RETAIL MANAGEMENT

1
RETAIL MANAGEMENT

• Presented ToPACOM FUELS CONFERENCE
• 22-24 OCT 02

2
Overview

• Retail Management
• Review and Challenge
• Credit Management
• RIK/FEA Agreements
• Local Purchase
• Non-DoD Master Sales Report
• Fuel Sale Slip
• Inflight Refueling/PDA Initiative

3
Retail Fuels Management

• Air Force Working Capital Fund Office (Det 3,
  WR-ALC) Transition to DESC on 1 Oct 01
• New Office Designated Retail Management Division
  (DESC-RR) Under Resources Management, DESC-R,
  Ft. Belvoir, VA
• DESC-RR Provides Financial and Program Support
  for Worldwide Retail Aviation, Ground and Missile
  Fuels Requirements.
• DESC-RRF Responsibilities

4
Review and Challenge

• WEB-Based Application Provides Customer With
  Opportunity to Review and Challenge Fuel
  Transactions Prior to Billing
• DESC-RRF Responsibilities
• Monitor the Program
• Provide Single POC Customers (Miguel Puga, DSN
  945-8894/Al Morgan, DSN 945-2438
• Assist in Resolving Challenged Transactions
• Provide Oversight to Minimize Loss to DWCF

5
Review and Challenge

• Customer Should Challenge Prior to the Billing
  Cutoff
• If Not Challenged, Transaction is Billed
• If Billed, Challenged Under MILSBILLS
• Off-station Purchases Comprise Majority of
  Challenges
• Purchases Processed by AVCARD and DESC-RRF
• Challenged Transactions (1Oct 01-30 Sep 02)
• 1768 Aviation 1311 Ground Fuels
• Problems - Wrong Quantity and/or DODAAC
• As Customers Obtain WEB Access They Can Convert
  to Pre-billing Validation

6
Review and Challenge

• DESC-RRF Monitors Challenge File Daily
• Hourly Monitoring Occurs Last 3 Duty Days of
  Business Month
• Close Coordination with Seller and Buyer
• Valid Challenges Will be Resolved Before EOM
• Abnormal and/or Mass Challenges Will be Billed
• Thoroughly Researched Prior to Next Billing Cycle
• Corrective Action as Necessary

7
Credit Management(Non-DoD)

• New Business Rules in Coordination
• DESC-RR Single POC for Fuel Purchase
  Application/Agreement for Commercial Carriers
• One Standard Application
• Available by WEB, Hardcopy, Fax, Email
• Utilize DESC Database/TRANSCOM Survey and
  Analysis Office and Dunn and Bradstreet
• Approves/Disapproves
• Establishes Financial Limitations and Payment
  Terms With Some Carriers
• Assist DFAS in Resolving Billing Problems

8
RIK/FEA Agreements

• Background
• Country to Country Agreements Outlines Procedures
  for Reciprocating Fuel Support and Reimbursement
• Support Limited to Fuel Products That are
  Normally Available at Military Installations
• Reimbursement is Normally on Cash Basis or By
  Other Special Agreements
• Replacement-in-Kind or Exchange Agreements May be
  Consummated When in Best Interest of Countries
  Involved

9
RIK/FEA Agreements

• Responsibilities
• Defense Energy Support Center (DESC) Finances
  RIKs/FEAs on Behalf of DoD
• Managing Offices
• DESC-FG (Ft. Belvoir, VA)
• Protocol Format
• Initiates and Coordinates Legal Review
• Administrative Oversight
• DESC-RR (San Antonio, TX)
• Retail Management
• Oversight of RIK/FEA Reconciliation
• Balancing of Agreements and Cross-Servicing
• Repayment and Settlement Terms

10
RIK/FEA Agreements

• Responsibilities (Continued)
• DESC-RR (CONTINUED)
• Transaction Processing and Validation of Invoices
• Coordinates Repayment with DESC Regions, DoD
  Service Control Points and DFAS-Columbus
• Defense Finance Accounting Service (DFAS)
  Columbus, OH (DFAS-AIFEG/CA)
• Processes Accounting Functions
• Transactions Posted Monthly
• Prepares RIK/FEA Credit and Debit Invoices
• Processes Collection/Cash Repayments
• Reconciliation of RIK/FEA Accounts

11
RIK/FEA Agreements

• RIK Administrator Responsibilities
• DESC Fuel Region
• Focal Point Within Area of Responsibility
• Direct Link Between DoD customers and RIK/FEA
  Countries
• Mediate Problems
• Review Documentation
• Coordinates RIK/FEA Financial Issues with DESC-RR
• Attends RIK Meetings/Conferences
• Coordinate/Monitor Repayments

12
RIK Agreements
Country Administrator

• DIRECT BILL
• DESC
• DESC
• DESC
• DESC
• PACAF/ DESC

Canada - Greece - Italy - Turkey - Korea - Japan
-
Defense Working Capital Fund (DWCF) Finances all
AF agreements as of FY02
13
RIK/FEA Agreements

