D. 2 Purchase Order and Invoice Processes V3- FINAL (updated May 2023).pdf

VA Denver Acquisition & Logistics Center Artificial Limbs: Order, Invoice, Invoice Reject, PO Acknowledgement, Cancel/Return

PO, and Return Authorization Processes May 2023

The Denver Acquisition & Logistics Center (DALC) will manage the procurement of artificial limbs and products used in the fabrication of artificial limbs for the Clinical Orthotics specialty of the National VA Prosthetic & Sensory Aids Service (PSAS) Program. These products include, but are not limited to, artificial limbs, artificial joints, and other products, parts, and materials used in the fabrication of artificial limbs.

The DALC has collaborated with the VA PSAS program to integrate management of these orders within the DALC centralized order entry and order fulfillment systems. At inception of the contract, all requests for artificial limb parts and materials are entered by clinical staff using ordering functionality of the DALC Remote Order Entry System (ROES). ROES is a software application that allows clinicians and service providers at VA and DoD medical facilities to order products and services through the DALC.

The DALC will be responsible for processing requests, creating purchase orders for each order/request, conveying to each vendor their respective purchase orders on a daily basis, maintaining a database of products and their costs related to artificial limb parts/materials, and paying vendors in a timely manner for orders filled and invoiced appropriately.

This document and associated documents referenced within describe the specifications for the exchange of commercial transactions between the DALC and contract vendors/suppliers of artificial limb products.

Purchase Orders:

Purchase order(s) is/are generated for each line item/package request. The purchase order establishes legal authorization for the vendor to provide products and/or service to the government.

Routine and Priority purchase orders will be sent throughout the day on a real-time transactional basis as they are processed in ROES.

All POs will be exchanged via file transfer (see ‘Method of Exchanging Transactions’ at the end of this document). The file layout and file transfer method will be the same for all PO transactional types (routine/priority). The vendor shall have internal processes to check their secure FTP server for transmissions on a regular basis throughout the day.

Transactional PO (routine/priority) files will be named as follows:

Vendor_Name_”AL”_”PO”_date_time.TXT – spaces in the vendor name will be replaced with underscores.

Date = mmddyy format Time = military time (up to 4 significant digits)

Example:

ARTIFICIAL_LIMB_COMPANY_INC_AL_PO_ 092223_04.TXT

VA DALC purchase orders are always in the following format:

1 alpha 1 numeric (the fiscal year reduced to one digit, e.g., 2023 reduces to 3) 4 numerics 1 dash 4 numerics

For example, S33009-0325

No PII (personally identifiable information) or PHI (personal Health Information) will be included in the purchase order files since only clinic-specific information will be relayed.

No patient-specific information will be relayed in the purchase order.

The document referenced below lists the data elements as they are included in a purchase order. Explanations and examples of each data element are included.

Reference document: Artificial Limbs Purchase Order Record Layout

Invoices:

All purchase orders will be invoiced to VA in a batch format; one original invoice file per day will be accepted from the vendor. The batched daily invoice file will include invoices for both routine and priority transactional PO’s. (See ‘Corrected Invoices’ below.)

Vendors shall create original invoice files that comply with the document referenced below. The file will be placed on the vendor’s secure FTP server by 10 am (Mountain Time) for automatic retrieval by the DALC. If there is nothing to invoice, no file shall be placed on the FTP server that day (do not place an empty or ‘null’ file on the server).

Original Invoice files will be named as follows:

Vendor_Name_”AL”_”INV”_ ”ORIG”_date_time.TXT – spaces in the vendor name will be replaced with underscores Date = mmddyy format Time = military time (up to 4 significant digits) Example:

ARTIFICIAL_LIMB_COMPANY_INC_ AL_ INV_ ORIG_ 092523_1453.TXT

The document referenced below lists the data elements as they are included in an invoice file. Explanations and examples of each data element are included.

Reference document: Artificial Limbs Invoice Record Layout

In addition and following contract award, contractors will receive a set of Invoice Business Rules that dictate which invoice records and data elements are required and how each data element will be edited for acceptance or rejection.

