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 Defense Logistics Management Standards Office (DLMSO) DLMS 821 Obligation Transaction [Under Development] Bob Hammond Chair, Finance Process Review Committee HQFinance@dla.milHQFinance@dla.mil 703-767-2117

2. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 2 Background: -Obligation is needed to clear automated Interfund bill at the line item level; combining detail bills is not authorized -Audit requires three way match: order, receipt and bill -DLMSO & Components working on new DLMS X12 821 Obligation transaction via DAAS to help fill void in some instances. o An 821 is used in other processes (DTS, credit card), but not DLMS Obligation IC

3. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 3 Obligation IC

4. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 4 Resolution/Status (Proposed): -Develop a DLMS compliant standard obligation transaction using ANSI X12 Transaction Set 821, Financial Information Reporting o Must be complemented by internal controls for initiating the orders outside of Component system o Must be near real time o Must contain sufficient detail to support essential financial data elements and identify what is being purchased o May require Components to pre-stage obligation data in seller “customer master” for a given process o Should accommodate legacy point-to-point UDF data content o DAAS may translate from DLMS to UDF until 821 fully implemented -Staff Proposed DLMS Change for Component Review Obligations IC

5. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 5 Review Obligation IC Data Mapping Obligations IC

6. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 6 DLMS 821 Obligation Transaction Actions Components report: –Need for and interest in DLMS 821 obligation transaction –Potential target business processes –How default obligation data would be provided to the seller –Data elements required (SFIS should be primary) –Need to incorporate and map to current KYLOC and Fuels UDFs Sellers. Review Component responses and comment on desirability/feasibility and preferred approach for your processes DLMSO, in coordination with DLA, draft PDC as required Obligations IC