1. Analyze Spending Chain Procedures (Misc. Pay-PPA)
U.S. ARMY SOLDIER SUPPORT INSTITUTE
NONCOMMISSIONED OFFICER ACADEMY 1

2. Terminal Learning Objective
Action: Analyze Spending Chain Procedures (Misc. Pay-PPA)
Conditions: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With a minimum of 80% accuracy, learners must demonstrate proficiency with:
Create miscellaneous pay purchase requisition (ME51N)
Create miscellaneous pay purchase order (ME21N).
Create a service entry sheet (ML81N).
Create and post a vendor invoice (MIRO). 
Identify unobligated purchase requisitions in GFEBS (ME5A).
Prepare to block a vendor invoice (FB02).
Prepare to unblock a vendor invoice (FB02). 2

3. Miscellaneous Pay Subject to the Prompt Payment Act (PPA)
Guidance for implementing the PPA is found in 5 CFR 1315, the Federal Acquisition Regulation (FAR) Part 32.9 and the Defense Federal Acquisition Regulation Supplement (DFARS) Part For definitions that apply in the implementation of the PPA, see 5 CFR and FAR 3

4. Subject to PPA Battle-Flow
Create Service Entry Sheet
Create Obligation Purchase Order
Create Commitment Purchase Requisition
Battle-Flow
ME51N
ME21N
ML81N
Create Invoice Receipt
MIRO
The PPA requires DoD Components to pay their bills on time, pay interest penalties when payments are late, and take discounts only when payments are made by the discount date and the discount is economically justified. 4

5. Miscellaneous Pay What is it?
Miscellaneous payment is defined as a valid obligation of the Army containing one or more of the following attributes:
- Payments for non-recurring, non-contractual purchases
Ex. Payments for morale, welfare, and recreation functions when use of the Government Purchase Card (GPC) is not feasible
- Payment per special authoritative arrangements other than formal contracting agreement
Ex. Military services directives that are based on acts and executive orders
- Payments and funding made by other federal agencies under special authority that necessitates special billing/reimbursement conditions
Ex. Fees paid by the Department of Justice (DOJ) or per instruction from the DOJ
Legal Fees 5

6. Miscellaneous Pay PPA Examples
Code 1 (MCAV) – Military Clothing, Vendor
Code 2 (BANV) – Government Card Services
Code 3 (CHCV) – Child Care – (Non-Contractual)
Code 4 (CONV) – Contingency Funds for Entertaining Dignitaries
Code 5 (FIMV) – Funeral Internment, Mortuary Expenses
Code 6 (MWRV) – MWR and Entertainment Expenses
Code 7 (OREV) Official Representation Funds (entertainment)
Code 8 (PSBV) – Purchase and transportation of special items (blood) 6

7. Miscellaneous Pay PPA (Reports)
You can run reports using various criteria to analyze PRs. Transactions used to run reports for PR analysis include:
• General List Display of Purchase Requisitions (ME5A)
• PR List Display by Account Assignment (ME5K)
• PR List Display by Project/Work Breakdown Structure (ME5J) 7

8. Miscellaneous Pay PPA Rhythm8

9. Hands on Exercise Misc. Pay PPA Exercise Scenarios 1-11 Hand Out
Step 1
ME51N – Create Miscellaneous Pay Purchase Requisition- Subject to PPA 9

10. LSA #1 Check on Learning
Q1. What are the three main areas used to process a PR?
A1.
A2.
A3. 10

11. LSA #1 Summary 11

12. Purchase Order Overview (Obligation)
The Purchase Order Processor manually creates purchase orders/funds
commitments document directly into GFEBS as required. Purchase Order is a legal document “contract” issued by the buyer to the supplier, indicating specifications, quantities, prices and agreed terms and conditions.
A purchase order can be created under two circumstances.
When referencing a purchase requisition
When processing a funds commitment document without a purchase requisition. 12

