Financial Systems and Interfaces: Order to Cash V.508C

DCMA Manual 4301-05, Volume 3

Financial Systems and Interfaces: Order to Cash

==========================================================

Office of Primary

Responsibility Stewardship Capability

Effective: September 8, 2019

Releasability: Cleared for public release

New Issuance

Implements: DCMA-INST 4301 “Stewardship,” July 18, 2018

Internal Control: Process flow and key controls are located on the Resource Page

Labor Codes: Not Applicable

Resource Page Link: https://360.dcma.mil/sites/policy/ST/SitePages/4301-05v3r.aspx

Approved by: David H. Lewis, VADM, USN, Director

______________________________________________________________________________

Purpose: This Order to Cash Defense Agencies Initiative Systems Manual is one of several

volumes each defining automated processes and related policies that govern the agency’s

implementation and usage of Defense Agencies Initiative. This Financial Systems and

Interfaces: Order to Cash Manual describes the automated processes by which DCMA receives

and processes reimbursable orders from receipt to billing and reconciliation. In accordance with

the authority in DoD Directive 5105.64, “Defense Contract Management Agency (DCMA),” this

Manual implements policies and defines procedures as defined in DCMA Instruction 4301.

DCMA-MAN 4301-05, Volume 3, September 8, 2019

Table of Contents 2

TABLE OF CONTENTS

SECTION 1: GENERAL ISSUANCE INFORMATION ..........................................................4

1.1. Applicability .......................................................................................................................4

1.2. Policy .................................................................................................................................4

1.3. Executive Summary ...........................................................................................................4

SECTION 2: RESPONSIBILITIES ............................................................................................6

2.1. Director, DCMA.................................................................................................................6

2.2. Executive Director, Financial and Business Operations .....................................................6

2.3. Director, International and Federal Business Division .......................................................6

2.4. Corporate Operations Directorate, Agency Support Agreement Manager .........................7

2.5. Director, Compliance and Accounting Division ................................................................7

2.6. Director, Financial Systems Division. ................................................................................7

2.7. Director, Budget Division. .................................................................................................8

2.8. Executive Director, Contracts Directorate ..........................................................................8

2.9. Operational Unit Commanders/Directors ...........................................................................8

2.10 Contract Management Office Commanders/Directors ......................................................8

SECTION 3: DEFENSE AGENCIES INITIATIVE ROLES AND RESPONSIBILITIES . 10

3.1. Process Responsibilities ................................................................................................... 10

3.2. DCMA/Defense Finance Accounting Services Roles Table ........................................... 10

SECTION 4: THE ORDER TO CASH PROCESS .................................................................. 14

4.1. Reimbursable Process in Defense Agencies Iniative ........................................................ 14

4.2. Processing of Reimbursable Order ................................................................................... 14

4.3. Reimbursable Order Process ............................................................................................ 15

4.4. Project and Tasks ............................................................................................................. 17

4.5. Establish and Unfilled Orders .......................................................................................... 19

4.6. Funds Control Budget ...................................................................................................... 20

4.7. Recording Costs ............................................................................................................... 20

4.8. Recognizing Revenue ....................................................................................................... 22

4.9. Billing ............................................................................................................................... 22

4.10. Collections of Invoices ................................................................................................... 22

4.11. Reimbursable Order Closeout ........................................................................................ 22

SECTION 5: MISCELLANEOUS PROCESSES .................................................................... 23

5.1. Unfunded Civilian Retirement ......................................................................................... 23

5.2. Military Personnel ............................................................................................................ 23

5.3. International and Federal Business Division Managed Direct Projects ............................ 23

SECTION 6: REPORTING ....................................................................................................... 25

6.1. Overview .......................................................................................................................... 25

6.2. Major Order to Cash Reports ........................................................................................... 26

SECTION 7: REIMBURSABLE LABOR CHARGES ........................................................... 27

7.1. Time and Labor Attributes ............................................................................................... 27

APPENDIX A. SYSTEMS .......................................................................................................... 30

IA. Defense Agencies Initiative Order to Cash Interfaces ......................................................30

DCMA-MAN 4301-05, Volume 3, September 8, 2019

Table of Contents 3

APPENDIX B. DCMA USER/DEFENSE AGENCIES INITIATIVE

RESPONSIBILITES MATRIX .................................................................................................. 31

IB. Responsibility Matrix ........................................................................................................31

APPENDIX C. WORK INSTRUCTIONS ................................................................................ 32

C1. Work Instructions ............................................................................................................. 32

GLOSSARY .................................................................................................................................. 33

G.1. Acronyms ........................................................................................................................ 33

REFERENCES ............................................................................................................................. 35

TABLES

Table 1. DCMA/Defense Finance Accounting Services Roles in DAI ......................................... 10

Table 2. Project and Task Setup Examples ................................................................................... 18

Table 3. Recognizing Revenues .................................................................................................... 21

Table 4. Major O2C Reports ......................................................................................................... 26

Table 5. DAI O2C Interfaces ........................................................................................................ 30

Table 6. Responsibility Matrix ...................................................................................................... 31

FIGURES

Figure 1. Reimbursable Order Work Flow .................................................................................... 14

Figure 2. DCN Structure ............................................................................................................... 21

DCMA-MAN 4301-05, Volume 3, September 8, 2019

Section 1: General Issuance Information 4

SECTION 1: GENERAL ISSUANCE INFORMATION

1.1. APPLICABILITY. This issuance applies to the DCMA Financial and Business

Operations Directorate (FB) and all employees, contingent workers and contractors of DCMA.

1.2. POLICY. Accurate and responsive reimbursable work order processes are a fundamental

responsibility of all DCMA Commanders/Directors, supervisors, and employees. All DCMA

employees have a fiduciary duty inherent in their roles as stewards of government resources and

must comply with the guidance outlined in this Manual. It is DCMA policy that:

a. Scope. Defense Agencies Initiative (DAI) Order to Cash (O2C) Module is the approved

Agency tool for the entry, acceptance, and approval of reimbursable financial and labor

execution data for the Agency. This module is utilized to perform Military Interdepartmental

Purchase Request (MIPR) acceptance, issuance, reimbursable order management, revenue,

billing, collections and reporting. It is used in conjunction with the Electronic Contract

Administration Request System (ECARS) which facilitates reimbursable order delegation.

b. Usage. DAI is the official financial data entry and repository system for DCMA.

c. Execution. Employees execute this Manual in a safe, efficient, effective, and ethical

manner.

1.3. EXECUTIVE SUMMARY.

a. Background. DAI was developed by the DoD to comply with its transformation goals to

modernize the Defense Agencies’ systems. DAI is also the name of the Enterprise Resource

Planning (ERP) tool that provides the basis for an integrated, enterprise-level solution for all

defense agencies. The goal of DAI is to modernize financial management capabilities and to

allow an Agency to manage internal and external resources including tangible assets, financial

resources, materials, and human capital. DAI facilitates the flow of information between internal

reimbursable business functions and manages connections to external stakeholders of the

Agency’s reimbursable program through the O2C module.

(1) The Oracle modules that support the O2C end-to-end process include Oracle

Projects, Oracle Receivables, Oracle General Ledger (GL), and Oracle Business Intelligence

Enterprise Edition (OBIEE). The DCMA DAI O2C module supports:

(a) Creation and maintenance of customer master data by Defense Finance

Accounting Service (DFAS) in coordination with the Defense Logistics Agency (DLA) DAI

Program Management Office (PMO).

