

from contractual terms.(e.g., rate 

discrepancy, contracted quantity 

of services (hours) received).

If a proper invoice or proper 

documentation per the contract is 

received and not accepted, the 

invoice is returned within seven 

days in order to comply with the 

Prompt Payment Act.

PM 3.4.6 Do Not 

Accept 

Services

The certifier of acceptance 

electronically records the 

service items being rejected.

The invoice is returned to the 

originator, and a new invoice 

will be requested to be sent 

from the vendor. 

If services are to be rejected, it 

must be done in accordance with 

applicable award documents, the 

FAR, and Agency guidance.

The invoice must be rejected 

within seven days under the 

Prompt Payment Act. The 

Business Unit must submit to 

Finance a receipt and acceptance 
 DRAFT - 3/9/2020 38 

Step ID Step Name Step Description Business Rules OFFM 

Req.

document indicating that the 

quality/quantity of the services 

billed was deficient in order to 

reject an invoice. 

PM 3.4.7 Services 

Amount 

Within 

Tolerance?

If the quantity of hours or 

hourly rate of services 

received exceeds the quantity 

ordered, the excess is 

compared to an allowable 

tolerance level. If the quantity 

received is within the 

allowable tolerance level, the 

process continues to step PM 

3.4.8, “Passes Funds Check?”

Agencies should determine 

tolerance levels for prices and 

quantities of items that can be 

processed without further 

approval.

PM 3.4.8 Passes 

Funds 

Check?

The amount that the services 

received exceed an obligation 

is subjected to an edit check 

to determine whether 

sufficient funds are available 

for the additional funding.

If funds are available (yes),

the process goes to step PM 

3.4.9, “Expense Posts to 

General Ledger.” If funds are 

not available (no), 

notification is sent to the

Business Unit to resolve the 

issue.

The CFS must ensure sufficient 

applicable funding is available 

prior to allowing an expense to 

post to the General Ledger.

PM 3.4.9 Expense 

Posts to 

General 

Ledger

Based on receipt of the 

services, the General Ledger 

is updated to record a 

proprietary expense and 

budgetary expenditure for the 

delivered services.

The expense entries are posted 

using the USSGL posting logic 

provided in the Treasury Financial 

Manual.

The recommended transaction 

codes from the current TFM, 

Volume I, Part 2, Supplement, 

USSGL, Section III, are:

TFM-B402 To record the delivery 

of goods or services and accrue a 

liability.

TFM-B404 To record the delivery 

of goods and services in the same 

year the order was placed and 
 DRAFT - 3/9/2020 39 

Step ID Step Name Step Description Business Rules OFFM 

Req.

accrue a liability. The current-year 

expended authority is less than the 

original obligation.

TFM-B406 To record the delivery 

of goods and services in the same 

year the order was placed and 

accrue a liability. The current-year 

expended authority is more than 

the original obligation.

TFM-B408 To reclassify payable 

schedules for disbursements to 

“in-transit” until the payment 

schedule is confirmed.

TFM-B410 To record the delivery 

of goods or services for 

construction.

TFM-B412 To record an 

obligation and accounts payable in 

an unexpired appropriation for a 

valid bill related to a canceled 

appropriation.

TFM-B416 To record the 

collecting Agency’s estimated 

accrued tax refunds payable and 

related interest.

TFM-B418 To record the accrual 

of interest expenses incurred, not 

yet paid.

PM 3.4.10 Message 

Sent to 

Business 

Unit and 

Acquisition 

If the quantity of services 

received exceeds the 

allowable tolerance level in 

step PM 3.4.7, “Services 

Amount Within Tolerance?,”

a message is sent to the 

appropriate personnel in the 

Business Unit. 

The message should be initiated 

electronically once a transaction 

fails step PM 3.4.8, “Passes Funds 

Check?”
 DRAFT - 3/9/2020 40 

Step ID Step Name Step Description Business Rules OFFM 

Req.

PM 3.4.11 Resolve 

Issue?

The Business Unit will 

resolve the funding issue. If 

the issue is resolved (yes), the 

process moves to step PM 

3.4.8, “Passes Funds

Check?,” again, and if the 

edit check passes, the process 

moves to step PM 3.4.9,

“Expense Posts to General 

Ledger.”

If issue is not resolved (no), 

then the process moves to 

step PM 3.4.6, “Do Not 

Accept Services.”

Issues must be evaluated and 

resolved within the guidelines and 

requirements of applicable laws 

and regulations, including the 

Prompt Payment Act and FAR.

PM 3.4.12 SystemGenerated 

Invoice?

For applicable transactions 

for receipt of goods for which 

a vendor invoice is not 

required for payment, an 

invoice is created within the 

CFS. 

Award documents should indicate 

whether a vendor invoice is 

required for payment. (The vendor 

invoice may be required by 

Finance prior to payment but is 

not required as part of the 

Receiving process. Rather, it may 

be made available to applicable 

personnel in the Business Unit for 

informational purposes.)

In the event a vendor invoice is 

not required, the CFS should 

create an internal invoice based on 

vendor, obligating, receiving, and 

acceptance information.

Acceptance is electronically 

routed back to step PM 3.5.17, 

“Matching Criteria Met?” to be 

matched with the invoice and 

award document.

PM 3.4.13 SystemGenerated 

Invoice

The CFS generates an 

internal invoice based on data 

elements from the award 

document, vendor file, and 

receipt of services. 

Acceptance is electronically 

routed back to step PM 3.5.13, 

“Matching Criteria Met?,” to be 

matched with the invoice and 

award document.
 DRAFT - 3/9/2020 41 

3.5 ACCOUNTS PAYABLE AND INVOICING PROCESSES

The following flowchart provides the steps related to the accounts payable and invoicing processes. The steps 

contained in flowchart PM 3.5 describe procedures necessary to prepare an invoice and match supporting 

documentation with an award document. Further, related accounting entries and the steps to ensure proper 

approval and verification of an invoice are contained within this chapter.

This section is based on the assumption that under best business practices, invoices should be submitted 

electronically. Agencies should implement procedures to automate the invoice submission process. Treasury’s 

Internet Payment Platform (IPP) is an example of a system that enables electronic submission of invoices.

In cases where an agency must continue to accept paper invoices, electronic tools can be used to improve the 

efficiency of invoice processing. Examples include digital imaging and Optical Character Recognition (OCR).
 DRAFT - 3/9/2020 42 

PM 3.5 – Accounts Payable and Invoicing Process Flowchart

PM 3.5 – Accounts Payable and Invoicing Processes Business Unit Finance Vendor / Payee

No

No

No

Yes

Yes

No No

No

Yes

Yes

Yes

No

Yes

No

Yes

Yes Invoice Amount 

Equal or Less than 

Award?

PM 3.5.10

Award Document 

Reconciliation 

Process 

PM 3.5.23

Prepare Invoice

PM 3.5.1

To Step 

PM 3.5.8

Matched 

Invoice

PM 3.5.18

Resolve Issue

PM 3.5.27

Invoice

PM 3.5.3

Issue 

Resolved?

PM 3.5.16

Proper Invoice Under 

Prompt Pay Act?

PM 3.5.5

Notify Business 

Unit of Issue

PM 3.5.15

Invoice Amount 

Within Tolerance?

PM 3.5.11

Review Invoice for 

Required 

Information

PM 3.5.4

Vendor Info. 

Matches CCR

 Data?

PM 3.5.6

Reject Vendor 

Invoice

PM 3.5.7

IPAC Procedures

PM 3.5.34

Rejected 

Invoice

PM 3.5.8

Electronic 

Invoice

PM 3.5.2

Verified 

Invoice

PM 3.5.28

From Steps

PM 3.5.7, 

PM 3.5.17

Amounts Same as 

Expense?

PM 3.5.24

Award Document to 

Remain Open?

PM 3.5.22

From 

Steps 

PM 3.3.18, 

3.3.19, 3.3.23

Reject Vendor 

Invoice

PM 3.5.17

Modify Expense 

Posting

PM 3.5.25

Vendor Still Active 

in CCR?

PM 3.5.20

Federal Vendor?

PM 3.5.33

From 

Step 

PM 3.1.21

To Steps 

PM 3.6.1, 

PM 3.7.1

From Step

PM 3.1.22

To Step

PM 3.4.1 

and PM 

3.3.20

Invoice Verified?

PM 3.5.26

To Step 

PM 3.5.8

From 

Step 

PM 3.4.12

 PM 3.4.13

Invoice Matches 

Award Document?

PM 3.5.9

Approved 

Invoice

PM 

3.5.21

General 

Ledger 

Posting 

Logic

PM 3.5.32

Approve Invoice

PM 3.5.19

Matching Criteria 

Met?

PM 3.5.13

Block Payment

PM 3.5.14

Passes Funds 

Check?

PM 3.5.29

Yes

No Yes

Yes

Notification 

to Funding 

Authority

PM 3.5.30

Modify Funding

PM 3.5.31

Valid 

Invoice

PM 3.5.12

Yes

No

No

Yes

No No

See Appendix C – Business Process Flowcharts, Symbols, and Definitions for an enlarged version of the flowchart.
 DRAFT - 3/9/2020 43 

The Payment Management Accounts Payable and Invoicing Processes steps are described as follows:

Step ID Step Name Step Description Business Rules OFFM

Req.

PM 3.5.1 Prepare

Invoice

The vendor prepares and 

submits to the Agency an 

invoice for goods and/or 

services. 

The invoice date should be entered 

into the system in accordance with 

Prompt Payment Act requirements. 

The payment due date and the date 

on which interest will begin to 

accrue if a payment is late must be 

determined in accordance with 

Prompt Payment Act requirements.

PM 3.5.2 Electronic 

Invoice

Under best business 

practices, invoices are 

submitted electronically.

In the case of paper 

invoices, invoices are 

distributed to appropriate 

Finance personnel.

The CFS must provide automated 

functionality for capturing invoice 

data as defined in PMC-01, PMC02, and PMC-03 of the OFFM CFS 

requirements.

PMC-01

PMC-02

PMC-03

PM 3.5.3 Invoice Invoices are received in 

Finance (should be via 

electronic transmission).

Invoices are entered into the 

Agency’s Accounts Payable system. 

PM 3.5.4 Review 

Invoice for 

Required 

Information

System edit checks are 

performed.

Automated system edit checks 

should verify that each invoice

includes the required information 

under the Prompt Payment Act. 

PM 3.5.5 Proper 

Invoice

Under 

Prompt Pay 

Act?

Automated edit checks 

determine that information 

fields required under the 

Prompt Pay Act are 

populated. 

Agency procedures must enable the 

return of improper invoices within 

the required number of days as 

required under the Prompt Payment 

Act.

PM 3.5.6 Vendor Info. 

Matches 

CCR Data?

System edit checks verify 

that vendor information 

matches the vendor file 

based on the latest vendor 

database update.

CCR vendor updates must be 

imported to update the Agency

vendor file for key information 

including vendor status, vendor 

name, and banking information.

The CFS must prevent CCR vendor 

data from being changed by the 

PMA-04
 DRAFT - 3/9/2020 44 

Step ID Step Name Step Description Business Rules OFFM

Req.

Agency for those vendors required 

to register in the CCR.

PM 3.5.7 Reject 

Vendor 

Invoice

If the invoice fails Prompt 

Pay information 

requirements or cannot be 

matched to a valid 

obligation, it is rejected and 

returned to the vendor.

The Agency must document the 

reason for return of an improper 

invoice by assigning a reason code 

and related description of the 

missing or incorrect invoice

information.

The Agency must provide the 

vendor a system-generated notice of 

return of an improper invoice, 

including information detailed in 

PMC-22.

PMC-19

PMC-21

PMC-22

PM 3.5.8 Rejected 

Invoice

A rejected invoice is

returned to the vendor for 

correction or other 

appropriate action in order 

for the vendor to prepare a 

proper invoice. 

Agency procedures must enable the 

return of invoices in compliance 

with the Prompt Payment Act.

Vendors are required to prepare 

invoices in accordance with the 

FAR and Agency guidelines.

PM 3.5.9 Invoice

Matches

Award 

Document?

Finance determines that 

system edit checks have 

validated the consistency of 

information on the invoice

with the relevant award 

document (i.e., order 

number, product description, 

quantity, vendor name,

address, and date). 

Automated edit checks should 

verify an invoice is originated by an 

approved vendor. System edit 

checks verify that vendor 

information on the invoice matches 

the information for the approved 

vendor in the system. Vendor 

information is set up during the 

acquisition process through 

interface with the CCR vendor 

database. 

For CCR vendors, the CFS must 

validate the active status and DUNS 

number indicated on the invoice. 

The CFS must process each vendor 

invoice through edit criteria 

designed to identify duplicate 

vendor invoices. Edit criteria is 

described in PMC-04 and should be 

developed based on appropriate 

PMC-06

PMC-04

PMC-05
 DRAFT - 3/9/2020 45 

Step ID Step Name Step Description Business Rules OFFM

Req.

Agency-defined criteria. Criteria 

may include Agency identifier, 

vendor number, vendor account 

number, vendor TIN, vendor 

invoice number, invoice date, 

invoice amount, referenced 

obligation document number, or 

DUNS number. An exception report 

must be generated and reviewed by 

a supervisory official. 

PM 3.5.10 Invoice

Amount 

Equal or 

Less than 

Award?

If the invoice amount is 

within the amount of the 

quantities and amount of the 

award document, it 

continues to step PM 3.5.12,

“Valid Invoice,” of the 

flowchart.

The CFS must incorporate edit 

checks to facilitate this comparison 

of quantities and amounts by 

document lines and totals.

PM 3.5.11 Invoice

Amount 

within 

Tolerance?

The amount by which an 

invoice amount exceeds an 

obligation is compared to 

allowable tolerance levels 

for which an additional 

obligation document is not 

required. 

If the invoice fails edit 

checks because of the 

invoice amount (due to 

shipping and/or other 

charges) and the difference 

is within preset tolerance 

levels (yes), the process 

moves to step PM 3.5.12, 

“Valid Invoice.”

If the funding need exceeds 

the tolerance limits (no), the 

process moves to step PM 

3.5.7, “Reject Vendor 

Invoice.”

Agencies should determine 

tolerance levels for prices, quantities 

of items, and applicable amounts 

(e.g. freight tolerance) for which

further approval is not required.

The system should record additional 

shipping and other charges to adjust 

the payment amount if they are 

authorized and within tolerance.

In cases where the funding need 

exceeds the tolerance limits, policies 

or business practices may allow 

officials with funding authority to

be notified to consider obligating 

more funds (rather than rejecting the 

invoice).

PMC-13

PM 3.5.12 Valid 

Invoice

Once the invoice passes the 

edit checks in step PM 

3.5.10, “Invoice Amount 

Equal or Less than Award?,”

the invoice is considered a 

valid invoice. The invoice 

continues to step PM 3.5.13, 

Valid invoice must be populated 

with applicable data elements. 
 DRAFT - 3/9/2020 46 

Step ID Step Name Step Description Business Rules OFFM

Req.

“Matching Criteria Met?”

PM 3.5.13 Matching 

Criteria 

Met?

The invoice must be 

matched to required 

documentation for the 

applicable acquisition. 

Finance must match invoices to 

appropriate obligations, receiving

reports, and acceptance information 

by document line item and quantity.

The CFS must process invoices for 

payment of partial quantities 

received.

PMC-08

PMC-09

PM 3.5.14 Block 

Payment

If Matching Criteria are not 

met, the invoice is blocked 

from payment. 

The CFS must block from payment 

any invoice for which matching 

criteria are not met or lacking 

required approvals and/or 

verifications. 

PM 3.5.15 Notify 

Business 

Unit of Issue

Once an invoice has been 

received and the system 

lacks evidence of receipt of 

goods and/or acceptance, the 

system notifies applicable 

Business Unit personnel of 

the need for required 

documentation. In the case 

of services, the invoice copy 

is electronically forwarded 

to the Business Unit for 

review.

The CFS should automatically 

identify and notify applicable 

personnel of open requirements 

related to pending invoices. 

Applicable personnel take 

appropriate actions within Prompt 

Payment Act requirements. 

PM 3.5.16 Issue 

Resolved?

A “yes” decision leads to 

PM 3.5.13, “Matching 

Criteria Met?” A “no”

decision leads to PM 3.5.17, 

“Reject Vendor Invoice.”

Finance determines whether the 

issue is resolved in accordance with 

applicable regulations (e.g., FAR, 

Agency guidelines).

PM 3.5.17 Reject

Vendor 

Invoice

The invoice is rejected and 

returned to the vendor if key 

vendor information does not 

match the vendor file.

If the vendor no longer appears on 

the official Agency vendor file, the 

invoice is rejected. The FAR 

requires a vendor to be active in 

CCR prior to making contractual 

agreements or payments.

The Agency must capture reason 

codes and related descriptions for 

improper invoices.

PMC-21
 DRAFT - 3/9/2020 47 

Step ID Step Name Step Description Business Rules OFFM

Req.

Ensure that the vendor invoice is 

marked with the date it is returned.

This will stop the accrual of interest 

on the date the invoice is rejected 

and marked “returned.”

Vendor may be contacted as 

applicable, but such communication 

should not delay compliance with 

the Prompt Payment Act.

PM 3.5.18 Matched 

Invoice

Applicable document 

information is compared and 

matched depending on the 

applicable criteria for a twoway, three-way, or four-way 

matching process.