13. Miscellaneous Pay PPA Rhythm13

14. Purchase Order Overview (Obligation)
A contract buy involves a formal agreement between the buyer and the vendor. A obligation is not recorded in GFEBS until the contract has been awarded. The PO represents the financial obligation of a contract.
Create Purchase Order (ME21N)
Change Purchase Order (ME22N)
Display Purchase Order (ME23N) 14

15. Purchase Order Overview
Contract
A legally-binding agreement between a buyer and a vendor over a specified length of time for the purchase of goods or services for a specified quantity or price. A contracting office must administer the contract to establish an agreement with the awarded vendor.
Contract Line Item Number (CLIN)
A unique, four-digit number that identifies a specific contract line item on a contract. Contracts identify the items or services to be acquired as separate contract line items.
Funds Commitment Document
A way to record an obligation in GFEBS, other than a purchase order (PO). It is used to commit and obligation in one step, for business processes in which a purchase requisition (PR) or PO is unnecessary (i.e., for obligations who payments are not subject to the Prompt Payment Act (PPA)).
Military Interdepartmental Purchase Requisitions (MIPRs)
MIPRs are agreements between two federal entities for the requisition of goods or services and are most often used to establish service orders between a requestor and a performer. 15

16. Purchase Order Overview (Checks/Balances)
Before saving the PO, GFEBS compares the quantity ordered and total amount obligated on the PR to the comparable values on the contract award.
If the obligation amount on the contract award is less than or equal to the commitment amount on the PR, GFEBS saves the PO.
For Purchase Orders created via interface from a contracting tool such as SPS, GFEBS compares the quantity, unit of measure and amount of the PR and Award Match prior to posting the PO and will post anything that is less than or equal to the amount on the PR.
When errors occur between interfaces POs may need to be manually posted by the Purchase Order Processor. Like the PR the different PO types require different mandatory fields. Once the PO is created receipt of goods and invoice can successfully post in GFEBS. 16

17. Hands on Exercise Misc. Pay PPA Exercise Scenarios 1-11 Hand Out
Step 2
ME21N – Create Miscellaneous Pay Purchase Order- Subject to PPA 17

18. LSA #2 Check on Learning
Q1. What is a unique, four-digit number that identifies a specific contract line item on a contract.
A1. 18

19. LSA #2 Summary 19

20. Create a Service Entry Sheet ML81N
Service Entry Sheets (SES) are processed in GFEBS in lieu of a Goods Receipt (MIGO) transaction to record the receipt of “Services Performed”. This transactions can only be processed against a “Service Type” contract in GFEBS.
“Service Contract” means a contract that directly engages the time and effort of a contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply. A service contract may be either a non-personal or personal contract. It can also cover services performed by either professional or nonprofessional personnel whether on an individual or organizational basis.
Examples may include: Maintenance, Repairs, Salvage, Housekeeping, Advisory/Assistance services, Communication services, Transportation, etc. 20

21. Create a Service Entry Sheet ML81N (Cont.)
Service type Contracts are identifiable in GFEBS by a series of special codes utilized during the creation of the Purchase Order (PO), See bullet #2 below. Only PO’s with the below data will be capable of accepting the recording of Receipt/Acceptance of services through Service Entry Sheet processing.
Service Entry Sheets receive based on value. A Goods Receipt receives based on Quantity for the exact unit price on the PO.
To set up a line item to receive based on VALUE (SES), the Item Category needs to reflect ‘D’ for services, with a quantity of ‘1’, and a Unit of Measure reflecting ‘AU’ (Activity Unit). 21

22. 2 Roles Involved in the Goods Receipt Process
Goods Receipt Processor is responsible for receiving goods and/or services and managing any exceptions that may arise; receipt, inspection, and acceptance may or may not be performed prior to invoice receipt from the vendor. For goods receipts and acceptances, the Goods Receipt Processor manually enters the goods receipt and acceptance in GFEBS.
Key Activities:
Create, change, and cancel Goods Receipt document within GFEBS. The Material Inspection and Receiving Report (DD 250)
Goods Receipt Interface Processing Monitor is responsible for the interfacing from external goods receipt systems. This duty is also involved in the identification and resolution of any errors that may occur between GFEBS and the WAWF interface.
Manages the WAWF as well as other interfaces. 22

