Analyze Spending Chain Procedures (Payment Process) U.S. ARMY SOLDIER SUPPORT INSTITUTE NONCOMMISSIONED OFFICER ACADEMY Show Slide #1: Analyze Spending Chain Procedures SECTION I. ADMINISTRATIVE DATA Academic Hours / Methods 2 hrs / 10 min Large group Instruction / 40 min Practical Exercise (Hands On) / 0 min Test / 0 min Test Review 2 hrs / 50 min Total Hours SECTION II. INTRODUCTION: Today we are Payment Process in GFEBS Method of Instruction. Conference / Discussion Instructor to Student Ratio: 1:24 Time of Instruction 2 hrs 50 mins Media: Large Group Instruction Motivator: In today’s Army, we define ourselves as being the best trained, equipped and the best led Army that the United States has ever known. So to keep this image we as Financial Leaders and Managers have to become the best at financially supporting our Soldiers and being stewards of taxpayer dollars. Knowing this we have embraced Standard Financial Information System (SFIS) and the General Fund Enterprise Business System (GFEBS) in that it provides our Army decision makers with accurate, reliable, timely business and financial information to keep our War Fighters within their fiscal responsibilities.   Student Materials: DFAS-IN Regulation 37-1, Finance and Accounting Policy Implementation DFAS-IN Manual 37-100, The Army Management Structure DODFMR 7000.14-R, Vol 10, Department of Defense Financial Management Regulation 1

Terminal Learning Objective Action: Identify the Payment Process in GFEBS Conditions: Given access to financial management documents and DFAS-IN Regulation 37-1, and DFAS-IN Manual 37-100. Standards: Successfully perform the Payment Process in GFEBS with 80% accuracy. Show Slide #2: Terminal Learning Objective Facilitator’s Note: COVER the TLO with students Action: Identify the Payment Process in GFEBS Conditions: Given access to financial management documents and DFAS-IN Regulation 37-1, and DFAS-IN Manual 37-100-FY Standards: Successfully perform the Payment Process in GFEBS with 80% accuracy. SAFETY REQUIREMENTS: In a training environment, leaders must perform a risk assessment in accordance with FM 5-19, Composite Risk Management. Leaders will complete a DA Form 7566 COMPOSITE RISK MANAGEMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations, (METT-TC). Note: During MOPP training, leaders must ensure personnel are monitored for potential heat injury. Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the MOPP work/rest cycles and water replacement guidelines IAW FM 3-11.4, NBC Protection, FM 3-11.5, CBRN Decontamination. RISK ASSESSMENT LEVEL: Low ENVIRONMENTAL STATEMENT: Environmental protection is not just the law but the right thing to do. It is a continual process and starts with deliberate planning. Always be alert to ways to protect our environment during training and missions. In doing so, you will contribute to the sustainment of our training resources while protecting people and the environment from harmful effects. Refer to FM 3-34.5 Environmental Considerations and GTA 05-08-002 ENVIRONMENTAL-RELATED RISK ASSESSMENT. EVALUATION. You will be given an exam which will include Review Detailed Expenditure Accounting Documents. A passing score on this examination is 80% and for International Students (70%). INSTRUCTIONAL LEAD IN - Before we can understand how to make disbursements, we must briefly discuss how payment are processed in the system. 2

Introduction The Payment Processing lesson will cover payment proposals and payment runs as they pertain to the Spending Chain Process. Show Slide #3: Introduction to Payment Process Facilitator’s Note: The Payment Processing lesson will cover payment proposals and payment runs as they pertain to the Spending Chain and Reimbursable Processes.

Payment Program Process Flow Good Receipt Payment Interface Processing Monitor Monitors the interface from Wide Area Workflow (WAWF) Invoice Invoice Interface Processing Monitor Monitors the interface for invoices from Wide Area Workflow (WAWF) Create Payment Proposal Payment Processor F110 Enters payment parameters Schedules Payment Proposal Create Payment Run Payment Certifier Review and Certify Payments Schedule Payment Run ADS Show Slide #4: Payment Program Process Flow Facilitator’s Note: The following diagram highlights the key activities in the payment program process. Goods Receipt Processor and Invoice Receipt Processor will manually enter receipts and invoices in GFEBS if WAWF is not available. Payment Interface Processing Monitor – Responsible for monitoring the interface from the Wide Area Work Flow. Invoice Interface Processing Monitor - Responsible for monitoring the interface for invoices from the Wide Area Work Flow Payment Processor – Responsible for collecting all necessary payment information and preparing all payments to be processed by the Payment Certifier. Payment Certifier - Responsible for verifying, accepting or rejecting the payment proposal prepared by the Payment Processor, as necessary.

