Appendix B - Invoicing.pdf

DRAFT

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Third Party Payment System (TPPS)

B.1. Introduction and Payment Information. Payment will be made using the Third-Party Payment System (TPPS) Automated Payment System in accordance with (IAW) PWS paragraph 1.3.1.4 and the invoicing instructions below. This appendix describes the Non-Temporary Storage (NTS) electronic billing guidelines and procedures. These payment processes use the Department of Defense (DoD) TPPS as a payment tool to reimburse Transportation Service Providers (TSP) for services rendered (i.e. Handle-in, Storage, Handle-out, etc…), provide information visibility for stakeholders, improve the Defense Finance and Accounting Service (DFAS) and Finance Center (FINCEN) payment and collection process, and reduce paper documentation. These guidelines are from the Defense Transportation Regulation, Part IV, Appendix A, Third Party Payment System. The Contractor throughout the contents of this appendix will be referred to as the “NTS-R”.

B.2. Electronic Bill Payment for Non-Temporary Storage (NTS) and NTS Retrograde (NTS-R) Shipments.

This NTS electronic bill payment process is accomplished by multiple interfacing automated systems. Web-Enabled Transportation Operational Property Standard System (ETOPS) transmits government line item order data via Electronic Data Interchange (EDI) 858 to the TPPS upon the PPSO’s validation of the monthly and quarterly (when applicable) invoices. Invoices are complete when the NTS TSP or NTS-R has provided the PPSO with the weight tickets for handling-in and actual release date on handling-out. When the TPPS receives the monthly/quarterly data from ETOPS, the government order and corresponding invoices will automatically be created. Each item will be placed in an approval required status pending TSP’s or NTS-R’s Notice of Completion (NOC) and the PPSO’s approval action. The TPPS then processes a payment to the NTS TSP or NTS-R, normally within 3 GBDs. Invoice audit trail, payment tracking and transaction visibility is achieved.

The TPPS maintains an LOA Chart of Account (COA) sourced by the DFAS Transportation Global Edit Table- Revised (TGET-R) and uses the table to retrieve, validate, and edit LOA contained in the Tender of Service issued by the PPSO. ETOPS calculates an estimated shipment cost based on shipment data gathered throughout the shipment process. The cost estimate is populated into an electronic shipment file, the EDI 858 data feed, and is transmitted to DFAS for payment.

B.3. NTS/NTS-R Payment Process.

At the end of the billing cycle, the TPPS electronically generates monthly Summary Invoices, which show all payments to the TSPs made by the TPPS provider on behalf of the DoD and credits to the DoD. The monthly summary statement is made available for online viewing and certification by the PPSO Certifying Officer (CO). The monthly summary statement certification triggers the TPPS to send a copy of the EDI data feed to the DFAS. The DFAS matches the certification and processes the monthly summary statement for payment (reimbursement) back to the TPPS provider.

Invoices for accessorial services that do not match the service order will also require the PPSO review in approval required. The PPSO can dispute Contractor’s invoiced line item(s) by assigning a status of “In Dispute” to the line item and providing reason(s). If an invoice is disputed for one or more line items, the contractor is notified via the TPPS. Negotiation and resolution between the contractor and the PPSO must be achieved for all “In Dispute” items before they are approved in the TPPS.

The prompt payment interest “clock” begins when the NTS-R successfully submits the Notice Of Service Completion (NOSC) in the TPPS. The “clock” stops during the dispute process as well as for rejected invoices.

1. Process 1 – PPSO Validates/Edits Accounting Data:

As part of the personal property counseling process, the PPSOs/Personal Property Processing Offices (PPPO) enter shipment and funding data in ETOPS from the customer’s travel order. If the correct funding data is not provided on the order, the PPSO will refer the customer to the order issuing authority for resolution.

The TPPS maintains an LOA COA sourced by the data contained in the DFAS TGET-R repository. If the invoice contains LOA data that is formatted correctly (i.e., FA2 format), but is incomplete, it will still transmit to the TPPS and align under the manual side of the monthly summary statement.

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2. Process 2 – Initial Cost Estimates:

Estimated shipment costs will not be calculated/used within this interim electronic payment process.

3. Process 3 – Global Exchange (GEX) Validates and Translates EDI 858:

The calculated shipment cost file from ETOPS is sent to GEX via a New Shipment EDI 858. GEX translates the data from the EDI 858 into the appropriate User Defined File (UDF) 821. GEX uses the value in the Accounting Installation Number (AIN) field of the FA2 LOA to determine the DFAS/Payment Center location to which the ensuing UDF 821 must be routed. The UDF 821 data feed is a customer file used to communicate expense obligation and accruals in an accounting context.