(b) Reimbursable agreements without an advance.

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Section 1: General Issuance Information 5

(d) Billing of labor, non-labor, travel, and fringe and overhead charges as negotiated

in the agreement.

(e) Analysis of budget versus actuals, unfilled customer orders versus filled customer

orders, paid invoices versus not paid invoices, billed customer orders, receivables, revenues and

collections.

(f) Budgetary transactions and their impact on managerial and statutory financial

reports.

(g) Invoicing of receivables, billing, and collection of payment by DFAS.

(h) Reporting and data transfer between DCMA and DFAS.

(i) Closeout of Reimbursable Projects.

b. DAI Effort. The DAI is a critical DoD effort to modernize financial management

capabilities. DAI is an ERP tool that compiles the budget, finance, and accounting operations of

the DoD Agencies to:

(1) Achieve accurate and reliable financial information.

(2) Deploy a standardized system solution to improve overall financial management and

comply with the Department’s Business Enterprise Architecture (BEA) including Standard

Financial Information Structure, and Office of Federal Financial Management requirements.

(3) Attain Chief Financial Officer compliant business environments with accurate,

timely, authoritative financial data.

(4) Facilitate vendor payment.

c. All forms identified in this Manual can be found on the Manual’s Resource Page.

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Section 2: Responsibilities 6

SECTION 2: RESPONSIBILITIES

2.1. DIRECTOR, DCMA. The Director approves new and updated policy publications and is

responsible for ensuring Agency compliance with DoD financial management policy.

2.2. EXECUTIVE DIRECTOR, FINANCIAL AND BUSINESS OPERATIONS. The FB

Executive Director is responsible for oversight of DCMA’s utilization of the DAI O2C module.

This includes:

a. Oversight of the Agency’s reimbursable program, the Foreign Military Sales (FMS)

program and the financial systems of record that support the functional management of

reimbursables and FMS.

b. Ensuring the documentation the O2C functional processes in compliance with BEA 10.0.

c. Ensuring the identification of financial system process owners.

d. Ensuring compliance with DoD general regulatory and financial audit readiness guidance

which supports the O2C module.

2.3. DIRECTOR, INTERNATIONAL AND FEDERAL BUSINESS DIVISION. The

International and Federal Business Division (FBR) manages the Agency’s reimbursable program

and serves as the DoD Central Control Point for direct commercial sales contract administration

support to foreign governments. The FBR Director leads DCMA’s intergovernmental

procurement processes and is the process owner for the DAI O2C module responsible for:

a. Performing program management and administration of the O2C module in support of

Contract Administration Services (CAS) for FMS, National Aeronautics and Space

Administration (NASA), and other federal agencies.

b. Validating O2C source documents and creating, maintaining, and reporting DCMA

reimbursable program performance.

c. Monitoring O2C system performance and providing requirements as per reimbursable

business processes.

d. Performing system accounting and reconciliation of FMS cases and case closure in

coordination with the Compliance and Accounting Division and DFAS.

e. Documenting the O2C functional processes in compliance with BEA 10.0.

f. Monitoring compliance with DoD general regulatory and financial audit readiness

guidance which supports the O2C module.

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Section 2: Responsibilities 7

2.4. CORPORATE OPERATIONS DIRECTORATE, AGENCY SUPPORT

AGREEMENT MANAGER. The Agency Support Agreements Manager will:

a. Manage DCMA’s incoming and outgoing Support Agreements Program.

b. Serve as the Office of Primary Responsibility (OPR) for establishing all service provider

agreement efforts, to include but not limited to the following functions:

(1) Monitor the preparation of support agreements, and facilitate coordination and

approvals.

(2) Establish and maintain the Agency’s SharePoint site and catalog all agreements

between DCMA and its customers.

(3) Administer the support agreement as directed by the DCMA Director.

(4) Interface with Portfolio Management and Business Integration (PM&BI) and FBR on

workload acceptance issues when reviewing support agreements for proper coordination from

the DCMA Director.

(5) Facilitate agency training and materials necessary in preparing the support

agreements and supporting documents.

2.5. DIRECTOR, COMPLIANCE AND ACCOUNTING DIVISION. The Compliance and

Accounting Division (FBL) Director oversees accounting and financial support activities

regulations, policies, Defense Travel Systems, Manager’s Internal Control Program initiatives

related to reimbursable programs and is responsible for:

a. Providing expertise on reimbursable program accounting, financial statement impacts, and

audit remediation.

b. Performing oversight of the system accounting activities of the O2C module in support of

CAS for FMS, NASA and other federal agencies.

c. Overseeing and coordinating reimbursable program Financial Improvement and Audit

Remediation initiatives to ensure compliance with DoD and Federal regulations.

2.6. DIRECTOR, FINANCIAL SYSTEMS DIVISION. The Financial Systems Division

(FBS) Director develops and ensures strategic management of payroll accounting, budgeting,

execution, and financial planning systems. The FBS Director leads implementation of O2C

system capabilities used within DCMA and is responsible for:

a. Providing an Agency Level 1 Finance Support Desk that supports the O2C module in

post-implementation and on-going operations.

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Section 2: Responsibilities 8

b. Leading, planning, coordinating, and/or conducting systematic testing for O2C module

enhancements, upgrades and or patches.

c. Providing oversight of system interfaces that are in place to support O2C module in

coordination with DLA DAI PMO.

d. Providing O2C workforce training and documentation to assist in O2C module users’

performance of core functions using DAI.

e. Providing guidance on reimbursable payroll policy, processes and system interfaces.

2.7. DIRECTOR, BUDGET DIVISION. The Budget Division (FBB) Director develops the

budgetary process for managing reimbursable authority and the Foreign Contract Administration

Services (FCAS) direct funding authorization documents in coordination with the Director

International and Federal Business Division. FBB analyzes the execution of reimbursable full-

time equivalents and oversees the estimation, formulation, and execution of reimbursable

budgets.

2.8. EXECUTIVE DIRECTOR, CONTRACTS DIRECTORATE. The Contracts Executive

Directorate leads the development and deployment of Agency contracting policy and processes

for contract administration, services, and procurement. The Contracts Executive Directorate

assists with the establishment of reimbursable agreements and Memorandum of Agreements

(MOAs) covering contract administration function and supports the timely processing of

contracts that utilize reimbursable funds.

2.9. OPERATIONAL UNIT COMMANDERS/DIRECTORS. The Operational Unit

Commanders/Directors are responsible for:

a. Monitoring subordinate organization labor and non-labor charges in DAI against O2C

projects (reimbursable programs).

b. Validating subordinate organization execution and ensure planning and execution

documentation is prepared for proper reimbursement.

2.10. CONTRACT MANAGEMENT OFFICE COMMANDERS/DIRECTORS. The

Contract Management Office (CMO) Commanders/Directors will:

a. Ensure the availability and accuracy of financial data as their subordinates execute labor

and non-labor charges in DAI.

b. Notify external customers of the funding required to perform reimbursable services. This

will be completed in coordination with the Agency Support Agreements Manager and FBR by

identifying the specific work to be accomplished, determining the number of hours required, and

multiplying by the approved hourly rate.

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Section 2: Responsibilities 9

c. Ensure the workforce captures their time and attendance using the appropriate DAI project

and tasks codes to ensure costs are accurately recovered.