23. Goods / Services Receipt Processing in GFEBS
The purpose of a goods receipt is to record the delivery of goods and/or services
purchased by the Army, it is based on a purchase order.
Goods Receipt and Acceptance processes in GFEBS involves two primary activities
Recording Goods Receipt and Acceptance (t-code = MIGO)
Recording Services (t-code = ML81N)
Goods Receipts are entered into GFEBS two ways:
Manually – GR acceptance is used primarily for miscellaneous payment processing. It will be used for payments subject to PPA by the Goods Receipt Processor.
Automatically via interface with Wide Area Workflow (WAWF) for contract buys. WAWF is a web application that allow vendors to submit invoices electronically. The recording of the receipt and acceptance may occur simultaneously or separately. 23

24. Service Examples • Maintenance • Repairs • Salvage • Housekeeping
• Advisory/Assistance Services
• Communications Services
• Transportation (Charter Bus) 24

25. Miscellaneous Pay PPA Rhythm25

26. Hands on Exercise
Misc. Pay PPA Exercise Scenarios 1-11 Hand Out Step 3 ML81N – Create a Service Entry Sheet 26

27. LSA #3 Check on Learning
Q1. What role manages the WAWF as well as other interfaces?
A1.
Q2. T/F: A ‘Service Entry Sheets’ is based on Quantity for the exact unit price on the Purchase Order.
A2. 27

28. LSA #3 Summary 28

29. Create and Post a Vendor Invoice (MIRO)
PPA 29

30. Role: Invoice Processor (IP)
Invoice Processor (IP) - Processes only invoices and invoice transactions which are associated with Misc. Payments. This role is responsible for the following:
Change Status of PR
Process Vendor Master Data (View Vendor Master)
Carry out Goods Receipt
Post Open Invoices (enter incoming invoices, manage blocked invoices)
Create/change PR/PO (Display Access)
Payment Program (Display access) View withholding tax report 30

31. Enter Invoice User Procedure (MIRO)
The MIRO (Enter Invoice) transaction code is used for the following:
Create a Misc. Pay invoice that references a PO and GR to complete the
procurement process.
The Processor can post the invoice with reference to the Purchasing
and/or material documents (PO/GR) in GFEBS for a specific vendor.
The triggers for the MIRO is to perform this procedure when you need to
manually enter a contractual invoice or a Misc. Pay subject to PPA invoice.
The Prerequisites for the MIRO is the original invoice document and the
purchase order(s) and goods receipt(s) must exist in the system. 31

32. Miscellaneous Pay PPA Rhythm32

33. Hands on Exercise
Misc. Pay PPA Exercise Scenarios 1-11 Hand Out Step 4 MIRO – Create and Post a Vendor Invoice 33

34. LSA #4 Check on Learning
Q1. T/F: The “Invoice Receipt Date” reflects when the invoice was received and stamped in the billing office.
A1.
Q2. What must exist in GFEBS in order for the invoice to be created and posted? (hint…3-way match)
A2. 34

35. LSA #4 Summary 35

36. Miscellaneous Pay PPA Rhythm
Misc. Pay
Complete
PPA 36

37. Display list of Unobligated Purchase Requisitions – Open Commitments (ME5A)
Task- Display list of Purchase Requisitions User Procedure (ME5A)
Use this procedure to display a list of purchase requisitions. You can run this report by purchase requisition number, material number, delivery date, document type, and many other selection criteria.
This task will be performed when you need to display a list of purchase requisitions. Once you have displayed a list of purchase requisitions, you can drill into the detailed information of an individual purchase requisition from within the report.
In order for this transaction to work, Purchase requisitions must exist in GFEBS. 37

38. ME5A - Display list of PR’s
If the PR number is already known, input it in the space provided. For
Multiple PR’s, utilize the “to” field e.g to
To use further defining search criterion, click the dropdown and search by; Category, Sub-number, etc..
ME5A
The search for Purchase Requisitions can be further refined by utilizing the fields provided. Keep in mind, that the less information provided will most likely result in the query taking longer.
On the other hand, the more information given, the quicker the report. 38