The Agency must define and 

implement criteria for types of 

invoices for which two-way 

matching is sufficient (obligation 

and invoice or obligation and 

receipt). 

The Agency must define and 

implement criteria for types of 

invoices for which three-way 

matching is sufficient (invoice, 

obligation, simultaneous receipt,

and acceptance).

The Agency must define and 

implement criteria for types of 

invoices for which four-way 

matching is required (invoice, 

obligation, receipt, and acceptance).

Agency policies and procedures and 

system edits should require a 

receiving report for predefined types 

of goods (e.g., machinery, 

equipment). Such goods can be 

identified systematically based on 

applicable data fields within the 

CGAC Structure used for the 

transaction (e.g., object class).

Agency policies and procedures 

should require certification of 

receipt and acceptance from the 

Business Unit for predefined types 

of purchases of goods and services.

PMC-08
 DRAFT - 3/9/2020 48 

Step ID Step Name Step Description Business Rules OFFM

Req.

System edit checks must validate 

invoice dates for products delivered 

or services performed are within the 

period of performance dates on the 

referenced obligation.

System edit checks must validate 

that the invoice dates that products 

were delivered or services were 

performed are dates for which the 

products/services have been 

received and accepted. This activity 

serves to prevent the processing of 

invoices with unmatched dates and 

the duplicate processing of invoices 

with matched dates. An exception 

report should be generated for 

supervisory review.

Expenses are posted to the general 

ledger once receiving report 

information is entered into the CFS.

The posting records proprietary 

expense and a budgetary 

expenditure as a delivered order. 

Expenses should be reviewed 

periodically by a supervisor in the 

Finance area. An exception report is 

generated for items for which 

acceptance are missing. Finance 

personnel follow up on the items 

with Business Unit personnel.

PMC-10

PMC-11

PM 3.5.19 Approve 

Invoice

Finance personnel review 

the status of the invoices in 

the CFS.

Finance personnel review electronic 

evidence of the existence and 

matching of the award document or 

contract, invoice, documents of 

receipt, and acceptance, as 

applicable, to determine that the 

goods or services billed were in fact 

ordered and received and to 

determine all system edits have been

met prior to approving the invoice.
 DRAFT - 3/9/2020 49 

Step ID Step Name Step Description Business Rules OFFM

Req.

PM 3.5.20 Vendor Still 

Active in 

CCR?

System edit checks verify 

that vendor information 

matches the vendor file 

based on the latest vendor 

database update.

CCR vendor updates must be 

imported to update the Agency

vendor file for key information 

including vendor status, vendor 

name, banking information.

CFS vendor data must be regularly 

updated with changes to CCR data.

Vendor file fields must 

accommodate CCR data.

The CFS must prevent CCR vendor 

data from being changed by the 

Agency for those vendors required 

to register in the CCR.

PM 3.5.21 Approved 

Invoice

Finance performs electronic 

approval of the 

electronically matched 

invoice.

Automated edit checks are 

completed without exception prior 

to electronic approval of the 

electronically matched invoice.

PM 3.5.22 Award 

Document to 

Remain 

Open?

If the invoice fulfills 

remaining line items on the 

award document, the award 

document is closed out, 

preventing further payment 

activity.

The CFS must process invoices for 

payment of partial quantities 

received and accepted.

The CFS must record an invoice as 

“partial” or “final” payment on the 

referenced obligation.

Acquisition is notified when final 

payment has occurred on an 

obligation to facilitate the update of 

acquisition documents. 

PMC-09

PM 3.5.23 Award 

Document 

Reconciliation Process 

Documentation of contract 

performance is reconciled to 

supporting documentation 

prior to close-out.

Any applicable line items on the 

remaining undelivered order are deobligated.

PM 3.5.24 Amounts 

Same as 

Expense?

In the case of goods and/or 

services received, the 

system checks whether the 

amount of the invoice is the 

same as the amount 

expensed at the time of 

receipt of goods and/or 

services.

The CFS must check for differences 

between recorded expenses and 

approved invoice amounts.
 DRAFT - 3/9/2020 50 

Step ID Step Name Step Description Business Rules OFFM

Req.

PM 3.5.25 Modify 

Expense

Posting

The CFS determines the 

amount by which expense

postings must be modified 

to equal the amount of the 

Approved Invoice.

The expense posting should be 

modified consistent with the 

additional shipping and other 

charges authorized at step PM 

3.5.11, “Invoice Amount Within 

Tolerance?”

PM 3.5.26 Invoice 

Verified?

Finance personnel review 

electronic evidence of the 

existence and matching of 

the award document or 

contract, invoice, 

documentation of receipt,

and acceptance, as 

applicable, to verify that the 

goods or services billed 

were in fact ordered and 

received and to verify all 

system edits have been met 

to allow approval of the 

invoice.

The invoice should be subjected to 

second level approval by 

supervisory personnel.

Agencies should define procedures 

for manual review of certain 

invoices as part of internal control 

activities. 

PM 3.5.27 Resolve 

Issue

The approver may send the 

invoice back in the process.

Appropriate notifications to 

personnel are made and 

actions taken to resolve the 

issue. Once the issue is 

resolved, the invoice is 

routed back to step PM 

3.5.19, “Approve Invoice,”

for the invoice to be 

approved. 

The CFS should enable routing of 

the invoice issue to applicable 

managerial personnel.

PM 3.5.28 Verified

Invoice

An authorized approver 

reviews all documents for 

completeness and accuracy. 

The output is a Verified

Invoice package that 

includes all documents 

reviewed by the authorized 

approver. Upon approval, 

the invoice is warehoused 

for payment.

Documentation of the invoice, 

award document, receipt, evidence 

of inspection (physical goods), and 

acceptance are required for an 

invoice to be valid for payment.

PM 3.5.29 Passes Funds 

Check?

The amount of an invoice is 

subjected to a check to 

determine whether sufficient 

funds are available for the 

payment.

The CFS must ensure sufficient 

applicable funding is available prior 

to allowing an invoice to be paid.
 DRAFT - 3/9/2020 51 

Step ID Step Name Step Description Business Rules OFFM

Req.

PM 3.5.30 Notification 

to Funding 

Authority

The appropriate funding 

officials are notified so 

required funding can be 

authorized.

Appropriate funding officials are 

notified in accordance with 

applicable rules and regulations 

(e.g., Agency guidance, OMB 

Circulars, FAR).

PM 3.5.31 Modify 

Funding

Funding authorities identify 

and reprogram funds as 

applicable to fund the full 

amount of the obligation. 

Funding authorities fund the 

obligation in accordance with 

applicable rules and regulations 

(e.g., Agency guidance, OMB 

Circulars).

PM 3.5.32 General 

Ledger 

Posting 

Logic

The system performs a 

series of logical steps before 

posting the appropriate 

entries to the General 

Ledger.

The system performs edits 

against the entries to 

determine the CGAC 

Structure is valid, quantity 

and unit price are within 

tolerance levels, and 

sufficient funds are available 

for payments.

After the entries pass 

validation edits and funds 

check, the applicable entries 

are posted.

In cases where the award document

is closed out, entries to liquidate any 

remaining obligations are recorded.

Where the expense is modified, the 

appropriate expense adjustment is 

recorded.

The entry to record the accounts 

payable for the verified invoice is 

recorded.

The recommended transaction codes 

from the current TFM, Volume I, 

Part 2, Supplement, USSGL, 

Section III, are:

TFM-B402 To record the delivery 

of goods or services and accrue a 

liability.

TFM-B404 To record the delivery 

of goods and services in the same 

year the order was placed and 

accrue a liability. The current-year 

expended authority is less than the 

original obligation.

TFM-B406 To record the delivery 

of goods and services in the same 

year the order was placed and 

accrue a liability. The current-year 

expended authority is more than the 

original obligation.

If the verified invoice passes 
 DRAFT - 3/9/2020 52 

Step ID Step Name Step Description Business Rules OFFM

Req.

required edit checks, it moves 

forward to the “Federal Vendor?”

decision step.

PM 3.5.33 Federal 

Vendor?

If the payee is a Federal 

Vendor, the process moves 

to step PM 3.5.34, “IPAC 

Procedures.”

If the vendor is not Federal, 

the process moves to PM 

3.6.1 or PM 3.7.1 for 

disbursement from the 

Treasury.

If the payee is a Federal Vendor, 

Finance performs IPAC procedures 

in accordance with an approved 

Trading Partner Agreement and 

Treasury guidelines.

PM 3.5.34 IPAC 

Procedures

Federal Vendors are paid 

through the IPAC system.

These procedures are to be 

described in a future 

Business Process release.

If the payee is a Federal Vendor, 

Finance performs IPAC procedures 

in accordance with an approved 

Trading Partner Agreement and 

Treasury guidelines.
 DRAFT - 3/9/2020 53 

3.6 DISBURSEMENTS – BULK FILES (ACH/EFT, PPD,

CCD+, CTX, AND CHECKS)

The following flowchart includes the steps for the disbursement of Bulk Files within the Payment Management 

Function. These steps depict the actions performed from the point at which a Bulk File payment is warehoused 

through payment to a vendor. Key steps include submitting a bulk file to Treasury, certification of payments to 

be disbursed, and disbursement. 

PM 3.6 – Disbursements – Bulk Files (ACH/EFT, PPD, CCD+, 

CTX and Checks) Flowchart

PM 3.6 – Disbursements – Bulk Files (ACH/EFT, PPD, CCD+, CTX, and Checks) Payee Finance Treasury

No Yes

Yes

Yes

No

No

No

Yes

Start 

Disbursement 

Process

PM 3.6.2

Agency 

Records the 

Confirmation

PM 3.6.23 Receipt of 

Acknowledgement

PM 3.6.12

Positive 

AcknowledgeMent?

PM 3.6.13

Warehoused 

Payment

PM 3.6.1

Disb-inTransit 

Posted to 

GL

PM 3.6.7

Check 

If Payee is 

Active?

PM 3.6.3

Hold 

Payment

PM 3.6.4

Certified 

Payment

PM 3.6.17

From 

Step PM 

3.5.33

Schedule is 

Created

PM 3.6.6

Submit Payment 

Bulk File to 

Treasury

PM 3.6.8

Payee 

Receives 

Payment

PM 3.6.22

Perform Edit 

Check

PM 3.6.10

Cancel 

Schedule

PM 3.6.15

Bulk

File Matches 

1166?

PM 3.6.19

Disbursement of 

Fund Balance 

Posts to General 

Ledger

PM 3.6.25

Verification of 

Certification

PM 3.6.18

Send 

Acknowledgement

PM 3.6.11

Mark Invoice 

Paid

PM 3.6.24

Submitted 

Payment 

File

PM 3.6.9

Reversal 

of Entries

PM 3.6.16

Message Sent 

to Business 

Unit

PM 3.6.5

Agency 

Certifies 

Payment ?

PM 3.6.14

Release 

Payment

PM 3.6.20

Offset

PM 3.6.21

See Appendix C – Business Process Flowcharts, Symbols, and Definitions for an enlarged version of the flowchart.
 DRAFT - 3/9/2020 54 

The Payment Management Disbursement – Bulk Files (ACH/EFT, PPD, CCD+, CTX, and Checks) process 

steps are described as follows:

Step ID Step Name Step Description Business Rules OFFM 

Req

PM 3.6.1 Warehoused

Payment

Upon certification of invoices, 

the payment is warehoused 

awaiting scheduled payment 

in accordance with contract 

terms. These payments are 

queued based on due date for 

compliance with the Prompt 

Payment Act. A Preliminary 

Payment Register and Batch 

Report are run, and the data is 

reviewed by the certifying 

official to ensure the 

information is accurate and 

complete.

The certifying official matches 

the data on each invoice, the 

interest report, and the batch 

report for accuracy.

The certifying official reviews 

the following attributes in 

connection with this 

reconciliation: invoice 

number, award document, PO 

number, payee address, Payee 

tax ID, bank account number, 

and payment amount. 

The certifying official must 

verify the Treasury Account 

Symbol and Business Event 

Type Code (TAS/BETC) of 

the scheduled payment as 

applicable.

The Agency must calculate 

the due date of Payee

payments in accordance with 

5 CFR 1315 (OMB Circular 

A-125, Prompt Payment) key 

factors (e.g., commodity type, 

contract terms, invoice

receipt).

The Agency must select and 

process warehoused invoices 

for manual payment (if 

applicable).

PMD-01

PMD-17

PM 3.6.2 Start 

Disbursement 

Process

When all the data is correct, 

the certifying official confirms 

the payment batch and 

generates a Final Payment 

Register report. The certifying 

official then creates and prints 

an SPS 1166 Voucher and 

Schedule of Payments report.

The Agency shall comply with 

the Prompt Payment Act.

The Agency must capture the 

Treasury Account Symbol and 

Business Event Type Code 

(TAS/BETC) of the scheduled

payments as applicable.
 DRAFT - 3/9/2020 55 

Step ID Step Name Step Description Business Rules OFFM 

Req

(Depending on the Agency,

this action may be automated.)

The track payment clock of 

the system tracks a scheduled 

payment, including discount 

or prompt payment interest, 

according to the projected 

payment date.

The Payee is a person, 

corporation, or other public or 

private entity that is 

authorized to receive a Federal 

payment from an Agency.

PM 3.6.3 Check if Payee 

is Active?

If the Payee is active (yes) in 

the CCR system, the

process proceeds to 

step PM 3.6.6, 

“Schedule is Created.”

If the Payee is inactive 

(no), then proceed to 

step PM 3.6.4, “Hold 

Payment.”

The Agency must comply 

with the Prompt Payment Act.

The file must be submitted to 

Treasury on the day it is 

created.

The Agency must generate 

payment schedule totals by 

TAS on each payment file. In 

addition, they must combine 

payment files with multiple 

ALCs into single files for 

transmission to Treasury with 

summary totals by ALC and 

TAS for the entire file for 

certification purposes.

PM 3.6.4 Hold Payment The payment is put on “hold”

and the process reverts back to 

step PM 3.6.1, “Warehoused 

Payment,” to recalculate the 

due date.

Payments placed on hold must 

be handled in accordance with 

PPA requirements.

PM 3.6.5 Message Sent 

to Business 

Unit

A message is sent to the 

Business Unit that the 

payment has been put on 

“hold.”

Business Unit personnel shall 

be designated for notification 

of held payments.

PM 3.6.6 Schedule is 

Created

A payment schedule is 

created.

The payment schedule shall be 

created to include applicable 

attributes required by the TFM 

and Agency guidance.
 DRAFT - 3/9/2020 56 

Step ID Step Name Step Description Business Rules OFFM 

Req

PM 3.6.7 Disbursements

-in-Transit 

Posted to

General 

Ledger

Disbursements-in-Transit is 

posted to the General Ledger 

when the schedule is created.

The Agency must generate 

payment schedule totals by 

TAS on each payment file. In 

addition, they must combine 

payment files with multiple 

ALCs into singles files for 

transmission to Treasury with 

summary totals by ALC and 

TAS for the entire file for 

certification purposes.

Agencies record the

Disbursements-in-Transit 

General Ledger entries by the 

time the payment is certified.

If the certification is not 

certified, then the 

Disbursements-in-Transit 

entry must be reversed.

The recommended transaction 

code from the current TFM, 

Volume I, Part 2, Supplement, 

USSGL, Section III, is:

TFM-B408 To reclassify 

payable schedules for 

disbursements to “in-transit”

until the payment schedule is 

confirmed.

PMD-15

PM 3.6.8 Submit 

Payment Bulk 

File to 

Treasury

The Agency transmits an 

electronic (Bulk) payment file

(EFT/ACH or Check) to 

Treasury. The payment 

information entered is 

reviewed for accuracy by a 

certifying official and then 

submitted to Treasury for preedit of the file to determine if 

the file can be processed.

The Agency must comply 

with the Prompt Payment Act.

PM 3.6.9 Submitted 

Payment File

The electronic payment 

submission is received by 

Treasury and subjected to preedit procedures.

Agencies shall format 

payment files to comply with 

current Treasury data 

attributes and requirements for 

formats.
 DRAFT - 3/9/2020 57 

Step ID Step Name Step Description Business Rules OFFM 

Req

PM 3.6.10 Perform Edit 

Check

Edit check is performed on the 

schedule.

Agencies shall format 

payment files to comply with 

current Treasury data 

attributes and formats.

PM 3.6.11 Send 

Acknowledgement

Treasury performs a review 

and pre-edit of the bulk 

payment file submitted by the 

Agency. If the file is accepted 

for processing, Treasury 

generates a file control 

number that is sent as part of 

the acknowledgement to the 

Agency.

The Agency must confirm 

with Treasury that the file was 

submitted successfully.

PM 3.6.12 Receipt of 

Acknowledgement

Notification is received by the 

Agency from Treasury 

acknowledging that the file 

can be processed by Treasury.

A control number is assigned 

to the bulk payment file. 

The Agency includes the 

control number in their 

submission of the 

corresponding SPS 1166 

schedule voucher.

PM 3.6.13 Positive 

Acknowledgement?

If positive acknowledgement 

is received (yes), proceed to 

“Agency Certifies Payment?”

If “no,” then the process 

moves to step PM 3.6.15, 

“Cancel Schedule.”

PM 3.6.14 Agency 

Certifies

Payment?