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Section 3: DAI Roles and Responsibilities 10

SECTION 3: DEFENSE AGENCIES INITIATIVE ROLES AND

RESPONSIBILITIES

3.1. PROCESS RESPONSIBILITIES. This section lists the DCMA/DFAS roles and

responsibilities that support the O2C process area. The functions are accomplished within the

O2C process areas include:

a. Entering and distributing reimbursable authority: FBB.

b. Accepting Customer order for reimbursable work: FBR/FBB.

c. Setting Up Order structure: FBR.

d. Approving Customer Order: FBR.

e. Digitally Signing Order Acceptance: FBR.

f. Processing approved funding documents in ECARS: FBR.

g. Processing Tasks within ECARS: CMO.

h. Charging of labor or non-labor costs: DCMA.

i. Processing month-end revenue and billings: DFAS/FBR/Accounting Branch, FB

Directorate (FBLA).

j. Generating standard reports to monitor the monthly, quarterly, and annual progress of the

reimbursable work – DCMA/DFAS

3.2. DCMA/DEFENSE FINANCE AND ACCOUNTING SERVICE ROLES TABLE.

DCMA/DFAS roles in DAI outlines the DAI role names and the Agency that may execute the

abilities listed.

Table 1. DCMA/DFAS Roles in DAI

DAI Role

DCMA / DFAS Role

Description of Abilities

O2C AR Inquiry

DCMA

DFAS

Ability to:

• View transactions, receipts and customer

accounts

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Section 3: DAI Roles and Responsibilities 11

Table 1. DCMA/DFAS Roles in DAI, Continued

DAI Role DCMA / DFAS Role Description of Abilities

O2C AR Customer

Maintenance

DFAS

Ability to:

• Enter and maintain customers

• Set up and maintain bank accounts

• View transaction batch in summary

• View transactions

• View transactions in summary

• View receipts batch in summary

• View receipts

• View receipts in summary

• View scheduler

• View customer accounts and overview

• View aging, correspondence, account details,

and transaction overview

O2C AR Manager

DFAS

Ability to:

• Enter and maintain AR invoice transactions

• Enter and maintain receipts and customer

accounts

• Set up bank accounts

• View transactions

• Run accounting, collection, tax and listing

reports

• Submit AR to GL transfer program

• Print dunning letters, statements and invoices

O2C CA Project

Manager

DCMA

Ability to:

• Perform project status inquiry

• Create and maintain contract projects, add

DCNs

• Ability to approve and digitally sign

agreements

O2C CA Order Entry

CMO

DCMA

Ability to:

• Review project status and expenditures

• Create and maintain contract projects,

agreements and input agreement funding

O2C Billing

Manager

DFAS

Ability to:

• Inquire on agreements and agreement funding

• Enter and maintain revenue and billing events

• Inquire on expenditures and project status

• Run processes to create revenue and billing

transactions

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Section 3: DAI Roles and Responsibilities 12

Table 1. DCMA/DFAS Roles in DAI, Continued

DAI Role DCMA / DFAS Role Description of Abilities

O2C Billing

Manager

DFAS

Ability to:

• Inquire on agreements and agreement funding

• Enter and maintain revenue and billing events

• Inquire on expenditures and project status

• Run processes to create revenue and billing

transactions

Fed Admin Inquiry

DCMA

Ability to:

• Inquire on Federal Admin Functions including:

• Validate Treasury confirmation

• Find Central Contractor Registration (CCR)

Vendors

• Research Account Payable (AP) Invoice Status

• Make prior-year upward and downward

adjustments to obligations

• Cross-reference related documents

• Customer AR invoice status

• Funds available online at detail and summary

levels

• Budget level and the amount available for that

budget level

• Record receipts or acceptance transactions that

received in a prior period that have closed

• Run Budget to Report related requests/reports

• View Sub-ledger Accounting Details

• View AR Transaction

• View AR Receipt

• View AR Adjustment

• View AP Invoice, AP Payment

• View Sub-ledger Journal Entry Lines from a

GL Journal

• Ability to Enter Budget Authority

DCMA-MAN 4301-05, Volume 3, September 8, 2019

Section 3: DAI Roles and Responsibilities 13

Table 1. DCMA/DFAS Roles in DAI, Continued

DAI Role DCMA / DFAS Role Description of Abilities

• View Budget Transactions Summary and

Budget Distributions

P2P Procurement

Officer DCMA

DCMA

Ability to Perform transactions for Council of

Logistic Management or Command, Leadership

and Management (CLM) Award Transactions

which include:

• AutoCreate a Requisition-ability to enter a

direct Purchase Order (PO)

• Run Purchasing and Payables Reports

• Manage Deliverables

• Create Awards and Modifications

• Implement Amendment for Purchasing Buyer

• PO CLM & PO CLM MIPR Own Un-

processed requests

Ability to Inquire:

• Invoices

• Awards & Modifications

• View – Suppliers, CCR Vendors, Requisitions,

PO, Exceeded Price Tolerances, Pending PO

Changes, PO Change History, PO CLM & PO

CLM MIPR Own Un-processed requests

• 1080 Core DAI Reports

Ability to Acknowledge MIPR

• With approved digital signature on file with

DLA DAI PMO

Deployment transportation invoices

P2P Cost

Distributions

DCMA

Ability to create and process physical invoices

• Transportation invoices

• Utility invoices

DCMA-MAN 4301-05, Volume 3, September 8, 2019

Section 4: The Order to Cash Process 14

SECTION 4: THE ORDER TO CASH PROCESS

4.1. REIMBURSABLE PROCESSES IN DEFENSE AGENCIES INITIATIVE. The

reimbursable business process is executed using the Oracle O2C module within DAI. The

business process for management of reimbursable orders includes the:

a. Setup and maintenance and verification of customer information.

b. Setup of projects and task for reimbursable orders.

c. Approval of agreements, acceptance of the DoD Form (DD Form) 448, "Military

Interdepartmental Purchase Request" and DD Form 448-2, “Acceptance of MIPR, or

reimbursable agreement for reimbursable orders.

d Charging of costs to reimbursable orders.

d. Recognizing revenue for reimbursable orders that are balanced out

f. Billing of reimbursable orders to the requestor

g. Amendment and modification of reimbursable orders

h. Closeout of reimbursable orders

i. Updating of the GL

j. Support of the Dormant Accounts Review-Quarterly (DAR-Q) processes

k. Completion of reconciliations between financial reports (Trial Balance, Status of Funds,

and Quantitative Drill Downs (QDD))

4.2. PROCESSING OF A REIMBURSABLE ORDER. Reimbursable Order Work Flow,

which is illustrated in Figure 1, shows how to record a reimbursable order in DAI as well as

downstream processing activities.

