DEFENSE LOGISTICS AGENCYAMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

WARFIGHTER SUPPORT ENHANCEMENT                    STEWARDSHIP EXCELLENCE                       WORKFORCE DEVELOPMENT

Enterprise Line of Accounting (LOA)

Joint DOD Supply/Finance Process Review Committee (PRC) Meeting

by

Bob Hammond DOD Finance PRC Chair

Ellen Hilert, DOD Supply  PRC Co-Chair

March 13, 2012

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Draft Enterprise Line of Accounting (LOA) Logistics Overview
        - Issue: DCMO/DPAP/OSD(C) are trying to solve a department-wide problem with multiple versions of a LOA. Proposed solution requires supply and finance communities to provide a full line of accounting in specific format vice variations in format or referential data. Among many impacts/concerns, would require significant modification to supply and finance programs/processes if applied to requisitioning, material returns program and Interfund billing.
        - Goals – initial meeting DCMO, OSD(C) staff, DOD Process Review Committees (PRCs): 
        - Understand LOA proposal, high level impacts/concerns, next steps, timeline; ask question. 
        - All participants leave with an understanding of issues/impacts to articulate to leadership, prepare for Business Enterprise Common Core Metadata meeting tomorrow, and prepare for next steps 
        - Sequence – due to  DCMO, OSD(C) staff time limitation (first hour only)
        - FPRC Chair brief first three slides to introduce issues and concerns and questions – hold discussion
        - DCMO & OSDC(C) address:
        - Next steps, timeline, need and relationship to logistics
        - Legacy cross- walk requirement
        - Impact on DLMS	
        - General discussion and questions by all
        - Summary for DCMO, OSD(C)
        - PRCs continue discussion as needed

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Draft Enterprise Line of Accounting (LOA)  Logistics Impacts – Supply and Finance
        - Potential unintended impact on requisitioning, material returns,  and  Interfund billing
        - If LOA  vice Fund Code required, requisitions created outside the requisitioner’s ERPs impacted: Emergency Centers, Post-Post; Web ordering systems - DOD EMALL, GSA Advantage, food, medical
        - Interfund summary level and detail billing via 2 character referential Fund Code - $56 billion per year 
        - Potential unmatched financial transactions impacting DoD material weakness, mission support
        - Cost, data storage, bandwidth (particularly remotely deployed units and Navy ships) not addressed
        - Legacy feeder system ability to cross-walk required – intent not clear  
        - Referential data using Fund Code not feasible for all proposed LOA content 
        - Fund Code  is the only data available from transactions for non-DLMS capable systems
        - LOA data elements:
        - Not all elements identified in list are deemed components of an LOA or required by Treasury 
        - Data must be known to and provided by the requisitioner/requisitioning system. 
        - Cost objects (Budget Line Item Identifier, Cost Center Identifier, Project Identifier, Activity Identifier, Work Order #), were evaluated in by Logistics deemed of no value to the seller appropriate for transaction exchange

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Draft Enterprise Line of Accounting (LOA)  Logistics Impacts – Supply and Finance
        - General comments:
        - Recommend cost estimate per SECDEF memo “Consideration of Cost in Decision Making” 
        - Sequential data transmission and delimiters is inconsistent with/not authorized by American National Standards Institute X12 data mandated for Logistics interoperable data exchange – clarification needed
        - Long term dual functionality required (Fund Code & LOA) for DoD and federal trading partners
        - Referential data (referred to as “short key” in draft LOA memo) 
        - Universally accepted best business practice in the federal and private sectors . Includes National Stock Number (NSN), DoD Activity Address Code (DoDAAC), Fund Code, social security number,
        - Uses unique identifier linked to referential authoritative database maintained by data owner
        - Fund Code and DoDAAC currently supported by extraordinary robust edits & well defined DOD policy and processes
        - Issues appear primarily procurement & ERP focus group related, but LOA applies to all 

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LOA - Accounting Classification, Data Element Name, Length
        - Department Regular (3):  A1 in SFIS; Examples:  ex. 021 Army, 017 Navy, 057 Air Force; 097 ODOs 
        - Department Transfer (3):  A2 in SFIS; Example:  A transfer of obligation authority from DOE ex. 089
        - Main Account (4):  A3 in SFIS; Synonymous with Basic Symbol, Appropriation Symbol ex. 4930
        - Sub Account (3):  A4 in SFIS; Indicates the relationship to the Main Account ex. 002
        - Sub Class (2):  A7 in SFIS; Grouping of a transaction type ex. 46 Payments from Current Appropriations for Obligations of Closed Accounts
        - Availability Type (1):  A24 in SFIS; Examples: X = No-year TAS
        - Business Event Type Codei  (8); T20 in SFIS; Replaces Transaction Codes ex. DISB - Disbursement
        - Beginning Period of Availability Fiscal Year Date (4); A27 in SFIS - 2012
        - Ending Period of Availability Fiscal Year Date (4); A28 in SFIS - 2012
        - Limit (4); Not in SFIS; however, most systems account for sub-allocations via Limit – 2504 
        - Reimbursable Flag (1); A9 in SFIS; Examples:  Direct, Reimbursable Code ex. D or R
        - Budget Line Item (16); B4 in SFIS; Further sub-divides the Treasury Account Fund Symbol below sub-activity ex. 111
        - Object Class (6); B6 in SFIS; Will initially be the three-digit level as in SFIS with room to expand to six ex. 252
        - FMS Customer Code (2); T21 in SFIS; Foreign Military Sales (FMS); The country receiving the product/service FMS Case Identifier (3); T22 in SFIS; Identifies the FMS contractual sales agreement between countries ex. 346
        - FMS Case Line Item Identifier (3); T23 in SFIS; Identifies a detailed line-item requirement ex. 001
        - Agency Disbursing Identifier Code (8); 02 in SFIS; Synonymous with Treasury DSSN for each disbursing office
        - Cost Object 1 (16); CA in SFIS; Reserved for Component use
        - Cost Object 2 (16); CA in SFIS; Reserved for Component use
        - Cost Object 3 (16); CA in SFIS; Reserved for Component use
        - Cost Object 4 (25); CA in SFIS; Reserved for Component use
        - Agency Accounting Identifier (6); O3 in SFIS; Fiscal Station Number; Comptroller defined; Identifies the accounting system responsible for the accounting event ex. 021001 – DFAS Indianapolis (GFEBS) 

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 Current Proposed Implementation Under Consideration
        - Target date for interface compliance/updates is July 2012
        - Components and Organizations, such as DPAP, Logistics, and DFAS will update their LOA or system interface agreements/crosswalks to order data elements as presented in Attachment A, adhering to SFIS format rules.
        - Interim and Target Systems will ensure all applicable accounting classification data is present in the Enterprise LOA.  
        - Legacy business feeder systems used for audit readiness goals must establish:  crosswalks to SFIS/Interface to DDRS and the Enterprise LOA
        - Enterprise systems will upgrade to handle the Enterprise LOA

Notes for Implementation:
        - Not all elements will be used in all transactions.  It depends on what the transaction is.  Data elements not used will be left blank in between “^”s
        - Wrapping of the length of the LOA string must be configured for and accounted for in all legacy feeder systems; ERPs have individual fields for elements in the Enterprise LOA
        - The requirement will be a part of the SFIS requirements and systems will be required to include this as part of their overall SFIS Implementation Plan

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