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RETAIL MANAGEMENT

Presented To:
PACOM FUELS CONFERENCE
22-24 OCT 02
Overview

• Retail Management
• Review and Challenge
• Credit Management
• RIK/FEA Agreements
• Local Purchase
• Non-DoD Master Sales Report
• Fuel Sale Slip
• Inflight Refueling/PDA Initiative
Retail Fuels
Management

• Air Force Working Capital Fund Office (Det 3, WR-


ALC) Transition to DESC on 1 Oct 01
• New Office Designated Retail Management Division
(DESC-RR) Under Resources Management, DESC-R,
Ft. Belvoir, VA
• DESC-RR Provides Financial and Program Support
for Worldwide Retail Aviation, Ground and Missile
Fuels Requirements.
• DESC-RRF Responsibilities
Review and Challenge

• WEB-Based Application Provides Customer


With Opportunity to Review and Challenge
Fuel Transactions Prior to Billing
• DESC-RRF Responsibilities
• Monitor the Program
• Provide Single POC Customers (Miguel Puga, DSN
945-8894/Al Morgan, DSN 945-2438
• Assist in Resolving Challenged Transactions
• Provide Oversight to Minimize Loss to DWCF
Review and Challenge

• Customer Should Challenge Prior to the


Billing Cutoff
• If Not Challenged, Transaction is Billed
• If Billed, Challenged Under MILSBILLS
• Off-station Purchases Comprise Majority of
Challenges
• Purchases Processed by AVCARD and DESC-RRF
• Challenged Transactions (1Oct 01-30 Sep 02)
• 1768 Aviation – 1311 Ground Fuels
• Problems - Wrong Quantity and/or DODAAC
• As Customers Obtain WEB Access They Can
Convert to Pre-billing Validation
Review and Challenge

• DESC-RRF Monitors Challenge File Daily


• Hourly Monitoring Occurs Last 3 Duty
Days of Business Month
• Close Coordination with Seller and Buyer
• Valid Challenges Will be Resolved Before
EOM
• Abnormal and/or Mass Challenges Will be
Billed
• Thoroughly Researched Prior to Next Billing Cycle
• Corrective Action as Necessary
Credit Management
(Non-DoD)
• New Business Rules in Coordination
• DESC-RR Single POC for Fuel Purchase
Application/Agreement for Commercial Carriers
• One Standard Application
• Available by WEB, Hardcopy, Fax, Email
• Utilize DESC Database/TRANSCOM Survey and Analysis Office
and Dunn and Bradstreet
• Approves/Disapproves
• Establishes Financial Limitations and Payment
Terms With Some Carriers
• Assist DFAS in Resolving Billing Problems
RIK/FEA Agreements

• Background
• Country to Country Agreements Outlines
Procedures for Reciprocating Fuel Support and
Reimbursement
• Support Limited to Fuel Products That are Normally
Available at Military Installations
• Reimbursement is Normally on Cash Basis or By
Other Special Agreements
• Replacement-in-Kind or Exchange Agreements May be
Consummated When in Best Interest of Countries Involved
RIK/FEA Agreements

• Responsibilities
• Defense Energy Support Center (DESC)
Finances RIKs/FEAs on Behalf of DoD
• Managing Offices:
• DESC-FG (Ft. Belvoir, VA)
• Protocol Format
• Initiates and Coordinates Legal Review
• Administrative Oversight
• DESC-RR (San Antonio, TX)
• Retail Management
• Oversight of RIK/FEA Reconciliation
• Balancing of Agreements and Cross-Servicing
• Repayment and Settlement Terms
RIK/FEA Agreements

• Responsibilities (Continued)
• DESC-RR (CONTINUED)
• Transaction Processing and Validation of Invoices
• Coordinates Repayment with DESC Regions, DoD Service
Control Points and DFAS-Columbus
• Defense Finance Accounting Service (DFAS)
Columbus, OH (DFAS-AIFEG/CA)
• Processes Accounting Functions
• Transactions Posted Monthly
• Prepares RIK/FEA Credit and Debit Invoices
• Processes Collection/Cash Repayments
• Reconciliation of RIK/FEA Accounts
RIK/FEA Agreements