Payment Program Process Flow Good Receipt Payment Interface Processing Monitor Monitors the interface from Wide Area Workflow (WAWF) Invoice Invoice Interface Processing Monitor Monitors the interface for invoices from Wide Area Workflow (WAWF) Create Payment Proposal Payment Processor F110 Enters payment parameters Schedules Payment Proposal Create Payment Run Payment Certifier Review and Certify Payments Schedule Payment Run ADS Show Slide #5: Payment Program Process Flow Facilitator’s Note: The following diagram highlights the key activities in creating a payment proposal. Payment Processor – Responsible for collecting all necessary payment information and preparing all payments to be processed by the Payment Certifier.

Payment Proposal Run transaction F110 to select parameters Create separate payment files for EFT and check payments Payment Processor proposal certification options: Delete Proposal Display Proposal Display Proposal Log Show Slide #6: Payment Proposal Facilitator’s Note: The Payment Processor uses the Payment Program (F110) transaction to select parameters for payment, which then creates the Payment Proposal.   The Payment Proposal distinguishes between the various types of payments to be made. The Payment Proposal displays the open items whose payments are proposed based on the payment parameters selected in the Payment Program. Payment parameters include but are not limited to Payment Due Date, Vendor, and Payment Method (check or EFT). The creation of the Payment Proposal is the first part of a two-part process that involves the same transaction with two different roles. The Payment Processor first sets the different parameters for payment. Once the selection criteria have been set and parameters are saved, he or she will schedule the Payment Proposal. For EFT payments only, the Payment Processor must verify EFT information for vendors. This is discussed in further detail in the “CEFT Validation” lecture in this topic. Later in the process, an authorized official (e.g. Payment Certifier) certifies the Payment Proposal. Payment Processor proposal certification options: Delete Proposal, Display Proposal, and Display Proposal Log. The Payment Processor then creates a separate payment file for EFT payments and check payments. The method of a vendor's payment is determined by the information established in the vendor master record.

Payment Program Process Flow Legend GFEBS Operation Good Receipt Payment Interface Processing Monitor Monitors the interface from Wide Area Workflow (WAWF) Invoice Invoice Interface Processing Monitor Monitors the interface for invoices from Wide Area Workflow (WAWF) Create Payment Proposal Payment Processor F110 Enters payment parameters Schedules Payment Proposal Create Payment Run Payment Certifier Review and Certify Payments Schedule Payment Run ADS Non-GFEBS Operation Show Slide #7: Payment Program Process Flow Facilitator’s Note: The following diagram highlights the key activities in the payment run process. Payment Certifier - Responsible for verifying, accepting or rejecting the payment proposal prepared by the Payment Processor, as necessary.

Payment Certification Payment Certifier Validation Process: Verify Proposal Separate Payment Run IDs are created for EFTs and checks Accept Process unblocked Invoices Reject Block invoices for payment Show Slide #8: Payment Certification Facilitator’s Note: Payment Certification and Payment Run are the last part(s) of this two part process that falls under the Payment Certifier’s responsibility.   Once the Payment Proposal is created, it’s subject to certification. The Payment Certifier performs the certification process directly in the Payment Program via the F110 transaction code by selecting the Payment Run ID (a combination of the Payment Run date and payment identifier) and reviewing the data created in the Payment Proposal. Payment Certifier verify the Proposal, they ensure separate Payment Run IDs are created for EFTs and checks. He/she accepts and process unblocked Invoices, and rejects blocked invoices from payment.