Figure 1. Reimbursable Order Work Flow

DCMA

Establish

Agreement

DFAS

Manage

Customer

Records

DCMA

Create

Projects

DCMA

Create Order

(Project

Contract

Organizer)

DCMA

Approve

Orders

(448-2)

DFAS

Manage

Accounts

Receivables

DFAS

Manage

Cash

Collections

DCMA-MAN 4301-05, Volume 3, September 8, 2019

Section 4: The Order to Cash Process 15

4.3. REIMBURSABLE ORDER PROCESS.

a. Overview. The reimbursement process is utilized when an Agency needs goods or

services that another Agency can provide. During this process, an issuing government activity

transfers funds via the DD Form 448 to a receiving Agency at a predetermined cost and

repayment schedule. The government activity providing the goods and/or services incurs the

initial costs. A Standard Form (SF) 1080, “Voucher for Transfers Between Appropriations

and/or Funds” billing is created, requesting prompt reimbursement from the entity that received

the goods and/or services. Reimbursement by the requesting Agency/entity to the Agency/entity

providing the goods and/or services concludes the reimbursement process. After both agencies

approve a reimbursable agreement for services, the O2C process formally starts with the receipt

of an official funding document. The funding document is either a MIPR or a NASA

Interdepartmental Purchase Request. Examples of agreements include a Memorandum of

Agreement (MOA), Financial Management Service Form (FMS Form) 7600A/B, or

"Interagency Agreement (IAA) – Agreement Between Federal Agencies." A Memorandum of

Understanding (MOU) may be completed as an ancillary document to an agreement to provide

further agreement details.

b. Agreement Establishment

(1) The initial step in the reimbursable process is to establish a detailed support

agreement such as an IAA or an MOA between the two entities that serves as the foundation of

the MIPR.

(a) The support agreement provides the scope of the agreement, terms and

conditions, defines the responsibilities, and identifies the source of funding.

(b) The support agreement can be established before or after the operating budget

authority is received.

representative and the DCMA Comptroller when DCMA is the servicing Agency and before the

order may be received. For orders that are award reimbursements, a support agreement is not

required.

(2) Funding Documents. The entity requesting the goods or services issues either a DD

Form 448, a NASA Form 523, “NASA Interdepartmental Purchase Request,” or an IAA, FMS

Form 7600-B, as funding documentation to DCMA. The funding document identifies what the

entity is requesting and the funding terms. After the issuance of the document, the requesting

entity records the transaction as a commitment in their financial system of record, which reserves

and commits the funds for the transaction. Required information on the funding document

includes:

a. Agreement funded amount for provided services.

b. A detailed description of services.

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Section 4: The Order to Cash Process 16

c. Billing terms.

d. Address to send an SF 1080 billing.

e. Method of reimbursement used.

f. Accounting classification charged.

g. Signature of authorized individual.

h. Fundholder delegation documentation.

i. Source and type of funds.

j. Period of performance.

k. Time period fund are available.

(3) The official funding document may cite either a direct or reimbursement authority.

(a) The direct cite is the amount of funds from the annual operating budget that is

immediately available to the agencies for commitment and obligation. The funding document

provides the issuer’s line of accounting for direct usage versus the receiving Agency’s line of

accounting being used to incur costs, followed by a billing process. Direct cite may only be used

for non-labor requirements in DAI and is the least preferred reimbursable funding method.

(b) The reimbursement authority is the reserved amount of funds from the annual

operating budget that is for reimbursable operational transactions. The term reimbursable

operational transaction refers to expected revenue by an activity for goods or services provided

to a requesting entity. Reimbursable transactions are completed after the acceptance of orders by

the reimbursement authority of the servicing Agency/providing activity. DCMA incurs the

initial costs of the agreement. The issuing Agency is billed in the amount of those costs by

DFAS.

activity and the requesting entity.

c. Manage Customer Records.

(1) The FBR Analyst or Project Manager will verify the customer data in DAI against

the customer funding document received by DCMA.

(2) This procedure is conducted whenever a new funding document is received by the

Agency to determine if the customer account already exists in DAI and is correct.

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Section 4: The Order to Cash Process 17

(3) DFAS is responsible for the creation and maintenance of DAI customer records.

(4) The FBR Analyst is responsible for requesting any required customer master data

updates through the DFAS.

d. Order Revenue. The Agency utilizes the DAI project to facilitate the reimbursement

order process and to capture Agency revenue. Each reimbursable DAI project represents one

external customer order. DAI uses the project-centric approach to track expenditures, revenue,

billing, and collections. A project can contain one or more tasks with a finite start and end date.

(1) DAI uses a work breakdown structure composed of tasks and subtasks.

(2) Projects must have at least one task but may have multiple tasks and subtasks.

(3) Costs are reported by project, task, object class, expenditure type, or based on

attributes entered when creating the project. The DAI Procure to Payment (P2P) and Oracle

Time and Labor (OTL) modules are used to record costs against the associated reimbursable

agreement.

(4) The project-centric approach also facilitates:

(a) Assignment of costs for work performed using cost distributions, transfers, and

allocations.

(b) Amendments and modifications to orders

agreements.

(d) Monitoring and reporting of reimbursable execution

4.4. PROJECT AND TASKS.

a. Funding Document Receipt and Verification. Upon receipt of an official funding

document from a customer, an FBR Analyst will validate the existence of the customer in DAI as

identified on the funding document. The DCMA FBR Analyst verifies that the reimbursable

authority cited in the official funding document exists and the establishment of funding for the

reimbursable agreement. If the customer does not exist in DAI, FBR will request DFAS add the

customer as a supplier in DAI with their corresponding standard line of accounting (SLOA).

b. Project Setup. Official funding documents may have separate projects created in DAI.

FBR is responsible for creating the customer’s project and task. The FBR Analyst is responsible

for:

(1) Establishing Project and Task(s) according to the funding document parameters.

(2) Identifying Key Members, which may include a Project Manager, Project Approver,

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Section 4: The Order to Cash Process 18

Contract Administrator, and a Budget Approver

(3) Identify task level revenue and billing parameters.

(4) Establishing the workflow approval process.

c. Task Funding and Cost. Project funding is distributed to the top task(s) of a project, and

it is from this level that the customer is billed. While the top-level task(s) are configured

billable, the tasks at the lowest level are configured to allow charges, which provides visibility of

costs at the lowest task level. If a Document Control Number (DCN) is required for a project, an

FBR Analyst or Employee Supervisor will submit a request to the DCMA DAI Service Center

(FBSO) Tier I Help Desk to enter the DCN into DAI as a subtask of the project. Employee labor

is charged to the DCN subtask of the project.

d. Project Structure. The project structure will vary based on the type of customer and

type of services provided as depicted in Table 2.

Table 2. Project and Task Setup Examples

Order Type

Project Number/

Name

Task Number/

Name

Sub-Task Number/

Name

NASA

NASA_FY

(ex. NASA_2019)

MIPR#_UIC

Populated based upon the

DCNs

FMS CONUS

FMS_CONUS_FY

(ex. FMS__CONUS_2019)

MIPR#_UIC

UIC_CMO

FMS OCONUS

FMS_OCONUS_FY

(ex. FMS__OCONUS_2019)

MIPR#_UIC

UIC_CMO_Purpose

(ex. LABOR, NONLABOR,

NONLABOR TRAVEL)

FEDCAS/

Miscellaneous

MIPR

MIPR Number

(ex. HSCG38-19-X-JFT001)

MIPR#_UIC

Populated based upon DCNs/

N/A

FCAS

(Direct or

Reimbursable)

COUNTRY_CASE_FY

(ex. IS_F_ADL_2019)

Line Number-UIC

(ex. 18-003-P6)

Populated based upon the

DCNs

Foreign Military

Sales

Administrative

(FMS ADMIN)

(Direct)

FMS_ADMIN_FY

(ex. FMS_ADMIN_2019)

Purpose

(ex. LABOR, TRAVEL)

N/A

Reciprocity or

“No Charge”

COUNTRY_CASE_NC

UIC

Populated based upon the

DCNs

e. DCMA Supported Projects. The major reimbursable projects supported by DCMA are:

DCMA-MAN 4301-05, Volume 3, September 8, 2019

Section 4: The Order to Cash Process 19

(1) FMS CONUS CAS.

