**DLMS FINANCE PRC AGENDA ITEMS**

**19 November 2009**

**0830 Start**

**2750 Prosperity Avenue Suite 300******

**Fairfax, VA 22031**

**As of: November 19, 2009**

**Defense Connect Online (DCO)**

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**OPEN ITEMS FROM FINANCE PRC MEETING OF 13 Nov 2008**

1. **Standard Financial Information Structure (SFIS).**

a. DLMSO requested assistance from BTA in identifying standard information exchanges for DLMS to achieve compliance with SFIS.

b. STATUS 10.27.09. There is a working group developing a Proposed DLMS Change (PDC) to identify required SFIS data elements to be transacted and to be carried in DLMS. There will be a presentation at the meeting. FPRC representatives should be prepared to discuss the DLMS transactions identified to carry SFIS data elements, the data elements to be carried, and the options for exchanging SFIS data. Please invite appropriate stake holders to participate in this discussion.

i. SFIS Presentation

ii.  Draft PDC 365, DLMS Revision for SFIS

2. **Inter-Service Obligation.**

a. Ronnie Daniels (Army) was to determine if Army is ready to staff Draft PDC 266 which was proposed as a funds availability interface (rather than an inter-service obligation transaction)

i. STATUS 10.09.09. Completed as Approved DLMS Change (ADC) 328. Closed.

3. **FAA RIC Problem.**

i. Some FAA billings have RIC 570 vice RIC G69. Billie Davis, FAA, indicates that FAA is sending RIC G69 to GSA. GSA was to research this problem and correct it.

1. STATUS 10.09.09. Shirley Reed, Air Force, indicated that a “temporary fix” is in place by the DFAS-CO systems office, but that GSA action is needed soonest to correct the root cause of the problem. Roxanne Degner, GSA, is working this issue.

4. **MILS Migration Status.**

a. Mark Johnson, Navy, was to research why Navy ERP is not planning to use the 812R Logistics Bill Adjustment Request or the 812L Logistics Bill Adjustment Reply. 

i. STATUS 10.09.09. Mark Johnson indicated that the Navy is incorporating the 812R and 812L into Navy ERP. Action closed.

5. **Fund Code Validation on FMS Requisitions.**

a. ADC 20, which has been incorporated into Chapter 9 of MISBILLS, specifies mandatory use rules for the Fund Code.  Subsequent to implementation, DAASC excluded FMS from the logic due to reported problems with Army and Air Force transactions.  

b. Kathleen Heikel, Army, reported that changes were made to the Army Centralized Integrated System for International Logistics to comply with ADC 20. The AF scenario was described as a pre-requisition inquiry from the ILCO to obtain the correct source of supply from DAASC.  Air Force has documented the Air Force process as follows.****DAASC and SAMIS have had an agreement for approximately the last 20 years where SAMIS sends transactions/inquiries to DAASC (pre-requisition) to search for a SOS when there is no SOS listed in the Air Force catalog.  SAMIS transmits these transactions to DAASC (RIC SGA) with a blank fund code because SAMIS is unable to assign a fund code when the SOS is unknown. DAASC then searches to identify a SOS.  If successful, DAASC returns the transaction with the SOS identified; if they are unsuccessful, DAASC also returns the transaction, but with a notation that they could not find a SOS.  Either way, these types of transactions are not requisitions processed by DAASC.  For the successfully identified SOS, SAMIS assigns a fund code based on the SOS and submits a requisition; if not successful the document number is researched for possible further action.

c. DAASC was to remove the exception for FMS fund code edit and implement a procedure to accommodate the Air Force pre-requisition inquiry.

i. STATUS 10.21.09.  DAASC removed the exception for FMS Fund Code edit and implemented a procedure to accommodate the Air Force pre-requisition inquiry, in March of 2009.  In reviewing the edit, it was discovered a subset of Air Force SOS for FMS requisitions was bypassing the edit.  This was resolved and a new edit was put in place on 19 October 2009.  This new edit ensures FMS transactions from the ILCOs and from EMALL are edited for a valid Signal Code and Fund Code and excludes the Air Force pre-requisition inquiry from the edit. Action closed.

6. **Air Force Billing Problems Resulting from Partial Shipments.**

a. This issue came up in the Supply PRC, but it also has financial implications. ADC 247 provides some background. Since DLA Distribution Standard System (DSS) confirms based on partial shipments, and DLA Enterprise Business System (EBS) bills based on these confirmations, (ARO) vice the material release order (A5_), the possibility exists that some bills will appear as duplicate billings. These bills don't contain suffixes on the document numbers, and the Air Force finance system considers the same document number with the same quantity to be a duplicate.  This causes manual work, and increased the bill processing charge from DFAS to the Services. Air Force indicates that this is a problem for them, while Army and Navy indicate that it is not a problem for them. 

b. Some possible solutions identified include: 

i.  Fix EBS not to bill until the shipment is complete. Susan Eldridge, DLA, indicated that it is not feasible to modify EBS in the near term to correct this problem.