The DALC will electronically process the invoice file and create a file of rejects (see below) for any invoices that cannot be processed. The reject file will be placed on the vendor’s secure FTP server for correction. The DALC will look for corrected invoice files daily (more information below).

The vendor shall provide confirmation when a fulfilled order(s) has/have been shipped from the vendor’s manufacturing or distribution facility to the delivery destination specified in the order. This shipping confirmation is provided in the Invoice by providing the Date of Shipment and the Shipping Tracking Number (“IVS” record in the Invoice Record Layout). The date of shipment shall coincide with the Invoice Date, i.e., date invoice file is generated.

Invoice Rejects:

Invoice records that contain errors will be returned to the vendor’s secure FTP server in a separate file (see ‘Method of Exchanging Transactions’ at the end of this document).

The invoice reject file for original invoice files will be named as follows:

Vendor_Name_”AL” _”REJ” _”ORIG”_date_time.txt – spaces in the vendor name will be replaced by underscores and the date_time in the file name is the same as the date_time on the vendor’s invoice file Reject files will be designated as original (ORIG) or corrected (COR) Date = mmddyy format Time = military time (up to 4 significant digits) Example:

ARTIFICIAL_LIMB_COMPANY_INC _AL_ REJ_ ORIG _092523_1453.TXT

The invoice reject file for corrected invoice files will be named as follows:

Vendor_Name_”AL”_”REJ”_”COR”_date_time.txt – spaces in the vendor name will be replaced by underscores and the date in the file name is the same as the date_time on the vendor’s corrected invoice file.

Example:

ARTIFICIAL_LIMB_COMPANY_INC_AL _ REJ_ COR _092623_1138.TXT

Prior to processing the rejects, the vendor must ensure that the number of rejected invoices in the file corresponds to the invoice count in the header record of the file.

The document referenced below lists the data elements as they are included in an invoice reject file. Explanations and examples of each data element are included.

Reference document: Artificial Limbs Invoice Reject Record Layout

Corrected Invoices:

Vendors shall create corrected invoice files that comply with the document referenced below. Invoices can be corrected depending upon the reject reason returned in the invoice reject file. DALC will provide guidance on which rejects can be corrected and the appropriate method for correction. Corrected invoice files shall be separate from the regular invoice files. The corrected invoice file will be placed on the vendor’s secure FTP server by 10 am (Mountain Time) for automatic retrieval by the DALC. If there is nothing to correct, no file shall be placed on the FTP server that day.

Corrected Invoice files will be named as follows:

Vendor_Name_”AL”_ “INV”_ ”COR”_ date_time.TXT – spaces in the vendor name will be replaced with underscores Date = mmddyy format Time = military time (up to 4 significant digits) Example:

ARTIFICIAL_LIMB_COMPANY_INC_AL _ INV_ COR _ 092623_1138.TXT

Note: Corrected invoices can be rejected for the same reasons that original invoices are rejected if corrections are not made. Those rejects will be returned in the same manner as original invoice rejects.

The document referenced below lists the data elements as they are included in a corrected invoice file. Explanations and examples of each data element are included.

Reference document: Artificial Limbs Invoice Record Layout

Purchase Order Acknowledgements:

The vendor shall provide acknowledgement of receipt for all purchase orders as identified by the PO number and item name. This acknowledgement will serve as confirmation to the DALC that the order was received and has entered the vendor’s order fulfillment cycle.

Acknowledgements for transactional routine/priority orders will be returned on a corresponding real-time basis, or on a schedule agreed upon by the vendor and DALC.

Purchase order acknowledgements will be exchanged via file transfer as described in ‘Method of Exchanging Transactions’.

Purchase order acknowledgement files will be named as follows:

Vendor_Name_”AL”_”PO”_”ACK”_date_time.TXT – spaces in the vendor name will be replaced with underscores Date = mmddyy format Time = military time (up to 4 significant digits) Example:

ARTIFICIAL_LIMB_COMPANY_INC_AL_PO_ACK_092623_1005.TXT

The document referenced below lists the data elements as they are included in a purchase order acknowledgement. Explanations and examples of each data element are included.