If the payment is certified 

(yes), the process moves to 

step PM 3.6.17, “Certified 

Payment.” If the payment is 

not certified (no), the process 

will move to step PM 3.6.16,

“Reversal of Entries.”

The Agency must comply 

with Title 31 U.S.C. 3528 for 

responsibilities of CO 

(Certifying Officer).

The process of certification is 

as follows: Upon receipt of the 

system acknowledgement 

from Treasury, the Agency

Data Entry Operator (DEO) 

accesses SPS and completes 

the SPS 1166 with the 

following: total amount of the 

file, the total number of 

payment records, the ALC and 

the appropriation number 

(TAS/BETC), the payment 

date and the schedule 

number(s), and the control 

number of the bulk file.
 DRAFT - 3/9/2020 58 

Step ID Step Name Step Description Business Rules OFFM 

Req

After the DEO enters the SPS 

1166 data in SPS, the Agency

Certifying Officer (CO) 

verifies the entries and then 

certifies the schedule or 

schedules of payments in SPS.

PM 3.6.15 Cancel 

Schedule

If positive acknowledgement 

is not received, then the 

payment schedule is canceled.

The Agency shall institute and 

follow procedures for 

canceling of payment 

schedules.

PM 3.6.16 Reversal of 

Entries

If positive acknowledgement 

is not received in step PM 

3.6.13, “Positive 

Acknowledgement?,” the 

schedule is canceled and the 

Disbursement-in-Transit 

entries are reversed. Similarly, 

if the Agency declines to 

certify payment in step PM 

3.6.14 (no), “Agency Certifies 

Payment?,” the entries are 

reversed and the process

reverts back to step PM 3.6.1,

“Warehoused Payment.”

The Agency will implement 

procedures for timely 

determination of positive 

versus negative 

acknowledgement.

PM 3.6.17 Certified 

Payment

Payment has been certified 

and is forwarded to the 

verification process for the 

Bulk File Match with the SPS 

1166.

The step PM 3.6.17,

“Certified Payment,” occurs 

simultaneously with the step 

PM 3.6.23, “Agency Records 

the Confirmation.”

An Agency can notify 

Treasury within one day to 

cancel payment of a 

previously certified payment. 

PM 3.6.18 Verification of 

Certification

Treasury receives the certified 

payment file from the Agency

and verifies the SPS 1166 

certification against the bulk 

payment files. 

The Agency must comply 

with Title 31, Chapter 33, 

Subchapter II (a), U.S.C. 

3325.

The SPS system automatically 

verifies the CO and Agency

Location Code (ALC) prior to 

the time of certification. If the 

CO and ALC are not properly 
 DRAFT - 3/9/2020 59 

Step ID Step Name Step Description Business Rules OFFM 

Req

linked, the CO cannot certify 

the payment schedule, only 

view it.

PM 3.6.19 Bulk File 

Matches 1166?

Treasury verifies integrity of 

certified payment information 

for completed matches 

between the payment amount, 

schedule number(s), and item 

count. If the payment file and 

SPS 1166 do not match, then 

the file and certification are 

rejected.

PM 3.6.20 Release 

Payment

If the certified payment 

information in the payment 

(Check or EFT/ACH) and the 

bulk file match, then the 

payments are released for 

disbursement.

Treasury posts confirmation 

of disbursement for Agency

access.

PM 3.6.21 Offset After receipt, acceptance, and 

issuing of payment number, 

but prior to releasing the 

payments to the Payee, 

Treasury sends the payment 

files through the Treasury 

Offset Program.

The Agency must follow 

Treasury guidance and 

applicable procedures for the 

“Treasury Offset” programs.

Payments that are identified as 

being associated with Payee 

debt to the Federal 

government will receive a full 

or partial offset (a process that 

is transparent to the 

originating Agency, which has 

already been charged in full 

by Treasury).

PM 3.6.22 Payee

Receives 

Payment

Fedwire payments are sent to 

the Federal Reserve Bank 

(FRB) of New York and 

Electronic Funds Transfers are 

sent to the appropriate FRB.

Checks are mailed through the 

Postal Service to the Payee.

Fund transfers are sent to the 

appropriate FRB.
 DRAFT - 3/9/2020 60 

Step ID Step Name Step Description Business Rules OFFM 

Req

PM 3.6.23 Agency

Records the 

Confirmation

Electronic confirmation is 

made available to the Agency

from Treasury acknowledging 

disbursement of the certified 

payment schedule.

The Agency receives this 

confirmation, which triggers 

changing the status of the 

Disbursements-in-Transit to a 

Disbursement in the General 

Ledger.

PM 3.6.24 Mark Invoice

Paid

General Ledger impact is 

recorded based on systemgenerated disbursement 

confirmation.

The Agency marks the invoice

and/or line items paid in the 

CFS, which occurs 

simultaneously with step PM 

3.6.25, “Disbursement of 

Fund Balance Posts to General 

Ledger.”

PM 3.6.25 Disbursement

of Fund 

Balance Posts 

to General 

Ledger

Once disbursed, the Paid 

Disbursement Voucher 

supports updating of the 

General Ledger and the Fund 

Balance with Treasury 

(FBWT).

The Agency will record the 

USSGL prescribed General 

Ledger entries for the payment 

of accounts payable, 

disbursements-in-transit, 

advances, and prepaid 

expenses, as applicable.

The recommended transaction 

code from the current TFM, 

Volume I, Part 2, Supplement, 

USSGL, Section III, for 

posting a disbursement is:

TFM-B110 To record a 

confirmed disbursement 

schedule.

PMD-39
 DRAFT - 3/9/2020 61 

3.7 DISBURSEMENTS – SMALL VOLUME AND SAME 

OR NEXT DAY PAYMENTS

The following flowchart provides the steps performed for Payment Management Disbursement –

Small Volume and Next or Same Day Payments relating to the submission of the small volume 

payments file to Treasury, certification of payment, release of payment and the confirmation of 

disbursement.

PM 3.7 Disbursements – Small Volume and Same or Next Day 

Payments Flowchart

PM 3.7 – Disbursements – Small Volume and Same or Next Day Payments Payee Finance Treasury

Disb-in-Transit 

Posted to GL

PM 3.7.8

Warehoused 

Payment

PM 3.7.1

Transmit Payment 

File to Treasury

PM 3.7.9

Certify Payment 

Schedule

PM 3.7.7

Offset

PM 3.7.12

Transmitted 

File

PM 3.7.10

Payee 

Receives 

Payment

PM 3.7.16

From 

Step PM 

3.5.33

Agency 

Records the 

Confirmation

PM 3.7.13

Release 

Payment

PM 3.7.11

Hold Payment

PM 3.7.2

Authorized 

Payment

Schedule

PM 3.7.6

Payment 

Requested

PM 3.7.3

Disbursement of 

Fund Balance Posts 

to General Ledger

PM 3.7.15

Mark Invoice 

Paid

PM 3.7.14

Enter Invoice

PM 3.7.4

Start Small 

Volume and Same 

or Next Day Disb. 

Process

PM 3.7.5

See Appendix C – Business Process Flowcharts, Symbols, and Definitions for an enlarged version of the flowchart.
 DRAFT - 3/9/2020 62 

The Payment Management Disbursements – Small Volume and Same or Next Day Payments process 

steps are described as follows:

Step ID Step Name Step Description Business Rules OFFM 

Req

PM 3.7.1 Warehoused

Payment

Upon certification of 

invoices, the payment is 

warehoused awaiting 

scheduled payment in 

accordance with contract 

terms. These payments 

are queued based on due 

date for compliance with 

the Prompt Payment Act.

A Preliminary Payment 

Register and Batch 

Report are run and the 

data is reviewed by the 

certifying official to 

ensure the information is 

accurate and complete.

The Agency must comply with 

the Prompt Payment Act.

Internal control steps should 

be in place to supplement 

automated controls when 

manual processing of payment 

schedules is performed.

The certifying official must 

verify the TAS/BETC of the 

schedule payment as 

applicable.

PM 3.7.2 Hold Payment Warehoused small 

volume same or next day 

payments are placed on 

hold.

Warehoused payments that are 

going to use the small volume 

or next day payment process 

should be placed on hold in the 

system to keep them from 

being selected in the 

automated process.

Agency should send 

notification to Finance that the 

payment has been put on 

“hold.”

PM 3.7.3 Payment 

Requested

The Payee makes a 

request of the Agency for

a payment that does not 

already exist in the 

system.

PM 3.7.4 Enter Invoice An invoice is entered in 

the system by Finance to 

record the information 

related to the payment 

request for items that did 

not come through the 

normal invoice process.

The Finance official makes 

sure the payment is not a 

duplicate request.

Under best business practices, 

invoices should be submitted 

electronically.

If the invoice has not been 
 DRAFT - 3/9/2020 63 

Step ID Step Name Step Description Business Rules OFFM 

Req

entered into the system, the 

invoice will be entered and 

manually “approved for 

payment” and “marked as 

paid.”

PM 3.7.5 Start Small 

Volume and 

Same or Next 

Day 

Disbursement 

Process

After the DEO enters the 

payment data into SPS, 

the CO verifies the 

entries and then certifies 

the schedule(s) for 

payment. Once the CO 

certifies the schedule(s), 

it is submitted to SPS.

This can be done through 

a small volume upload 

process or by manually 

entering each payment.

The Agency must comply with 

the Prompt Payment Act.

Agencies must follow the 

applicable SPS User Guide, 

Treasury Green Book, and 

current TFM guidance.

The certifying official must 

verify the TAS/BETC.

Agencies may enter up to 60 

payment records per schedule.

The Agency must capture TAS 

information on payment 

records, up to 10 per schedule 

for a Non-Government-wide 

Accounting (Non-GWA) 

reporting Agency and up to 

100 TAS/BETCs for a GWA 

reporting Agency.

PMD-02

PMD-03

PMD-31

PM 3.7.6 Authorized 

Payment

Schedule

A document is generated 

to support the entry into 

SPS for the payment.

This document will be 

used to record the 

Disbursements-in-Transit 

entries into the system.
 DRAFT - 3/9/2020 64 

Step ID Step Name Step Description Business Rules OFFM 

Req

PM 3.7.7 Certify Payment 

Schedule

The Agency DEO

accesses SPS and 

uploads payment records 

or enters the payment 

records online into the 

Treasury Type ‘A’ SPS 

1166 schedule voucher 

function. The 1166 

schedule must contain 

the following: total 

amount of the schedule,

the total number of 

payment records, the 

ALC and the 

appropriation number 

(TAS BETC), the 

payment date, and the 

schedule number.

Agency will comply with Title 

31 U.S.C. 3528.

The DEO uploads payment 

records or enters the payment 

records online into SPS and

records the ALC and the 

appropriation number 

(TAS/BETC).

PM 3.7.8 Disbursementsin-Transit Posted 

to General 

Ledger.

General Ledger impact is 

recorded to recognize 

Disbursements-inTransit.

The SPS schedule information 

is used to record the 

Disbursements-in-Transit.

General Ledger entries must 

comply with posting logic 

documented in the USSGL of 

the TFM.

The recommended transaction 

code from the current TFM, 

Volume I, Part 2, Supplement, 

USSGL, Section III, is:

TFM-B408 To reclassify 

payable schedules for 

disbursements to “in-transit”

until the payment schedule is 

confirmed.

PM 3.7.9 Transmit 

Payment File to 

Treasury

After the DEO enters the 

payment data into SPS, 

the CO verifies the 

entries and then certifies 

the schedule(s) for 

payment. Once the CO 

certifies the schedule, it 

is automatically 

transmitted to Treasury.

Agencies must follow 

applicable SPS User Guide, 

Treasury Green Book, and 

TFM guidance.
 DRAFT - 3/9/2020 65 

Step ID Step Name Step Description Business Rules OFFM 

Req

PM 3.7.10 Transmitted File The transmitted file that 

is sent to Treasury 

contains the information 

needed for issuing the 

payment.

PM 3.7.11 Release Payment The SPS system 

automatically verifies the 

propriety of the CO and 

the Agency ALC and 

schedule number.

If the Agency has used a 

duplicate schedule 

number and ALC, or the 

ALC and CO are not 

linked and active in SPS, 

then the schedule will be 

rejected. The summary 

total for amounts and 

items must also be 

accurate.

The Agency must schedule 

and disburse U.S. dollar 

payments (Treasury 1166) 

through the Treasury’s SPS, 

containing up to the limit of 60 

payments per schedule (for 

non-summary schedules).

Agencies will comply with 

Title 31, Chapter 33, 

Subchapter II (a), U.S.C. 3325.

The SPS system automatically 

verifies the CO and Agency

Location Code (ALC) prior to 

the time of certification. If the 

CO and ALC are not properly 

linked, the CO cannot certify 

the payment schedule, only 

view it.

PMD-30

PM 3.7.12 Offset Payments that are 

identified as relating to 

Payees in debt to the 

Federal Government are 

assessed a full or partial 

offset. 

The Agency must follow 

Treasury guidance and 

applicable procedures for the 

“Treasury Offset” programs.

PM 3.7.13 Agency Records 

the Confirmation

Electronic confirmation 

is made available to the 

Agency from Treasury 

acknowledging 

disbursement of the 

certified payment 

schedule.

The Agency receives this 

confirmation, which triggers 

changing the status of the 

Disbursements-in-Transit to a 

Disbursement in the General 

Ledger.
 DRAFT - 3/9/2020 66 

Step ID Step Name Step Description Business Rules OFFM 

Req

PM 3.7.14 Mark Invoice 

Paid

General Ledger impact is 

recorded based on 

system-generated 

disbursement 

confirmation.

The Agency marks the invoice

and/or line items paid in the 

CFS, which occurs 

simultaneously with step PM 

3.7.15, “Disbursement of Fund 

Balance Posts to General 

Ledger.”

PM 3.7.15 Disbursement of 

Fund Balance 

Posts to the 

General Ledger

Once disbursed, the Paid 

Disbursement Voucher 

supports updating of the 

General Ledger and the 

Fund Balance with 

Treasury (FBWT).

The Agency will record the 

USSGL prescribed General 

Ledger entries for the payment 

of advances and prepaid 

expenses.

The recommended transaction 

code from the current TFM, 

Volume I, Part 2, Supplement, 

USSGL, Section III, for 

posting a disbursement is:

TFM-B110 To record a 

confirmed disbursement 

schedule.

PMD-39

PM 3.7.16 Payee Receives 

Payment

Fedwire payments are 

sent to the Federal 

Reserve Bank (FRB) of 

New York and Electronic 

Funds Transfers are sent 

to the appropriate FRB.

Checks are mailed 

through the Postal 

Service to the Payee.

Funds Transfers are sent to the 

appropriate FRB.
 DRAFT - 3/9/2020 67 

3.8 DATA OBJECTS AND DATA ELEMENTS

The data elements contained in sections 3.8 and 3.9 are considered to be a draft collection of business 

elements that will be, at a minimum, required in all payment processing systems. This information 

will continue to be refined and structured over the next several months. Additional documentation, 

developed according to consensus procedures and industry standards, encompassing rules, 

guidelines, and data characteristics will be provided. This effort will include, but is not limited to, 

UML model representations, a data dictionary/registry of data elements, and an XML Schema model 

for the exchange of data. Supporting documentation to assist in the implementation and 

understanding of the normative artifacts will also be developed and distributed. This effort will be 

closely coordinated with Treasury’s Financial Management Service to ensure consistency and 

interoperability with the payment and government-wide accounting systems.

Six key data objects and related data elements for the Payment Management Processes are identified 

and documented in the six tables in this section. The data objects are Requisition Document, 

Obligation Document, Receiving Document, Acceptance Document, Invoice Document, and 

Disbursed Payment. Each applicable data element is identified as Required, Display, or Optional. A 

“Required” data element is a field that must be included in the data object record. A “Display” data 

element should be made available from another data source for viewing by a user. An “Optional”

data element may be made available to Agency users as needed.
 DRAFT - 3/9/2020 68 

Requisition Data Objects and Data Elements - The requisition 

data object includes: PM 3.1.1 – Prepare Requisition, PM 3.1.2 – Authorized Requisition, 

PM 3.1.4 – Rejected Requisition, and PM 3.1.7 – Funded Requisition.

Requisition 

Data 

Element 

Field Name

Display 

Required 

Optional

Document Level 

Name Source Description

Agency Part 

Description Display Line Item Vendor System / Acquisition

Part description assigned by the 

Vendor and recorded in the 

agency's Acquisition System.

Agency Part 

ID Display Line Item

Acquisition 

System / Core 

Financial 

System

Identification code assigned to a 

part in the agency's Acquisition 

System.

CGAC 

Information Required Line Item Core Financial System

Common Government-wide 

Accounting Classification 

Structure.

City Display Header Vendor Master 

File

Vendor city stored in the agency 

CCR database.

Comments Optional Header Core Financial 

System

Comments associated to 

obligation document header in 

agency's Core financial system.

Company 

Name Display Header Vendor Master File

Vendor name stored in the agency 

CCR database.

Country 

Code Display Header Vendor Master File

The 3-character country code 

found in the ISO3166 standard.

Delivery 

Contact 

Email

Required Header Acquisition 

System

Contact e-mail number for 

delivery.

Delivery 

Contact 

Name

Required Header Acquisition 

System

Contact name information for 

delivery.

Delivery 

Contact 

Phone

Required Header Acquisition 

System

Contact phone number for 

delivery.