(2) FMS OCONUS CAS.

(3) NASA CAS.

(4) FCAS.

(5) Other miscellaneous work for other DoD customers supported by MIPR.

(6) Foreign Military Sales Trust Fund Administration (FMS ADMIN).

(7) Reciprocity or “No Charge” Programs.

f. Modification to existing projects. Changes to projects will follow the standard processes

as outlined in the work instructions in Appendix A. Projects are end-dated after filled orders are

completed or funds are returned to the external customer to prevent unauthorized usage for labor

or non-labor charges.

4.5. ESTABLISH AN UNFILLED ORDER.

a. Reimbursable Order Acceptance. The basic MIPR funding and acceptance occurs with

the project contract organizer feature within the DAI O2C module. This process establishes an

unfilled order. A completed DD Form 448-2 is the binding agreement mechanism that fiscally

obligates the customer to DCMA. When the approved DD Form 448-2 is received, the

requesting Agency’s commitment becomes an obligation in their financial system of record. The

issuing Agency is obligated to pay this amount to DCMA for the services delivered.

b. Process Execution. DAI requires project details before executing funding orders. It is

the responsibility of the FBR analyst with the associated DAI Project Contract Organizer role to

confirm that the data entered into DAI matches the agreement terms and:

(1) Verify the contract number.

(2) Verify the MIPR signature date.

(3) Verify customer order amount.

(4) Attach the customer’s funding document.

(5) Verify billing information, quantity, a unit of measure, and the customer’s SLOA.

(6) Verify contacts.

(7) Verify agreement conditions.

DCMA-MAN 4301-05, Volume 3, September 8, 2019

Section 4: The Order to Cash Process 20

c. Budget Execution. The process of reimbursable order acceptance results in the approval

of the DD Form 448-2 by the Contract administrator as well as the creation of the revenue

budget at the allotment level 3. The order approval workflow creates the revenue budget at the

top task level, the Fed Admin Allotment entry, the project cost budget, and sub-allotment entry

with enabled automatic cost budget for the project. The Contract Administrator digitally signs

the DD Form 448-2 within DAI. This DD Form 448-2 is manually downloaded and provided to

the customer Agency for input into their financial system of record.

d. Amendments to existing orders. Amendments and modification to reimbursable orders

will follow the standard processes as outlined in the work instructions in Appendix C.

4.6. FUNDS CONTROL BUDGET.

a. Process Overview. After the creation of the project structure and the contract, the

administrator establishes the revenue budget and the Funds Control Budget is created. The funds

control budget is automatic for projects with only one top task and no subtasks once the DD

Form 448-2 is approved. However, for projects with subtasks, the project is funded by the

Manual establishment of a Funds Control Budget. A Funds Control Budget is entered at the

highest or lowest level task on a project. If entered at the highest level task on the project, the

Funds Control Budget, the costs charged to lower level tasks will accumulate until the amount

funded at the top task is reached. If the funds control budget is entered at the lowest level task

on the project, then the costs charged to lower level tasks will accumulate at the funded levels on

each task separately.

b. Budget Approval. When the Budget Approver key member approves a Budget, sub-

allotment entries are created automatically in Fed Admin as a result of project verification budget

integration. The O2C order approval workflow performed by the Budget Approver reserves and

baselines the agreement funding as outlined in the agreement. DCMA uses burdened cost for

amount types in DAI budget lines. Established projects are set by default to have their budgets

automatically adjusted if they have one task only. Projects that have tasks with subtask(s) must

have all budget modifications funds control cost budget data entered and Manually modified for

the life of the project.

c. Budget Adjustment. Budgets are established monthly, quarterly, or annually, and are

added or modified on an ad hoc basis. Budget entries or adjustments are made in the current

accounting period. Budget adjustments will follow the standard processes as outlined in the

work instructions in Appendix C.

4.7. RECORDING COSTS.

a. Labor Costs. DAI will only allow timecard charges on active reimbursable tasks that are

set to allow charges. FBR utilizes ECARs in coordination with the applicable CMO to create

DCNs for reimbursable work delegations.

DCMA-MAN 4301-05, Volume 3, September 8, 2019

Section 4: The Order to Cash Process 21

(1) The ECARs DCN data is then used to create a task or subtask for labor charges

against a reimbursable or direct project as required for FCAS and Reciprocity programs. The

DCN structure is shown in Figure 2.

(2) Employee Time Users can record their time and attendance in the DAI OTL Module

using the tasks associated with the appropriate reimbursable or direct project (See Appendix D).

Employees and supervisors are responsible for selecting and approving timecard charges while

ensuring that timecard entries reflect the program that the employee is supporting.

b. Non-labor Costs. Non-labor costs are recorded against the project/task via the P2P

process. These include charges for travel, contracts, and so forth.

c. Indirect Costs. Indirect costs are charged against the project/task via the Cost Allocation

process.

d. Cost Transfers. FBLA can transfer costs between labor projects in DAI when costs

should be applied against a reimbursable order. All reimbursable cost transfers are done using

expenditure type 253.30 as a Global Rule for Cost Accounting allocations and P2P Cost

Distributions.

e. Cost Distribution. If a Labor Allocation requires a change to the fund and/or limit, then

a Manual P2P Cost Distribution is completed by FBLA so that a Voucher and Schedule of

Withdrawals and Credits (SF 1081) can be generated out of DAI. Upon the completion of the SF

1081 in DAI at the Agency level, DFAS completes the final invoice and payment. Non-Labor

Transfers/allocations are done in P2P as a cost distribution.

f. Cost Allocations. Cost Allocations (CA) in projects are performed for labor transactions

and only if the fund (excluding the direct/reimbursable flag) and limit are the same between the

source and target project. All reimbursable cost allocations are done using expenditure type

253.30 as a Global Rule for Cost Accounting allocations.

Figure 2 – Document Control Number Structure

DCMA-MAN 4301-05, Volume 3, September 8, 2019

Section 4: The Order to Cash Process 22

4.8. RECOGNIZING REVENUE. Revenue is recognized, billed, and collected by DFAS for

DCMA on the first working day after the DAI functional and technical closes each month for the

previous month’s billings with a GL posting.

Table 3 – Recognizing Revenue

Order Type

Revenue Recognition Method

Miscellaneous/Manual MIPR

Based on Cost Incurred or

Labor hour X billing rate

NASA Funding

Labor – Based on Labor hour X billing rate

Non Labor – Based on Cost Incurred

FEDCAS

Labor – Based on Labor hour X billing rate

Non Labor – Based on Cost Incurred

FCAS

Labor – Based on Labor hour X billing rate

Non Labor – Based on Cost Incurred

FMS CONUS

Based on Cost Allocation using CONUS

Reimbursable Percentage

FMS OCONUS

Labor Full Time= Actual costs

Labor Part Time= Labor hour X billing rate

Non-labor= Actual costs

4.9. BILLING. Orders are billed in accordance with (IAW) the official funding document. The

month beginning process is executed by DFAS for DCMA 1 to 2 working days after the month-

end process is complete. To recover the costs incurred, as outlined in the official funding

document, DFAS executes the month-end process by billing the customer Agency through the

end-to-end revenue generation process. This produces an automated AR invoice SF 1080 that is

processed through Defense Cash Accountability System (DCAS), Intra-Governmental Payment

and Collections (IPAC) or a printed SF 1080 and collected on behalf of the servicing Agency.

