1. DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Proposed DLMS Changes (PDCs) For Finance Process Review Committee Bob Hammond Chair, Finance Process Review Committee HQFinance@dla.milHQFinance@dla.mil 703-767-2117 June 11, 2015

2. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 2 Background: -SLOA established Sub Allocation as a new data element to replace Limit/Subhead; added to DLMS transactions -Limit/Subhead on the Fund Code Table retained pending determining if values consistent with Sub Allocation -There is a limit of 1296 possible fund code combinations for each service code to be considered -Sub Allocation has not been mapped to Limit/Subhead on the Fund Code Table or in Fund Code reports Issue: -None remaining. Confirmed at March 4 th Finance PRC that Limit/Subhead can be subsumed into Sub-Allocation PDC 1043D

3. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 3 Resolution/Status: -PDC staffed May 28 th o Sub-Allocation subsumes Limit/Subhead data o Web Fund Code application and reports replace Limit/Subhead with Sub-Allocation o File layout for Fund Code to Fund Account Conversion Table retains legacy name; states that Limit/Subhead is now Sub- Allocation o Includes additional change to DLA’s default line of accounting sub-allocation to 97X4930.5CBX *** One more SFIS/SLOA data element can be exchanged referentially via fund code *** PDC 1043D

4. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 4 Background: -SLOA Fund Code Edit o ADC 1043 prescribes DAAS edits to reject transactions where SLOA data does not match Fund Code o Edit cannot be performed if Fund Code is invalid or missing (when required) o Currently the only DAAS Fund Code edit is for Signal Code C/L, since DAAS is unable to route the transaction via Fund Code to Billed DoDAAC Table o Signal Codes A/B/J/K not edited at the enterprise level -ADC 294 removed suspense accounts, but F3885 narrative was retained in MILSBILLS, as Navy was granted a waiver. PDC 1043E

5. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 5 Issues: -Invalid or missing fund codes may lead the billing office to cite the Component’s default line of accounting prescribed in MILSBILLS, Appendix 2.2 -Labor intensive, costly effort needed to resolve; may require billed office internal adjustments and potentially adjustments to Treasury -Post-Post transactions are problematic for validation PDC 1043E

6. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 6 Issues Continued: -Cross-component Interfund billing via Signal Code C/L to be considered, e.g. Navy BRAC (Fund Code: J5) Navy support to Army (Fund Code 7M) -Use of F series DICs for non-Interfund billing vice G series DICs precludes automated non-interfund billing o Automated billing is efficient, supports audit and provides evidentiary repository (see MILSBILLS C2.2.7.3.) PDC 1043E

7. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 7 Resolution/Status: -PDC nearing staffing: o Validates fund codes at order entry points and DAAS for all signal codes o Applicable to most ADC 1043 DLMS transactions with a financial implication; excludes post-post supply transactions o Includes additional change to remove references to suspense account F3885 procedures for Navy waiver PDC 1043E

8. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 8 Background: -When orders are not originated in a Component’s ordering system, obligations cannot be recorded at the line item level to support compliant Interfund detail bills o Exceptions are: o Funds verification process developed for EMALL; o Point to point user defined files (UDF) for DLA fuels and Kyloc -DLMSO/DLA/SOCOM/Trans Svcs working on new DLMS X12 821 Obligation transaction via DAAS to fill void -821 is used in other processes (DTS, credit card), but not DLMS Obligation IC

9. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 9 Issues: -Obligation is needed to clear automated Interfund bill; combining detail bills is not authorized -Audit requires three way match: order, receipt and bill o`receipt may also be problematic, except for post-post Obligation IC

10. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 10 Resolution/Status (Proposed): -Develop a DLMS compliant standard obligation transaction using ANSI X12 Transaction Set 821, Financial Information Reporting o DAAS translate from DLMS to UDF until 821 fully implemented -Staff PDC -Funds verification process is the preferred approach, where it can be implemented Obligations IC