Document 

Approval 

Date

Required Header Core Financial 

System

Date document was approved in 

the Core Financial system.

Document 

Approval 

Status Flag

Required Header Core Financial 

System

Status for approval of the 

document.

Document 

Date Required Header Core Financial System

Official date of the document in 

the system.

Line Item 

Number Required Line Item Core Financial System

Current document number on 

each line contained in the 

document.
 DRAFT - 3/9/2020 69 

Requisition 

Data 

Element 

Field Name

Display 

Required 

Optional

Document Level 

Name Source Description

Line Item 

Status Required Line Item Core Financial System

Status code of each line contained 

in the document.

Document 

Status Code Display Header Core Financial System

Status of the document as: Open, 

Closed, or Hold.

Document 

Status Date Required Header Core Financial System

Date in the system relating to the 

current status code.

Document 

Type Required Header Core Financial System

Obligation designated type (i.e. 

Property, Award or Travel).

Item 

Description Required Line Item

Requisition 

Document / 

Acquisition 

System

Description of the item.

Item 

Quantity Required Line Item

Acquisition 

System / Core 

Financial 

System

Number of units.

Item Type Required Line Item

Acquisition 

System / Core 

Financial 

System

Code that identifies transaction 

class (e.g., goods, services, 1099 

withholding, discounts, travel, 

penalties, retainage).

Line 

Amount Required Line Item

Vendor / 

Acquisition 

System

Total of the unit price multiplied 

by the quantity.

Line Level 

Currency Required Line Item Core Financial System

Agency pre-defined currency 

codes or default code.

Line Unit 

Price Required Line Item

Vendor / 

Acquisition 

System

Unit price of an item on each line 

of the document.

Place of 

Inspection Required Line Item Acquisition System

Location of inspection of the 

goods or services received.

Zip Code Display Header Vendor Master 

File

The Zip Code for a USA state or 

province found in the National 

Zip and Postal Office Directory, 

Publication 65.

Quantity 

Ordered Required Line Item Acquisition System

Quantity of the units of measure 

ordered for the line item.

Receipt 

Method Required Line Item

Acquisition 

System / Core 

Financial 

System

Values for receipt are: 

Q=Quantity or A=Amount.
 DRAFT - 3/9/2020 70 

Requisition 

Data 

Element 

Field Name

Display 

Required 

Optional

Document Level 

Name Source Description

Period of 

Performance 

End Date

Required Line Item Acquisition 

System End date of the service.

Period of 

Performance 

Start Date

Required Line Item Acquisition 

System Start date of the service.

Ship to 

Contact Required Line Item

Acquisition 

System/ Core 

Financial 

System

Contact name of the entity 

receiving the shipment from a 

supplier.

Ship to 

Location 

Code

Required Line Item

Acquisition 

System / Core 

Financial 

System

Location code of the receiving 

entity assigned by the agency.

State / 

Province 

Code

Display Header Vendor Master 

File

The 2-character USA state or 

possession or Canadian Province.

Street 

Address 1 Display Header Vendor Master File Location of Vendor business.

Street 

Address 2 Display Header Vendor Master File Location of Vendor business.

Supplier 

Catalog ID Required Line Item

Vendor/ or 

Acquisition 

System/Vendor

The identification code assigned 

to the supplier's catalog.

Supplier 

Item ID Required Line Item

Vendor / or 

Acquisition 

System/Vendor

Identification code assigned to an 

item in a supplier's catalog.

Unit of 

Measure Required Line Item

Acquisition 

system / Core 

Financial 

System

Unit of Measure Code from 

agency's ERP system. 

User ID Required Header Core Financial 

System

Identification code assigned to 

users of the agency's Core 

financial system.

Vendor 

Number Optional Header Vendor Master File

An identification number assigned 

to each vendor in the agency's 

vendor database.
 DRAFT - 3/9/2020 71 

Obligation Data Objects and Data Elements – The obligation 

data object includes: PM 3.1.11 – Initiate and Authorize Obligation, PM 3.1.12 – Initiate 

Obligation Not Requiring Commitment, PM 3.1.13 – Authorize Obligation, PM 3.1.15 –

Reject Obligation, and PM 3.2 – Funds Check Prior to Obligation.

Obligation

Data 

Element 

Field Name

Display 

Required 

Optional

Document Level 

Name Source Description

Agency Part 

ID Display Line Item

Acquisition 

System / Core 

Financial 

System

Identification code assigned to a part in 

the agency's Acquisition System.

Buyer 

Contact Optional Header Acquisition system Contact information of the buyer.

Buyer Name Optional Header Acquisition 

System

Name of buyer resource associated with 

obligating document.

CGAC 

Information Required Line Item Core Financial System

Common Government-wide 

Accounting Classification Structure.

City Display Header Vendor Master 

File

Vendor city stored in the agency CCR 

database.

Comments Optional Header Core Financial 

System

Comments associated to obligation 

document header in agency's Core 

financial system.

Company 

Name Display Header Vendor Master File

Vendor name stored in the agency CCR 

database.

Country 

Code Display Header Vendor Master File

The 3-character country code found in 

the ISO3166 standard.

Currency Required Header Core Financial 

System Default set to U.S. Dollar.

Delivery 

Contact 

Email

Required Header Acquisition 

System Contact e-mail number for delivery.

Delivery 

Contact 

Name

Required Header Acquisition 

System Contact name information for delivery.

Delivery 

Contact 

Phone

Required Header Acquisition 

System Contact phone number for delivery.

Document 

Approval Required Header Core Financial System

Date document was approved in the 

Core Financial system.
 DRAFT - 3/9/2020 72 

Obligation

Data 

Element 

Field Name

Display 

Required 

Optional

Document Level 

Name Source Description

Date

Document 

Approval 

Status Flag

Required Header Core Financial 

System Status for approval of the document.

Document 

Date Required Header Core Financial System

Official date of the document in the 

system.

Line Item 

Number Required Line Item Core Financial System

Current document number on each line 

contained in the document.

Line Item 

Status Required Line Item Core Financial System

Status code of each line contained in 

the document.

Document 

Status Code Display Header Core Financial System

Status of the document as: Open, 

Closed, or Hold.

Document 

Status Date Required Header Core Financial System

Date in the system relating to the 

current status code.

Document 

Type Required Header Core Financial System

Obligation designated type (i.e. 

Property, Award or Travel).

Freight 

Allowed Optional Header

Acquisition 

system / Core 

Financial 

System

Freight charges allowed by line item on 

the requisition document.

Freight 

Charges Optional Header

Acquisition 

System / Core 

Financial 

System

Total freight charges based on payment 

terms.

Item

Description Required Line Item

Requisition 

Document / 

Acquisition 

System

Description of the item.

Item 

Quantity Required Line Item

Acquisition 

System / Core 

Financial 

System

Number of units.

Item Type Required Line Item

Acquisition 

System / Core 

Financial 

System

Code that identifies transaction class 

(e.g., goods, services, 1099 

withholding, discounts, travel, 

penalties, retainage).

Line 

Amount Required Line Item

Vendor / 

Acquisition 

System

Total of the unit price multiplied by the 

quantity.

Line Level

Currency Required Line Item Core Financial System

Agency pre-defined currency codes or 

default code.
 DRAFT - 3/9/2020 73 

Obligation

Data 

Element 

Field Name

Display 

Required 

Optional

Document Level 

Name Source Description

Line Unit 

Price Required Line Item

Vendor / 

Acquisition 

System

Unit price of an item on each line of the 

document.

Modification 

Number Required Header Core Financial System

Modification number is the latest 

change order number made to the 

obligation document.

Obligation 

Amount Required Header Acquisition System Total amount of the award document.

Obligation 

End Date Required Header Acquisition System

The end date stated on the award 

document.

Obligation 

NTE 

Amount

Required Header Acquisition 

System

The total dollar Not to Exceed (NTE) 

amount based on the award document.

Obligation 

Number Required Header Core Financial System

The originating obligation document 

number and the release and 

modification numbers.

Obligation 

Total Display Header Core Financial System

Total of all line items on the obligating 

document.

Place of 

Inspection Required Line Item Acquisition System

Location of inspection of the goods or 

services received.

Zip Code Display Header Vendor Master 

File

The Zip Code for a USA state or 

province found in the National Zip and 

Postal Office Directory, Publication 65.

Quantity 

Invoiced Display Line Item

Acquisition 

System/ Core 

Financial 

System

Quantity of the units of measure 

ordered already invoiced.

Quantity 

Ordered Required Line Item Acquisition System

Quantity of the units of measure 

ordered for the line item.

Receipt 

Method Required Line Item

Acquisition 

System / Core 

Financial 

System

Values for receipt are: Q=Quantity or 

A=Amount.

Reference 

Document 

Line Status

Required Line Item

Acquisition 

system / Core 

Financial 

System

Agency defined status codes for 

changes made to document.

Release 

Number Required Header Core Financial System

Part of the obligation document 

number.

Period of 

Performance 

End Date

Required Line Item Acquisition 

System End date of the service.
 DRAFT - 3/9/2020 74 

Obligation

Data 

Element 

Field Name

Display 

Required 

Optional

Document Level 

Name Source Description

Period of 

Performance 

Start Date

Required Line Item Acquisition 

System Start date of the service.

Ship to 

Contact Required Line Item

Acquisition 

System/ Core 

Financial 

System

Contact name of the entity receiving the 

shipment from a supplier.

Ship to 

Location 

Code

Required Line Item

Acquisition 

System / Core 

Financial 

System

Location code of the receiving entity 

assigned by the agency.

Ship to 

Location 

Description

Required Line Item

Acquisition 

System / Core 

Financial 

System

Shipping location description used for 

informational purposes.

Source 

System 

Document 

Number

Required Header

Acquisition 

system / Core 

Financial 

System

Document number assigned from the 

source system.

Source 

System 

Document 

Type

Required Header

Acquisition 

system / Core 

Financial 

System

Obligating document type assigned 

from the source system.

State / 

Province 

Code

Display Header Vendor Master 

File

The 2-character USA state or 

possession or Canadian Province.

Street 

Address 1 Display Header Vendor Master File Location of Vendor business.

Street 

Address 2 Display Header Vendor Master File Location of Vendor business.

Supplier 

Catalog ID Required Line Item

Vendor/ or 

Acquisition 

System/Vendor

The identification code assigned to the 

supplier's catalog.

Supplier 

Item ID Required Line Item

Vendor / or 

Acquisition 

System/Vendor

Identification code assigned to an item 

in a supplier's catalog.

Total 

Amount Display Header Core Financial System

Total amount of all line items on the 

document.

Unit of 

Measure Required Line Item

Acquisition 

system / Core 

Financial 

System

Unit of Measure Code from agency's 

ERP system. 
 DRAFT - 3/9/2020 75 

Obligation

Data 

Element 

Field Name

Display 

Required 

Optional

Document Level 

Name Source Description

User ID Required Header Core Financial 

System

Identification code assigned to users of 

the agency's Core financial system.

Vendor 

Number Display Header Vendor Master File

An identification number assigned to 

each vendor in the agency's vendor 

database.
 DRAFT - 3/9/2020 76 

Receiving Data Objects and Data Elements – The receiving data object 

includes: PM 3.3.3 – Inspection for Damage, PM 3.3.5 – Reject Goods and Resolve Inspection 

Issues, PM 3.3.7 – Return Goods, PM 3.3.14 – Final Receipt of Goods on Award Document?, PM 

3.3.15 – Goods Receipt Process, PM 3.3.16 – Record Receipt of Goods as Final, and PM 3.3.17 –

Receiving Document 

RECEIVING

Data 

Element 

Field Name

Display 

Required 

Optional

Document Level 

Name Source Description

Agency Part 

Description Display Line Item Vendor System / Acquisition

Part description assigned by the Vendor 

and recorded in the agency's 

Acquisition System.

Agency Part 

ID Display Line Item

Acquisition 

System / Core 

Financial 

System

Identification code assigned to a part in 

the agency's Acquisition System.

CGAC 

Information Required Line Item Core Financial System

Common Government-wide 

Accounting Classification Structure.

City Display Header Vendor Master 

File

Vendor city stored in the agency CCR 

database.

Comments Optional Header Core Financial 

System

Comments associated to obligation 

document header in agency's Core 

financial system.

Company 

Name Display Header Vendor Master File

Vendor name stored in the agency CCR 

database.

Country 

Code Display Header Vendor Master File

The 3-character country code found in 

the ISO3166 standard.

Delivery 

Contact 

Email

Required Header Acquisition 

System Contact e-mail number for delivery.

Delivery 

Contact 

Name

Required Header Acquisition 

System Contact name information for delivery.

Delivery 

Contact 

Phone

Required Header Acquisition

System Contact phone number for delivery.

Document 

Approval 

Date

Required Header Core Financial 

System

Date document was approved in the 

Core Financial system.

Document 

Approval 

Status Flag

Required Header Core Financial 

System Status for approval of the document.

Document 

Date Required Header Core Financial System

Official date of the document in the 

system.
 DRAFT - 3/9/2020 77 

RECEIVING

Data 

Element 

Field Name

Display 

Required 

Optional

Document Level 

Name Source Description

Line Item 

Number Required Line Item Core Financial System

Current document number on each line 

contained in the document.

Line Item 

Status Required Line Item Core Financial System

Status code of each line contained in 

the document.

Document 

Status Code Display Header Core Financial System

Status of the document as: Open, 

Closed, or Hold.

Document 

Type Required Header Core Financial System

Obligation designated type (i.e. 

Property, Award or Travel).

Item 

Description Required Line Item

Requisition 

Document / 

Acquisition 

System

Description of the item.

Item 

Quantity Required Line Item

Acquisition 

System / Core 

Financial 

System

Number of units.

Item Type Required Line Item

Acquisition 

System / Core 

Financial 

System

Code that identifies transaction class 

(e.g., goods, services, 1099 

withholding, discounts, travel, 

penalties, retainage).

Line 

Amount Required Line Item

Vendor / 

Acquisition 

System

Total of the unit price multiplied by the 

quantity.

Line Unit 

Price Required Line Item

Vendor / 

Acquisition 

System

Unit price of an item on each line of the 

document.

Modification 

Number Required Header Core Financial System

Modification number is the latest 

change order number made to the 

obligation document.

Obligation 

Number Required Header Core Financial System

The originating obligation document 

number and the release and 

modification numbers.

Place of 

Inspection Required Line Item Acquisition System

Location of inspection of the goods or 

services received.

Zip Code Display Header Vendor Master 

File

The Zip Code for a USA state or 

province found in the National Zip and 

Postal Office Directory, Publication 65.

Quantity 

Accepted Display Line Item Core Financial System Number of units accepted.
 DRAFT - 3/9/2020 78 

RECEIVING

Data 

Element 

Field Name

Display 

Required 

Optional

Document Level 

Name Source Description

Quantity 

Invoiced Display Line Item

Acquisition 

System/ Core 

Financial 

System

Quantity of the units of measure 

ordered already invoiced.

Quantity 

Ordered Required Line Item Acquisition System

Quantity of the units of measure 

ordered for the line item.

Quantity 

Received Display Line Item Core Financial System Number of units received.

Quantity 

Rejected Display Line Item Core Financial System Number of units rejected.

Receipt 

Method Display Line Item

Acquisition 

System / Core 

Financial 

System

Values for receipt are: Q=Quantity or 

A=Amount.

Reference 

Document 

Line Status

Required Line Item

Acquisition 

system / Core 

Financial 

System

Agency defined status codes for 

changes made to document.

Release 

Number Required Header Core Financial System

Part of the obligation document 

number.

Period of 

Performance 

End Date

Required Line Item Acquisition 

System End date of the service.

Period of 

Performance 

Start Date

Required Line Item Acquisition 

System Start date of the service.

Ship to 

Contact Required Line Item

Acquisition 

System/ Core 

Financial 

System

Contact name of the entity receiving the

shipment from a supplier.

Ship to 

Location 

Code

Required Line Item

Acquisition 

System / Core 

Financial 

System

Location code of the receiving entity 

assigned by the agency.

Ship to 

Location 

Description

Required Line Item

Acquisition 

System / Core 

Financial 

System

Shipping location description used for 

informational purposes.

Source 

System 

Document 

Number

Required Header

Acquisition 

system / Core 

Financial 

System

Document number assigned from the 

source system.
 DRAFT - 3/9/2020 79 

RECEIVING

Data 

Element 

Field Name

Display 

Required 

Optional

Document Level 

Name Source Description

Source 

System 

Document 

Type

Required Header

Acquisition 

system / Core 

Financial 

System

Obligating document type assigned 

from the source system.

State / 

Province 

Code

Display Header Vendor Master 

File

The 2-character USA state or 

possession or Canadian Province.

Street 

Address 1 Display Header Vendor Master File Location of Vendor business.

Street 

Address 2 Display Header Vendor Master File Location of Vendor business.

Supplier 

Catalog ID Required Line Item

Vendor/ or 

Acquisition 

System/Vendor

The identification code assigned to the 

supplier's catalog.

Supplier 

Item ID Required Line Item

Vendor / or 

Acquisition 

System/Vendor

Identification code assigned to an item 

in a supplier's catalog.

Unit of 

Measure Required Line Item

Acquisition 

system / Core 

Financial 

System

Unit of Measure Code from agency's 

ERP system. 

User ID Required Header Core Financial 

System

Identification code assigned to users of 

the agency's Core financial system.