Check on Learning What transaction code does the Payment Certifier use to perform the Payment Certification? A. T/F: The Payment Processor creates separate Payment Run IDs for EFTs and checks? F110 Show Slide #9: Conduct Check on Learning Facilitator’s Note: Answers: What transaction code does the Payment Certifier use to perform the Payment Certification? A. F110 Q. T/F: The Payment Processor creates separate Payment Run IDs for EFTs and checks? A. True True

Summary: Payment Proposal Show Slide #10: Summary Facilitator's Note: On the first part of the lesson, we identified the roles, key terms and some concepts of Spending Chain “Or” Facilitator, have each group as a group write down one major main lesson learnt from this LSA, allow a few minutes for them to interact. Once all groups have their one major learnt lesson written, pass it to another group to compare their answer. Facilitate a discussion on each major learnt lesson mentioned by each group. 11

Payment Run Payment Certifier Payment Run Process: Certify Payment Complete Payment Run Record Disbursements in Transit (DIT) Manually upload Ready-to-Pay file into DS Liquidate DIT upon receipt of payment confirmation from ADS or DDS on the Post-Pay file View Final Log Show Slide #11: Payment Run Facilitator’s Note: After all payments have been certified, the Payment Certifier completes the Payment Run, which creates the payment transaction file (Ready-to-Pay file).   Disbursements In Transit (DITs) are recorded in GFEBS when the Payment Proposal is certified and the Ready-to-Pay file is sent to Disbursing System. The DIT is liquidated upon receipt of payment confirmation from ADS or DDS on the Post-Pay file. The Payment Certifier can view the final log that pertains to the completed Payment Run.

Payment Run (Cont.) Un-cashed Checks/EFT Rejections: Monitor payments between GFEBS, ADS, ITS, and DCAS EFT rejection notifications received Payment Certifier notifies Invoice Processor Invoice Processor clears the unmatched collections Show Slide #12: Payment Run (cont.) Facilitator’s Note: The Payment Certifier monitors the payments between GFEBS, ADS, ITS, and DCAS. He or she is notified of EFT rejections by monitoring unmatched collections (received from ADS) related to EFT rejects.   The Payment Certifier will notify the Invoice Processor who clears the unmatched collections using the Reset Cleared Items (FBRA) transaction code to reverse the payment postings within GFEBS. When notified by ADS of a payment cancellation (i.e. a check cancellation or EFT rejection), the Invoice Processor resets the cleared items to reverse the payment postings within GFEBS. In addition to reversing payment documents created earlier, this transaction (FBRA) reopens the invoice so that a payment with corrected remittance information can be made. NOTE: FBRA does not automatically block the invoice. Therefore, if the remittance information has not been corrected, another undeliverable payment transaction may result.

Check on Learning After all payments are certified, which role is responsible for completing the Payment Run? A. T/F: Invoices not blocked are further processed during the Payment Proposal? Which role can view the final log that pertains to the completed Payment Run? Payment Certifier False Show Slide #13: Conduct Check on Learning Facilitator’s Note: Answers: After all payments are certified, which role is responsible for completing the Payment Run? A. Payment Certifier T/F: Invoices not blocked are further processed during the Payment Proposal? A. False Q. Which role can view the final log that pertains to the completed Payment Run? A. Payment certifier Payment Certifier

Payment Reports Payment Report Roles: Payment Processor Payment Certifier Payment Interface Processing Monitor Payment Report: Vendor Line Item Display (FBL1N): Displays the account of a particular vendor(s) Show Slide #14: Payment Reports Facilitator’s Note: The Payment Certifier monitors the payments between GFEBS, ADS, ITS, and DCAS. He or she is notified of EFT rejections by monitoring unmatched collections (received from ADS) related to EFT rejects.   The Payment Certifier will notify the Invoice Processor who clears the unmatched collections using the Reset Cleared Items (FBRA) transaction code to reverse the payment postings within GFEBS. When notified by ADS of a payment cancellation (i.e. a check cancellation or EFT rejection), the Invoice Processor resets the cleared items to reverse the payment postings within GFEBS. In addition to reversing payment documents created earlier, this transaction (FBRA) reopens the invoice so that a payment with corrected remittance information can be made. Facilitator’s Note: FBRA does not automatically block the invoice. Therefore, if the remittance information has not been corrected, another undeliverable payment transaction may result. Facilitator’s Note: Payment reports will be covered in more detail during the Comprehensive Reporting block of instructions.

Payment Reports (Cont.) Export Report to Local File The Payment Processor, Payment Certifier and/or the Payment Interface Processing Monitor can export a report to a local file (spreadsheet or in HTML format) Once the report is displayed, go to Menu  List  Export  Local File, select the appropriate format and save the file. Show Slide #15: Payment Reports (cont.) Facilitator’s Note: If there’s a need to save a report to your computer for later use, the Payment Processor, Payment Certifier, and/or the Payment Interface Processing Monitor can export a report to a local file, such as in a spreadsheet or in an HTML format. The preferred method is to use the HTML format for best results. Once the report is displayed go to Menu  List  Export  Local File, select the appropriate format of choice, and save the file on your computer where desired.

