FMS Financial Management

1
FMS Financial Management

• Billing

2
FMS Billing

• Key Concepts
• By law, we must collect in advance
• FMS purchasers are billed quarterly (DD645)
• DD645 summarizes activity accomplished plus
  forecast period
• DD645 data input is by DoD components (via
  delivery transaction report)

3
FMS Billing Cycle
Payment Due to DFAS-IN

4
Flow of Funds
LOA (I.D./Payment Schedule)
DD 645 (FMS Billing Statement)
Trust Fund
Purchaser
Delivery
Implementing Agency
Transaction

OA/EA

• Obligation Authority
• Expenditure Authority
• Reimbursement
• Direct Cite

FMF

Interest Bearing/ Commercial Banking Accounts
5
FMS Integrated Control System
6
Security Assistance Accounting - As Is Model
FIS
MCIF
CAPS
FRAM
COEMIS
HAS
SOMARDS
FRS
SABRS
HQARS
CERPS
MCERRS/ NRS
UICP// UADPS
SAPAS
PBAS
STANFINS
MUMMS
STARS-FL
CCSS
STARS
SIFS
ASATMS
MISIL
SOF
CISIL/SA3
STATIS
DIFS
TRACS
COARS
TSLDS
GAFS
SAMIS
DoS
BARS
SA ARS
CMCS
MAFR
IAPS
SAMMS
SAMIS
JOCAS II
CPAS
SDAF
CISIL/SA3
MUMMS
FIABS
STARS
ARS
WAAS
FMSCS
MOCAS
SAPAS
ACRS
SOMARDS
HQARS
CERPS
7
FMS Delivery Transaction
NATIONALSTOCK NUMBER/PART NUMBER
DOCUMENT NUMBER
DATE
SHIPPER/ REPORTING ACTIVITY
DEL TERM CODE
TYPE FINANCE
PRICE CODE
U.S. SERVICE
CARD CODE
CUSTOMER
UNIT OF ISSUE
COUNTRY
MONITOR
QUANITY
SERIAL
YEAR
DAY
CR
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
4
0
4
1
N
M
B
1
4
E
4
9
3
0
0
9
2
6
1
2
3
4
0
E
A
0
0
0
1
0
B
B
N
C
2
0
0
9
0
0
SUPPLEMENTAL ADDRESS
EXTENDED VALUE
TRANSPORT. BILL CODE
REIMBURSEMENT CODE
FREIGHT FORWARDER
ADJUSTMENT ALLOWANCE CODE
DELIVERY SOURCE
APPROPRIATION/ FUND CODE
OFFER RELEASE
ROUNDED IND
MODE SHIPPED
FMS CASE LINE ITEM ID
PROGRAM YR
COUNTRY SV
SF/NON SF
DATE SHIPPED
CASE NUMBER
POE CODE
DOLLARS
CENTS CR
NUMBER
SUFIX
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
71
72
73
74
75
76
77
78
79
80
70
0
1
N
B
Z
2
U
R
K
F
A
B
A
R
G
2
2
5
0
0
0
0
1
2
5
5
0
0
0
2
0
9
8
FMS Trust FundBandarian Case YCY
Delivery Transaction
Hold.
Contract Administration Services (CAS)
GMK
Acct.
YCY
KCG
IA/Treasury Reimbursements
Contract Payments
Transportation
Administration
9
Flow of Funds
LOA (I.D./Payment Schedule)
DD 645 (FMS Billing Statement)
Trust Fund
Purchaser
Delivery
Implementing Agency
Transaction

OA/EA

• Obligation Authority
• Expenditure Authority
• Reimbursement
• Direct Cite

FMF

Interest Bearing/ Commercial Banking Accounts
10
FMS Billing Statements and Reports

• DD Form 645
• Billing statement (quarterly)
• Final statement of account
• FMS delivery listing
• FMS reply listing to customer requests for
  adjustments
• FMS financial forecast
• Holding account statement
• ACC suspense account

11
FMS Billing Cycle
Payment Due to DFAS-IN

12
Quarterly DD Form 645
13
UNITED STATES OF AMERICA
FOREIGN MILITARY SALES BILLING STATEMENT
DEPARTMENT OF DEFENSE/
1. TO
2. THIS IS A BILLING STATEMENT BASED ON CASH
REQUIREMENTS. PAYMENT IS DUE BY
3. STATEMENT NUMBER
4. FOR PERIOD ENDED
5. DATE PREPARED
1
2
3
4
5
CASE IDENTIFICATION AND DELIVERY STATUS
FINANCIAL STATUS
6.
7.
8.
9.
10.
11.
12.
13.
14.
CASE RSN
TOTAL VALUE ORDERED
CUMULATIVE DELIVERY COSTS END PRIOR PERIOD
CURRENT PERIOD DELIVERY COSTS (ATTACHMENT 1)
CUMULATIVE DELIVERY COSTS WORK IN PROCESS
FORECASTED REQUIREMENTS (NOTE A)
TOTAL FINANCIAL REQUIREMENTS
CUMULATIVE PAYMENTS RECEIVED
AMOUNT DUE AND PAYABLE
6
7
8
9
10
11
12
13
14
REVIEW PROCESS
EXPANATORY NOTES
SIGNATURE
NOTE A THE TERMS OF THE U.S. PUBLIC LAW, THE
ARMS EXPORT CONTROL ACT, REQUIRE THE
DEPARTMENT OF DEFENSE TO COLLECT PAYMENTS FROM
FOREIGN PURCHASERS IN ADVANCE OF THE TIME
THAT DOD INCURS COSTS ON THE PURCHASER'S BEHALF.
THEREFORE, THIS BILLING STATEMENT REQUESTS
PAYMENT OF MONIES THAT ARE ANTICIPATED TO BE
EXPENDED BETWEEN THE TIME THIS BILLING
STATEMENT IS PAID AND THE FOLLOWING BILLING
STATEMENT IS PAID.
ANALYST
BRANCH CHIEF
QUALITY ASSURANCE