4.10. COLLECTIONS OF INVOICES. DFAS is responsible for processing IPAC and DCAS

collections and applying them to the associated invoices for reimbursable work. When DCMA

initiates a bill to an outside Agency, the physical invoice is created in DAI since it cannot flow in

from the Wide Area Workflow. This method is used by outside vendors for billing DCMA.

DFAS is responsible for discrepancy review and reconciliation of billings to collections in

coordination with DCMA.

4.11. REIMBURSABLE ORDER CLOSEOUT. Reimbursable order revenue, collections and

billings are reconciled monthly. A reimbursable order may be closed out when the order value is

completely earned by the Agency. If the order value will not be fully earned, then funds are

returned to the customer as per the customer agreement.

DCMA-MAN 4301-05, Volume 3, September 8, 2019

Section 5: Miscellaneous Processes 23

SECTION 5: MISCELLANEOUS PROCESSES

5.1. UNFUNDED CIVILIAN RETIREMENT.

a. Overview. DCMA applies the civilian personnel fringe benefit rate to civilian labor costs

incurred in support of reimbursable orders as appropriate. These rates are used when billing

other DoD components, federal agencies and private parties pursuant to Volume 11A, Chapter 6

of DoD 7000-R, “DoD Financial Management Regulations (FMRS).” Also, DCMA processes

billings to the FMS Administrative Charge Account and FMS cases under the provisions of DoD

7000.14-R, Volume 15, Chapter 7. FBR utilizes the DoD Civilian Personnel Fringe Benefit

Rates as published by the Office of the Under Secretary of Defense (OUSD) annually.

b. Process.

(1) When DCMA accepts an FMS CONUS or OCONUS MIPR, FBR ensures that an

O2C-WOA-EE project is created and accept the order utilizing the 97R3041 fund. In

coordination with DFAS, FBR creates a manual billing event. DFAS completes the end-to-end

Revenue and Billing processes and a DCAS SF1080

(2) When DCMA accepts an FCAS Funding Authorization Document (FAD) from

Defense Security Cooperation Agency (DSCA) via Program and Budget Accounting System,

FBR creates a Miscellaneous Obligation Reimbursable Document in DAI using the applicable

FMS case project and the supplier as Department of Treasury 38553. The FBR Analyst attaches

the OUSD rate memo for the fiscal year for which the Unit Cost Report is being paid and inputs

the Case Identifier in the Distribution Tab. In coordination with DFAS and FBR, FBLA creates

a physical SF 1080, and submits this physical document to DFAS Columbus/Indianapolis for

processing.

5.2. MILITARY PERSONNEL.

a. Overview. Military appropriations fund the costs of salaries and other compensation for

active and retired military personnel and reserve forces based on end strength. DCMA identifies

Military Personnel (MILPERS) reimbursement annually in support of FMS OCONUS funded

operations.

b. Process. FBR provides DSCA the amounts to be reimbursed to the individual MILPERS

accounts. DSCA will in turn issue MIPRs to each uniformed service for its share of the

MILPERS reimbursement.

5.3. INTERNATIONAL AND FEDERAL BUSINESS DIVISION MANAGED DIRECT

PROJECTS. DCMA receives an annual FAD from DSCA which provides funds for DCMA

work in support of the FMS program to provide security assistance authorized by the Arms

Export Control Act (AECA) as well as the FCAS program.

a. FCAS. DCMA receives a Letter of Offer and Acceptance (LOA), which is a foreign

government to US government agreement that identifies the services, terms, and conditions

DCMA-MAN 4301-05, Volume 3, September 8, 2019

Section 5: Miscellaneous Processes 24

required by the requesting government. This LOA, once approved, defines the FMS Case and

Line which are referenced in the FAD received by DCMA. Since the FAD constitutes a direct

multi or no-year appropriation (978242YYYYD), the FCAS projects may be established as

direct or as reimbursable projects. These projects may alternatively be established through the

DAI O2C module as reimbursable projects with the utilization of an internal DCMA MIPR from

the 97824YYYYD fund to the 970100YYYYR fund IAW Volume 11A, Chapter 3, para 030105

of the DoD 7000.14-R. FBR manages the project execution and FBB manages the budget

appropriation, apportionment, allotment and sub-allotment for these projects when they are

established as direct projects. FBR manages the project execution, allotment and sub-allotment

budget levels and FBB manages the budget appropriation and apportionment levels for these

projects when they are established as reimbursable projects.

b. FMS ADMIN. DSCA is responsible for and manages the FMS Trust Fund,

Administrative Surcharge Account and provides a FAD on a quarterly basis to DCMA for its

FMS casework based upon an assessed fee on all FMS cases in compliance with the AECA,

Section 21 (e)(1). DCMA utilizes these funds to cover the management and execution of FMS

programs. FBB receives and loads the budget appropriation, apportionment and allotment levels

for this project. FBR manages the project execution and sub-allotment budget levels for FMS

ADMIN.

DCMA-MAN 4301-05, Volume 3, September 8, 2019

Section 6: Reporting 25

SECTION 6: REPORTING

6.1. OVERVIEW. Reimbursable orders are reviewed each month to confirm that costs are

being charged to the project, revenue is being recorded in the proper period, bills are being sent

and collected, and that the unearned balance is accurate. Monthly monitoring will also alert the

Agency to overruns or other resource issues. FBR utilizes DCMA tailored reports from the

Reimbursable dashboard as well as the Global O2C Reports within OBIEE. These dashboards

contains tabs for key reports used to monitor the O2C process.

a. Reimbursable Dashboard. This dashboard contains reports that were requested by the

Agency and developed by Agency personnel in coordination with DLA DAI PMO. They

include:

(1) Reimbursable Task Cost/Revenue Status.

(2) Reimbursable Expenditure Revenue Billing.

(3) Expenditure Cost Distribution.

(4) Reimbursable Status of Funds.

(5) Labor Costs by DCN.

(6) Funds Status with Revenue/Billing/Collections.

(7) Project Expenditures.

b. Global Reports O2C Dashboard. This dashboard contains reports that were developed

by DLA DAI PMO for usage by the DAI O2C community of practice. They include:

(1) Customer Listing.

(2) Contract Project Report.

(3) Agreement Funding Status Report.

(4) Reimbursable Revenue and Cost Budget Report.

(5) Reimbursable Allotment/Sub-Allotment Details.

(6) Project Expenditure Details.

(7) Reimbursable Task Cost Status.

(8) Reimbursable Status.

DCMA-MAN 4301-05, Volume 3, September 8, 2019

Section 6: Reporting 26

(9) Reimbursable Trial Balance.

(10) Cash Receipt Status Report.

(11) Accounts Receivable Aging Report.

(12) Customer Invoice Receipts Status Report.

6.2. MAJOR ORDER TO CASH REPORTS Major O2C Reports lists the main O2C specific

reports that have been identified to support the O2C module.

Table 4. Major Order to Cash Reports

Report

Report Description

Agreement Status by Customer

Report

This report can run for all customers or a specific customer, and

all agreements or a specific agreement. The report displays

revenue and invoice amounts accrued and amounts awaiting

accrual. The report also displays revenue budget amounts not yet

allocated (baselined), and revenue and invoice “Limits.” This

report can typically be part of the DFAS revenue/billing month

end process.

Auto Close Report

This report can run for a specific fund. The report shows the

entire financial status of a customer order, from amount funded, to

amount collected, earned, billed, and disbursed.