• RIK Administrator Responsibilities


• DESC Fuel Region
• Focal Point Within Area of Responsibility
• Direct Link Between DoD customers and RIK/FEA
Countries
• Mediate Problems
• Review Documentation
• Coordinates RIK/FEA Financial Issues with DESC-
RR
• Attends RIK Meetings/Conferences
• Coordinate/Monitor Repayments
RIK Agreements

Country –
Administrator
Canada - DIRECT BILL
Greece - DESC
Italy - DESC
Turkey - DESC
Korea - DESC
Japan - PACAF/ DESC

Defense Working Capital Fund (DWCF)


Finances all AF agreements as of FY02
RIK/FEA Agreements

• Settlement Criteria RIKs


• Greece/Italy/Turkey
• Joint Agreement (incl. USA and USN)
• Ground Fuels (MOGAS/Diesel Included in FY02)
• HQ AIRSOUTH Chairs Semi-Annual Accounts Balancing
Conferences
• Conference Location Alternated Between Member Nations
• Korea/Japan
• 5AF Reconciles Monthly with JASDF
• DESC Korea Reconciles Quarterly with ROKAF
• DFAS Columbus Invoices RIK Countries Monthly
• Invoice Reflects Credits/Debits
• USA/USN RIKs/FEAs
• Under Review by DESC/DFAS Tiger Focus Group
RIK/FEA Agreements

Current Navy
FEAs
Argentina Japan - Navy
Australia Korea - Navy
Canada Pakistan
Peru
Chile
Singapore
Ecuador
Turkey
France
United Kingdom
Indonesia
RIK/FEA Agreements

• FEA Transition
• Financial Processing Will Continue Status Quo Until DESC
Capitalizes Fuel on Navy Oilers
• Once Capitalized, DFAS Norfolk Workload Transfers to
DFAS Columbus
• DESC Manages Reconciliation and Settlement
• Future FEA Financial Process
• DESC Fuel Ashore Issued to FEA Country
• DESC and DFAS Columbus Account For Fuel and Settle With
Country
• DESC Fuel on Oiler Issued to FEA Country
• Oiler will transmit transactions via SALTS
• Enable DESC and DFAS to Account For Fuel and Settle With
Country
RIK/FEA Agreements

• Future FEA Financial Process Cont’


• Fuel Issued From Non-Oilers to FEA Country
• Vessel Sends FEA Message to DESC-RR and DFAS-
Columbus (Message Currently Goes to DFAS Norfolk)
• DESC Credits Vessel
• Expected Transaction Volume is Low
• Long Term Process Similar to Oiler Reporting Process
• USN Vessel Receives Fuel From FEA Country
• USN Vessel Sends Message to DESC-RR and DFAS
Columbus
• DESC Goal – Minimize USN Role in Accounting For Fuel
Received From Foreign Gov’t
• Accounting Burden Bourne By Issuing Country
RIK/FEA Agreements

• Summary Future FEA Financial Process


• DESC Will No Longer Bill USN Working Capital
Fund (BP-38) For Fuel Issued Under FEAs
• FEA Accounting Moves From USN and DFAS
Norfolk to DESC and DFAS Columbus
• Reconciliation and Settlement Meeting Held Semi-
Annually Between DESC and FEA Countries
• Direct Bill Countries in Pacific
• Australia, China, India, Indonesia, Japan, Korea,
Malaysia, New Zealand
Local Purchase
AF Form 315 – SF Form 44
• New Business Rules on WEB
• DESC funds Local Purchase
• Vendor Receives AF315/SF44 From Aircrew (Looking at
options to replace these forms)
• Billing Address – DESC AIR Card Contractor
• Vendor Forwards Invoices/Forms to AVCARD
• Merchant Agreement Required
• AVCARD Processes Invoices/Forms
• Pays Vendor
• Provide DESC File of the Fuel Transactions
• No Agreement – Invoices Sent to DESC-RRF/ Ground Service
Invoices Sent to Unit RDO/RA
• AVCARD bills DESC For Fuel Charges/DoD Unit For Ground
Services
Local Purchase
AF Form 315 – SF Form 44