Vendor 

Number Display Header Vendor Master File

An identification number assigned to 

each vendor in the agency's vendor 

database.
 DRAFT - 3/9/2020 80 

Acceptance Data Objects and Data Elements – The acceptance 

data object includes: PM 3.3.20 – Acceptance Procedures for Goods Received, PM 3.3.21 –

Accept Goods?, PM 3.3.22 – Issue with Goods Resolved?, PM 3.3.23 – Acceptance 

Recorded, PM 3.3.28 – Reject Goods, PM 3.3.29 – Return Goods, PM 3.4.2 – Services 

Accepted?, PM 3.4.3 – Receipt and Acceptance Documents, PM 3.4.5 – Accept Partial 

Quantity of Services?, and PM 3.4.6 – Do Not Accept Services.

ACCEPTANCE

Data 

Element 

Field Name

Display 

Required 

Optional Document Level Name Source Description

Acceptance Required Line Item Acquisition 

System

Official acceptance of the goods or 

services.

Agency Part 

Description Display Line Item Vendor System / Acquisition

Part description assigned by the Vendor 

and recorded in the agency's 

Acquisition System.

Agency Part 

ID Display Line Item

Acquisition 

System / Core 

Financial 

System

Identification code assigned to a part in 

the agency's Acquisition System.

CGAC 

Information Required Line Item Core Financial System

Common Government-wide 

Accounting Classification Structure.

City Display Header Vendor Master 

File

Vendor city stored in the agency CCR 

database.

Comments Optional Header Core Financial 

System

Comments associated to obligation 

document header in agency's Core 

financial system.

Company 

Name Display Header Vendor Master File

Vendor name stored in the agency CCR 

database.

Country 

Code Display Header Vendor Master File

The 3-character country code found in 

the ISO3166 standard.

Delivery 

Contact 

Email

Required Header Acquisition 

System Contact e-mail number for delivery.

Delivery 

Contact 

Name

Required Header Acquisition 

System Contact name information for delivery.

Delivery 

Contact 

Phone

Required Header Acquisition 

System Contact phone number for delivery.

Document 

Approval 

Date

Required Header Core Financial 

System

Date document was approved in the 

Core Financial system.
 DRAFT - 3/9/2020 81 

ACCEPTANCE

Data 

Element 

Field Name

Display 

Required 

Optional Document Level Name Source Description

Document 

Approval 

Status Flag

Required Header Core Financial 

System Status for approval of the document.

Document 

Date Required Header Core Financial System

Official date of the document in the 

system.

Line Item 

Number Required Line Item Core Financial System

Current document number on each line 

contained in the document.

Line Item 

Status Required Line Item Core Financial System

Status code of each line contained in 

the document.

Document 

Status Code Display Header Core FinancialSystem

Status of the document as: Open, 

Closed, or Hold.

Document 

Type Required Header Core Financial System

Obligation designated type (i.e. 

Property, Award or Travel).

Item 

Description Required Line Item

Requisition 

Document / 

Acquisition 

System

Description of the item.

Item 

Quantity Required Line Item

Acquisition 

System / Core 

Financial 

System

Number of units.

Item Type Required Line Item

Acquisition 

System / Core 

Financial 

System

Code that identifies transaction class 

(e.g., goods, services, 1099 

withholding, discounts, travel, 

penalties, retainage).

Line 

Amount Required Line Item

Vendor / 

Acquisition 

System

Total of the unit price multiplied by the 

quantity.

Line Unit 

Price Required Line Item

Vendor / 

Acquisition 

System

Unit price of an item on each line of the 

document.

Modification 

Number Required Header Core Financial System

Modification number is the latest 

change order number made to the 

obligation document.

Obligation 

Number Required Header Core Financial System

The originating obligation document 

number and the release and 

modification numbers.

Place of 

Inspection Required Line Item Acquisition System

Location of inspection of the goods or 

services received.
 DRAFT - 3/9/2020 82 

ACCEPTANCE

Data 

Element 

Field Name

Display 

Required 

Optional Document Level Name Source Description

Zip Code Display Header Vendor Master 

File

The Zip Code for a USA state or 

province found in the National Zip and 

Postal Office Directory, Publication 65.

Quantity 

Accepted Display Line Item Core Financial System Number of units accepted.

Quantity 

Invoiced Display Line Item

Acquisition 

System/ Core 

Financial 

System

Quantity of the units of measure 

ordered already invoiced.

Quantity 

Ordered Required Line Item Acquisition System

Quantity of the units of measure 

ordered for the line item.

Quantity 

Received Display Line Item Core Financial System Number of units received.

Quantity 

Rejected Display Line Item Core Financial System Number of units rejected.

Receipt 

Method Display Line Item

Acquisition 

System / Core 

Financial 

System

Values for receipt are: Q=Quantity or 

A=Amount.

Reference 

Document 

Line Status

Required Line Item

Acquisition 

system / Core 

Financial 

System

Agency defined status codes for 

changes made to document.

Release 

Number Required Header Core Financial System

Part of the obligation document 

number.

Period of 

Performance 

End Date

Required Line Item Acquisition 

System

End date of the service.

Period of 

Performance 

Start Date

Required Line Item Acquisition 

System Start date of the service.

Ship to 

Contact Required Line Item

Acquisition 

System/ Core 

Financial 

System

Contact name of the entity receiving the

shipment from a supplier.

Ship to 

Location 

Code

Required Line Item

Acquisition 

System / Core 

Financial 

System

Location code of the receiving entity 

assigned by the agency.

Ship to 

Location 

Description

Required Line Item

Acquisition 

System / Core 

Financial 

System

Shipping location description used for 

informational purposes.
 DRAFT - 3/9/2020 83 

ACCEPTANCE

Data 

Element 

Field Name

Display 

Required 

Optional Document Level Name Source Description

Source 

System 

Document 

Number

Required Header

Acquisition 

system / Core 

Financial 

System

Document number assigned from the 

source system.

Source 

System 

Document 

Type

Required Header

Acquisition 

system / Core 

Financial 

System

Obligating document type assigned 

from the source system.

State / 

Province 

Code

Display Header Vendor Master 

File

The 2-character USA state or 

possession or Canadian Province.

Street 

Address 1 Display Header Vendor MasterFile Location of Vendor business.

Street 

Address 2 Display Header Vendor Master File Location of Vendor business.

Supplier 

Catalog ID Required Line Item

Vendor/ or 

Acquisition 

System/Vendor

The identification code assigned to the 

supplier's catalog.

Supplier 

Item ID Required Line Item

Vendor / or 

Acquisition 

System/Vendor

Identification code assigned to an item 

in a supplier's catalog.

Unit of 

Measure Required Line Item

Acquisition 

system / Core 

Financial 

System

Unit of Measure Code from agency's 

ERP system. 

User ID Required Header Core Financial 

System

Identification code assigned to users of 

the agency's Core financial system.

Vendor 

Number Display Header Vendor Master File

An identification number assigned to 

each vendor in the agency's vendor 

database.
 DRAFT - 3/9/2020 84 

Invoice Data Objects and Data Elements – The invoice data object 

includes: PM 3.5.1 – Prepare Invoice, PM 3.5.2 – Electronic Invoice, PM 3.5.3 – Invoice, PM

3.5.4 – Review Invoice for Required Information, PM 3.5.5 – Proper Invoice Under Prompt 

Pay Act?, PM 3.5.7 – Reject Vendor Invoice, PM 3.5.9 – Invoice Matches Award 

Document?, PM 3.5.12 – Valid Invoice, PM 3.5.21 – Approved Invoice, PM 3.5.26 – Invoice 

Verified?, and PM 3.5.28 – Verified Invoice.

Invoice

Data 

Element 

Field Name

Display Required 

Optional

Document 

Level Name Source Description

Agency Part 

Description Display Line Item Vendor System / Acquisition

Part description assigned by the Vendor 

and recorded in the agency's 

Acquisition System.

Agency Part 

ID Display Line Item

Acquisition 

System / Core 

Financial 

System

Identification code assigned to a part in 

the agency's Acquisition System.

CGAC 

Information Required Line Item Core Financial System

Common Government-wide 

Accounting Classification Structure.

Check 

Number Required Header Treasury The serial number of the check issued to a vendor or payee.

City Display Header Vendor Master 

File

Vendor city stored in the agency CCR 

database.

Comments Optional Header Core Financial 

System

Comments associated to obligation 

document header in agency's Core 

financial system.

Company 

Name Display Header Vendor Master File

Vendor name stored in the agency CCR 

database.

Country 

Code Display Header Vendor Master File

The 3-character country code found in 

the ISO3166 standard.

Currency Required Header Core Financial 

System Default set to U.S. Dollar.

Delivery 

Contact 

Email

Required Header Acquisition 

System Contact e-mail number for delivery.

Delivery 

Contact 

Name

Required Header Acquisition 

System Contact name information for delivery.

Delivery 

Contact 

Phone

Required Header Acquisition 

System Contact phone number for delivery.
 DRAFT - 3/9/2020 85 

Invoice

Data 

Element 

Field Name

Display Required 

Optional

Document 

Level Name Source Description

Discount 

Days Required Header

Vendor / 

Acquisition 

System

Number of days in which the discount 

may be taken on the invoice.

Discount 

Indicator Required Header

Vendor / 

Acquisition 

System

The applicable payment discount as a 

percentage or as a value that can be 

applied to the invoice.

Discount 

Value Required Header

Vendor / 

Acquisition 

System

The discount stated as an amount or 

percentage.

Document 

Approval 

Date

Required Header Core Financial 

System

Date document was approved in the 

Core Financial system.

Document 

Approval 

Status Flag

Required Header Core Financial 

System Status for approval of the document.

Document 

Date Required Header Core Financial System

Official date of the document in the 

system.

Line Item 

Number Required Line Item Core Financial System

Current document number on each line 

contained in the document.

Line Item 

Status Required Line Item Core Financial System

Status code of each line contained in 

the document.

Document 

Status Code Display Header Core Financial System

Status of the document as: Open, 

Closed, or Hold.

Document 

Type Required Header Core Financial System

Obligation designated type (i.e. 

Property, Award or Travel).

FOB Terms Required Line Item Acquisition 

System

The Freight on Board (FOB) shipping 

terms stated on the invoice.

Freight 

Charges Optional Header

Acquisition 

System / Core 

Financial 

System

Total freight charges based on payment 

terms.

Invoice 

Received 

Date

Required Line Item Core Financial 

System

The date the invoice was stamped as 

received.

Item 

Description Required Line Item

Requisition 

Document / 

Acquisition 

System

Description of the item.

Item 

Quantity Required Line Item

Acquisition 

System / Core 

Financial 

System

Number of units.
 DRAFT - 3/9/2020 86 

Invoice

Data 

Element 

Field Name

Display Required 

Optional

Document 

Level Name Source Description

Item Type Required Line Item

Acquisition 

System / Core 

Financial 

System

Code that identifies transaction class 

(e.g., goods, services, 1099 

withholding, discounts, travel, 

penalties, retainage).

Line 

Amount Required Line Item

Vendor / 

Acquisition 

System

Total of the unit price multiplied by the 

quantity.

Line Level 

Currency Required Line Item Core Financial System

Agency pre-defined currency codes or 

default code.

Line Unit 

Price Required Line Item

Vendor / 

Acquisition 

System

Unit price of an item on each line of the 

document.

Modification 

Number Required Header Core Financial System

Modification number is the latest 

change order number made to the 

obligation document.

Obligation 

Number Required Header Core Financial System

The originating obligation document 

number and the release and 

modification numbers.

Payment Net 

Days Required Header

Vendor / 

Acquisition 

System

The number of days in which a discount 

can be taken on the invoice.

Place of 

Inspection Required Line Item Acquisition System

Location of inspection of the goods or 

services received.

Zip Code Display Header Vendor Master 

File

The Zip Code for a USA state or 

province found in the National Zip and 

Postal Office Directory, Publication 65.

Quantity 

Accepted Display Line Item Core Financial System Number of units accepted.

Quantity 

Ordered Required Line Item Acquisition System

Quantity of the units of measure 

ordered for the line item.

Quantity 

Received Display Line Item Core Financial System Number of units received.

Quantity 

Rejected Display Line Item Core Financial System Number of units rejected.

Quantity 

Shipped Display Line Item

Vendor/ or 

Acquisition 

System/Vendor

Number of units shipped.

Receipt 

Method Display Line Item

Acquisition 

System / Core 

Financial 

System

Values for receipt are: Q=Quantity or 

A=Amount.
 DRAFT - 3/9/2020 87 

Invoice

Data 

Element 

Field Name

Display Required 

Optional

Document 

Level Name Source Description

Reference 

Document 

Line Status

Required Line Item

Acquisition 

system / Core 

Financial 

System

Agency defined status codes for 

changes made to document.

Release 

Number Required Header Core Financial System

Part of the obligation document 

number.

Period of 

Performance 

End Date

Required Line Item Acquisition 

System End date of the service.

Period of 

Performance 

Start Date

Required Line Item Acquisition 

System Start date of the service.

Ship to 

Location 

Description

Required Line Item

Acquisition 

System / Core 

Financial 

System

Shipping location description used for 

informational purposes.

Source 

System 

Document 

Number

Required Header

Acquisition 

system / Core 

Financial 

System

Document number assigned from the 

source system.

Source 

System 

Document 

Type

Required Header

Acquisition 

system / Core 

Financial 

System

Obligating document type assigned 

from the source system.

State / 

Province 

Code

Display Header Vendor Master 

File

The 2-character USA state or

possession or Canadian Province.

Street 

Address 1 Display Header Vendor Master File Location of Vendor business.

Street 

Address 2 Display Header Vendor Master File Location of Vendor business.

Supplier 

Catalog ID Required Line Item

Vendor/ or 

Acquisition 

System/Vendor

The identification code assigned to the 

supplier's catalog.

Supplier 

Item ID Required Line Item

Vendor / or 

Acquisition 

System/Vendor

Identification code assigned to an item 

in a supplier's catalog.

Total 

Amount Display Header Core Financial System

Total amount of all line items on the 

document.

Unit of 

Measure Required Line Item

Acquisition 

system / Core 

Financial 

System

Unit of Measure Code from agency's 

ERP system. 
 DRAFT - 3/9/2020 88 

Invoice

Data 

Element 

Field Name

Display Required 

Optional

Document 

Level Name Source Description

User ID Required Header Core Financial 

System

Identification code assigned to users of 

the agency's Core financial system.

Vendor 

Invoice 

Number

Required Line Item

Vendor / Core 

Financial 

System

Invoice number originated by the 

Vendor System.

Vendor 

Number Display Header Vendor Master File

An identification number assigned to 

each vendor in the agency's vendor 

database.

Withholding Required Line Item Core Financial 

System

Required withholding for applicable 

invoices as required by the IRS.
 DRAFT - 3/9/2020 89 

Disbursed Payment Data Objects and Data Elements – The 

disbursed payment data object includes: PM 3.6.6 – Schedule is Created, PM 3.6.8 – Submit

Payment Bulk File Treasury, PM 3.6.9 – Submitted Payment File, PM 3.6.10 – Perform Edit Check, 

PM 3.6.11 – Send Acknowledgement, PM 3.6.12 – Receipt of Acknowledgement, PM 3.6.17 –

Certified Payment, and PM 3.6.18 – Verification of Certification. In addition, PM 3.6.20 – Release 

Payment, PM 3.6.22 – Payee Receives Payment, PM 3.6.23 – Agency Records Confirmation, PM

3.7.7 – Certified Payment Schedule, PM 3.7.9 – Transmit Payment File to Treasury, PM 3.7.11 –

Release Payment, PM 3.7.13 – Agency Records the Confirmation, PM 3.7.14 – Mark Invoice Paid,

and PM 3.7.16 – Payee Receives Payment.

Disbursed 

Payment

Data 

Element 

Field Name

Display 

Required 

Optional

Document Level 

Name Source Description

CGAC 

Information Required Line Item

Core 

Financial 

System

Common Government-wide 

Accounting Classification Structure.

Check 

Number Required Header Treasury The serial number of the check issued to a vendor or payee.

City Display Header

Vendor 

Master File

Vendor city stored in the agency CCR 

database.

Company 

Name Display Header Vendor Master File

Vendor name stored in the agency CCR 

database.

Confirmation 

Date Required Header Treasury The date the check was issued to a vendor or payee.

Country 

Code Display Header Vendor Master File

The 3-character country code found in 

the ISO3166 standard.

Currency Required Header

Core 

Financial 

System

Default set to U.S. Dollar.

Discount 

Days Required Header

Vendor / 

Acquisition 

System

Number of days in which the discount 

may be taken on the invoice.

Discount 

Indicator Required Header

Vendor / 

Acquisition 

System

The applicable payment discount as a 

percentage or as a value that can be 

applied to the invoice.

Discount 

Value Required Header

Vendor / 

Acquisition 

System

The discount stated as an amount or 

percentage.

Document 

Approval 

Status Flag

Required Header

Core 

Financial 

System

Status for approval of the document.
 DRAFT - 3/9/2020 90 

Disbursed 

Payment

Data 

Element 

Field Name

Display 

Required 

Optional

Document Level 

Name Source Description

Document 

Date Required Header

Core 

Financial 

System

Official date of the document in the 

system.

Document 

Status Code Display Header

Core 

Financial 

System

Status of the document as: Open, 

Closed, or Hold.