ii. In DLMS, add the TCN to the bill or add a partial shipment indicator for future use.  The inclusion of the TCN in the bill under DLMS is included in ADC 290; however, this is a long term solution. 

iii. Change DFAS systems to accommodate partial billings by accumulating the billed dollar amount, so that bills based upon partial shipments are not rejected unless the dollar total exceeds the amount obligated. Shirley Reed, Air Force was to talk with Ronnie Daniels, Army, regarding the Army process, and look at the Air Force edit to determine if the Air Force edit can be modified to resolve this problem. Subsequent to the meeting, DLMSO recommended that AF provide a DLMS Change proposal to establish DoD rules for billing of partial shipments if internal AF solution is not acceptable and/or volume of billing associated with partial supply actions is shown to be a significant expense to the Service resulting from DFAS charges for processing of electronic separate bills for each partial action.

c. STATUS. The Air Force wrote an SCR to change the way incoming interfund bills are zero balanced and has a Discrepancy Report to exclude certain Document Identity Codes to prevent the erroneous deletion of duplicate detail billing records. This issue will be discussed at the meeting.

7. ******GSA-Directed Shipments Lost at DLA-Operated Consolidation and Containerization Point (CCP)**.

a. GSA directs vendor shipment to customers through the DLA CCPs.  If material is lost and GSA has transporter proof of delivery (TPD) from the vendor neither the vendor nor GSA will reimburse the customer. DLA has no policy/process to provide credit for CCP losses based upon submission of a Supply Discrepancy Report (SDR) to DLA. GSA does not accept responsibility for CCP losses.  Ellen Hilert, DLMSO, suggested that the best way for the credit to occur is to have GSA reimburse the customer and then have DLA reimburse GSA.  GSA would bill DLA for the customer’s credits.  Buz Sawyer, DLA, indicated that this would have to be negotiated between GSA and DLA.  The volume of these types of lost items is small, but users get upset when they don’t get credit.  Ellen Hilert, DLMSO, will establish a proposed DLMS change for SDR processing and work with Susan Eldridge, DLA, to document the financial procedures.  This will also need to be reviewed by GSA.

i. STATUS 10.09.09.  Ellen Hilert of DLMSO is still working this effort and the action is open.

8. DLMS  810L Fund Code error. The 810L contained a note for fund code DG indicates that if you have an interfund bill the detail record cannot have a fund code, which was not correct

a. STATUS.****This was corrected by ADC 315. Closed.

**NEW AGENDA ITEMS**

9. **Financial Processing for Deleted DoDAACs.**

a. There will be a DLMSO presentation on this topic.  

i. PDC 368 Briefing

ii. PDC 368, DoDAAD edits on Logistics Bills

10. **Billing Issues.**

a. There will be a DLA presentation on efforts to clear aged bills.

b. DLA DAAS Rejected Bills.

c. DFAS Summary/Detail Mismatch

d. The floor is open for discussion of any other billing issues

11. **DLA Hazardous Waste Billing.**

a. Navy discovered that on their June billings for hazardous waste from DLA the MILSBILLS document ID changed from FC1 (Billing for Decentralized, Non‐catalogued and Non-Stocked Items) to FA1 (Billing for Issue from Stock). Research indicated that on 1 April 2009 DRMS was brought under the DLA Enterprise Operations Accounting system and that the FC1 transaction was not programmed for hazardous waste billings. In addition, the Routing Identifier Code (RIC) changed from S9D to SMS. In the case of Navy, this caused bills to go to individual Navy activities instead of being billed to a central working capital fund.

b. DLA briefing.

12. **DLMS Manuals.**

a. DLMSO will be working to revise the DLMS Manual (DoD 4000.25-M) to incorporate both DLMS and MILS procedures from the MILSBILLS Manual (DoD4000.25-7-M toward the goal of eventually eliminating MILSBILLS. Revisions will be done through a series of Proposed DLMS Changes (PDCs). PRC support in carefully reviewing these PDCs needed.

b. Conversion to Defense Logistics Manuals will be discussed.

c. DLM Manual Brief

d. Draft DLM 4000.25-3 MILSBILLS, DLM 4000.25 V4. Do not print.

13. **DLMS Migration Status .**

a. DLMSO will provide a status update on migration from fixed 80 record position MILS transactions to variable length Defense Logistics Management System (DLMS) transactions.

b. Briefing.

14. **Navy Enterprise Resource Planning (ERP) System.** Beverly Veit (Navy) will provide an overview of Navy ERP following the SFIS presentation at topic 1.

15. **Process Review Committee (PRC) Survey.**

a. DLMSO appreciates your feedback on this PRC, and welcomes any comments for improvement. Hard copy surveys will be handed out at the PRC. DCO participants may download the survey and email it to******David.Walker@dla.mil****.**

b. Download Survey

c. Thank you for your participation in this Process Review Committee meeting.

Break Time