BOP Program Statement 8531.13 § 2

Staff shall follow the procedures and meet the standards in this Program Statement.

REFERENCES

Program Statements

P1237.13 Information Security Programs (3/31/06)

P8340.07 Quality Program Manual - FPI (1/14/00)

P8534.07 Cash Reporting and Reconciliation (3/22/02)

Other References

Federal Acquisition Regulations (FAR)

Treasury Financial Manual (TFM) Volume 1

Federal Register 12 CFR Part 229

Public Law 108-00

ACA Standards

None.

P8531.13 4/22/2010 Page 2

CONTENTS

Chapter 1. Invoicing

1. Purpose.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1

2. Invoicing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1

a. System-Generated Invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1

b. Manual Invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-2

3. Invoice Adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-2

4. Return Orders.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-2

5. Subsequent Delivery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3

6. Free of Charge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3

7. Invoicing Error Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3

8. Invoice Cancellations.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3

9. Billing Blocks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3

Chapter 2. Credit Card Collection

1. Purpose.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1

2. Agency Participation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1

3. Customer Orders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1

a. Pre-authorization Process.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1

b. Invoicing Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1

c. Settlement/Collection Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1

4. Reconciliation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-2

5. Security of Personal Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-2

Chapter 3. Overdue Accounts Receivable

1. Purpose.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1

2. Overdue Receivables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1

3. Collection Procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1

4. Invoice Reversal and Correction Procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-2

5. Approval and Write-off Procedures.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-2

6. Procedures for Receivables over One Year Past Due. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-3

a. One-Year-Old Invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-4

b. Invoices over One Year Old.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-4

c. Two-Year-Old Invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-4

7. Valuation of Accounts Receivable

Chapter 4. Deposits

1. Purpose.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1

2. Remittances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1

3. U.S. Treasury Checks and Non-U.S. Treasury Checks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1

4. Processing Checks – Field Locations/Central Office.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1

5. Logging Checks and Deposits – CAR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-2

a. Deposit Tickets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-2

b. Recording the Deposit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-2

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c. Checks That Do Not Clear. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-3

Chapter 5. Advance Payments

1. Purpose.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-1

2. Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-1

a. Advance Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-1

b. Progress Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-1

c. Military Interdepartmental Purchase Request (MIPR).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-1

d. Partial Payments.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-1

3. Progress Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-1

4. Advance Payment Criteria. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-2

5. Approval and Collection of Advance Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-2

a. Military Interdepartmental Purchase Request (MIPR).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-2

b. Non-MIPR Advance Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-3

6. Accounting for Receipt of Advance Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-3

7. Liquidation of Advances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-3

8. Audit and Refund of Advance Balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-4

Abbreviations and Acronyms

CAR Centralized Accounts Receivable

CIN CASHLINK Identification Number

CSC Customer Service Center

EDI Electronic Data Interface

FAR Federal Acquisition Regulations

FD Free of Charge Delivery

FRB Federal Reserve Bank

G/L General Ledger

IAA Inter-Agency Agreement

IACRO Inter-Agency Cost Reimbursement Order

IPAC Intra-Governmental Payment and Collection

ISPB Interagency Solutions and Procurement Branch

IVR Interactive Voice Recognition

MIPR Military Interdepartmental Purchase Request

PCCN Plastic Card Collection Network

POS Point of Sale

RE Return Sales Order

SD Subsequent Delivery

STO Stock Transfer Order

TFM Treasury Financial Manual

TIN Tax Identification Number

WAWF Wide Area Work Flow

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Chapter 1. INVOICING

1. PURPOSE

This chapter establishes procedures for billing UNICOR customers for payment of products or

services provided. Billing is both a manual and an automated process. Once billed, an accounts

receivable is established in the Corporate General Ledger (G/L). Billing occurs after a Finished

Goods shipment has occurred or after services have been rendered. Several factors influence the

timing of billing: evidence of acceptance by the customer, revenue recognition procedures, and

the customer’s purchase requirements.

2. INVOICING

Invoicing is performed at least twice daily, except during cutoff periods, and uses data processed

via the automated information system, SAP, for orders shipped by factories or satisfying pre-established parameters for non-delivery-related items.

a. System-Generated Invoices. The system generates invoices, debit memos, and credit

memos in numerical sequence independent of type of transaction. Invoices are generated for one

or more of the following payment methods:

# Intra-Governmental Payment and Collection (IPAC). Used by Government agencies for

collections or disbursements processed through the Department of the Treasury’s interagency

collection system. Invoices to be paid by this method are accumulated in an electronic file

and transmitted daily to Treasury.

# Electronic Data Interface (EDI). Invoices for EDI orders are electronically forwarded to

the customer; a hard copy invoice is not generated.

# Advance Payments. Invoices associated with advance payments are generated and

maintained with the customer advance and liquidated daily. A hard copy is sent to the

customer only on request.

# Credit Card. Invoices paid by credit card are processed per procedures in Chapter 3.

# Other. Some payment types are invoice-driven. The invoice is mailed to the customer per

the terms and conditions in the contract. Customers remit payments based on their

agreement.

At a minimum, all invoices must include:

# Name of customer, agency, or business.

# Invoice number and date.

# Contract number or authorization for delivery of product.

# Description, price, and quantity of products or services.

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b. Manual Invoices. Two types of manual invoices are produced for use by UNICOR.

# Consolidated or corrected invoices are requested by the customer to facilitate billing, or

requested by UNICOR staff. Invoices must match customer contracts/purchase orders and

may require consolidation or revision. Each manual invoice contains a unique identifier

number, and is approved for issue by designee(s) of the Chief, CAR. Final approval remains

with the Chief, CAR.

# DD Form 250. The Department of Defense normally requests the use of DD Form 250,

Materials Inspection Receiving Report, or any other authorized electronic or online receipt

mechanism, in lieu of a system-generated invoice. This consolidates inspection, acceptance,

delivery, shipping, and invoicing on one form.

When an authorized electronic mechanism is not available, designated financial management

staff at the field location ensure the DD Form 250 is completed and the payment copy is sent

to the Chief, CAR, within 24 hours. The field site scans the DD250 and sends it via

GroupWise to CS_AR. If scanning capability is unavailable, the DD250 may be sent via

clear, legible fax. Upon receipt of the DD250, CAR staff compare it to the contract/purchase

order and the system-generated invoice. When contractual invoicing occurs within the Wide

Area Work Flow (WAWF) environment, all DD250s, or their substitute, will be used for data

entry and quality review only – they are not referred to as the “original invoice.”

3. INVOICE ADJUSTMENTS

An adjustment or credit memorandum may be issued in cases of incorrect sales order data,

invalid invoice data, unrecognized discounts, or other circumstances. They must be approved by

the Chief, CAR.

4. RETURN ORDERS

Merchandise is sometimes returned to the factory by the customer. A return sales order (RE) is

created in SAP and linked to the original sales order to facilitate a return sales order invoice

(credit), generated in SAP. RE sales orders are not used with Stock Transfer Orders (STOs)- an

STO is a purchase order used between FPI locations. The RE references the customer’s original

sales order and contains the same terms and conditions, unless the originator changes them

manually. When the RE is invoiced, it reduces the factory sales and creates a credit on the

customer account that can be applied to the open receivable, a subsequent delivery of

merchandise, or returned.

5. SUBSEQUENT DELIVERY

Subsequent deliveries (SD) are sales orders created in reference to the original sales order and

used to clear an RE. The SD contains the same terms and conditions as the original sales order.

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