4. Process 4 – DFAS/Payment Center Accounting and Entitlement Systems Validation:

When travel orders are established, the Funds Manager (FM) obligates funds to cover all related expenses to be incurred by the traveler per the order. The FM creates the obligation in the travel order issuing entity’s accounting system. The obligation file is transmitted to the DFAS on a routine basis.

With the UDF 821 from GEX, the DFAS validates LOA/obligations for each transaction. When a transaction fails the local edits, the DFAS notifies the FM responsible for the LOA/obligation to take corrective actions. The LOA and obligation data reside in the DFAS until they are matched with invoice data received from the TPPS at the end of the billing cycle.

5. Process 5 – TSP Invoices created in TPPS:

a. Handling-In and Handling-Out Invoices:

The NTS-R must complete services by the end of the calendar month and submit the inventory and weight tickets prior to the 7th calendar day of the following month. The PPSO will input the shipment weights and print the monthly handle-in and handle-out invoices from ETOPS not later than the 7th calendar day.

The TPPS assigns a unique identifier known as the LineIDC to each line item submitted on the NTS-R’s invoice and transmits the EDI 859. The contractor has the option of submitting more than one invoice against a single DD Form 1164, Service Order for Personal Property/Shipments. Each invoice must reference the NTS-R Service Order Number and have a unique invoice number assigned by ETOPS.

b. Quarterly Storage Invoices:

The PPSO will determine the status of all pending receipt actions up to the end of the current billing quarter by the NTS-R through ETOPS management reports. Once all handling-in and handling-out receipt actions for the current billing quarter have been validated, the PPSO will generate the quarterly storage order for the NTS-R’s Standard Carrier Alpha Code through ETOPS to the TPPS.

c. Invoices for Accessorial Services:

Upon completion of services and submission, the NTS-R submits an invoice for services (including the NOSC) in TPPS using one of two available methods:

(1) Through an EDI 859 transaction set (the EDI 859 is a generic electronic interface for shipment information).

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(2) Manually through the TPPS User Interface. This can be accomplished by creating an invoice from the service order.

6. Process 6 – Approval Required in TPPS:

TPPS uses the existing Shipment EDI 858 data from ETOPS to create the NTS-R’s invoice. The Services’ maximum price threshold will be set at $0, triggering a manual PPSO approval required for all invoices. Once the PPSO has approved the item and the NTS-R has entered the NOSC, the TPPS provider will pay the contractor. The PPSO will have 3 GBDs to approve, dispute, or deny Handle In and Handle Out invoices and 7 GBDs for Quarterly Invoices.

7. Process 7 – Audit Exception Process in the TPPS:

Audit Exceptions will not be a part of the interim NTS/NTS-R payment process.

8. Process 8 – TPPS Summary Invoice Generation and Certification:

At the end of the NTS-R TPPS billing cycle, the monthly summary invoice listing all payments with corresponding accounting information made by TPPS provider on behalf of the DoD to the NTS-R provider is generated. The monthly summary invoice will also include DoD credits. The PPSO Certifying Officers (COs) may access the monthly summary invoice online for review and certification. The PPSO COs also review the individual transactions presented on the monthly summary invoice and confirm the validity of accounting information used and the accuracy of costs. If the accounting information is incorrect, the PPSO COs uses the TPPS COA to update accounting information.

The monthly summary invoice may reflect two different sections for accounting data, an “electronic” (FA2-compliant) and a “manual” (text LOA) listing. If there is a manual listing on the PPSO’s monthly summary invoice, then the PPSO CO will print a hard-copy monthly summary invoice certifying the Text LOAs by signing and sending the report to the DFAS/FINCEN payment center. The PPSO CO must certify the monthly summary invoice within 5 GBDs of the monthly summary invoice being made available in the TPPS.

The TPPS provides a separate PPSO account for processing all NTS-R Contract charges (i.e., handling-in, handling-out, quarterly storage, and accessorial charges).

The monthly summary invoice billing cycle will be on the 25th calendar day of each month.

9. Process 9 – Reconciliation and Obligation Adjustment:

Reconciliation and Obligation Adjustment will not be included under the interim NTS/NTS-R TPPS electronic payment process.

10. Process 10 – The DFAS/Payment Center Approval and Processing of Payment to TPPS Provider:

Within 48 hours after monthly summary invoice certification, the TPPS creates an EDI 810 Invoice for each DFAS office using the electronic accounting data on the monthly summary invoice. The EDI 810 is a generic electronic interface for invoice data. The TPPS sends the EDI 810 to the GEX. The GEX translates the EDI 810s into UDF 810s and sends them to the DFAS.

