1. Finance Process Review Committee Meeting
Intragovernmental Transaction (IGT)/G-Invoicing Initiative
15 February 2018

2. Intragovernmental Buy/Sell Transactions
Intragovernmental (IGT) buy/sell transactions represent the exchange of goods or services between two federal entities. This arrangement is typically accomplished through the issuance of a reimbursable agreement between the two entities.
These agreements can be created by the logistics, acquisition, OR FM community
Problem statement
Non-standard, manual, decentralized, global, multi-system environment
Unable to produce and reconcile a universe of buyer and seller transactions
Unable to track execution and status of orders
Unable to retrieve documentation supporting orders, receipt and payments
Unable to support manual adjustments (journal vouchers) to eliminate IGTs on the financial statements.
Intragovernmental (IGT) buy/sell transactions occur when two federal entities exchange goods or services.
Usually there is a reimbursable agreement outlining the terms and conditions of the exchange.
The main problem is that this process takes place in a non-standard, manual, decentralized, global, multi-system environment.
Federal entities are unable to produce and reconcile a universe of buyer and seller transactions; unable to track execution and status of orders; unable to retrieve documentation such as supporting orders, receipt and payments; and unable to support manual adjustments (journal vouchers) to eliminate IGTs on the financial statements.

3. Why is DoD Moving to G-Invoicing?
One of the Department’s financial statement material weaknesses is the inability to properly account for, reconcile, and eliminate intragovernmental transaction balances
Proper supporting documentation unavailable for audit
Buyer and seller transactions and accounting out-of-balance and not reconciled
Receipt and acceptance not generally being performed
Buyer and seller not in full agreement on terms and detail of transactions
Status of interagency agreements not clear, including remaining period of performance, available funding, unfilled orders, and paid orders
As part of the Department’s commitment to achieving an unmodified opinion on the audit of its full financial statement -- the largest consolidated financial statement audit ever undertaken – the OSD Comptroller’s office prioritized financial management improvement activities that require enterprise-wide changes to policies, procedures, regulations, and systems. Intragovernmental transactions is one of 15 enterprise financial management initiatives being spearheaded by the OSD Comptroller’s office.
The Department is working closely with U.S. Treasury to implement a standard E2E business process and data exchanges using the U.S. Treasury’s G-Invoicing system (formerly known as Invoice Processing Platform or IPP) and DoD’s Global Exchange Service or GEX.
G-Invoicing will help the Department resolve several issues including:
The inability to properly account for, reconcile, and eliminate intragovernmental transaction balances
Proper supporting documentation unavailable for audit
Buyer and seller transactions and accounting out-of-balance and not reconciled
Receipt and acceptance not generally being performed
Buyer and seller not in full agreement on terms and detail of transactions
Status of interagency agreements not clear, including remaining period of performance, available funding, unfilled orders, and paid orders

4. What Components Need to Do in the Next Six Months
For G-Invoicing
ECD: Overdue -Set up G-Invoicing access control groups and outline IGT buy/sell entitlement system (e.g., Army and Navy still outstanding)
ECD: March Roll users onto system for General Terms and Conditions (GT&C) capability deployment
ECD: March Begin negotiating all buy/sell GT&Cs in system
For Audit
Buyer/seller agreements are required prior to order execution (including all associated data standards)
Buyer’s purchase orders must be linked the seller’s sales order through order acceptance
Standard accounting data is required on both order and order acceptance
Invoice must be linked to the order
Receipt and acceptance must be recorded before payment
Next Step
Participate the Scheduled Bi-Monthly Action Officer-Level Working Group and Qtrly User Forum
In the immediate future (roughly the next six months), senior leadership from all Components must establish a strong “tone at the top” and dedicate the resources and funding necessary to complete the following tasks for G-Invoicing and for audit.
For G-Invoicing
ECD: Overdue -Set up G-Invoicing access control groups and outline IGT buy/sell entitlement system (e.g., Army and Navy still outstanding)
ECD: March Roll users onto system for General Terms and Conditions (GT&C) capability deployment
ECD: March Begin negotiating all buy/sell GT&Cs in system
For Audit
Buyer/seller agreements are required prior to order execution (including all associated data standards)
Buyer’s purchase orders must be linked the seller’s sales order through order acceptance
Standard accounting data is required on both order and order acceptance
Invoice must be linked to the order
Receipt and acceptance must be recorded before payment
Next Step
Scheduled Action Officer-Level User Forum with Components for November 30

5. G-Invoicing – Implementation Roadmap November - 2017
An exposure period for stakeholder feedback is provided prior to Interface Specifications being published.

6. Proposed Architecture