GFEBS Debt Management
Treasury Reporting: Reason Status Codes - answer Reason Status codes assist
with the preparation of the TROR. Reason Status codes indicate the state of the debt
throughout the debt lifecycle and assist the accounting system with determining how to
categorize the debt.
Changes in the reason status code occur through business events or are manually
entered into the accounting system. These changes also occur via interfaces from
entitlement and revenue systems
When is interest applied? - answer Interest is applied 30 days after the debit notice
due date (i.e., day 31). Additional interest will accrue for each 30 day period until
payment is received. The interest calculation program is automatically executed on a
daily basis, but only updates the account every 30 days. In the process of fully collecting
a debt that includes principal, interest, fees, and penalties the remittances received are
first applied to reduce penalties, fees, interest, and then principal.
How is interest applied? - answer The Run Interest Calculation Program is run
automatically. It can be manually run by the Debt Management Processor if needed.
Interest accrues continually until the debt is collected or written off.
Who determines the applied interest amount? - answer The U.S. Treasury requires
the Current Value of Funds Rate (CVFR) to be used as the interest rate. When the debt
record is created the interest rate (%) is assigned to the accounts receivables record.
The rate is fixed for the life of the debt.
CVFR - answer Current Value of Funds
Fees - answer are assessed to cover the additional costs incurred in handling a debt
beyond the date on which payment was due. They are applied only if payment is not
made by the due date specified on the billing form and / or demand letter. The DoD
components calculate fees based upon actual costs incurred. If the actual cost is not
available, fees may be determined by historical costs or by the cost analysis method
that supports determination of the charge.
Penalties - answer are charges on delinquent debt to discourage delinquencies and
encourage early payment of the debt in full. The rate to be assessed is set by law at
more than six percent per year and is assessed on the portion of a debt remaining
delinquent for more than 90 days. The charges will accrue and be assessed from the
date of delinquency.
, Who processes installment plans and when? - answer If a debtor requests an
installment plan and Defense Finance and Accounting Services (DFAS) receives the
request before or by the due date, the required documents are evaluated to determine
whether the customer meets the requirements for an installment plan.
The Debt Management Processor receives the installment plan decision and if the
installment plan request is approved, enters the required information in GFEBS
Installment plans guidelines - answer First, installment guidelines include
documentation from the debtor that he / she is financially unable to pay in a lump sum.
Second, installment plans require monthly payments with an overall repayment period
not to exceed 3 years, unless an exception is granted.
Last, installment payments should be at least $50 each month.
True or false: Government employees are subject to interest, fee, and penalty charges
assessed on debt to the government that are overdue. - answer True
The interest calculation program run every day and updates each amount every ______
- answer 30 Days
Four of the more commonly used reports are: - answer Customer Open Item
Analysis by Balance of Overdue Items, Customer Line item Display, Customer Account
Analysis, and the Due Date Analysis for Open Items.
Customer Open Item Analysis by Balance of Overdue Items (S_ ALR_ 87012178) -
answer This report is used to display customer open items by user-defined aging
categories (e.g; every 20 days, 30 days days, etc.). Selections and filtering capabilities
can be made for multiple customers. Items can also be summed at various levels. This
aging report can be used to determine receivables that are eligible for write-off and to
validate that the required debt fees have been applied to delinquent receivables.
Customer Line Item Display Transaction Code - answer FBL5N
Customer Line Item Display (FBL5N) - answer This report lists customer line items.
Items can be displayed for more than one customer by selection by open, cleared, or all
items. Details can be displayed for specific line items using drill down capabilities. Users
have the ability to create user-defined report layouts for future use. Fields can be sorted
and subtotaled at various levels.
Customer Account Analysis Transaction Code - answer S_ALR_87012169
Due Date Analysis for Open Items Transaction Code - answer S_ALR_87012168
Treasury Reporting: Reason Status Codes - answer Reason Status codes assist
with the preparation of the TROR. Reason Status codes indicate the state of the debt
throughout the debt lifecycle and assist the accounting system with determining how to
categorize the debt.
Changes in the reason status code occur through business events or are manually
entered into the accounting system. These changes also occur via interfaces from
entitlement and revenue systems
When is interest applied? - answer Interest is applied 30 days after the debit notice
due date (i.e., day 31). Additional interest will accrue for each 30 day period until
payment is received. The interest calculation program is automatically executed on a
daily basis, but only updates the account every 30 days. In the process of fully collecting
a debt that includes principal, interest, fees, and penalties the remittances received are
first applied to reduce penalties, fees, interest, and then principal.
How is interest applied? - answer The Run Interest Calculation Program is run
automatically. It can be manually run by the Debt Management Processor if needed.
Interest accrues continually until the debt is collected or written off.
Who determines the applied interest amount? - answer The U.S. Treasury requires
the Current Value of Funds Rate (CVFR) to be used as the interest rate. When the debt
record is created the interest rate (%) is assigned to the accounts receivables record.
The rate is fixed for the life of the debt.
CVFR - answer Current Value of Funds
Fees - answer are assessed to cover the additional costs incurred in handling a debt
beyond the date on which payment was due. They are applied only if payment is not
made by the due date specified on the billing form and / or demand letter. The DoD
components calculate fees based upon actual costs incurred. If the actual cost is not
available, fees may be determined by historical costs or by the cost analysis method
that supports determination of the charge.
Penalties - answer are charges on delinquent debt to discourage delinquencies and
encourage early payment of the debt in full. The rate to be assessed is set by law at
more than six percent per year and is assessed on the portion of a debt remaining
delinquent for more than 90 days. The charges will accrue and be assessed from the
date of delinquency.
, Who processes installment plans and when? - answer If a debtor requests an
installment plan and Defense Finance and Accounting Services (DFAS) receives the
request before or by the due date, the required documents are evaluated to determine
whether the customer meets the requirements for an installment plan.
The Debt Management Processor receives the installment plan decision and if the
installment plan request is approved, enters the required information in GFEBS
Installment plans guidelines - answer First, installment guidelines include
documentation from the debtor that he / she is financially unable to pay in a lump sum.
Second, installment plans require monthly payments with an overall repayment period
not to exceed 3 years, unless an exception is granted.
Last, installment payments should be at least $50 each month.
True or false: Government employees are subject to interest, fee, and penalty charges
assessed on debt to the government that are overdue. - answer True
The interest calculation program run every day and updates each amount every ______
- answer 30 Days
Four of the more commonly used reports are: - answer Customer Open Item
Analysis by Balance of Overdue Items, Customer Line item Display, Customer Account
Analysis, and the Due Date Analysis for Open Items.
Customer Open Item Analysis by Balance of Overdue Items (S_ ALR_ 87012178) -
answer This report is used to display customer open items by user-defined aging
categories (e.g; every 20 days, 30 days days, etc.). Selections and filtering capabilities
can be made for multiple customers. Items can also be summed at various levels. This
aging report can be used to determine receivables that are eligible for write-off and to
validate that the required debt fees have been applied to delinquent receivables.
Customer Line Item Display Transaction Code - answer FBL5N
Customer Line Item Display (FBL5N) - answer This report lists customer line items.
Items can be displayed for more than one customer by selection by open, cleared, or all
items. Details can be displayed for specific line items using drill down capabilities. Users
have the ability to create user-defined report layouts for future use. Fields can be sorted
and subtotaled at various levels.
Customer Account Analysis Transaction Code - answer S_ALR_87012169
Due Date Analysis for Open Items Transaction Code - answer S_ALR_87012168