• Settlement Criteria RIKs
• Greece/Italy/Turkey
• Joint Agreement (incl. USA and USN)
• Ground Fuels (MOGAS/Diesel Included in FY02)
• HQ AIRSOUTH Chairs Semi-Annual Accounts Balancing
  Conferences
• Conference Location Alternated Between Member
  Nations
• Korea/Japan
• 5AF Reconciles Monthly with JASDF
• DESC Korea Reconciles Quarterly with ROKAF
• DFAS Columbus Invoices RIK Countries Monthly
• Invoice Reflects Credits/Debits
• USA/USN RIKs/FEAs
• Under Review by DESC/DFAS Tiger Focus Group

14
RIK/FEA Agreements

• Argentina
• Australia
• Canada
• Chile
• Ecuador
• France
• Indonesia

Current Navy FEAs
Japan - Navy Korea - Navy Pakistan Peru Singapore
Turkey United Kingdom
15
RIK/FEA Agreements

• FEA Transition
• Financial Processing Will Continue Status Quo
  Until DESC Capitalizes Fuel on Navy Oilers
• Once Capitalized, DFAS Norfolk Workload Transfers
  to DFAS Columbus
• DESC Manages Reconciliation and Settlement
• Future FEA Financial Process
• DESC Fuel Ashore Issued to FEA Country
• DESC and DFAS Columbus Account For Fuel and
  Settle With Country
• DESC Fuel on Oiler Issued to FEA Country
• Oiler will transmit transactions via SALTS
• Enable DESC and DFAS to Account For Fuel and
  Settle With Country

16
RIK/FEA Agreements

• Future FEA Financial Process Cont
• Fuel Issued From Non-Oilers to FEA Country
• Vessel Sends FEA Message to DESC-RR and
  DFAS-Columbus (Message Currently Goes to DFAS
  Norfolk)
• DESC Credits Vessel
• Expected Transaction Volume is Low
• Long Term Process Similar to Oiler Reporting
  Process
• USN Vessel Receives Fuel From FEA Country
• USN Vessel Sends Message to DESC-RR and DFAS
  Columbus
• DESC Goal Minimize USN Role in Accounting For
  Fuel Received From Foreign Govt
• Accounting Burden Bourne By Issuing Country

17
RIK/FEA Agreements

• Summary Future FEA Financial Process
• DESC Will No Longer Bill USN Working Capital Fund
  (BP-38) For Fuel Issued Under FEAs
• FEA Accounting Moves From USN and DFAS Norfolk to
  DESC and DFAS Columbus
• Reconciliation and Settlement Meeting Held
  Semi-Annually Between DESC and FEA Countries
• Direct Bill Countries in Pacific
• Australia, China, India, Indonesia, Japan, Korea,
  Malaysia, New Zealand

18
Local PurchaseAF Form 315 SF Form 44

• New Business Rules on WEB
• DESC funds Local Purchase
• Vendor Receives AF315/SF44 From Aircrew (Looking
  at options to replace these forms)
• Billing Address DESC AIR Card Contractor
• Vendor Forwards Invoices/Forms to AVCARD
• Merchant Agreement Required
• AVCARD Processes Invoices/Forms
• Pays Vendor
• Provide DESC File of the Fuel Transactions
• No Agreement Invoices Sent to DESC-RRF/ Ground
  Service Invoices Sent to Unit RDO/RA
• AVCARD bills DESC For Fuel Charges/DoD Unit For
  Ground Services

19
Local PurchaseAF Form 315 SF Form 44

• Commercial Vendor/Foreign Government Invoices
  Sent to Am Embassy/Defense Attaché Office
• AMEmbassy/DAO forwards Commercial Vendor Invoices
  to AVCARD
• Foreign Government Fuel Invoices Forwarded to
  DESC-RR
• Validate/Certify
• Forward to DFAS Columbus
• Process Transaction in FES

20
Local Purchase(Cash)

• New Business Rules in Coordination
• Aircrew Obtains Cash at Home Station
• Treasury Suspense Account
• Cash Payment Made to Vendor
• Aircrew Complete AF Form 315/SF44 After Mission
• Forms Must be Properly Filled Out
• Completed AF315/SF44 Submitted to Local
• Finance POC
• Finance POC Submits to DESC-RRF
• DESC-RRF Reviews for Accuracy/
• Validate

21
Local Purchase(Cash)

• DESC-RRF Assigns DWCF Fund Cite and Certifies
• Paperwork Returned to Finance POC
• Finance POC Prepares Disbursing Document
• Submits to DFAS Columbus
• Advance Copy to DESC-RRF
• Local Treasury Account Reimbursed
• DESC-RRF Process Transaction in FES

22
Non-DoD Master Sales Report

• New Business Rules Approved
• On DESC WEB
• Purpose
• Provide DFAS Columbus Necessary Backup
  Documentation to Bill Collect for Fuel Sales to
  Non-DoD Customers

23
Non-DoD Master Sales Report

• Process
• Non-DoD Sales Report Generated at EOM (FAS
  Enterprise Server)
• Service Issue Documents (DD Form 1898, DD Form
  791, etc) Attached to Report
• Report Due DESC-RRF by 5th Work Day
• DESC-RRF (Accounts Receivable Section) Prepares
  Buyer Report
• Forward to DFAS-Columbus
• DFAS-CA Generates Manual 1080 Bill to
  Non-Customer
• Foreign Governments/Commercial Companies Require
  Hard Copy of Issue Document

