Are Payee Codes Still Necessary?

When DFAS shut down the DTRS system in June, everyone was under the realization that DFAS’ ability for EDI processing was obsolete.  What was not immediately realized, was that DTRS managed more than just the electronic invoice processing.

Shortly after DTRS was shut down, we contacted DFAS personnel regarding a carrier setup that required a new payee code.   Payee codes are the unique 4-digit numeric identifier that DFAS issued a carrier to determine the carriers payee account information during electronic invoice processing.  The DFAS representative informed our staff that they could no longer issue payee codes, since that process was performed in DTRS.  Now comes the question, if DFAS no longer needs a payee code to process electronic payments, do we still need to get a payee code?

We were under the impression that like DFAS, US Bank Freight Payment Systems (Syncada) also required a payee code for HHG carriers.   The payee codes we had always provided during setup were those issued to the carrier by DFAS.  Since DFAS does not need them, does US Bank?    We have learned that Syncada does require a payee code, but not necessarily for the same reason that DFAS required them.  DFAS used the payee code to determine what account would receive funds for the electronic invoice.  Syncada uses the payee code to fulfill a system requirement that was adopted as a common practice from DFAS when the original PowerTrack program was being built for processing DOD HHG invoices.

How we move forward to satisfy a system requirement that has some links missing in the chain is now the topic of discussion.  We understand that DFAS and US Bank Freight Payment Systems personnel are actively working on a solution or new process to address the requirement.  Until then, completing setups that require a new payee code may be temporarily delayed.  We are strongly encouraging DFAS and US Bank to come to a quick resolution, since TSPs have invoices that are unable to be billed until this problem is resolved. We will keep everyone abreast of any new details as we receive them.

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