The End of an (EDI) Era

Last week, we sent an EDI file to DFAS-Indianapolis for the last time . Due to the increased use of USBank Payment Systems (formerly PowerTrack), fewer and fewer invoices were submitted to DFAS for electronic payment. Therefore they made the decision to shut down their DTRS system, which enables their EDI processing. From this point forward, all invoices payable to DFAS-Indy will need to be sent via paper to DFAS’ pre-payment auditor, National Traffic Service (NTS). NTS will conduct the pre-payment audit and then send the invoice packet to DFAS for payment.

While the numbers of invoices we submit to DFAS-Indy are small, our customers will notice a few changes:

• Audit Customers: Obviously the majority of invoices we are sending to DFAS are our post-payment audit invoices, since we are working on shipments from 2-3 years ago. We expect the payment times to slow considerably, but since Daycos handles the payment tracking, the delay will not likely be noticed by audit customers
• Billing Customers: If you are submitting your billing paperwork via courier, you will need to make sure you are including original paperwork for DFAS-Indy shipments, since the paperwork will be sent along with the invoice to NTS. If you submit your billing paperwork via scanned images, then you will notice that DFAS-Indy invoices will now print with your other paper invoices so that you can submit them with your original paperwork.
• AccuBill: As with image billing customers, your DFAS-Indy shipments will print with your other paper invoices so that you can submit them with your original paperwork.
• EDI File Translation: Any invoices we receive in your translation file that are payable to DFAS-Indy will be returned to you, since we cannot submit them via EDI.

While this change was certainly not unexpected, since we were first warned of the possibility a year and a half ago, it is still kind of a strange to think that there will be no more EDI to DFAS-Indy. Their move to EDI acceptance over 10 years ago was a revolutionary invoicing change for this industry. We saw payment times reduced to less than a third of the previous payment times virtually overnight. It is easy to forget now with the increased use of PowerTrack over the years, but at that time, the thought of payment is under 10 days was nearly impossible to believe.

Related Posts

1. Double check on paperwork billable to DFAS-Indy - June 25th, 2007
2. Payment inquiries for Navy shipments - November 29th, 2006
3. Submitting DFAS-Indy Paper Bills - June 24th, 2010