DENOTES CASES CLOSED DURING THE CURRENT PERIOD.
AUTHENTICATION
PAYMENT INSTRUCTIONS
YOUR PAYMENTS MAY BE MADE USING EITHER CHECKS OR
WIRE TRANSFER PROCEDURES. WIRE TRANSFERS ARE
PREFERRED AND SHOULD BE SENT TO THE FEDERAL
RESERVE BANK OF NEW YORK, WITH THE FOLLOWING
IDENTIFICATION TREAS NYC (3801),
DFAS-DE/F, ABA 021030004. CHECK MADE PAYABLE
TO - FINANCE AND ACCOUNTING OFFICER, SHOULD
BE IN U.S. DOLLARS AND FORWARDED DIRECTLY TO
DFAS - DENVER CENTER/CAFC (SAAC), P. O. BOX
20030.
DENVER, CO
80220-0030 USA
SIGNATURE
OFFICE OF THE DIRECTOR SECURITY ASSISTANCE
ACCOUNTING CENTER
DD FORM 645 ( NOV 87 ) PREVIOUS EDITIONS
ARE OBSOLETE
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Integration of DD645 and Standard Billing Cycle
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FMS Delivery Listing
-------------------THE LINE------------------
1155.50
12.5
185.37
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TRANSPORTATION MATRIX
DTC 4
DTC 5
DTC 8
DTC 6
DTC 9
DTC 7
Rate Area
DoD Movement Point of Origin to Destination
CONUS Port of Exit
CONUS Port Aboard Vessel
Port to Port Discharged
Overseas Port Discharged
Overseas Inland Destination
Overseas Port
TBC D,K,L
TBC A, B, E
TBC H, U
TBC J
TBC F, X
TBC C, V
TBC G,Y
Europe Central American Mediterranean
6.25 2.50
7.5
10.25 6.50
11.25 7.50
14.25 10.50
1
3.75 0
0
Newfoundland, Labrador, Thule, Iceland, South
America, Far East, Africa, Near East
6.25 2.50
9.5
12.25 8.50
13.25 9.50
16.25 12.50
2
1
6
3
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FMS Delivery Listing
1155.50
-------------------THE LINE------------------
185.37
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FMS Reply Listing to Customer Requests for
Adjustments
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FMS Financial Forecast
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1BD Holding Account Statement
Date 30 Sep 99 25 Oct 99 14 Nov 99 29 Dec
99 29 Dec 99 30 Dec 99
Detail Balance brought
forward Funds transferred to 1BB
Holding Account Excess funds from closed
case Crossleveling transactions per
letter, Embassy of Bandaria 15 Sep 93 from
cases Crossleveling transactions per
letter, Embassy of Bandaria 15 Sep 93 to
cases 30 Dec 93
P-JAC B-KAA D-KAB D-KBU D-KBW
Deposits 90.00 50.00 75.00
Withdrawals 200.00 100.00 25.00
Balance 3,000.00 2,890.00
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Sample Accelerated Case Closure Suspense Account
PREV QTR BAL (9903) 5,574.76 8,566.65
16,284.51 343.95 0.00 1,781.70- 28,
988.17
CURR QTR ACTIVITY 0.00 0.00 0.00 0.00 1,677.24
0.00 1,677.24
CURR QTR BAL (9906) 5,574.76 8,566.65
16,284.51 343.95 1,677.24
1,781.70- 30,665.41
NEW CLSR
CC IA - D BD BD BD BD BD BD
IA D D D D D D
CASE CBT GAX GBF GBJ GBU MBL
DT-CLSR 95090 94350 94322 94318 99156 92050
SUBTOTAL BY IA
NOTE ASTERICK () IN THE NEW CLSR COLUMN MEANS
THE CASE WAS CLOSED IN THE CURRENT QTR
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Case Closure

• Non-Accelerated Case Closure
• No new orders, no discrepancies, no open
  requisitions
• 100 shipped/billed
• All contracts must be closed
• Accelerated Case Closure (ACC) 1992
• Cases closed 2 years after supply complete
• Country must agree to participate (FMF countries
  automatically included)
• Identify ULO Unliquidated Obligations
• ULO into ACC suspense account

23
Special Financial Arrangements

• Cross leveling
• Redistribute collections to minimize additional
  payment required
• Special Billing Arrangement
• Unique billing agreement between country, DSCA,
  DFAS and financial institutions
• Based on average cash requirements and required
  on-hand reserves
• Developed due to significant payment schedule
  variances

24
FMS Financial Management

• Billing