• Commercial Vendor/Foreign
Government Invoices Sent to Am
Embassy/Defense Attaché Office
• AMEmbassy/DAO forwards Commercial
Vendor Invoices to AVCARD
• Foreign Government Fuel Invoices
Forwarded to DESC-RR
• Validate/Certify
• Forward to DFAS Columbus
• Process Transaction in FES
Local Purchase
(Cash)

• New Business Rules in Coordination


• Aircrew Obtains Cash at Home Station
• Treasury Suspense Account
• Cash Payment Made to Vendor
• Aircrew Complete AF Form 315/SF44 After Mission
• Forms Must be Properly Filled Out
• Completed AF315/SF44 Submitted to Local
Finance POC
• Finance POC Submits to DESC-RRF
• DESC-RRF Reviews for Accuracy/
Validate
Local Purchase
(Cash)

• DESC-RRF Assigns DWCF Fund Cite


and Certifies
• Paperwork Returned to Finance POC
• Finance POC Prepares Disbursing
Document
• Submits to DFAS Columbus
• Advance Copy to DESC-RRF
• Local Treasury Account Reimbursed
• DESC-RRF Process Transaction in FES
Non-DoD Master Sales
Report

• New Business Rules Approved


• On DESC WEB
• Purpose
• Provide DFAS Columbus Necessary
Backup Documentation to Bill &
Collect for Fuel Sales to Non-DoD
Customers
Non-DoD Master Sales
Report

• Process
• Non-DoD Sales Report Generated at EOM (FAS
Enterprise Server)
• Service Issue Documents (DD Form 1898, DD Form
791, etc) Attached to Report
• Report Due DESC-RRF by 5th Work Day
• DESC-RRF (Accounts Receivable Section) Prepares
Buyer Report
• Forward to DFAS-Columbus
• DFAS-CA Generates Manual 1080 Bill to Non-
Customer
• Foreign Governments/Commercial Companies Require Hard
Copy of Issue Document
Non-DoD Master Sales
Report
• Guidance for Process:
• http://www.desc.dla.mil
• Go to “Fuels Automated System (FAS)”
• Go to “Non-DoD Fuel Customer Information”
• DESC Assigned TDoDAAC’s
• TDoDAAC Request and Information
• AIR Card Program Customers
• Commercial Purchase Agreement Customers
• Cash Sale Customers
• Local Purchase Agreement Customers
• MWR/NAF Credit Customers
• State Purchase Agreement Customers
• Foreign Commercial Customers
• Foreign Government Customers
• RIK/FEA Customers
• FMS Case Customers
Non-DoD Master Sales
Report

• Concerns/Problems:
• Incorrect T-DoDAAC Used
• Bills Incorrect Customer (if not caught)
• DESC-RRF Notify Service Control Points of Errors
• Service Control Points Notifies Applicable Units
• Cause Billing and Collection Delays
• Specific T-DoDAAC Assigned for RIK Agreements
• Canada and UK are Billed by Unit
• Each Unit Has its Own T-DoDAAC
• Missing Documents
• Timeliness in Receiving Documents
Fuel Sale Slip

Replaces DD From 1898 (Aug 86), AF Form


1994 (May 85), and AF Form 1995 (Mar 77)
FUEL GRADE VEHICLE NO. UNIT ID or UIN
Categorie de Carburant Numero du Identification
Vehicule