Document 

Type Required Header

Core 

Financial 

System

Obligation designated type (i.e. 

Property, Award or Travel).

DUNS Required Header Vendor 

Master File

The number assigned to a business 

based on the Dun and Bradstreet 

Universal Numbering system (DUNS).

DUNS + 

Four Optional Header Vendor Master File

The number assigned to a business 

based on the Dun and Bradstreet 

Universal Numbering system (DUNS). 

Used for multiple EFT remittance 

locations.

Line Level 

Currency Required Line Item

Core 

Financial 

System

Agency pre-defined currency codes or 

default code.

Net Payment Display Header

Core 

Financial 

System

Total amount of all line items on 

invoice net of discounts.

Payment Net 

Days Required Header

Vendor / 

Acquisition 

System

The number of days in which a 

discount can be taken on the invoice.

Zip Code Display Header Vendor 

Master File

The Zip Code for a USA state or 

province found in the National Zip and 

Postal Office Directory, Publication 65.

State / 

Province 

Code

Display Header Vendor 

Master File

The 2-character USA state or 

possession or Canadian Province.

Street 

Address 1 Display Header Vendor Master File Location of Vendor business.

Street 

Address 2 Display Header Vendor Master File Location of Vendor business.

Tax Payer ID 

Number Required Header Vendor 

Master File

The 9-digit Tax Identification Number 

assigned to non-government vendor's.

Total 

Amount Display Header

Core 

Financial 

System

Total amount of all line items on the 

document.
 DRAFT - 3/9/2020 91 

Disbursed 

Payment

Data 

Element 

Field Name

Display 

Required 

Optional

Document Level 

Name Source Description

Trace 

Number Required Header Treasury 

The number assigned to identify each 

ACH item by the issuing Government 

Disbursement Office.

User ID Required Header

Core 

Financial 

System

Identification code assigned to users of 

the agency's Core financial system.

Vendor 

Invoice 

Number

Required Line Item

Vendor / 

Core 

Financial 

System

Invoice number originated by the 

Vendor System.

Vendor 

Number Display Header Vendor Master File

An identification number assigned to 

each vendor in the agency's vendor 

database.

Vendor Site 

ID Required Header Vendor Master File

The site identification code assigned to 

each vendor's address site in the 

agency's vendor database.
 DRAFT - 3/9/2020 92 

3.9 SUMMARY DATA OBJECTS AND DATA ELEMENTS

The following table displays all of the data objects and elements for Payment Management. Each row 

contains the disposition of the data element for that data object column as “D” for Display, “R” for 

Required and “O” for Optional.

Data 

Element 

Field Name

REQUISITION

OBLIGATION

RECEIVING

ACCEPTANCE

INVOICE

DISBURSED 

PAYMENT

Source Description

Acceptance R Acquisition 

System

Official acceptance of the goods or 

services.

Agency Part 

Description D D D D Vendor System / Acquisition

Part description assigned by the 

Vendor and recorded in the agency's 

Acquisition System.

Agency Part 

ID D D D D D

Acquisition 

System / Core 

Financial 

System

Identification code assigned to a part 

in the agency's Acquisition System.

Buyer 

Contact O Acquisition system Contact information of the buyer.

Buyer Name O Acquisition 

System

Name of buyer resource associated 

with obligating document.

CGAC 

Information R R R R R R Core Financial System

Common Government-wide 

Accounting Classification Structure.

Check 

Number R R Treasury The serial number of the check issued to a vendor or payee.

City D D D D D D Vendor Master 

File

Vendor city stored in the agency 

CCR database.

Comments O O O O O Core Financial 

System

Comments associated to obligation 

document header in agency's Core 

financial system.

Company 

Name D D D D D D Vendor Master File

Vendor name stored in the agency 

CCR database.

Confirmation 

Date R Treasury The date the check was issued to a vendor or payee.

Country 

Code D D D D D D Vendor Master File

The 3-character country code found 

in the ISO3166 standard.

Currency R R R Core Financial 

System Default set to U.S. Dollar.
 DRAFT - 3/9/2020 93 

Data 

Element 

Field Name

REQUISITION

OBLIGATION

RECEIVING

ACCEPTANCE

INVOICE

DISBURSED 

PAYMENT

Source Description

Delivery 

Contact 

Email

R R R R R Acquisition 

System Contact e-mail number for delivery.

Delivery 

Contact 

Name

R R R R R Acquisition 

System

Contact name information for 

delivery.

Delivery 

Contact 

Phone

R R R R R Acquisition 

System Contact phone number for delivery.

Discount 

Days R R

Vendor / 

Acquisition 

System

Number of days in which the 

discount may be taken on the invoice.

Discount 

Indicator R R

Vendor / 

Acquisition 

System

The applicable payment discount as a 

percentage or as a value that can be 

applied to the invoice.

Discount 

Value R R

Vendor / 

Acquisition 

System

The discount stated as an amount or 

percentage.

Document 

Approval 

Date

R R R R R Core Financial 

System

Date document was approved in the 

Core Financial system.

Document 

Approval 

Status Flag

R R R R R R Core Financial 

System Status for approval of the document.

Document 

Date R R R R R R Core Financial System

Official date of the document in the 

system.

Line Item 

Number R R R R R Core Financial System

Current document number on each 

line contained in the document.

Line Item 

Status R R R R R Core Financial System

Status code of each line contained in 

the document.

Document 

Status Code D D D D D D Core Financial System

Status of the document as: Open, 

Closed, or Hold.

Document 

Status Date R R Core Financial System

Date in the system relating to the 

current status code.

Document 

Type R R R R R R Core Financial System

Obligation designated type (i.e. 

Property, Award or Travel).

DUNS R Vendor Master 

File

The number assigned to a business 

based on the Dun and Bradstreet 

Universal Numbering system 

(DUNS).
 DRAFT - 3/9/2020 94 

Data 

Element 

Field Name

REQUISITION

OBLIGATION

RECEIVING

ACCEPTANCE

INVOICE

DISBURSED 

PAYMENT

Source Description

DUNS + 

Four O Vendor Master File

The number assigned to a business 

based on the Dun and Bradstreet 

Universal Numbering system 

(DUNS). Used for multiple EFT 

remittance locations.

FOB Terms R Acquisition 

System

The Freight on Board (FOB) 

shipping terms stated on the invoice.

Freight 

Allowed O

Acquisition 

system / Core 

Financial 

System

Freight charges allowed by line item 

on the requisition document.

Freight 

Charges O O

Acquisition 

System / Core 

Financial 

System

Total freight charges based on 

payment terms.

Invoice 

Received 

Date

R Core Financial 

System

The date the invoice was stamped as 

received.

Item 

Description R R R R R

Requisition 

Document / 

Acquisition 

System

Description of the item.

Item 

Quantity R R R R R

Acquisition 

System / Core 

Financial 

System

Number of units.

Item Type R R R R R

Acquisition 

System / Core 

Financial 

System

Code that identifies transaction class 

(e.g., goods, services, 1099 

withholding, discounts, travel, 

penalties, retainage).

Line Amount R R R R R

Vendor / 

Acquisition 

System

Total of the unit price multiplied by 

the quantity.

Line Level 

Currency R R R R Core Financial System

Agency pre-defined currency codes 

or default code.

Line Unit 

Price R R R R R

Vendor / 

Acquisition 

System

Unit price of an item on each line of 

the document.

Modification 

Number R R R R Core Financial 

System

Modification number is the latest 

change order number made to the 

obligation document.
 DRAFT - 3/9/2020 95 

Data 

Element 

Field Name

REQUISITION

OBLIGATION

RECEIVING

ACCEPTANCE

INVOICE

DISBURSED 

PAYMENT

Source Description

Net Payment D Core Financial 

System

Total amount of all line items on 

invoice net of discounts.

Obligation 

Amount R Acquisition System Total amount of the award document.

Obligation 

End Date R Acquisition System

The end date stated on the award 

document.

Obligation 

NTE 

Amount

R Acquisition 

System

The total dollar Not to Exceed (NTE) 

amount based on the award 

document.

Obligation 

Number R R R R Core Financial System

The originating obligation document 

number and the release and 

modification numbers.

Obligation 

Total D Core Financial System

Total of all line items on the 

obligating document.

Payment Net 

Days R R

Vendor / 

Acquisition 

System

The number of days in which a 

discount can be taken on the invoice.

Place of 

Inspection R R R R R Acquisition System

Location of inspection of the goods 

or services received.

Zip Code D D D D D D Vendor Master 

File

The Zip Code for a USA state or 

province found in the National Zip 

and Postal Office Directory, 

Publication 65.

Quantity 

Accepted D D D Core Financial System Number of units accepted.

Quantity 

Invoiced D D D

Acquisition 

System/ Core 

Financial 

System

Quantity of the units of measure 

ordered already invoiced.

Quantity 

Ordered R R R R R Acquisition System

Quantity of the units of measure 

ordered for the line item.

Quantity 

Received D D D Core Financial System Number of units received.

Quantity 

Rejected D D D Core Financial System Number of units rejected.

Quantity 

Shipped D

Vendor/ or 

Acquisition 

System/Vendor

Number of units shipped.
 DRAFT - 3/9/2020 96 

Data 

Element 

Field Name

REQUISITION

OBLIGATION

RECEIVING

ACCEPTANCE

INVOICE

DISBURSED 

PAYMENT

Source Description

Receipt 

Method R R D D D

Acquisition 

System / Core 

Financial 

System

Values for receipt are: Q=Quantity 

or A=Amount.

Reference 

Document 

Line Status

R R R R

Acquisition 

system / Core 

Financial 

System

Agency defined status codes for 

changes made to document.

Release 

Number R R R R Core Financial System

Part of the obligation document 

number.

Schedule 

Number

Core Financial 

System

The number assigned to a voucher or 

schedule of payments by the agency.

Period of 

Performance 

End Date

R R R R R Acquisition 

System End date of the service.

Period of 

Performance 

Start Date

R R R R R Acquisition 

System Start date of the service.

Ship to 

Contact R R R R

Acquisition 

System/ Core 

Financial 

System

Contact name of the entity receiving 

the shipment from a supplier.

Ship to 

Location 

Code

R R R R

Acquisition 

System / Core 

Financial 

System

Location code of the receiving entity 

assigned by the agency.

Ship to 

Location 

Description

R R R R

Acquisition 

System / Core 

Financial 

System

Shipping location description used 

for informational purposes.

Source 

System 

Document 

Number

R R R R

Acquisition 

system / Core 

Financial 

System

Document number assigned from the 

source system.
 DRAFT - 3/9/2020 97 

Data 

Element 

Field Name

REQUISITION

OBLIGATION

RECEIVING

ACCEPTANCE

INVOICE

DISBURSED 

PAYMENT

Source Description

Source 

System 

Document 

Type

R R R R

Acquisition 

system / Core 

Financial 

System

Obligating document type assigned 

from the source system.

State / 

Province 

Code

D D D D D D Vendor Master 

File

The 2-character USA state or 

possession or Canadian Province.

Street 

Address 1 D D D D D D Vendor Master File Location of Vendor business.

Street 

Address 2 D D D D D D Vendor Master File Location of Vendor business.

Supplier 

Catalog ID R R R R R

Vendor/ or 

Acquisition 

System/Vendor

The identification code assigned to 

the supplier's catalog.

Supplier 

Item ID R R R R R

Vendor / or 

Acquisition 

System/Vendor

Identification code assigned to an 

item in a supplier's catalog.

Tax Payer ID 

Number R Vendor Master File

The 9-digit Tax Identification 

Number assigned to non-government 

vendor's.

Total 

Amount D D D Core Financial System

Total amount of all line items on the 

document.

Trace 

Number R Treasury 

The number assigned to identify each 

ACH item by the issuing 

Government Disbursement Office.

Unit of 

Measure R R R R R

Acquisition 

system / Core 

Financial 

System

Unit of Measure Code from agency's 

ERP system. 

User ID R R R R R R Core Financial 

System

Identification code assigned to users 

of the agency's Core financial system.

Vendor 

Invoice 

Number

R R

Vendor / Core 

Financial 

System

Invoice number originated by the 

Vendor System.

Vendor 

Number O D D D D D Vendor Master 

File

An identification number assigned to 

each vendor in the agency's vendor 

database.
 DRAFT - 3/9/2020 98 

Data 

Element 

Field Name

REQUISITION

OBLIGATION

RECEIVING

ACCEPTANCE

INVOICE

DISBURSED 

PAYMENT

Source Description

Vendor Site 

ID R Vendor Master File

The site identification code assigned 

to each vendor's address site in the 

agency's vendor database.

Withholding R Core Financial 

System

Required withholding for applicable 

invoices as required by the IRS.
 DRAFT - 3/9/2020 99 

Receivables Management Processes

To Be Provided for Insert at a Future Date
 DRAFT - 3/9/2020 100 

Reports Management Processes

To Be Provided for Insert at a Future Date
 DRAFT - 3/9/2020 101 

Appendix A - Approach

Under Review with the Funds Control Chapter current released 

as an Exposure Draft 
 DRAFT - 3/9/2020 102 

Appendix B - Contributors

Under Review with the Funds Control Chapter currently released for 

Exposure Draft and to be updated with each subsequent release
 DRAFT - 3/9/2020 103 

Appendix C – Business Process Flowcharts, Symbols,

and Definitions

Flowchart Symbols Defined:

Process – This symbol represents a process or action step.

Decision – This symbol indicates a question or branch in the process flow.

Data – This symbol represents electronic input to and/or outputs from a process. 

Connector – This symbol indicates a jump from one point to another in a process flow.

Terminator – This symbol indicates that the current process flow is ending at this point and is part of 

a separate process flow.
 DRAFT - 3/9/2020 104 

PM 

3.1 

– Ordering Goods and Services

Acquisition Receiving Business Unit Finance Payee / Vendor No

Yes

Yes

No

Perform 

Acquisition 

Process

PM 3.1.8

 Award 

DocumentBusiness 

Unit View

PM 3.1.20

To 

Step 

PM 3.5.9

 Award 

DocumentReceiving 

View

PM 3.1.19

To 

Step 

PM 3.4.1

Funds 

Available?

PM 3.1.3

Federal 

Vendor ?

PM 3.1.9

IPAC Procedures

PM 3.1.10

Obligation 

Posts to 

General 

Ledger

PM 3.1.17

 Award 

DocumentVendor 

Copy

PM 3.1.22

Commitment 

Posts to 

General 

Ledger

PM 3.1.6

Funded

Requisition

PM 3.1.7

To

Step 

PM 3.5.1

Authorized 

Requisition

PM 3.1.2

Initiate and 

Authorize

Obligation 

PM 3.1.11

Prepare 

Requisition

PM 3.1.1

To Step

PM 3.2.1

To 

Step 

PM 3.3.20

From Step

PM 3.2.8

To 

Step 

PM 3.3.2

Rejected 

Requisition

PM 3.1.4

 Award 

DocumentFinance 

View

PM 3.1.21

Distribute

Award Document

PM 3.1.18

Initiate Obligation 

Not Requiring 

Commitment

PM 3.1.12

Funds 

Available?

PM 3.1.14

Yes

Reject 

Obligation

PM 3.1.15

No

Authorize 

Obligation

PM 3.1.13

Rejected 

Obligation

PM 3.1.16

Resolve Issue

PM 3.1.5
 DRAFT - 3/9/2020 105 

PM 3.2 – Funds Check Prior to Obligation Finance

No

Yes

Yes

No

Yes

No

Yes

No

To Step 

PM 3.1.17

Is this the Final 

Obligation on this 

Commitment?

PM 3.2.6

Pass Funds 

Check?

PM 3.2.4

Issue Resolved? 

PM 3.2.5

Entire 

Commitment 

Liquidated in 

General 

Ledger

PM 3.2.8

Obligation Amount 

Equal to 

Commitment? 

PM 3.2.1

From Step

PM 3.1.11

Pass Tolerance 

Check?

PM 3.2.3

Obligation Amount 

Less than the 

Commitment?

PM 3.2.2

Liquidate 

Portion of 

Commitment 

that is 

Obligated

PM 3.2.7

Yes

No

Yes
 DRAFT 

- 3/9/2020 106 

PM 3.3 – Receipt and Acceptance of Goods

Receiving Business Unit Finance

Yes

Yes

Yes

No

Yes

No

Yes

Yes

No

No

Reject Goods 

for Overage

PM 3.3.13

Quantity Received 

Greater than Allowable 

Tolerance Level? 

PM 3.3.8

From 

Step 

PM 3.1.20 and 

3.5.12

Business Unit and 

Acquisition 

Evaluate Issue 

PM 3.3.10

From 

Step 

PM 3.1.19

Return Goods?

PM 3.3.6

Reject Goods

and Resolve 

Inspection 

Issues

PM 3.3.5

Return Goods

PM 3.3.7

Receiving 

Document

PM 3.3.17

Return Goods

PM 3.3.29

Adjust 

Expense in 

General 

Ledger 

PM 3.3.30

To 

Step 

PM 3.5.13

Receive Goods

PM 3.3.1

System 

Generated 

Invoice?

PM 3.3.18

System

Generated 

Invoice

PM 3.3.19

To 

Step 

PM 3.5.13

Message 

Sent to 

Business Unit 

and Acquisition 

PM 3.3.9

Passes 

Inspection for 

Damage?

PM 3.3.4

Acceptance 

Recorded

PM 3.3.23

Reject Goods

PM 3.3.

