returned invoices

Your Financial Partner @ Work

Returned Invoices

Rebecca Beck

Chief, Contract Input

August 2003

Your Financial Partner @ Work 2

Topics

MOCAS Payment Process

Impact of Returned Invoices

Top Four Reasons for Returns

Get Well Plan


Contract Input

PurchasingOffice

DD1716(Deficiencies)

DFAS ColumbusContract Input

Hardcopy or Electronic

ACO/PCO

ACOPro

ble

ms

Tier II Queue/EDM


DD250(Material Inspection/

Receiving Report) Contractor

Material Produced and Shipped Destination

CAO

DFAS Columbus

Production & Delivery of Goods

PARKER-HANNIFINCORPAEROSPACEGROUP1160 CENTER RD P.O. BOX158AVON, OH 44011

LORAIN GENERALCORP1350 CHESTER INDUSTRIALPKYAVON, OH 44011

XU DEFENSE DISTRIBUTION REGIONWESTDISTRIBUTION DEPOT SANJOAQUINTRANS OFC BLDG 330CRPLATHROP, CA 95331-0130

33269

9N585S

W62T2T

MATERIALINSPECTIONAND

RECEIVINGREPORT

1.PROC. INSTRUMENT IDEN.(CONTRACT) (ORDER)NO. 6.INVOICE 7.PAGE OF

8.ACCEPTANCE POINT

3.DATESHIPPED

4.B/L 5.DISCOUNT TERMS

9.PRIME CONTRACTOR

11.SHIPPED FROM(if other than 9)

CODE

CODE

CODE

FOB:

10.ADMINISTERED BY

12.PAYMENT WILL BE MADE BY

CODE

CODE

CODE14.MARKEDFOR

17. 18. 19. 20.QUANTITYSHIP/REC'D* UNIT UNIT PRICE AMOUNT

13.SHIPPED TO

ITEM

NO.

16.STOCK/PART NO DESCRIPTION(Indicate number of shipping containers-typeof container-container

number.)

21. PROCUREMENT QUALITY ASSURANCE

A. ORIGIN B. DESTINATION

PQA ACCEPTANCE of listed items has beenmade by me or under my supervision and theyconform to contract,except as noted herein or on

supporting documents.

DATEDATE SIGNATURE OF AUTH GOV'TREP

SIGNATURE OF AUTH GOV'TREP


TYPED NAMEAND TITLE

TYPED NAMEAND TITLE

TYPED NAMEAND TITLE

22. CONTRACTOR USE ONLY

22. RECEIVER'S USE

Quantities shown in column 17 were receivedin apparent good condition except as noted.

DATERECEIVED

*If quantity received by the Government is thesame as quantity shipped,indicate by ( )mark,if different,enter actual quantity re-ceived below quantity shipped and encircle.

DD Form 250

SP0440-95-M-HA30

HPC0001 1 MAR 96 1/4% 10

96757921 MAR 96

0001

1075-01-045-1778 WHEELASSYYPG95100000822P/N 40-122

A SKID 1/1

17 EA $615.95 $10,471.15

1 1

S

DCMAOCLEVELANDFEDERAL OFFICEBLDG1240 E. NINTH ST.CLEVELAND, OH44199

DFAS-COLUMBUSCENTERATTN: DFAS-CO BUNKERHILLP.O. Box 182362Columbus, OH 43218-2362

S3603A

SC1016

Sample 3, Transportation Charges Example

13 Jun 96 DennisRocmanoff

Dennis Racmanoff

S3603A

FREIGHT236.52

_____________________TOTAL$10,707.67

P.O. 29826/000

S.O. 055171-003

ORIGINAL INVOICE


Destination

AcceptanceAlert

SPN(Shipment Performance

Notice)

Buying Command or

Inventory Manager

Consignee

ShipmentAcceptance

Source

ReadyTo

BeginPaymen

tProcess

AccountsPayable

SPN

and

DD250PARKER-HANNIFINCORPAEROSPACEGROUP1160 CENTER RD P.O. BOX158AVON, OH 44011

LORAIN GENERALCORP1350 CHESTER INDUSTRIALPKYAVON, OH 44011

XU DEFENSE DISTRIBUTION REGIONWESTDISTRIBUTION DEPOT SANJOAQUINTRANS OFC BLDG 330CRPLATHROP, CA 95331-0130

33269

9N585S

W62T2T

MATERIALINSPECTIONAND

RECEIVINGREPORT

1.PROC. INSTRUMENT IDEN.(CONTRACT) (ORDER)NO. 6.INVOICE 7.PAGE OF

8.ACCEPTANCE POINT

3.DATESHIPPED

4.B/L 5.DISCOUNT TERMS

9.PRIME CONTRACTOR

11.SHIPPED FROM(if other than 9)

CODE

CODE

CODE

FOB:

10.ADMINISTERED BY

12.PAYMENT WILL BE MADE BY

CODE

CODE

CODE14.MARKEDFOR

17. 18. 19. 20.QUANTITYSHIP/REC'D* UNIT UNIT PRICE AMOUNT

13.SHIPPED TO

ITEM

NO.

16.STOCK/PART NO DESCRIPTION(Indicate number of shipping containers-typeof container-container

number.)

21. PROCUREMENT QUALITY ASSURANCE

A. ORIGIN B. DESTINATION

PQA ACCEPTANCE of listed items has beenmade by me or under my supervision and theyconform to contract,except as noted herein or on

supporting documents.

DATEDATE SIGNATURE OF AUTH GOV'TREP



TYPED NAMEAND TITLE

TYPED NAMEAND TITLE

TYPED NAMEAND TITLE

22. CONTRACTOR USE ONLY

22. RECEIVER'S USE

Quantities shown in column 17 were receivedin apparent good condition except as noted.

