AIR FORCE SERVICES AGENCY by 3SKfe0tk

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									                         AIR FORCE SERVICES AGENCY

                                Program Training Aid

TA-AFSFMS-22                                                       DATE: Jun 11

                                        P-Card

I.    INTRODUCTION: This training aid establishes standard procedures for
recording and paying AF Nonappropriated Funds (NAF) Purchase Card (P-Card)
cardholder purchases using the Air Force Services Financial Management System
(AFSFMS). The P-Card program replaces the NAF Government Purchase Card (GPC)
program. The contractor bank is JP Morgan Chase (JPMC). With the P-Card program,
AF NAF is changing to a “pay and confirm” invoice payment policy, where purchase
card invoices are paid upon receipt, whether or not the approving official has approved
the transaction. The Installation Program Coordinator (IPC) is responsible for the P-Card
program at installation level.

II. DISCUSSION: Under the P-Card program, a bank transaction file is sent to HQ
AFSVA/SVT four business days following posting by JPMC. These four days permit the
cardholder and approving officials to review the transactions and make the necessary
accounting adjustments. Cardholder transactions are input into the AFSFMS no earlier
than seven business days following the JPMC posting date, with a debit to the General
Ledger Account Code (GLAC) contained in the transaction record. The offsetting credit
is to GLAC 1010000, Cash in Bank - Checking. The basic premise of this procedure is to
post to the general ledger on the same day payment is made to the bank. No accounts
payable payment voucher is created.

     A. Accountable Officials.

         1. Cardholder. The cardholder is accountable to the approving official and
            IPC for the propriety of his/her P-Card purchases. The cardholder’s
            responsibilities include:

                Reviewing and reconciling purchases;
                Documenting incorrect transactions or missing items;
                Working with the merchant to correct, or disputing the transaction with
                 the bank; ensuring any credits/refunds due are received; and
                Validating the correct line of accounting in Payment Net, JPMC’s online
                 system for the P-Card program.
                For each transaction in Payment net, save transaction notes to include a
                 brief description of the purchase.

             The cardholder indicates he/she has completed these responsibilities by
             checking the “reviewed” box for the transaction in Payment Net.




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   2. Approving Official. The approving official provides cardholder oversight
      including making sure the cardholder completes his/her P-Card
      responsibilities in a timely manner, ensures funds are available for
      purchasing, validates the correct line of accounting in Payment Net, and is
      accountable to the IPC for the propriety of his/her cardholder P-Card
      purchases. The approving official indicates fulfillment of their
      responsibilities by checking the “approved” box for the transaction in
      Payment Net.

   3. IPC. The Resource Manager (RM) or his/her designated official is the IPC.
      The IPC ensures transactions have been reviewed by the cardholder and
      approved by the approving official in Payment Net. Transactions not
      reviewed and approved within 30 days require documented follow-up
      actions.

B. NAF Accounting Office. Under the P-Card program, there is no monthly cycle
invoice/billing file. Instead, billing occurs throughout the month. Purchase
transactions are transmitted to HQ AFSVA on the evening of the fourth day after
posting to the cardholder account in Payment Net. When the invoice/billing file is
received from the bank, the file is placed on the HQ AFSVA UNIX server and
pulled into the Cash Management and Investment Program (CMIP) and AFSFMS
for processing. Using the “pay and confirm” process, HQ AFSVA/SVFB pays
JPMC the same business day the file is received. The file is posted to the General
Ledger no earlier than seven business days following the JPMC posting date.

   1. Source Documents. Cardholders are responsible for maintaining original
      purchase documentation IAW AF Records Disposition Schedule Table 64-4,
      Rule 26. Cardholder will give his/her documentation to their Approving
      Official upon departure from the unit. Generally, the cardholder does not
      forward copies of receipts to the NAF Accounting Office (AO). However,
      they will need to forward receipts for those items that require further
      processing into AFSFMS. Some examples are prepaid purchases and
      property items. The cardholder annotates the appropriate GLAC on the
      purchase document and forwards a copy to the NAF AO the next business
      day after receipt.