39. ME5A - Display list of PR’s (Cont.)
Scope of list: (defaults to “A”) a total of 14 “layout preferences” (or variants) in the training database. ALV is the desired layout in most shops.
Add “JCK1” (Ft Jackson) as the PR’s installation. This could also represent a Forward Operating Base (FOB) in a deployed environment.
Click the “Execute” button to run your specified query of open Purchase Requisitions
ALV
JCK1
Processing Status: The status of the PR (ME51N). Click in the white box to reveal a dropdown. We will select an Open Commitment “N” N 39

40. ME5A- Display list of PR’s (Cont.)
Status reads: N (not edited). Possibly waiting for additional information, funding, or upcoming changes.
A (Account Assignment) informs the user that there is a Cost Center assigned to the PR.
Depending on the minimal amount of information input, this report can yield hundreds of open obligations. 40

41. ME5A- Display list of PR’s (Cont.)
Quantity of Item
Vendor ID
Item Description
Installation ordered from
Purchase Org “Army” 41

42. ME5A- Display list of PR’s (Specific)
Input the known Purchase Requisition number in the search field.
Scope: Enter “ALV” for preferred layout
ALV
JCK1
Use “JCK1” for the ordering installation
Enter “N” for a non-edited PR N
Click “Execute” to run the report. 42

43. ME5A- Display list of PR’s (Cont.)
Ensure that the correct Purchase Requisition is displayed.
The Processor can view the entire Line Item by scrolling the slide-bar to the right
The processor can view the entire PR by simply selecting the desired tabs below
For a more detailed look at the PR, the processor can “Drill-Down”. Double click the 10 line.
Click “Item Overview (IO)” button to view the following:
Verify the entire “IO” Line for accuracy 43

44. ME5A- Display list of PR’s (Cont.)
Click the Display/Change tab on the menu bar to make corrections.
Under the “Item Overview” button, the processor is told to verify the “Delivery Address” for Procured items.
The processor notices that the address is minimal at best, and needs to further define it
Notice: All fields changed into “Edit-Mode” for necessary corrections.
Upon completion of editing, click the “Save” button on the menu bar. 44

45. Hands on Exercise
Misc. Pay PPA Exercise Scenarios 1-11 Hand Out Step 5 ME5A – View Unobligated PR’s 45

46. LSA #5 Check on Learning
Q1. What t-code is utilized to View open Purchase Requisitions?
ME2A
ME51N
ME21N
d. ME5A
A1.
Q2. T/F: Changes cannot be made while executing a PR search in GFEBS.
A2.
Q3. The less information given in the “search criterion” will result in the report taking a _____ time to generate.
A3. 46

47. LSA #5 Summary 47

48. Block a Vendor Invoice (FB02)
An Invoice is Blocked (Changing an Invoice Document) in GFEBS for the purposes of precluding the system from retrieving the transaction from being part of a Payment Run. Blocked invoices must be monitored closely to ensure they do not incur interest when the contract is subject to the Prompt Payment Act (PPA) and to avoid unnecessary delays in the payment process for those that are not.
An Invoice may be manually blocked or GFEBS may block it automatically due to imbalances through established system variables. Once an Invoice is Blocked, it must be Released either automatically or manually. 48

49. Hands on Exercise
Misc. Pay PPA Exercise Scenarios 1-11 Hand Out Step 6 FB02 – Block a Vendor Invoice 49

50. Hands on Exercise Misc. Pay PPA Exercise Scenarios 1-11 Hand Out
Step 7
ME23N – View PO Status after Invoice Block 50

51. LSA #6 Check on Learning
Q1. What t-code is utilized to Block a vendor invoice?
MIGO
Xblock
Mblock
FB02
A1.
Q2. When the invoice is __________ to the PPA, attention to detail is needed IOT not incur penalties for late payments.
A2. 51