Acceptance 

28

Procedures for 

Goods Received

PM 3.3.20

Inspection

For Damage

PM 3.3.3

Match Goods to 

Award 

Document

PM 3.3.2

Passes 

Funds Check?

PM 3.3.24

Expense 

Posts to 

General 

Ledger

PM 3.3.25

Final Receipt 

of Goods on Award 

Document?

PM 3.3.14

Message 

Sent to 

Business Unit 

and Acquisition 

PM 3.3.26

Record Receipt 

of Goods as 

Final

PM 3.3.16

Issue 

Resolved?

PM 3.3.11

Accept 

Goods?

PM 3.3.21

Update 

Obligation

PM 3.3.12

Yes

Resolve 

Issue?

PM 3.3.27

No

Yes

Yes

No

No

Goods 

Receipt 

Process 

PM 3.3.15

Yes

Issue with 

Goods Resolved?

PM 3.3.22

To 

Step 

PM 3.3.14

No

From

Step 

PM 3.3.12 & 

3.3.24 No

To

Step 

PM 3.3.14

No
 DRAFT - 3/9/2020 107 

PM 3.4 – Receipt and Acceptance of Services Finance Business Unit

Receipt 

and 

Acceptance 

Documents

PM 3.4.3

Do Not Accept 

Services

PM 3.4.6

Services 

Performed

PM 3.4.1

Services

Accepted?

PM 3.4.2

From 

Steps 

PM 3.1.20,

PM 3.5.12

Expense 

Posts to 

General 

Ledger

PM 3.4.9

Issues 

Resolved?

PM 3.4.4

No

To

Step 

PM 3.5.13

System

Generated 

Invoice

PM 3.4.13

System 

Generated 

Invoice?

PM 3.4.12

Services 

Amount Within 

Tolerance?

PM 3.4.7

Passes 

Funds Check?

PM 3.4.8

Message 

Sent to 

Business Unit 

and Acquisition

PM 3.4.10

Yes

No

No Yes

Resolve 

Issue?

PM 3.4.11

No

Yes

No

Yes

Accept 

Partial Quantity 

of Services?

PM 3.4.5

Yes

Yes

No

Yes

No
 DRAFT 

- 3/9/2020 108 

PM 3.5 – Accounts Payable and Invoicing Processes 

Business 

Unit Finance / Vendor Payee

No

No

No

Yes

Yes

No No

Yes

No

Yes

Yes

No

Yes

No

Yes

Yes Invoice Amount 

Equal or Less than 

Award?

PM 3.5.10

Award Document 

Reconciliation 

Process 

PM 3.5.23

Prepare Invoice

PM 3.5.1

To Step 

PM 3.5.8

Matched 

Invoice

PM 3.5.18

Resolve Issue

PM 3.5.27

Invoice

PM 3.5.3

Issue 

Resolved?

PM 3.5.16

Proper Invoice Under 

Prompt Pay Act?

PM 3.5.5

Notify Business 

Unit of Issue

PM 3.5.15

Invoice Amount 

Within Tolerance?

PM 3.5.11

Review Invoice for 

Required 

Information

PM 3.5.4

Vendor Info. 

Matches CCR

 Data?

PM 3.5.6

Reject Vendor 

Invoice

PM 3.5.7

IPAC Procedures

PM 3.5.34

Rejected 

Invoice

PM 3.5.8

Electronic 

Invoice

PM 3.5.2

Verified 

Invoice

PM 3.5.28

From Steps

PM 3.5.7, 

PM 3.5.17

Amounts Same as 

Expense?

PM 3.5.24

Award Document to 

Remain Open?

PM 3.5.22

From 

Steps 

PM 3.3.18, 

3.3.19, 3.3.23

Reject Vendor 

Invoice

PM 3.5.17

Modify Expense 

Posting

PM 3.5.25

Vendor Still Active 

in CCR?

PM 3.5.20

Federal Vendor?

PM 3.5.33

From 

Step 

PM 3.1.21

To Steps 

PM 3.6.1, 

PM 3.7.1

From Step

PM 3.1.22

To Step

PM 3.4.1 

and PM 

3.3.20

Invoice Verified?

PM 3.5.26

To Step 

PM 3.5.8

From 

Step 

PM 3.4.12

 PM 3.4.13

Invoice Matches 

Award Document?

PM 3.5.9

Approved 

Invoice

PM 

3.5.21

General 

Ledger 

Posting 

Logic

PM 3.5.32

Approve Invoice

PM 3.5.19

Matching Criteria 

Met?

PM 3.5.13

Block Payment

PM 3.5.14

Passes Funds 

Check?

PM 3.5.29

Yes

No Yes

Yes

Notification 

to Funding 

Authority

PM 3.5.30

Modify Funding

PM 3.5.31

Valid 

Invoice

PM 3.5.12

Yes

No

No

Yes

No No
 DRAFT 

- 3/9/2020 109 

PM 3.6 – Disbursements – Bulk Files (ACH/EFT, PPD, CCD+, CTX, and Checks) 

Finance Payee Treasury Yes No Yes Yes No No No Yes Start Disbursement Process PM 3.6.2 Agency Records the Confirmation PM 3.6.23 Receipt of Acknowl- edgement PM 3.6.12 Positive Acknowledge- Ment? PM 3.6.13 Warehoused Payment PM 3.6.1 Disb-in- Transit Posted to GL PM 3.6.7 Check If Payee is Active? PM 3.6.3 Hold Payment PM 3.6.4 Certified Payment PM 3.6.17 From Step PM 3.5.33 Schedule is Created PM 3.6.6 Submit Payment Bulk File to Treasury PM 3.6.8 Payee Receives Payment

PM 3.6.22

Perform Edit 

Check

PM 3.6.10

Cancel 

Schedule

PM 3.6.15

Bulk

File Matches 

1166?

PM 3.6.19

Disbursement of 

Fund Balance 

Posts to General 

Ledger

PM 3.6.25

Verification of 

Certification

PM 3.6.18

Send 

Acknowledgement

PM 3.6.11

Mark Invoice 

Paid

PM 3.6.24

Submitted 

Payment 

File

PM 3.6.9

Reversal 

of Entries

PM 3.6.16

Message Sent 

to Business 

Unit

PM 3.6.5

Agency 

Certifies 

Payment ?

PM 3.6.14

Release 

Payment

PM 3.6.20

Offset

PM 3.6.21
 DRAFT 

- 3/9/2020 110 

PM 3.7 – Disbursements – Small Volume and Same or Next Day Payments 

Treasury Finance Payee Disb-in-Transit Posted to GL PM 3.7.8 Warehoused Payment PM 3.7.1 Transmit Payment File to Treasury PM 3.7.9 Certify Payment Schedule PM 3.7.7 Offset PM 3.7.12 Transmitted File PM 3.7.10 Payee Receives Payment PM 3.7.16 From Step PM 3.5.33 Agency Records the Confirmation PM 3.7.13 Release Payment PM 3.7.11 Hold Payment PM 3.7.2 Authorized Payment Schedule PM 3.7.6 Payment Requested PM 3.7.3 Disbursement of Fund Balance Posts to General Ledger PM 3.7.15 Mark Invoice Paid PM 3.7.14 Enter Invoice PM 3.7.4 Start Small Volume and Same or Next Day Disb. Process PM 3.7.5
 DRAFT - 3/9/2020 111 

Glossary

Term Definition Source1

Accounting 

Classification

A subset of the Agency financial information 

classification. The accounting classification structure 

provides a means for categorizing financial 

information along several dimensions as needed to 

support financial management and reporting functions. 

The data elements an Agency includes in its 

accounting classification structure will depend in part 

on the implementation strategy for the USSGL, data 

aggregation requirements for preparation of financial 

statements under the CFO Act, appropriation structure, 

and other reporting and management needs of the 

Agency.

FSIO Financial 

System 

Requirements;

Multiple sources

Agency The term “Agency” means any executive department, 

military department, government corporation, 

government-controlled corporation, other 

establishment in the executive branch of the Federal 

Government, or any independent regulatory Agency. 

Within the Executive Office of the President, the term 

includes only OMB and the Office of Administration. 

OMB Circular 

A-130, 

Transmittal 

Memorandum 

#4, Management 

of Federal 

Information 

Resources

(11/28/2000)

Allotment A subdivision of an apportionment made by an 

Agency.

OMB Circular 

A-11,

Preparation, 

Submission and 

Execution of the 

Budget (6/30/06)

Apportionment A distribution made by OMB of amounts available for 

obligation in an appropriation or fund account into 

amounts available for specified time periods, program, 

activities, projects, objects, or any combinations of 

these. The apportioned amount limits the obligations 

that may be incurred. An apportionment may be 

further subdivided by an Agency into allotments, 

suballotments, and allocations.

OMB Circular 

A-11,

Preparation, 

Submission and 

Execution of the 

Budget (6/30/06) 

Appropriation A provision of law (not necessarily an appropriations 

act) authorizing the expenditure of funds for a given 

purpose. Usually, but not always, an appropriation 

provides budget authority.

OMB Circular 

A-11,

Preparation, 

Submission and 

Execution of the 

Budget (6/30/06 

 

1 Sources are provided if available, otherwise the term definition was developed for clarification of terminology.
 DRAFT - 3/9/2020 112 

Term Definition Source1

Budget The Budget of the United States Government setting 

forth the President’s comprehensive financial plan for 

allocating resources. The Government uses the budget 

system to allocate resources among its major functions 

and individual programs. The budget process has three 

main phases: formulation, congressional action on the 

budget, and execution. 

FASAB 

Statement of 

Federal 

Financial 

Accounting 

Standards No. 

24

Budget Authority The authority provided by law to incur financial 

obligations that will result in outlays. Specific forms 

of budget authority include appropriations, borrowing 

authority, contract authority, and spending authority 

from offsetting collections.

OMB Circular 

A-11,

Preparation, 

Submission and 

Execution of the 

Budget (6/30/06) 

Budget Execution Includes Funds Control and provides features to 

record, distribute, and control budget authority and 

spending in accordance with the provisions of OMB 

Circular A-11, Part 4, and Instructions on Budget 

Execution. Budget execution provides the ability to 

track the effects of financial events on the sources and 

uses of budgetary resources authorized by the 

President and Congress. Its primary purpose is to 

ensure that spending does not exceed funds 

appropriated or authorized.

OMB Circular 

A-11,

Preparation, 

Submission and 

Execution of the 

Budget 

(6/30/06), 

Budget Formulation During this phase of the budget cycle, the Executive 

Branch prepares the President’s budget. OMB and the 

Federal agencies begin preparing the next budget 

almost as soon as the President has sent the last one to 

Congress. OMB officially starts the process by 

sending planning guidance to Executive Branch 

agencies in the Spring. The President completes this 

phase by sending the budget to Congress on the first 

Monday in February, as specified in law, although 

occasionally Presidents have sent it later for various 

reasons. 

OMB Circular 

A-11, 

Preparation, 

Submission and 

Execution of the 

Budget (6/30/06) 
 DRAFT - 3/9/2020 113 

Term Definition Source1

Core Financial 

System

A core financial management system supports both the 

key financial management business processes of an 

Agency as well as the financial aspects of nonfinancial management business processes, (e.g., 

Acquisitions, Budget Planning, Payroll, Property, 

Grants, and Travel). Financial management business 

processes of an Agency are defined as: 

• Budget and Finance

• Accounting

• Collections and Receivables

• Payments

• Assets and Liabilities

• Reporting and Information

The above processes are further defined in the Office 

of Federal Financial Management (OFFM) Core 

Financial Systems Requirements.

OMB Circular 

A-127, 

Financial 

Management 

Systems (Draft)

Disbursements Amounts paid out by Federal agencies during the 

fiscal year. This term is used interchangeably with the 

term outlay.

TFM, 

Supplement to 

Volume I, Fund 

Balance with 

Treasury 

Reconciliation 

Procedures 

(10/4/2002)

Document Line Document line represents contract or subcontract line 

items on a commitment obligation or payment 

document.

Enterprise 

Architecture

A strategic information asset base that defines the 

business, information necessary to operate the 

business, technologies necessary to support the 

business operations, and transitional processes for 

implementing new technologies in response to the 

changing needs of the business.

Federal 

Enterprise 

Architecture 

Framework, 

V.1.1, Federal 

CIO Council, 

September 1999
 DRAFT - 3/9/2020 114 

Term Definition Source1

Federal Enterprise 

Architecture

To facilitate efforts to transform the Federal 

Government to one that is citizen-centered, resultsoriented, and market-based, the Office of Management 

and Budget (OMB) is developing the Federal 

Enterprise Architecture (FEA), a business-based 

framework for Government-wide improvement.

The FEA is being constructed through a collection of 

interrelated “reference models” designed to facilitate 

cross-agency analysis and the identification of 

duplicative investments, gaps, and opportunities for 

collaboration within and across Federal Agencies. 

Federal 

Enterprise 

Architecture 

Program 

Management 

Office 

Federal Enterprise 

Architecture 

Business Reference 

Model (BRM)

The BRM is a function-driven framework for 

describing the Lines of Business and internal functions 

performed by the Federal Government independent of 

the agencies that perform them. The BRM serves as 

the business layer of the Federal Enterprise 

Architecture (FEA). It provides a foundation on which 

the applications, data, and technology layers of the 

FEA are developed. Agency Capital Asset Plans 

(Exhibit 300s) will be mapped against this framework 

to identify opportunities for cross-agency

collaboration and potential system redundancies.

OMB Circular 

A-11,

Preparing, 

Executing, and 

Submitting the 

Budget

Federal Enterprise 

Architecture 

Framework

The Federal Enterprise Architecture Framework 

(FEAF) provides an organized structure and a 

collection of common terms by which Federal 

segments can integrate their respective architectures 

into the Federal Enterprise Architecture.

Federal 

Enterprise 

Architecture 

Framework, 

V.1.1, Federal 

CIO Council, 

September 1999

Federal Payment Any payment made by an Agency. The term includes, 

but is not limited to: (1) Federal wage, salary, and 

retirement payments; (2) vendor and expense 

reimbursement payments; (3) benefit payments; and 

(4) miscellaneous payments including, but not limited 

to, interagency payments, grants, loans, fees, principal, 

interest, and other payments related to United States 

marketable and nonmarketable securities, 

overpayment reimbursements, and payments under 

Federal insurance or guarantee programs for loans.

Treasury Green 

Book

Financial 

Accounting

A branch of accounting. The most noteworthy 

interpretations or classifications are those about which 

data pertain to the past and which pertain to the future. 

In other words, financial accounting is largely 

concerned with assigning the value of past 

transactions to appropriate time periods.

FASAB, SFFAS 

No. 1: 

Objectives of 

Federal

Financial 

Reporting
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Term Definition Source1

Financial Event Any occurrence having financial consequences to the 

Federal Government related to the receipt of 

appropriations or other financial resources; acquisition

of goods or services; payments or collections; 

recognition of guarantees, benefits to be provided, or 

other potential liabilities; or other reportable financial 

activities.

OMB Circular 

A-127, 

Financial 

Management 

Systems 

(07/23/1993)

Financial 

Management 

Systems

Financial systems and the financial portions of mixed 

systems necessary to support financial management, 

including manual or automated processes, procedures, 

controls, hardware, software, and support personnel. 

Financial systems include an information system, 

comprised of one or more applications, that is used for 

(1) collecting, processing, maintaining, transmitting or 

reporting data about financial events; (2) supporting 

financial or budgeting activities; (3) accumulating and 

reporting cost information; or (4) supporting the 

preparation of financial statements.

Federal 

Financial 

Management 

Improvement 

Act (FFMIA),

OMB Circular 

A-127, 

Financial 

Management 

Systems 

(07/23/1993)

Financial System A financial system supports the financial management 

business processes required in an Agency to track 

financial events to provide financial information that 

is significant to the financial management of the 

Agency and is used for the preparation of Agency 

financial statements. A financial system encompasses 

both automated and manual processes, procedures, 

internal controls, and a data repository and may 

include multiple applications that are integrated 

through a common database or are electronically 

interfaced, as necessary, to meet defined data and 

processing requirements to record financial events. 

These core applications directly support the financial 

management business processes of an Agency. 

.

OMB Circular 

A-127, 

Financial 

Management 

Systems (Draft)

Information Security The protection of information and information systems 

from unauthorized access, use, disclosure, disruption, 

modification, or destruction in order to provide: 

(1) integrity, which means guarding against improper 

information modification or destruction, and includes 

ensuring information nonrepudiation and authenticity; 

(2) confidentiality, which means preserving authorized 

restrictions on access and disclosure, including means 

for protecting personal privacy and proprietary 

information; and (3) availability, which means 

ensuring timely and reliable access to and use of 

information.

Federal

Information 

Security 

Management 

Act of 2002
 DRAFT - 3/9/2020 116 

Term Definition Source1

Information System A discrete set of information technology, data, and 

related resources, such as personnel, hardware, 

software, and associated information technology 

services organized for the collection, processing, 

maintenance, use, sharing, dissemination, or 

disposition of information.

OMB Circular 

A-11,

Preparation, 

Submission and 

Execution of the 

Budget (6/30/06) 

Information 

Technology

Any equipment, or interconnected system(s) or 

subsystem(s) of equipment, that is used in the 

automatic acquisition, storage, manipulation, 

management, movement, control, display, switching, 

interchange, transmission, or reception of data or 

information by the Agency.