Funds Available-Funding

Distribution

Shows total appropriated, apportioned, allotted, sub-allotted, and

sub-allowance totals

OBIEE Budget Summary

Report

This custom report shows budget detail information by Fund.

Fund organizes the report, the project, and task. The report also

contains a total dollar amount for the budget details by the fund.

This report reflects balances as of the time the report is run.

Project Billing Status Report

This report shows all projects assigned to a project manager, along

with invoice method, top task, project number, project name, and

invoice date, bill through, days since, next billing date, next event

amount, pending invoice amount, revenue amount, invoice

amount, unbilled amount, and unbilled receivable amount.

Project Status Inquiry Report

This report describes all budgeting and expense activity for a

specific project.

Quantitative Drill-Down Report

The QDD Report is a log of all transactions that hit the United

States Standard GL. It is used for research to determine the

accounting elements contained in each transaction.

Trial Balance by Treasury

Symbol

This standard report shows the beginning and ending balances

with debit and credit amounts. The report can be run for period

end data or fiscal year-end data. The report is arranged by several

parameters including, fund, treasury symbol, Budget Authority,

Budget Sub-Allotment, Budget Line Item, and limit.

DCMA-MAN 4301-05, Volume 3, September 8, 2019

Section 7: Reimbursable Labor Charges 27

SECTION 7: REIMBURSABLE LABOR CHARGES

7.1. TIME AND LABOR ATTRIBUTES. Time and labor attributes include elements that are

associated with charged time. The time and labor attributes allowed in DAI include Project,

Tasks, Type of hours, Environmental Hazard Other Code, if appropriate, and Other Timecard

Attributes.

a. Projects and Tasks. Projects and tasks for DCMA labor represent the funding source for

hours charged, such as a reimbursable funding document or appropriation from a customer. The

project and task must be selected appropriately by the employee completing the time card. New

project and task combinations are created every fiscal year to account for new funding sources

from reimbursable agreements. Some reimbursable projects and tasks identify a specific DCN

for reimbursable charges. DCNs are used by employees to identify reimbursable labor hours in

the “Task” field of the time card. Currently, the DCNs are generated by the ECARS eTool when

the service request is created and assigned through the ECARS system.

(1) Project and Task. Every row on a DAI timecard requires a project and task. The

project and task for an employee represents their funding source from the Defense Civilian

Personnel Data System and Defense Civilian Pay System. Supervisors are responsible for

ensuring that employees utilize the correct project and task on their timecards. Limited

Timekeepers are responsible for reviewing timecard submissions periodically to ensure

correctness and completion.

(2) ECARS versus non-ECARS projects.

(a) ECARS assigns delegations to the appropriate CMO for acceptance and

execution. ECARS generates a DCN associated to that specific delegation. The DCN is loaded

into DAI and populates the time and attendance application for the assigned workforce to charge

their time to that project. DCNs are loaded Manually in DAI from data reported from ECARS.

ECARS delegations/projects include both reimbursable and reciprocal work (international

reciprocal agreements).

(b) Non-ECARS delegations are not loaded into ECARS, but the labor projects are

loaded into DAI for timekeeping purposes. For example, FMS supporting DoD/Military

Department procurements and some non-Labor MIPRs are not loaded into ECARS.

(3) FMS CONUS Program. The FMS CONUS program is non-ECARS managed. Its

project name utilizes the program and current Fiscal Year (FY) (For example:

FMS_CONUS_2019. Its tasks are configured using specific Unit Identification Code (UIC) (for

example: P6_AE_Labor)) and the type of labor to be recorded (for example: FMS_Labor). The

work type is Regular Graded and Military and the Process Code is as appropriate for the direct or

indirect work performed.

(4) FMS OCONUS Program. The FMS OCONUS program is non-ECARS managed.

Its project name utilizes the program and current FY (For example: FMS_OCONUS_2019 and

the task is descriptive of the UIC, CMO and type of labor to be recorded (for example:

DCMA-MAN 4301-05, Volume 3, September 8, 2019

Section 7: Reimbursable Labor Charges 28

P3_GA_FMS_ PT_LABOR). Full-Time employees can use All Work Types (Regular,

Overtime, Comp-time, and Credit) for this project. Part-time employees can only use the

Regular Work Type. Use the appropriate Process Code for the work performed.

(5) NASA Program. This program is managed in ECARS. The DAI project name

utilizes the customer and current FY (For example: NASA_2019). The DAI task reflects the

assigned DCN from ECARs (i.e., SCN01A1509040626-19-NES). For NASA projects the work

Types are Regular Work or Overtime (programmed and Un-programmed). Enter the appropriate

Process Code and Agency Code for the work performed. For Headquarters and Region

management activities, a UIC_INDIRECT_LABOR task is also available within the NASA

project for non-delegated management labor activities.

(6) FCAS Direct Commercial Sales Contract. This program is managed in ECARS. The

DAI project utilizes the Case Number and current FY. For example, if you are providing

services for Israel’s DCS contract the project is IS_F_ADL_2019, the task is the assigned DCN

(i.e., S1111A1504039951-19-IPC). The only authorized work Type is Regular Work and the

appropriate Process Code for the work performed. FCAS projects use only time charged in

whole or half hour increments.

(7) Reciprocal No Charge FCAS Delegations. This program is managed in ECARS.

The DAI project utilizes the two-letter Country Code with No Charge (NC) acronym and current

FY. For example, if you are providing services for Germany’s DCS contract the project is

GY_NC_2019. The task is the assigned DCN (S0305A1406038941-19-IQA). The only work

Type is Regular Work and the appropriate Process Code for the services provided.

(8) DoD and other Agencies (non-core work) - MIPR. MIPRs may be managed in

ECARS unless a delegation is not required. The DAI project reflects the MIPR number (For

example: XXXXXX_19_X_xxxxx) the task is the MIPR and UIC/organization description.

(9) Non-DoD Federal Agencies Labor - MIPR. The project is loaded and managed in

ECARS. The Project is the actual MIPR # (HSCG38_19_X_JFT001) the task is the assigned

DCN. The work Type is only Regular Work and the appropriate Process Code for the work

performed.

(10) Non-DoD Federal Agencies Non-Labor – Travel. The project is not loaded in

ECARS. The Project is the actual MIPR number, and the task is the specific Labor Code. The

only authorized work type is Regular Graded and Military. The appropriate Process Code for

Direct Travel is D9998 – TDY Travel. For Indirect Travel, process code IDS05 would be used.

(11) DoD Awards. The project is not loaded in ECARS. The Project and task is the

actual MIPR number. These awards are exempt from an agreement and are processed in

coordination with CMO and FBA budget representatives. The employee award is paid from

direct labor budget in coordination with FBB after the MIPR is accepted. Then a cost transfer is

completed to attribute the award value to the reimbursable MIPR.

