Beth MorganCarol Richey

1
Fuels Automated System (FAS)
Capitalization Worksheets Inventory Account
Reconciliation

• Beth Morgan Carol Richey
• DESC-FIE DESC-FIW

2
Army Fuel CapitalizationConference

• Inventory Accounting Process
• Elizabeth Morgan

3
Before After Capitalization

• Before capitalization
• DESC contracts for fuel
• Activity orders fuel with billing data on order
• DESC pays contractor
• DESC bills Army activity for full order
• Army activity bills end-use customer

• After capitalization
• DESC contracts for fuel
• Activity orders fuel without billing data on
  order
• DESC pays contractor
• DESC owns inventory in tanks
• DESC bills end-use customers

4
Customer Billing Process

• After capitalization
• Customer provides milstrip document number and
  fund code
• T dodaacs will be created by DESC for
  activities that do not have dodaacs
• DESC creates interfund bill for all military
  customers
• DESC creates 1080 manual billing for all
  non-military customers

• Before capitalization
• Customers provided MIPR to army activity
• APC codes and dummy dodaacs were established for
  each activity
• Fuel issues were billed to activitys MIPR

5
Information needed for capitalization

• Army activities need to provide the following
  information to DESC-FIE
• Activity DoDAAC and RIC
• Billing DoDAACs/FEDAACs for customers
• Complete billing addresses for customers who do
  not have valid dodaacs

6
Capitalization Process

• On capitalization day, the following procedures
  need to be followed
• Activities need to
• Inventory each product to be capitalized as of
  0800 on capitalization date. Include fuel in
  tanks, pipelines, manifolds, trucks and hydrants
• Complete and sign a DD1149 for each product
• Fax DD1149 to DESC-FIE within 24 hours

7
Army Fuel CapitalizationConference

• EOM Transactions Account Reconciliation
• Carol Richey

8
Fuels Automated System (FAS) Enterprise Server
(FES)

• Account Reconciliation
• Daily Processing Clearing Rejects
• DESC policy transactions processed within 48
  hours of transaction event
• Rejects must be cleared in timely manner
• Resolve Challenged transactions within 5 days
• EOM Closeout
• Closeout as of last calendar day of month
• Ensure all transactions are processed to FES
• Ensure all rejects are corrected and processed
  to FES
• Verify FES Account Ledger and FCC Ledger match
• Process physical inventory (CTRL F7 P41) to FES
• FCC 1027 Automatically generates Op G/L (CTRL F6
  P42)
• Verify FES Account Ledger and FCC Ledger match
• Ending Cumulative Op G/L quantity should be 0

9
Fuels Automated System (FAS) Enterprise Server
(FES)

• Account Reconciliation
• What does it take ?
• All transactions processed to FES
• No rejects in error file from FES
• All order, shipment and receipt transactions
  match up
• Physical inventory processed to FES (last
  calendar day)
• Inventory adjustment processed to FES using
  correct quantity determine type (last calendar
  day)
• Everything must process from FES to DFAMS
  correctly
• Account Reconciled ?
• FCC Ledger must agree with FES Ledger
• Ending Cumulative Op G/L must be 0
• FES data must agree with DFAMS/OED
• Fuels Accountant can verify this by comparing
  ledgers
• NOTE Base level personnel are not responsible
  for ensuring FES and DFAMS data agree. DESC-FI
  will contact bases if base level assistance is
  needed to re-process transactions in order to
  reconcile FES to DFAMS.

10
Fuels Automated System (FAS) Enterprise Server
(FES)

• Changes to Prior Month Ledger Transactions
• Any time a quantity changes on prior month
  ledger transaction that months account
  will become unreconciled until a new EOM Op G/L
  Adjustment is processed
• Must reverse the original Op G/L Adjustment
  transaction and wait until it posts in DFAMS
  before processing the corrected Op G/L Adjustment
• See DESC interim procedure for instructions
  (DESC-CM-G-12)

11
Fuels Automated System (FAS) Enterprise Server
(FES)

Example of unreconciled ledger No Op G/L
Adjustment Processed
12
Fuels Automated System (FAS) Enterprise Server
(FES)

Example of unreconciled ledger Out of Balance
Account due to rejected transactions
13
Fuels Automated System (FAS) Enterprise Server
(FES)

Example of unreconciled ledger Out of Balance
Account due to rejected transactions
14
Fuels Automated System (FAS) Enterprise Server
(FES)

Example of reconciled ledger EOM Transactions
Processed and Cumulative Op G/L quantity is zero
15
Fuels Automated System (FAS) Enterprise Server
(FES)

• DESC Account Reconciliation Policy
• Base Level Responsible Officer must ensure
• All transactions processed to FES successfully
• Closing physical inventory and Op G/L adjustment
  processed to FES successfully
• FCC and FES ledger quantities agree
• Closing cumulative Op G/L is zero

16
Questions / Discussion