Using the transmitted UDF 810, the DFAS pre-validates payments by confirming the existence and accuracy of the LOA and confirming sufficient funds were obligated. There is no tolerance level within the pre-validation process. If insufficient funds were obligated, by any amount, the invoice will not be approved for payment.

Once pre-validation is successful, the DFAS pays TPPS provider via an Electronic Funds Transfer (EFT).

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11. NTS/NTS-R TPPS Electronic Payment Process Flow:

Figure A-6. Interim NTS/NTS-R EBP Process Flow

a. 1. Monthly Invoice Preaudit: The PPSOs will execute a monthly audit process on active NTS-R lots within ETOPS to ensure shipment details are correct (e.g., NTS-R lots are authorized continued storage, proper weights have been entered).

b. 2. 858 Invoice Data: Invoice data EDI 858 from ETOPS to the TPPS: EDI 858 information is sent to the TPPS.

c. 3. NTS-R Contractor Invoice Created: The NTS-R invoice is created from the Government Order immediately after receiving the EDI858 data file.

d. 4. Optional NTS-R Invoice: The NTS-R can also submit an invoice either electronically in an EDI 859 or manually via the TPPS Web interface or accept the invoice created automatically by the TPPS in Paragraph 11.c above. If the contractor invoice in the TPPS does not match the TPPS order, the invoice will be in a status of “Audit Exception.” The Contractor receives the TSP Status Report via e-mail daily notifying the status of all the invoices in the TPPS. If there are denied line items, the Contractor accepts the partial payment (of the approved line items). The Contractor will resolve the denied line items with the PPSO and resend a supplemental invoice for those denied items to which they are entitled. The clock will restart at zero with the new invoice.

e. 5. 100 percent Approval Required: If the NTS-R invoice amount is above the maximum dollar threshold established by the Services, the transaction will be in “Approval Required” status and the PPSO has to provide approval in the TPPS before the Contractor is paid.

f. 6. NTS-R Contractor Payment: When the PPSO completes the approval required and the NTS-R enters the service completion, payment is executed.

g. 7. Monthly Statement: The monthly statement will cycle on the 25th of each month.

1. Monthly Invoice Preaudit

2. 858 Invoice Data(Govt Order)

3. TSP Invoice Created

5. 100% Approval Required

6. TSP Payment TPPS 4. Optional TSP

Invoice

7. Monthly Statement vTOPS

PPSO NTS TSP/NTS-R

DFAS

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NOTE: As part of the invoice verification process, the PPSO has the privilege to request hardcopy documentation from the NTS-R Contractor for any invoice. In addition, the PPSO is required to random sample in connection with this document. Under any circumstance, the PPSOs request for hard-copy documentation will result in the Prompt Payment Interest clock being stopped and restarted at 0 once documentation has been received by the TSP.

Invoicing Payment information

CLIN 0003 East Coast & West Coast Combined (for the base period and all options).

SLIN 0003AA—East Coast Handle In. The amount for this line item will be paid per gross CWT of HHG/UB handled-in and will be included on the first storage monthly invoice following start of storage.

SLIN 0003AB—East Coast Storage. Storage charges are payable per gross CWT of HHB/UB for a calendar month, except one-half month's storage charge shall be paid on lots received for storage on or after the 16th day of a month and lots released from storage on or before the 15th day of a month.

SLIN 0003AC—East Coast Handle Out. The amount for this line item will be paid per gross CWT of HHG/UB handled-out and will be included on the final storage monthly invoice.

SLIN 0003AD—West Coast Handle In. The amount for this line item will be paid per gross CWT of HHG/UB handled-in and will be included on the first storage monthly invoice following start of storage.

SLIN 0003AE—West Coast Storage. Storage charges are payable per gross CWT of HHB/UB for a calendar month, except one-half month's storage charge shall be paid on lots received for storage on or after the 16th day of a month and lots released from storage on or before the 15th day of a month.

SLIN 0003AF—West Coast Handle Out. The amount for this line item will be paid per gross CWT of HHG/UB handled-out and will be included on the final storage monthly invoice.

CLIN 0004—East and West Coast Combined—Transition. The amount for this line item will be paid per gross CWT.

SLIN XXXX - Repacking services due to damaged containers/mitigation efforts, authorized upon completion of service performed (multiple invoices are authorized).

SLIN XXXX - Replacement of containers (s) and seals cost, is authorized upon replacement of container (s) and seals (multiple invoices are authorized).

SLIN XXXX - Accessorial, Reweighs and Additional Miscellaneous items, is authorized upon completion of an approved service performed (multiple invoices are authorized).