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FMS Financial Management

FMS Billing. Key ConceptsBy law, we must collect in advanceFMS purchasers are billed quarterly (DD645)DD645 summarizes activity accomplished plus forecast periodDD645 data input is by DoD components (via delivery transaction report). FMS Billing Cycle. JAN ? MARAPR ? JUNJUL ? SEPOCT ? DEC.

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FMS Financial Management

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    1. FMS Financial Management Billing

    2. FMS Billing Key Concepts By law, we must collect in advance FMS purchasers are billed quarterly (DD645) DD645 summarizes activity accomplished plus forecast period DD645 data input is by DoD components (via delivery transaction report)

    4. Flow of Funds This chart reflects the changes in DSCA policy Memo 04-02 creating Commercial Banking Accounts. This chart reflects the changes in DSCA policy Memo 04-02 creating Commercial Banking Accounts.

    5. FMS Integrated Control System

    6. Security Assistance Accounting - “As Is” Model

    7. FMS Delivery Transaction This is a completed N_D report to be used in the Billing block, for IF, CF, and C. Prepare yourself to discuss blocks if requested. The two record positions (RP) to emphasize are the DSC RP 56 7 57 and the difference between DTC, RP 34 and TBC, RP 59. Reference: FMR Vol 15, Chp 8, Sec 0804 This is a completed N_D report to be used in the Billing block, for IF, CF, and C. Prepare yourself to discuss blocks if requested. The two record positions (RP) to emphasize are the DSC RP 56 7 57 and the difference between DTC, RP 34 and TBC, RP 59. Reference: FMR Vol 15, Chp 8, Sec 0804

    8. FMS Trust Fund Bandarian Case YCY Learning Objective 2 - Understand the purpose of the FMS trust fund and related accounts maintained by Defense Finance and Accounting Service, Indianapolis Center (DFAS-IN). The FMS Trust Fund is used for payments received from purchasers and disbursements made against implemented FMS cases. Payments must identify the case designator and reason for the payment. In addition to the Trust Fund, DFAS-IN maintains a holding account(s) for most countries. The holding account is a sub-account of moneys not identified to a specific FMS case. Normally after a case is closed, surplus funds are transferred to a holding account and the country may apply the funds to other cases or have the funds returned. The purchaser may sign a Memorandum of Agreement (MOA) for cross leveling with DFAS-IN. Cross leveling authorizes DFAS-IN to transfer, via the purchaser's holding account, collections from one case to another. Overpayments on one case can be used to help cover amounts due and payable on another case. The Holding Account may also be used for MAP Merger Funds, Third Country Recoupments, Buybacks, and Interest Bearing Account transactions.Learning Objective 2 - Understand the purpose of the FMS trust fund and related accounts maintained by Defense Finance and Accounting Service, Indianapolis Center (DFAS-IN). The FMS Trust Fund is used for payments received from purchasers and disbursements made against implemented FMS cases. Payments must identify the case designator and reason for the payment. In addition to the Trust Fund, DFAS-IN maintains a holding account(s) for most countries. The holding account is a sub-account of moneys not identified to a specific FMS case. Normally after a case is closed, surplus funds are transferred to a holding account and the country may apply the funds to other cases or have the funds returned. The purchaser may sign a Memorandum of Agreement (MOA) for cross leveling with DFAS-IN. Cross leveling authorizes DFAS-IN to transfer, via the purchaser's holding account, collections from one case to another. Overpayments on one case can be used to help cover amounts due and payable on another case. The Holding Account may also be used for MAP Merger Funds, Third Country Recoupments, Buybacks, and Interest Bearing Account transactions.

    9. Flow of Funds This chart reflects the changes in DSCA policy Memo 04-02 creating Commercial Banking Accounts. This chart reflects the changes in DSCA policy Memo 04-02 creating Commercial Banking Accounts.

    10. FMS Billing Statements and Reports DD Form 645 Billing statement (quarterly) Final statement of account FMS delivery listing FMS reply listing to customer requests for adjustments FMS financial forecast Holding account statement ACC suspense account

    12. Quarterly DD Form 645

    15. FMS Delivery Listing

    17. FMS Delivery Listing

    18. FMS Reply Listing to Customer Requests for Adjustments

    20. 1BD Holding Account Statement

    21. Sample Accelerated Case Closure Suspense Account

    22. Case Closure Non-Accelerated Case Closure No new orders, no discrepancies, no open requisitions 100% shipped/billed All contracts must be closed Accelerated Case Closure (ACC) 1992 Cases closed 2 years after “supply complete” Country must agree to participate (FMF countries automatically included) Identify ULO “Unliquidated Obligations” ULO into ACC suspense account

    23. Special Financial Arrangements Cross leveling Redistribute collections to minimize additional payment required Special Billing Arrangement Unique billing agreement between country, DSCA, DFAS and financial institutions Based on average cash requirements and required on-hand reserves Developed due to significant payment schedule variances

    24. FMS Financial Management Billing

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