FAR 2.101

Internal Control A subset of management controls are the internal 

controls used to assure that there is prevention or 

timely detection of unauthorized acquisition, use, or 

disposition of the entity’s assets.

OMB Circular 

A-123, 

Management’s 

Responsibility 

for Internal 

Control 

(Effective 

beginning with 

Fiscal Year 

2006) (Revised 

12/21/2004) 

Intra-Governmental 

Payment and 

Collections

Intra-Governmental Payment and Collection (IPAC)

System is comprised of three interrelated subsystems: 

(1) The IPAC application that processes IntraGovernmental Federal funds transfers between 

agencies, (2) The Retirement and Insurance Transfer 

System (RITS) that processes retirement and health 

insurance payments by Federal agencies to the Office 

of Personnel Management (OPM), and (3) the

Treasury Receivable Accounting and Collection 

System (TRACS) that processes check disbursement 

data returned to Federal agencies for which Treasury 

has disbursing authority.

Treasury 

Financial 

Manual
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Term Definition Source1

Management 

Controls

Management controls are the organization, policies, 

and procedures used by agencies to reasonably ensure 

that (1) programs achieve their intended results; (2) 

resources are used consistent with Agency mission; 

(3) programs and resources are protected from waste, 

fraud, and mismanagement; (4) laws and regulations 

are followed; and (5) reliable and timely information 

is obtained, maintained, reported, and used for 

decision making.

Management controls, in the broadest sense, include 

the plan of organization, methods, and procedures 

adopted by management to ensure that its goals are 

met. Management controls include processes for 

planning, organizing, directing, and controlling 

program operations. 

OMB Circular 

A-123, 

Management’s 

Responsibility 

for Internal 

Control 

(Effective 

beginning with 

Fiscal Year 

2006) (Revised 

12/21/2004) 

Managerial Cost 

Accounting

Managerial cost accounting should be a fundamental 

part of the financial management system and, to the 

extent practicable, should be integrated with other 

parts of the system. Managerial costing should use a 

basis of accounting, recognition, and measurement 

appropriate for the intended purpose. Cost information 

developed for different purposes should be drawn 

from a common data source, and output reports should 

be reconcilable to each other

FASAB, SFFAS 

No. 4: 

Managerial Cost 

Accounting 

Standards and 

Concepts 

Outlay Outlay means a payment to liquidate an obligation 

(other than the repayment of debt principal). Outlays 

generally are equal to cash disbursements but also are 

recorded for cash-equivalent transactions, such as the 

subsidy cost of direct loans and loan guarantees, and 

interest accrued on public issues of the public debt. 

Outlays are the measure of Government spending.

OMB Circular 

A-11,

Preparation, 

Submission and 

Execution of the 

Budget (6/30/06) 

Payee A person, corporation, or other public or private entity 

that is authorized to receive a Federal payment from 

an agency.

Payment A government disbursement of monies to any payee, 

including vendors, employees, private citizens, state, 

or local and foreign governments in accordance with 

Contract terms. The payment management function 

consists of the following processes: payee information 

maintenance, payment warehousing, payment 

execution, and payment confirmation and follow-up. 

Treasury 

Financial 

Manual
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Term Definition Source1

Program Generally defined as an organized set of activities 

directed toward a common purpose or goal, 

undertaken or proposed by an Agency in order to carry 

out its responsibilities. In practice, however, the term 

has many uses and thus does not have a well-defined, 

standard meaning in the legislative process. It is used 

to describe an Agency’s mission, programs, functions, 

activities, services, projects, and processes.

A Glossary of 

Terms Used in 

the Federal 

Budget Process

(GAO 09/2005)

Shared Services Shared services is a bringing together of functions that 

are frequently duplicated across component agencies, 

and delivering these services more efficiently and with 

a customer service orientation. It is the focus on the 

customer service aspect of the process that 

distinguishes the shared services model from the 

concept of consolidation. The focus is on the 

customers because they demand the best quality, 

timely, accurate, and reliable product(s) attainable.

Sharing services leads to the elimination of 

redundancies. The concurrent redesign of accounting 

processes, organizations, and supporting systems leads 

to radical improvements in time, cost, quality, and 

user satisfaction in regard to the service provided.

Single Integrated

Financial

Management System 

A unified set of financial systems and the financial 

portions of mixed systems (e.g., Acquisition) 

encompassing the software, hardware, personnel, 

processes (manual and automated), procedures, 

controls, and data necessary to carry out financial 

management functions, manage the financial 

operations of the Agency, and report on the Agency’s 

financial status to central agencies, Congress, and the 

public.

OMB Circular 

A-127,

Financial 

Management 

Systems 

(07/23/1993)

Treasury Financial 

Manual

The manual issued by the Financial Management 

Service containing procedures to be observed by all 

agencies, Federal Reserve Banks, and financial 

institutions with respect to payments, collections, 

central accounting, financial reporting, and other 

government-wide fiscal responsibilities of the 

Treasury.

Green Book, 

Glossary

United States 

Standard General 

Ledger (USSGL)

A uniform list of accounts that support transactions 

that standardizes Federal Agency accounting and 

supports the preparation of standard external reports. 

The U.S. Government Standard General Ledger Chart 

of Accounts (1) provides control over all financial 

transactions and resource balances, (2) satisfies basic 

reporting requirements of OMB and Treasury, and 

(3) integrates proprietary and budgetary accounting.

Treasury 

Financial 

Manual, Volume 

I
 DRAFT - 3/9/2020 119 

Term Definition Source1

USSGL Account: An account within the uniform chart of accounts used 

by Federal agencies to record budgetary and 

proprietary accounting transactions.

Volume I, U.S. 

Government 

Standard 

General Ledger 

(Uniform Chart 

of Accounts 

08/2006)
 DRAFT - 3/9/2020 120 

Laws and Regulations

Federal Statutes:

Appropriations Law

Fundamental, long-standing statutes deal with the appropriation of monies to agencies from 

Congress, including the appropriate use and control of these monies. These statutes deal with the 

purpose, amount, and time of appropriations, as well as the availability of the associated monies. The 

following summary provides specific citations to these statutes, their common names, and their 

requirements.

Federal Managers’ Financial Integrity Act of 1982

The Federal Managers’ Financial Integrity Act (FMFIA) of 1982 amended the Accounting and 

Auditing Act of 1950 to require ongoing evaluations and reports of the adequacy of the systems of 

internal accounting and administrative control of each executive Agency. FMFIA is comprised of 

two parts. OMB Circular A-123, Management’s Responsibility for Internal Control (Effective 

beginning with Fiscal Year 2006) (Revised 12/21/2004), is the primary vehicle for implementing 

FMFIA in the executive branch and describes internal control requirements. Agencies are also 

required to report annually on whether the Agency accounting system complies with OMB A-127.

The FMFIA requires Agency heads to establish controls that reasonably ensure:

• Obligations and costs are in compliance with applicable law

• Funds, property, and other assets are safeguarded against waste, loss, unauthorized use or 

misappropriation

• Revenues and expenditures are properly recorded and accounted for.

(OMB revised Circular A-123 in 1995 to incorporate ideas from subsequent management legislation, 

such as the Chief Financial Officers Act.) The circular provides guidance on improving the 

accountability and effectiveness of federal programs and operations by establishing and reporting on 

management controls.

Chief Financial Officers Act of 1990 and Government Management Reform Act of 1994

The Chief Financial Officers Act of 1990 laid the foundation for significant financial management 

reform in the Federal Government. The Act emphasizes strong financial leadership, improved 

systems of accounting, financial management and internal control, and reliable financial information. 

A key element of the Act is the requirement for Federal agencies to produce audited financial 

statements. The Government Management Reform Act (GMRA) expanded financial statement audit 

coverage to include Department-wide and Government-wide audited financial statements.

The CFO Act mandates three actions:

• Strong financial management leadership: The CFO Act established, in OMB, the Deputy Director 

for Management and the Office of Federal Financial Management, and created chief financial 

officer positions in major agencies to provide financial management direction.

• Enhanced financial management systems: The CFO Act mandates that Agency CFOs develop 

and maintain Agency financial management systems that comply with applicable accounting 

principles, standards, and requirements; internal control standards; and requirements of OMB 

and Treasury; and
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• Improved financial information: By requiring Agency CFOs to maintain systems that report cost 

information, integrate accounting and budgeting, and systematically measure performance, the 

CFO Act emphasizes improved reliability and usefulness of Agency financial information. Most 

importantly, the CFO Act requires that financial statements be prepared and audited.

Government Performance and Results Act of 1993

The Government Performance and Results Act (GPRA) of 1993 holds Federal agencies accountable 

for achieving program results and requires them to identify missions, set goals, measure 

performance, and report on their accomplishments.

Under GPRA, each federal Agency must develop and submit a multiyear strategic plan, which 

contains the Agency’s mission statements and long-term strategic goals. Agencies must also submit 

annual performance plans, which include performance goals linked to the budget and indicators of 

how performance will be measured. Annual performance reports, also required under the Act, 

provide information on the extent to which the Agency met its annual performance goals.

Federal Financial Management Improvement Act of 1996

The Federal Financial Management Improvement Act (FFMIA) of 1996 requires agencies to 

implement and maintain systems that substantially comply with (1) Federal accounting standards, 

(2) the United States Government Standard General Ledger (USSGL) at the transaction level, and 

(3) Federal financial management systems requirements. In addition, the FFMIA requires agencies’

auditors to report whether Agency systems comply with FFMIA’s systems requirements. Agencies 

that determine their systems do not substantially comply must develop and submit remediation plans 

to OMB.

To comply with Federal financial management system requirements, OMB implementation guidance 

requires that systems meet the Circular A-127 requirements, JFMIP’s Federal Financial Management 

Systems Requirements, and Circular A-130, Appendix III.

Debt Collection Act of 1982 and Debt Collection Improvement Act of 1996

The Debt Collection Improvement Act (DCIA) is an extension of the Debt Collection Act. The 

purpose of these Acts is to require proper collection of debts, to authorize the compromise or 

suspension of some debts, and to authorize the use of certain collection tools that are available in the 

private sector. The use of electronic payment and offset methods is required.

Federal Information Security Management Act (FISMA) of 2002 (Public Law 107-347, Title III) 

The FISMA reiterates security requirements contained in existing OMB policies and in Federal laws 

such as the Computer Security Act of 1987, the Paper Reduction Act of 1995, and Clinger-Cohen 

Act of 1996. The Act mandates that Federal agencies implement an information security program and 

designate a senior information security officer. FISMA also established evaluation and reporting 

requirements that requires each Agency to report any significant deficiencies and an information 

security policy, procedure, or practice. If relating to financial management systems as a lack of 

substantial compliance with FFMIA. 

Reports Consolidation Act of 2000

This Act gives OMB the authority to combine financial reports to the President and Congress that 

contains performance and accountability information.
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Clinger-Cohen Act (CCA) –- The Information Technology Management Reform Act of 1996

This Act provides that the Government information technology shop be operated exactly as an 

efficient and profitable business would be operated. Acquisition, planning, and management of 

technology must be treated as a “capital investment.” While the law is complex, all consumers of 

hardware and software in the Department should be aware of the Chief Information Officer’s 

leadership in implementing this statute.

Regulatory Guidance:

OMB Circular A-11, Preparation, Submission and Execution of the Budget (6/30/06), Preparation, 

Submission and Execution of the Budget (6/30/06), Preparing, Submitting, and Executing the Budget 

(Revised 7/25/2003)

OMB made major revisions to A-11 that merged the budget formulation and execution guidance to 

reinforce the requirement for agencies to integrate budget and performance and to improve the 

quality of their financial information. In addition, A-11 contains new guidance on managing physical 

and financial assets.

OMB Circular A-25, User Charges

The Circular:

• Establishes Federal policy regarding fees assessed for Government services and for sale or use of 

Government goods or resources

• Provides information on the scope and types of activities subject to user charges and on the basis 

upon which user charges are to be set

• Provides guidance for Agency implementation of charges and the disposition of collections.

OMB Circular A-123, Management’s Responsibility for Internal Control (Effective beginning with 

Fiscal Year 2006) (Revised 12/21/2004), Management Accountability and Control (or Successor 

Documents) (6/21/1995)

This Circular, which is the primary OMB guidance for FMFIA, is described in the section that relates 

to that act.

Prompt Payment Final Rule (Formerly OMB Circular A-125, Prompt Payment) (9/29/1999)

The Final Rule, the primary OMB guidance for PPA, is described in the section related to the specific 

act.

OMB Circular A-127, Financial Management Systems (07/23/1993), Financial Management Systems 

(or Successor Documents) (7/23/1993)

This circular augments FFMIA by specifically mandating that Federal agencies implement integrated 

core accounting and financial management systems. To be fully integrated, the system must address:

• Standard data classification (both data and format)

• Common processes for handling similar accounting events

• Consistent internal control mechanisms

• Elimination of duplicate transaction entry.

Circular A-127 also prescribes policies and standards for agencies to follow in developing, operating, 

evaluating, and reporting on financial management systems generally. It incorporates, by reference, 
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Circulars A-123 and A-130, as well as all federal financial management systems requirements 

published by JFMIP.

OMB Circular A-129, Managing Federal Credit Programs (11/2000) 

This Circular prescribes policies and procedures for justifying, designing, and managing Federal 

credit programs, and for collecting non-tax receivables. It sets principles for designing credit 

programs, including: 

• Preparation and review of legislation and regulations

• Budgeting for the costs of credit programs and minimizing unintended costs to the Government

• Improving the efficiency and effectiveness of Federal credit programs. 

Circular A-129 also sets standards for extending credit, managing lenders participating in 

Government guaranteed loan programs, servicing credit and non-tax receivables, and collecting 

delinquent debt.

OMB Circular A-130, Management of Federal Information Resources (11/28/2000)

OMB re-issued Circular A-130 in revised form in December 2000 as Transmittal Memorandum 

No. 4. The expanded version of A-130 provides guidance on the Paperwork Reduction Act, the 

Clinger-Cohen Act, the CFO Act, and others. This includes the requirement for all electronic 

systems, including financial management systems, to have a defined association with the Agency’s 

enterprise architecture.

The Circular provides specific guidance on collecting and managing information and records 

management, including:

• Electronic information collection

• Provision of information to the public

• Information dissemination systems

• Information safeguards.

It further mandates agencies to establish a capital planning and investment control process (CPIC) 

that links information technology investments to improved mission performance. The CPIC also 

establishes the links among Agency processes including strategic planning, IT planning, enterprise 

architecture integration, performance planning, financial management planning pursuant to the Chief 

Financial Officers Act of 1990, and budget formulation and execution. Specifically, sections of A130 cover these four areas:

• Capital planning and investment control processes must be followed and documented by all 

agencies. These processes, stemming from Clinger-Cohen, must integrate IRM strategic and 

performance plans, financial management plans, the Agency’s IT enterprise architecture, and its 

budget. The Agency’s process for capital planning and investment control should include an IRM 

strategic plan, an IT capital plan, and an IT investment portfolio as described in OMB Circular 

A-11, Preparation, Submission and Execution of the Budget (6/30/06), Preparation, Submission 

and Execution of the Budget (6/30/06), the annual budget circular.

• Enterprise architecture framework and planning processes require an Agency to document (and 

submit to OMB its current and target IT architecture and related support strategies, transition 

roadmaps, and IT and security standards, as well as a summary of the information services used 

throughout the Agency. The enterprise architecture framework anticipated by A-130 is driven by 
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the business needs of the Agency and is composed of layers complying with the Federal 

Enterprise Architecture Framework (FEAF) developed by the CIO Council.

2

• Ensuring security in information systems is accomplished by explicitly incorporating security 

into the enterprise architecture and life-cycle planning for systems, and ensuring that security 

supports the Agency’s business operations. The Agency’s security plan must comply with the 

procedures and policies outlined in Appendix III to A-130, Security of Federal Automated 

Information Resources; the Federal Information Security Management Act (Public Law 107-

347); Title III; and guidance provided by the National Institute of Standards and Technology 

(NIST). Independent advice and comment on the security plan must be solicited prior to the 

plan’s implementation.

• Information technology acquisition requires the use of adequate competition in contracting, 

allocating risk between the government and the contractor, and maximizing the return on 

investment. Major information systems should be structured into useful segments with narrow 

scope and brief duration. Off-the-shelf software should be used unless analysis clearly documents 

other approaches are more effective.

Statements of Federal Financial Accounting Standards

The FASAB was created in 1990 to develop and recommend Statements of Federal Financial 

Accounting Standards (SFFASs) for use by the Federal Government. The growing body of SFFAS 

issued by FASAB is considered to be Generally Accepted Accounting Principles for Federal 

Government entities.

The accounting standards that have resulted from FASAB’s work are central to effectively meeting 

financial management improvement goals of the CFO Act and other legislation. In particular, 

FASAB’s standards for managerial cost accounting, as described in SFFAS 4, are a primary source 

of guidance. This and other FASAB standards foster financial information and reporting that is 

understandable, relevant, and reliable concerning the financial position, activities, and results of

operations for the Federal Government and its departments and agencies. Furthermore, the standards 

prescribe accounting systems and internal control that help demonstrate that federal programs are 

conducted in compliance with laws and regulations.

 

2 The FEAF layers describe and link business processes, information flows, applications, data descriptions and 

relationships, and technology infrastructure.