24
Non-DoD Master Sales Report

• Guidance for Process
• http//www.desc.dla.mil
• Go to Fuels Automated System (FAS)
• Go to Non-DoD Fuel Customer Information
• DESC Assigned TDoDAACs
• TDoDAAC Request and Information
• AIR Card Program Customers
• Commercial Purchase Agreement Customers
• Cash Sale Customers
• Local Purchase Agreement Customers
• MWR/NAF Credit Customers
• State Purchase Agreement Customers
• Foreign Commercial Customers
• Foreign Government Customers
• RIK/FEA Customers
• FMS Case Customers

25
Non-DoD Master Sales Report

• Concerns/Problems
• Incorrect T-DoDAAC Used
• Bills Incorrect Customer (if not caught)
• DESC-RRF Notify Service Control Points of Errors
• Service Control Points Notifies Applicable Units
• Cause Billing and Collection Delays
• Specific T-DoDAAC Assigned for RIK Agreements
• Canada and UK are Billed by Unit
• Each Unit Has its Own T-DoDAAC
• Missing Documents
• Timeliness in Receiving Documents

26
Fuel Sale Slip
Replaces DD From 1898 (Aug 86), AF Form 1994 (May
85), and AF Form 1995 (Mar 77)
FUEL GRADE VEHICLE NO.
UNIT ID or UIN Categorie de Carburant
Numero du Identification
Vehicule

MEASURE UNIT Unite de Mesure
UNIT PRICE Prix Unitaire
QUANTITY Quantite

FUELS OFFICE
B123456
SERVICE LOCATION and NATION Lieu de lOperation
et Pays
TOTAL PRICE Prix Total

1
REFUEL Plein DEFUEL Restitution
METHOD OF PAYMENT / Mode de Compensation
BILLING ADDRESS AND AIRCRAFT INFORMATION (FOR
CASH SALES-WRITE CASH) Adresse de Facturation,
Modele et No dImmatriculation de lAvion (Vente
au Comptant Indiquez Paiement Comptant)
SER NO.

REIMBURSEMENT REPLACEMENT IN KIND
Remboursement Remplacement
Equivalent
ISSUED BY (SIGNATURE) / Service
Fournisseur RECEIVED BY (SIGNATURE) / Service
Acheteur PRINT NAME and RANK / Nom et Grade (en
lettres dImprimerie)
REMARKS and/or VOUCHER NO. Remarques et/ou Piece
Justificative
DIR OF LOG_______________________
Directeur de Logistique ACCOUNTANT
Comptable________________________


ISSUE DATE / Date de Distribution
DD Form 1898, Apr 2002 Fuel Sale Slip / Facture
de Carburant
Note Size is critical. From top to bottom the
form can only be a maximum of 3 3/16 inches.
Width of the form is 7 7/8 inches.
COPY 1
27
Inflight Refueling/PDAInitiative
Inflight Transaction Processing Overview
28
Inflight Refueling/PDAInitiative

• Handheld Functionality
• Tanker and Receiver Data Provided During In-brief
  May Be Entered Into Handheld Prior to Mission
• Dropdown Selection of Buyer Names, Locations,
  Vehicle Types, and Tail Numbers
• Accepts 5-digit Tail Number for Air Force
  Aircraft

29
Inflight Refueling/PDAInitiative

• Handheld Main Form
• Enter Mission Data
• Select Customers
• Review Missions and Transactions
• Delete/Modify Missions and/or Transactions
• Add Additional Transactions to a Mission

30
Inflight Refueling/PDAInitiative

• Receiver Data Elements
• Completed Transaction

31
Inflight Refueling/PDAInitiative

• Upload Data to PC
• After All Mission Transactions Are Entered
  Perform Synchronization
• Dock the Handheld in the Cradle
• Press the HotSync Button to Upload the
  Transactions to the PC
• Launch the Tanker Inflight Application on the PC

HotSync Button
32
Inflight Refueling/PDAInitiative

• PC Functionality
• After HotSync, All Mission Transactions Reside On
  Local PC
• Aircraft Ownership Validated Automatically
• All Transactions Validated Using Business Rules
  Established for Each Customer Type
• Print Form 791
• Submit Transactions and 791 to the FCC via Email
• Archive Mission to History

33
Inflight Refueling/PDAInitiative

• PC Main Menu

Options for Reviewing and Editing Mission
Transactions, Submitting Transactions to the FCC,
Downloading Support Tables, Archiving and
Unarchiving Missions, Printing the 791.
34
DD Form 791Old and New
35
Inflight Refueling/PDAInitiative

• Test Locations
• ANG Salt Lake City IAP UT
• McGuire AFB NJ
• Miramar Marine Station, San Diego, CA
• Very Favorable/Positive Feedback
• Program Management Review Completed on 17 Oct 02
• Deployment to PACOM TBD

36
Retail Management

• QUESTIONS?????????