SIT Conversion Process Causes Confusion in DPS

On a recent DPS invoicing call, and during the recent SDDC Symposium, there has been a lot of discussion about the process of converting a shipment to SIT in DPS. The confusion seems to be centered around two main points: the TSP’s ability to bill for SIT until that shipment is converted to member’s expense in DPS; and once it is converted,  the process for billing the SIT and delivery out.

On the issue of whether the TSP can bill for all storage charges until that shipment is converted in DPS, the DP3 Business Rules state:

“The TSP’s responsibility for a shipment and its liability under the BL for a shipment in SIT terminates and the warehouse becomes the final destination of the shipment on midnight of the day specified in the notice the TSP receives through DPS advising the government the shipment has terminated. The notice of termination is not retroactive.” -DTR Part 4-U-J, page 19

Since the TSP’s liability does not end until it is converted in DPS, it would be logical that the TSP should be able to bill for the storage days until it is converted in DPS. However, it seems that the process for a PPSO to convert the shipment is more difficult than anticipated, and TSPs are seeing shipments sit in DPS for months after they could have been converted. SDDC representatives have not given clear guidance on this issue, but did state that written guidance will be forthcoming.

There is also confusion surrounding how to handle the billing process once a shipment has been converted to member’s expense. On the invoicing call, SDDC staff instructed TSPs that once the shipment converts, TSPs should bill for storage, but not “deliver” the shipment in DPS. Then the delivery out of SIT and unpacking would have to be handled by a local agent and billed on a local purchase order. After that process is completed, the TSP would be asked to go back into DPS and show the shipment as delivered. Additionally, SDDC stated that TSP will be expected to refund the unpacking portion of the full pack/unpack charge that would have been previously billed.

TSPs on the call expressed concerns about a number of steps with this process, and SDDC has promised to clarify the process fully in the written guidance that is to be forthcoming. If you have any thoughts  on the issues surrounding SIT conversion in DPS, please feel free to leave a comment below:

Related Posts

1. DPS SIT Conversion Issue Clarified - April 22nd, 2010
2. DPS System: The Setup Process - November 3rd, 2006
3. Transmission Issues Continue to Plague Invoicing Process - March 16th, 2011