   2. Reconciliation. Transactions are reconciled using the Cash Management
      Investment Program (CMIP) message and journal postings. The
      Transaction Detail by Hierarchy Report from Payment Net can also be used,
      if necessary.

   3. Accruals. To ensure the recognition of expenses when incurred, purchases
      made during the month that haven’t interfaced into the general ledger by the
      last day of the month must be accrued. This is important to ensure expenses
      are properly matched against income. For example, unrecorded purchases
      of resale items will have the effect of understating cost of goods sold.
      Therefore, particular attention needs to be paid to ensure resale items and


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other large purchases (including open items from previous periods) are
accrued. The NAF AO uses the Cardholder Outstanding Items List (Atch 1)
to determine those transactions requiring accrual. Activities can minimize
the accrual by avoiding unnecessary P-Card purchases on the last two days
of the month.

a. The cardholder will maintain a Cardholder Outstanding Items List, or
   similar list, reflecting all purchases and credit transactions not having
   processed through Payment Net prior to the end of the month. The bank
   typically processes transactions within three days of occurrence.
   However, for various reasons, some transactions may not post to the
   cardholder account in the normal sequence. On the first business day of
   the month, the cardholder ensures the list is completed and reflects all
   purchases through the last day of the previous month, not processed
   through the bank, and forwards, via e-mail, a copy of the list to the NAF
   AO for accrual processing. The list should include all outstanding items,
   even if they are from an earlier month.

b. The Base Liaison will review the Cardholder Outstanding Items Lists
   received to determine those purchases requiring accrual. Items to be
   accrued will include any purchases made during the accounting period
   and prior periods that did not interface into the general ledger. The Base
   Liaison will record these items on the Accrual List Spreadsheet (Atch 2).

c. The accrual process will require the Base Liaison to submit two General
   Ledger Adjustment Forms (GLAF). Use the first GLAF to enter the
   accrual for all transactions reflected on the accrual list. See TA-
   AFSFMS-07, GLAF for information on completing and submitting the
   GLAF. The GLAF should include the cost centers used by the
   cardholders. Credit GLAC 2290000, P-Card Accrual, for the accrual.
   NOTE: Post the GLAF for the accrual to the accounting period just
   ended (e.g., accrual is for March, so post accrual in March).

d. To simplify the accrual process and minimize potential out-of-balance
   situations, only four GLACs will be debited to record the accrual.

      GLAC 7200000 for expense items
      GLAC 1630000 for Expendable property, prepaid expenses, and
       items normally posted to GLAC’s 1300000/1710000, except resale
      GLAC 1790000 for Fixed Assets
      GLAC 4010000 for Resale items

(Note: Although some accounts may be over/understated, limiting the
GLACs used for the accrual (in the manner prescribed) has no bottom-line
impact on the income statement or balance sheet.)




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            e. Post a reversing GLAF to the accrual in the next accounting period (e.g.,
               accrual posted in March, post reversal in April). Reversal entry is
               required since the accrued transactions will be included in the next
               interface of bank transactions to the NAF general ledger.

        4. Rebates. P-Card rebates will be paid quarterly by JPMC to AFSVA. Bases
           will receive a quarterly rebate through the banking CMIP messaging system.
           The SSC will post a journal entry to record the rebate by debiting GLAC
           1010000 and crediting GLAC 8100001, AF Purchase Card Rebates, to the
           appropriate administrative cost center, i.e., 0001 Fund Overhead for MWR
           Fund or 0031 Administration for Lodging Fund.

III. REFERENCES:

     A. AFMAN 34-214, Procedures for Nonappropriated Funds Financial Management
     and Accounting
     B. AFI 34-275, Air Force NAF Government Purchase Card Program

Attachments:
1.   Cardholder Outstanding Items List
2.   Accrual List Spreadsheet




                                                                POC: AFSVA/ SVTCF



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