FUELS OFFICE
UNIT PRICE

B123456
QUANTITY MEASURE UNIT
Quantite Unite de Mesure Prix Unitaire

SERVICE LOCATION and NATION TOTAL PRICE


Lieu de l’Operation et Pays Prix Total

REFUEL
Plein
METHOD OF PAYMENT / Mode de Compensation

REIMBURSEMENT REPLACEMENT IN KIND


BILLING ADDRESS AND AIRCRAFT INFORMATION (FOR CASH SALES-WRITE “CASH”) 1

SER
DEFUEL Adresse de Facturation, Modele et No d’Immatriculation de l’Avion (Vente au Comptant Indiquez “Paiement

NO.
Restitution Remboursement Remplacement Equivalent Comptant”)
REMARKS and/or VOUCHER NO. ISSUED BY (SIGNATURE) / Service Fournisseur
Remarques et/ou Piece Justificative DIR OF LOG_______________________
Directeur de Logistique
ACCOUNTANT RECEIVED BY (SIGNATURE) / Service Acheteur
Comptable________________________

PRINT NAME and RANK / Nom et Grade (en lettres d’Imprimerie)

ISSUE DATE / Date de Distribution


DD Form 1898, Apr 2002 Fuel Sale Slip / Facture de Carburant

Note: Size is critical. From top to bottom the form can only be a maximum of 3 3/16 inches.
Width of the form is 7 7/8 inches.
COPY 1
Inflight Refueling/PDA
Initiative
Transactions The PC validates the
are captured transactions and creates a
during the file that is emailed to Base
mission and Fuels
stored in the
Handheld Base Fuels
imports the file
and processes
the transactions
to the Fuels
Enterprise
During the Mission De- System (FES)
brief, the transactions via the Fuels
are uploaded to the PC Control Center
(FCC)
The FES processes the transactions. If errors are
encountered, Base Fuels works/coordinates with
Operations to correct any rejects or challenged
transactions

Inflight Transaction Processing


Inflight Refueling/PDA
Initiative

• Handheld Functionality
• Tanker and Receiver Data
Provided During In-brief May
Be Entered Into Handheld Prior
to Mission
• Dropdown Selection of Buyer
Names, Locations, Vehicle
Types, and Tail Numbers
• Accepts 5-digit Tail Number for
Air Force Aircraft
Inflight Refueling/PDA
Initiative

• Handheld Main Form


• Enter Mission Data
• Select Customers
• Review Missions and
Transactions
• Delete/Modify
Missions and/or
Transactions
• Add Additional
Transactions to a
Mission
Inflight Refueling/PDA
Initiative

• Receiver Data
Elements
• Completed
Transaction
Inflight Refueling/PDA
Initiative

• Upload Data to PC
• After All Mission
Transactions Are
Entered – Perform
Synchronization
• Dock the Handheld in
the Cradle
• Press the HotSync
Button to Upload the
Transactions to the PC
• Launch the Tanker
Inflight Application on
the PC

HotSync
Inflight Refueling/PDA
Initiative

• PC Functionality
• After HotSync, All Mission Transactions Reside On
Local PC
• Aircraft Ownership Validated Automatically
• All Transactions Validated Using Business Rules
Established for Each Customer Type
• Print Form 791
• Submit Transactions and 791 to the FCC via Email
• Archive Mission to History
Inflight Refueling/PDA
Initiative
• PC Main Menu

Options for Reviewing and Editing Mission Transactions, Submitting


Transactions to the FCC, Downloading Support Tables, Archiving and
Unarchiving Missions, & Printing the 791.
DD Form 791
Old and New
Inflight Refueling/PDA
Initiative
• Test Locations
• ANG Salt Lake City IAP UT
• McGuire AFB NJ
• Miramar Marine Station, San Diego, CA
• Very Favorable/Positive Feedback
• Program Management Review
Completed on 17 Oct 02
• Deployment to PACOM – TBD
Retail Management

• QUESTIONS?????????

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