Maximization of Automatic Payment of Invoices (API) in the Contract Payment Function
DEFENSE CONTRACT MANAGEMENT REGION CHICAGO IL
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The Mechanization of Contract Administration Services MOCAS system pays contractor invoices automatically if data base information exactly matches corresponding invoice information. Invoices are paid manually if an error has been made anywhere in the data input process, or in cases where a decision usually at the payment clerk level is required to control expenditure of government funds. This study estimated that a manual payment costs 20 more than if the payment was solely automatic. A Pareto analysis of frequency data developed for this study identified eight manual material acceptance and accounts payable record MAAPR messages for in-depth cost benefit analysis. The results showed numerous manual payments could be avoided by implementing several, mostly minor, procedural and MOCAS system changes. Major changes involve recommending implementation of several electronic data interchange EDI initiatives identified in the study. Implementing all the recommendations in this study would save DLA over 10 million annually, as well as increase the speed and accuracy with which it pays contractors.
- Administration and Management
- Computer Programming and Software