DATERECEIVED

*If quantity received by the Government is thesame as quantity shipped,indicate by ( )mark,if different,enter actual quantity re-ceived below quantity shipped and encircle.

DD Form 250

SP0440-95-M-HA30

HPC0001 1 MAR 96 1/4% 10

96757921 MAR 96

0001

1075-01-045-1778 WHEELASSYYPG95100000822P/N 40-122

A SKID 1/1

17 EA $615.95 $10,471.15

1 1

S

DCMAOCLEVELANDFEDERAL OFFICEBLDG1240 E. NINTH ST.CLEVELAND, OH44199

DFAS-COLUMBUSCENTERATTN: DFAS-CO BUNKERHILLP.O. Box 182362Columbus, OH 43218-2362

S3603A

SC1016

Sample 3, Transportation Charges Example

13 Jun 96 DennisRocmanoff

Dennis Racmanoff

S3603A

FREIGHT236.52

_____________________TOTAL$10,707.67

P.O. 29826/000

S.O. 055171-003

ORIGINAL INVOICE

Acceptance of Goods


Tier II

(CLR) Contingent

LiabilityRecord

Contract PaymentProvision

File

AccountsPayable

File

API PaymentProcess

ManualPaymentProcess

Invoice Master

File

Invoice Receipt

•Hard Copy

•Electronic

Invoice Types

•Commercial Invoice

•DD250 Invoices

•Contract Financing Requests

•Public Vouchers

Invoice Input


Checks Validityof Payment

Disbursing

Back to Entitlement Pro

ble

m

OK

Full

Payment NoticesReports toAccounting Stations

CPN

Payment, Subvoucher, and Invoice

Disbursement

EntitlementDivision


Magnitude of Business

Number of Active Contractors - 16K

Number of Active Contracts - 329K

Total Obligated - $881.3B

Approximately 90K Invoices Go Through the Payment Process Monthly

79K Pay

Approximately 12% End Up Returned to the Contractor or Recycled


Impact of Returned Invoices

Approximately 11K Invoices are Returned Monthly Downward trend this FY

Represents Rework for Us and You Resubmission of Invoices Reprocessing of Invoices

Causes Delays in Payment


Returned Code Variables

Code Description

E-01 DFAS Not the Paying OfficeE-02 Awaiting a Definitizing ModificationE-03 Contract Number on Invoice is Missing or InvalidE-05 Duplicate Invoice/Shipment NumberE-06 Shipment Number is Missing or IncorrectE-07 Evidence of Shipment RequiredE-08 Invoice Requires ApprovalE-09 Per Instructions of TO/ACO/PCOE-10 Item Number Requires VerificationE-11 Invoice Not Billed IAW the ContractE-12 Error on DD250E-13 Inspection/Acceptance ProblemE-14 Unauthorized OvershipmentE-17 TransportationE-19 As Required


Prompt Pay Requirement

In accordance with the Prompt Pay Act, DFAS is required to return the invoice to the contractor for correction within 7 days of receipt.


Top 4 Reasons for Returns - FY03

E-12: Error on DD250 Distribution Not Made to Terminal

The contractor must ensure proper distribution of the DD250 is made to the CAO terminal prior to resubmitting the invoice for payment.

E-11: Invoice Not Billed IAW Contract Item Information/ACRN Missing/Incorrect

The contractor should review contractual terms and submit a corrected invoice for payment.

E-06: Shipment Number Missing/Incorrect The contractor must annotate the invoice with a correct

shipment number. The invoice may then be resubmitted for payment.

E-01: DFAS Not the Paying Office The contractor should resubmit their invoice to the

appropriate pay office, as stated in their contract.


Returned / Recycled Invoices

Returned/ Recycled - Contract Pay

0

20,000

40,000

60,000

80,000

100,000

120,000

Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Invoices Processed: CED Returned/ Recycled # CED Returned/ Recycled %

Returned/ Recycled Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03

CED Returned/ Recycled % 12.29% 11.75% 11.88% 10.96% 11.65% 12.19% 12.26% 12.65% 11.58% 12.40% 11.50% 11.61% 10.73%

CED Returned/ Recycled # 10,226 10,788 10,997 7,481 10,704 10,782 11,205 11,092 8,800 12,392 11,327 11,581 10,042Invoices Processed: 83,234 91,838 92,531 68,259 91,912 88,416 91,372 87,712 76,007 99,904 98,473 99,747 93,570

Paid Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03

CED 73,008 81,050 81,534 60,778 81,208 77,634 80,167 76,620 67,207 87,512 87,146 88,166 83,528

Returned/ Recycled - Contract Pay

0

20,000

40,000

60,000

80,000

100,000

120,000

Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Invoices Processed: CED Returned/ Recycled # CED Returned/ Recycled %


Get Well Plan

Partnering with DCMA (E12A) Quarterly Scorecard to Commanders Coordination of “A” List Reports Ensuring Contact with CMO is Made Prior to

Return Encourage WAWF

Feedback to Contractors (E11, E01, E06) Identify Problem Areas Discuss Recurring Problems


Get Well Plan (Continued)

Look In Our Own Backyard (E16)

Identify Root Causes, True Error vs. “Requests”

Ensure Accountability

Provide Training

Track Progress

Encourage EDI

DFASYour Financial Partner @ Work

returned invoices

Documents

shipped toitemno

shipped fromif

planyour financial partner

acceptance point3

discount terms9

instrument iden

prime contractor11

unitunit priceamount13