52. LSA #6 Summary 52

53. Hands on Exercise Misc. Pay PPA Exercise Scenarios 1-11 Hand Out
Step 8
FB02 – Unblock a Vendor Invoice 53

54. Hands on Exercise Misc. Pay PPA Exercise Scenarios 1-11 Hand Out
Step 9
MIR4 – Display Invoice after Unblock 54

55. Cancel/Reverse Invoice (MR8M)55

56. Cancel/Reverse Invoice (MR8M) (Cont.)
The MR8M is used to correct a contractual invoice or a Misc. Pay subject to PPA invoice that has already been posted in GFEBS or to cancel a Misc. Pay subject to PPA invoice that has been rejected via workflow. The Invoice Processor and the Site Invoice Processor both use the MR8M.
The invoice cannot be changed once it has been posted, GFEBS creates a new reversal document upon cancellation. 56

57. Cancel/Reverse Invoice (MR8M) (Cont.)
Use this procedure to cancel a purchase order related invoice. If an invoice is blocked as shown in a MRBR - Release Blocked Invoice report (used only to identify blocked Invoices), the invoice needs to be reversed, and a new invoice (MIRO) is entered with the correct quantity. If an invoice is cancelled, GFEBS automatically creates a credit memo.
Perform this procedure when an invoice related to a purchase order needs to be reversed.
A contractual (MIRO) invoice must exist in GFEBS. 57

58. Cancel/Reverse Invoice (MR8M) (Cont.)
The following procedures allow the user to reverse an erroneously processed Invoice. These procedures discussed here apply only to Invoices that have not been made part of a Payment Proposal or been paid by Disbursing. Two t-Codes are necessary in order to completely reverse an Invoice and ensure the Vendor Account is cleared:
MR8M (Cancel Invoice Document) - Reverses the original “MIRO” transaction
F-44 Clearing an Invoice 58

59. Hands on Exercise
Misc. Pay PPA Exercise Scenarios 1-11 Hand Out Step 10 MR8M – Cancel / Reverse Invoice 59

60. Clear Vendor: Header Data Finalize Invoice Reversal
Failure to execute an F-44 IMMEDIATELY after the MR8M will result in a Vendor and General Ledger account imbalance that will affect the ‘Payment Proposal’ procedure. 60

61. Hands on Exercise
Misc. Pay PPA Exercise Scenarios 1-11 Hand Out Step 11 F-44 – Clear Vendor Header Data 61

62. Miscellaneous Pay Non-PPA
Contract Types
Standard Procurement System (SPS) T-Codes
Miscellaneous Pay PPA
T-Codes
Miscellaneous Pay Non-PPA
T-Codes
ME51N
ME21N (Auto-Created)
MIGO
MIRO
ME51N – Create Purchase Requisition
ME21N – Create a Purchase Order
ML81N – Services Entry Sheet
MIRO- Create IR
ME5A – PR list Display
FB02 - Invoice/Block
ME23N – View Status
FB02- Unblock IR
MIR4 – View/Display
MR8M – Cancel/Reverse Invoice
F-44- Clear vendor Header
FMY1 – Pre-Commit Document
FMZ1 – Create Funds Commitment Document
FB60 – Enter Invoice
FB03 – View Invoice
FB02 – File Attach
FB02 – Invoice Block 62

63. LSA #7 Check on Learning
Q1. What t-code is utilized to Reverse an erroneous invoice?
A1.
Q2. T/F: Invoice research can be done through ME51N (PR History)
A2.
Q3. What t-code is utilized to Block a vendor invoice?
A3.
Q4. When the invoice is [subject / not subject] to the PPA, attention to detail is needed IOT not incur penalties for late payments.
A4. 63

64. Summary 64

65. TLO Summary
Action: Action: Analyze Spending Chain Procedures (Misc. Pay-PPA)
Conditions: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With a minimum of 80% accuracy, learners must demonstrate proficiency with:
Create miscellaneous pay purchase requisition (ME51N)
Create miscellaneous pay purchase order (ME21N).
Create a service entry sheet (ML81N).
Create and post a vendor invoice (MIRO). 
Identify unobligated purchase requisitions in GFEBS (ME5A).
Prepare to block a vendor invoice (FB02).
Prepare to unblock a vendor invoice (FB02). 74