MDSI. Defense Finance and Accounting Service. David Goode Raytheon Company Finance Director Month Day, 20XX. Integrity - Service - Innovation

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Elvin Stevens
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1 MDSI Defense Finance and Accounting Service David Goode Raytheon Company Finance Director Month Day, 20XX

2 Project Goal Improve invoicing, payment, reconciliation, and close-out processes by providing contractors with MOCAS data on a regular basis: Pre-screen invoices & DD250s prior to submission Expedite and partner in contract reconciliation and closeout Enhance Canceling funds activities Identify process improvement opportunities Using MDSI to improve invoice quality, productivity and to eliminate waste frees up resources that can be better used by the Department of Defense to fulfill their mission 4/11/2018 2

3 Key Steps to Success Achieve Improve Visualize Commit Prioritize Characterize Establish invoice quality and process excellence as a strategic imperative Utilize statistics and Six Sigma techniques to identify route causes and problematic contracts Develop and implement training to increase knowledge of MOCAS process and actions that can be taken to improve results Implement processes (manual/automated) to validate accuracy of: Information loaded in billing system Invoice and receiving report information prior to submission Billing vs Disbursement transaction history 4/11/2018 3

4 Raytheon s MDSI Success Stories Strategic Invoicing (Improved Preparation, Delivery, and Payment) Debits and Credits Large vs Small Dollar CLIN amounts Billing day of the week Eliminating or segregating problematic accounting stations Avoiding or segregating FMS funds at risk Avoiding or segregating Cancelled funds on active contract invoices Contract receipt validations (SAP vs MOCAS vs EDA) Contract load validations (Elements that cause invoice issues) Pre-Invoicing validations (CLINS, ACRNS, Funding, ULOs. etc..) API and PGI optimization (RVU Codes, Credits, Withholds, etc..) Identifying billing opportunities (Withholds, Unbilled Shipments, Physically Complete efforts with ULOs, Invoicing tempo, etc.) Contractors that utilize analytics and MDSI typically outperform industry averages/norms (See next chart) 4/11/2018 4

5 Using MDSI to Improve Invoice Quality and Cycle Times Front-End Validations Pre-Billing Validation Contract and Modifications Contract and Modifications loaded loaded in MOCAS, EDA in MOCAS and ERP and Raytheon s ERP CLINs and ACRN balances CAGE code Obligated and ULO Payment and Admin Office Unit Price / Unit of Measure CLINs and ACRN balances Open / unapplied credits or Unit Price & Unit of demand letters Measure Previous invoice unpaid or Inspection and Acceptance rejected Sites Cancelled Funds Schedule Line quantities Problem Accounting Stations and and Ship -To locations FMS Countries NSN and MILSTRIP Breakout Debits and Credits into Numbers separate invoices Billed vs Paid variances Most validations listed are, or can be, performed systemically. Some require manual effort by the Billing Analyst 4/11/2018 5

consistent basis use of MDSI will improve your cash flow

6 How Are You Doing and How Can MDSI Help If your company is not meeting or beating the industry averages on a consistent basis use of MDSI will improve your cash flow (Can run your own metrics in MDSI Access System) 4/11/2018 6

Example MDSI Used to Improve Raytheon s Results Invoice Reject Rates 2000 vs 2017 (Utilized MOCAS and ERP Data) Invoice Reject Rates when the strategic focus on

7 Example MDSI Used to Improve Raytheon s Results Invoice Reject Rates 2000 vs 2017 (Utilized MOCAS and ERP Data) Invoice Reject Rates when the strategic focus on Invoice Quality was established in 2000 (10 to 14%) Invoice Quality Rates achieved in 2017 as a result of strategic data driven focus (2016 rate less than 1.5%) 4/11/2018 7

8 Future MDSI Upgrades MDSI downloads: Missing data elements (3) to permit contractors to replicate DCMA On-Time Delivery metrics Data element that indicates progress payment master has been set up Additional download cycle at month-end synchronized to when Delivery metrics are generated (New request) MS Access System Canceling Funds update Office 365 update If required Improved Help Information detailing purpose of every field Release of additional existing reports New reports focused on Contract Close-outs based on DCMA s new closeout strategy 4/11/2018 8

9 Open Dialogue / Questions? 4/11/2018 9

MOCAS Contract Reconciliation Overview

MOCAS Contract Reconciliation Overview Defense Finance and Accounting Service Lisa Keglovich Analyst, MOCAS Reconciliation March 2018 Integrity - Service - Innovation Reconciliation Defined PROCESS: Analyze