Overview
G-Invoicing is the U.S. Treasury’s long-term solution for Federal & DoD agencies to manage their Intragovernmental (IGT) reimbursable transactions. G-Invoicing is not an accounting system nor a procurement system; instead, it serves as a gateway for federal entities to agree upon the funding terms and the accounting treatment of their reimbursable activity and exchanges that data with one another through a standardized data set, called the Federal Intragovernmental Data Standards (FIDS), via the G-Invoicing system for consistent financial reporting. The G-Invoicing process is broken down into three critical steps that we call the “Three Pillars of G-Invoicing.”
General Terms & Conditions (GT&Cs)
U.S. Treasury used the FIDS to build FS Form 7600A, which standardizes the way in which Federal & DoD entities capture their general terms & conditions that governs the buying and selling transactions between the Ordering Agency (buyer) and Performing Agency (seller). The GT&C (7600A) establishes overarching authority to exchange goods and services using appropriated funds and does not affect budgetary or financial statements. It establishes a common identifier that is cited on applicable orders and follows the lives of those transactions. G-Invoicing also provides a standard repository for all Federal and DoD agencies to store their GT&Cs, which will significantly reduce a federal and DoD-wide material weakness.
Orders (7600B)
Just as U.S. Treasury developed FS Form 7600A to standardize the support agreement requirements, they also developed FS Form 7600B to standardize the “order” data set across the Federal & DoD government. FS Form 7600B will replace the DoD’s Military Interdepartmental Purchas Request (MIPR) form (DD 448 & 448-2). G-Invoicing automates the order and introduces systems controls between the buyer/seller. The order establishes the obligation and sales order at the transaction level for execution & is linked to a relevant GT&C that authorizes the business between the two Trading Partners. Through the proper use of the FIDS, agencies will have access to more timely and accurate data that will help agencies make informed decisions through data analytics to improve purchasing decisions, standardize selling practices, and quickly identify & resolve problems.
Performance
Performance is intended to document the relevant revenue and expense general ledger events based on order fulfillment and the receipt of goods and services. G-Invoicing automates the submission of billing data to the buyer and creates standard business rules on how and when buyers must acknowledge receipt of IGT goods/services. It also streamlines the process to settle funds in the Intragovernmental Payment and Collection (IPAC), which allows trading partners to settle transactions directly and more efficiently.
G-Invoicing ensures federal trading partners: effectively communicate with each other, properly exchange information via a standardized data set, and accurately record & store financial events. If you are interested in learning more about G-Invoicing, please contact our team at Tbuffington@thompsongrayinc.com for more details.