DCMA-MAN 4301-05, Volume 3, September 8, 2019

Section 7: Reimbursable Labor Charges 29

b. Time Entry Increments. DAI allows time entry in quarter hour increments. However,

employees and supervisors are responsible for exception scenarios, specifically FCAS/DCS

foreign delegations which should be charged to the whole hour. This may be accomplished by

aggregating hour increments within the pay period.

c. Reimbursable Delegations. Both employee and supervisor need to verify that

reimbursable work is coded correctly through the use of the project and task structure to ensure

customer bills and the Agency’s reimbursements are accurately processed.

d. Process Codes. All time worked must be associated with a process code. Process codes

are labeled as “D” for direct codes and “I” for indirect codes

e. Leave Usage. Absence requests or leave requests are not authorized to charge

reimbursable work. Supervisors are responsible for ensuring that employees do not charge leave

against any reimbursable work.

f. Overtime. CMOs are only authorized to charge overtime hours spent on programs that

they work in support of the applicable DAI project and task on their timecards. The

appropriateness of labor charges must be monitored by Agency supervisors in coordination with

FBR.

g. End of Year Timecard Submission. Final timecards for the FY are accelerated based on

forecasted hours for the final pay period. FBR begins the closing process ten days before the

final PPE of the FY. FBR forecasts hours and manages accruals for the last pay period in

coordination with FBB.

h. End of Year Project Roll-Over. Reimbursable work is funded with annual, multi-

annual, or no year funding (i.e., NASA and FCAS). DAI is an annual financial system. FBR is

required to create new projects every year, which requires the designation and assignment of the

active DCNs to the new FY projects. CMOs in coordination with FBR are required to validate

DCNs that need to remain active and rolled over to new FY projects.

DCMA-MAN 4301-05, Volume 3, September 8, 2019

APPENDIX A: Systems 30

APPENDIX A. SYSTEMS

1A. Defense Agencies Initiative Order to Cash Interfaces. The table below lists the

applications that interface data to and from the DSCA DCAS DAI O2C business function.

Table 5. Defense Agencies Initiative Order to Cash Interfaces

System Name Disposition

Interface

From

Interface

Transaction

Type

IPAC

Standard

DAI

Interface

DAI IPAC

Billings Federal

Non DoD

DCAS

Standard

DAI

Interface

DAI DCAS Billings DoD

Automated

Disbursement

System/Pay.gov

Standard

DAI

Interface

ADS DAI Cash Collections

ECARS

Manual

Global

Template

Interface

ECARS DAI DCN)

DCMA-MAN 4301-05, Volume 3, September 8, 2019

APPENDIX B: DCMA/DEFENSE AGENCIES INITIATIVE RESPONSIBILITIES MATRIX 31

APPENDIX B. DCMA USER/DEFENSE AGENCIES INITIATIVE

RESPONSIBILITY MATRIX

1B. RESPONSIBILITY MATRIX. Listed below are the user name categories mapped to the

appropriate DAI O2C responsibilities based on their DCMA role.

Table 6. Responsibility Matrix

O2C Role

Name

Role

Location

O2C AR Inquiry DCMA

O2C CA Inquiry DCMA

O2C CA Order Entry DCMA

O2C CA Project Manager DCMA

Fed Admin Inquiry DCMA

OBIEE Answers DCMA

All FBR Employees

Civilian,

Military

Contractor,

DCMA

X X X

X X

All FBR

Supervisors

Civilian DCMA

X X X X X

Tier I FBSO Civilian, Contractor DCMA

X X X X X X

DCMA-MAN 4301-05, Volume 3, September 8, 2019

APPENDIX C: WORK INSTRUCTION 32

APPENDIX C. WORK INSTRUCTION

C1. WORK INSTRUCTIONS. O2C work instructions identified to support the DAI O2C

solution.

a. R12_WI_O2C_Auto Close Program for Agreements Projects

b. R12_WI_O2C_Auto Close Report for Agreements Projects

c. R12_WI_O2C_Approve a Contract Agreement

d. R12_WI_O2C_Create a Contract Project and Task - DCMA

e. R12_WI_O2C_Create a Manual Event

f. R12_WI_O2C_Create and Fund a Contract Agreement

g. R12_WI_O2C_Create Multiple Contract Agreements Against a Single Contract Project

h. R12_WI_O2C_Manually Enter or Update a Cost Budget - DCMA

i. R12_WI_O2C_Manually Generate Order Acceptance Form - DCMA

j. R12_WI_O2C_MGT Project Billing Status Report

k. R12_WI_O2C_Monthly Receivable Data Preparation Report (Excel Version)

l. R12_WI_O2C_Process a Decrease Amendment with Automatic Cost Budget

m. R12_WI_O2C_Process a Decrease Amendment without Automatic Cost Budget-DCMA

n. R12_WI_O2C_Process an Increase Amendment for a New Task

o. R12_WI_O2C_Process an Increase Amendment to an Existing Task - DCMA

p. R12_WI_O2C_Process a Rejection for an Amendment

q. R12_WI_O2C_Project Funding Inquiry

r. R12_WI_O2C_Reject an Agreement

s. R12_WI_O2C_Review a Customer Record

t. R12_WI_O2C_Review Expenditure Inquiry

u. R12_WI_O2C_Review Project Status Inquiry

v. R12_WI_O2C_Query a Customer

w. R12_WI_O2C_SLOA Report

x. R12_WI_O2C_Dashboard Quick Reference Guide

DCMA-MAN 4301-05, Volume 3, September 8, 2019

GLOSSARY 33

GLOSSARY

G.1. ACRONYMS.

AECA Arms Export Control Act

AR Accounts Receivable

AP Accounts Payable

BEA Business Enterprise Architecture

CA Cost Allocations

CAS Contract Administration Service

CCR Central Contractor Registration

CLM Command, Leadership and Management

CMO Contract Management Office

CONUS Continental United States

DAI Defense Agencies Initiative

DCAS Defense Cash Accountability System

DCN Document Control Number

DD Department of Defense

DD FORM 448 Military Interdepartmental Purchase Request

DD FORM 448-2 Acceptance of MIPR

DFAS Defense Finance Accounting Service

DLA Defense Logistics Agency

DSCA Defense Security Cooperation Agency

ECARS Electronic Contract Administration Request

ERP Enterprise Resource Planning

FAD Funding Authorization Document

FB Financial and Business Operations Directorate

FBB Budget Division, Financial and Business Operations Directorate

FBL Chief Financial Officer Compliance Division, Financial Business

Operations Directorate

FBLA Accounting Branch, Financial and Business Operations Directorate

FBR International and Federal Business Division, Financial and Business

Operations Directorate

FBSO Financial And Business Systems Operations

FCAS Foreign Contract Administration Services

FEDCAS Federal Contract Administration Services

FMS Foreign Military Sales

FMS ADMIN Foreign Military Sales Trust Fund Administrative

FY Fiscal Year

GL General Ledger

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GLOSSARY 34

IAA InterAgency Agreement

IAW In accordance with

IPAC Intra-Governmental Payment and Collections

LOA Letter of Offer and Acceptance

MOA Memorandum of Agreement

MOU Memorandum of Understanding

MILPERS Military Personnel

MIPR Military Interdepartmental Purchase Request

NASA National Aeronautics and Space Administration

NC No Charge

O2C Order to Cash

OBIEE Oracle Business Intelligence

OCONUS Outside Continental United States

OTL Oracle Time and Labor

OUSD Office of Under Secretary of Defense

P2P Oracle Procure to Payment

PMO Program Management Office

PO Purchase Order

QDD Quantitative Drill Down

SF Standard Form

SF 1080 Voucher for Transfer Between Appropriations and Funds

SF 1081 Voucher and Schedule of Withdrawals and Credits

SLOA Standard Line of Accounting

UIC Unit Identification Code

DCMA-MAN 4301-05, Volume 3, September 8, 2019

References 35

REFERENCES

DoD 7000.14-R,” Financial Management Regulation,” current edition

DoD Directive 5105.64, “Defense Contract Management Agency (DCMA),” January 10, 2013