Reference document: Artificial Limbs PO ACK Record Layout

Purchase Order Cancel-Returns:

Purchase orders may be cancelled and/or items from a PO may be returned. VA sites may elect to cancel POs if order fulfillment cannot be accomplished in a timely manner because items are backordered. VA facilities may return items for up to 30 days from the original PO date if the item is not usable and/or has not been opened or fitted to the patient. The reason for the return will be supplied in this transaction when item(s) flagged for return.

All PO cancel-returns shall be exchanged via file transfer (see ‘Method of Exchanging Transactions’ at the end of this document). The vendor shall have internal processes to check their secure FTP server for transmissions on a regular basis throughout the day.

Purchase order cancel-return files will be named as follows:

Vendor_Name_AL_PO_CR_date_time.TXT – spaces in the vendor name will be replaced with underscores Date = mmddyy format Time = military time (up to 4 significant digits) Example:

ARTIFICIAL_LIMB_COMPANY_INC_AL_PO_CR__093023.1345.TXT

The document referenced below lists the data elements as they are included in a purchase order cancel – return file. Explanations and examples of each data element are included.

Reference document: Artificial Limbs PO Cancel-Return Record Layout

Return Authorizations:

The vendor shall transmit return authorization numbers for all returned items as identified by the PO number and item name. Return authorization numbers shall be returned within 48 hours of cancel-return transaction receipt. (Return authorization numbers shall not be supplied for cancelled items.)

Return authorizations shall be exchanged via file transfer as described in ‘Method of Exchanging Transactions’.

Return authorization files will be named as follows:

Vendor_Name_AL_RA_date_time.TXT – spaces in the vendor name will be replaced with underscores Date = mmddyy format Time = military time (up to 4 significant digits) Example:

ARTIFICIAL_LIMB_COMPANY_AL_RA_100123_0627.TXT

The document referenced below lists the data elements as they are included in a return authorization file. Explanations and examples of each data element are included.

Referenced document: Artificial Limbs Return Authorization Record Layout

Method of Exchanging Transactions:

Purchase orders, invoices, invoice rejects, and PO acknowledgements are exchanged via file transfer. Due to the content of these files, the method of exchange must meet applicable security requirements (see VA Handbook 6500.6). The files are to be transferred using File Transfer Protocol over secure sockets (FTP/SSL) or secure shell over FTP (SFTP). The vendor shall implement a server configured for FTP/SSL or SFTP using industry-standard 128-bit encryption. This server is the file repository for purchase order, invoice, and invoice reject files. The DALC will deliver purchase order files and invoice reject files to the vendor by placing them on the server. Similarly, upon vendor generation of invoice (original/corrected) and PO acknowledgement files, the DALC will retrieve those files from the server.

Once implemented, the server fully qualified domain name (FQDN) is to be provided to the DALC IRM Division. Passwords needed to access the secure FTP site shall also be provided.

Explanation of Electronic Funds Transfer

This document has been prepared to clarify how payments will be communicated to artificial limb vendors when the VA Financial Service Center (FSC) in Austin, Texas processes an Electronic Funds Transfer (EFT) payment to the vendor’s financial institution.

The Financial Management System (FMS) uses Corporate Trade Exchange (CTX), which consolidates multiple payments due on the same day, to a single unique vendor, into one consolidated deposit (rather than making an individual deposit for each payment). When an EFT for multiple invoices is issued, an Explanation of Benefits (EOB) is generated and mailed to the vendor address stored in the FSC’s financial software (please contact the FSC help desk to modify your mailing address). In addition, below is a printed example of the electronic addenda records (delimited text file) that the Treasury sends to the financial institution along with the deposit. It is up to the contractor and its financial institution to coordinate how the addenda data is communicated to your accounts receivable department.

Your company can call the Austin Finance Service Center (FSC) help desk @ 1-877- 353-9791 for payment questions. In addition, please contact the FSC so your company can obtain access to the VA’s Vendor Inquiry system (VIS)

The Vendor Inquiry System (VIS) website enables designated employees in your company to view a purchase order and payment activity. Following is the URL for VIS, which includes a tutorial. https://www.vis.fsc.va.gov

Total Deposit: 13229.6

Inv. 325252: Pmt 2174.6

Inv. 325238: Pmt 11055 https://www.vis.fsc.va.gov/