Check on Learning Which role(s) have access to view payment reports within GFEBS? A. Which transaction code is used to display the Vendor Line Item report? What is the path to export a report? Invoice Interface Processing Monitor, Payment Certifier, Payment Interface Processing Monitor, Payment Processor Show Slide #16: Conduct Check on Learning Facilitator’s Note: Answer: Q. Which role(s) have access to view payment reports within GFEBS? Invoice Interface Processing Monitor, Payment Certifier, Payment Interface Processing Monitor, Payment Processor Q. Which transaction code is used to display the Vendor Line Item report? FBL1N Q. What is the path to export a report? Menu → List → Export → Local File FBL1N Menu → List → Export → Local File

Summary: Payment Run 17 Show Slide #17: Summary Facilitator's Note: On the first part of the lesson, we identified the roles, key terms and some concepts of Spending Chain “Or” Facilitator, have each group as a group write down one major main lesson learnt from this LSA, allow a few minutes for them to interact. Once all groups have their one major learnt lesson written, pass it to another group to compare their answer. Facilitate a discussion on each major learnt lesson mentioned by each group. 17

Payment Proposal Show Slide #18: Payment Proposal Facilitator’s Note: As stated earlier in the lesson, the Payment Processor is responsible for collecting all necessary payment information and preparing all payments to be processed by the Payment Certifier. The Payment Processor uses the Payment Program (F110) transaction to select parameters for payment, which then creates the Payment Proposal.

F110 - Automatic Payment Transactions: Status Simulation The instructor demonstrates this activity while you follow along Hands on Exercise The instructor will lead you step by step through the activity using the training materials provided Show Slide #19: F110 - Automatic Payment Transactions: Status Facilitator’s Note: Simulation The instructor demonstrates this activity while you follow along Hands on Exercise; The instructor will lead you step by step through the activity using the training materials provided

Check on Learning What does the Payment Proposal display? A. The open items whose payments are proposed based on the payment parameters selected in the Payment Program. Show Slide #20: Conduct a Check on Learning Facilitator’s Note: Answers: Q. What does the Payment Proposal display? A. The Payment Proposal displays the open items whose payments are proposed based on the payment parameters selected in the Payment Program.

Payment Run Show Slide #21: Payment Run Facilitator’s Note: As stated in the previous lesson, the Payment Certification and Payment Run are the last part(s) of this two part process that falls under the Payment Certifier’s responsibility.   Once the Payment Proposal is created, it’s subject to certification. The Payment Certifier performs the certification process directly in the Payment Program via the F110 transaction code by selecting the Payment Run ID (a combination of the Payment Run date and payment identifier) and reviewing the data created in the Payment Proposal.

F110 - Automatic Payment Transactions: Status Simulation The instructor demonstrates this activity while you follow along Hands on Exercise The instructor will lead you step by step through the activity using the training materials provided Show Slide #22: F110 - Automatic Payment Transactions: Status Facilitator’s Note: Start PE Simulation The instructor demonstrates this activity while you follow along Hands on Exercise The instructor will lead you step by step through the activity using the training materials provided

Check on Learning T/F: The payment Certifier has the option to “Block” individual invoices from payments? A. True Show Slide #21: Conduct Check on Learning Facilitator’s Note: Answers: Q. True or False – The payment Certifier has the option to “Block” individual invoices from payments? A. True

Summary: Questions? 17 Show Slide #24: Questions Slide Facilitator’s Note: Ask students if they have any questions and restate TLO. Action: Identify the Payment Process in GFEBS Conditions: Given access to financial management documents and DFAS-IN Regulation 37-1, and DFAS-IN Manual 37-100-FY Standards: Successfully perform the Payment Process in GFEBS with 80% accuracy. 17

TLO Summary Action: Identify the Payment Process in GFEBS Given access to financial management documents and DFAS-IN Regulation 37-1, and DFAS-IN Manual 37-100. Successfully perform the Payment Process in GFEBS with 80% accuracy. Conditions: Standards: Show Slide #25: Restate TLO Action: Identify the Payment Process in GFEBS Conditions: Given access to financial management documents and DFAS-IN Regulation 37-1, and DFAS-IN Manual 37-100-FY Standards: Successfully perform the Payment Process in GFEBS with 80% accuracy. 2