LETTER (SANITIZED) FROM JOHN M. HOLMES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00191R000100050008-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 23, 2016
• Document Release Date: October 24, 2013
• Sequence Number: 8
• Publication Date: September 16, 1986
• Content Type: LETTER

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Declassified in Part- Sanitized Copy Approved forRelease2013/10/24 : CIA-RDP90-00191R000100050008-0
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The Software Company
September 16, 1986
Dear
This will confirm our conversation of 9/15 concerning the items set
forth in my letter of 9/10.
(1) Your finance people will be permitted to access AP 5.0 at our
Alexandria Office. You should contact our Mr. Bob Hunt, who
will make all necessary arrangements. This version operates
stand alone (no integration with Purchasing) in a VSAM
environment.
(2) There will be no planned budgetary calls in Purchasing 2.0.
Although such calls are being considered by our development
people for a later enhancement, no firm plan or schedule exists
presently.
(3) The Electron's Funds Transfer (ETF) used by the FBI and HUD in
AP 3.4 will be available in 5.0. This is described on the
attached document, titled "Wire Transfers."
(4) We have developed a method for tracking cost plus type contracts
using the Purchasing System. This is described on the
attachment entitled, "Tracking Cost Type Contracts." I will
demo this technique during my visit on 9/29.
(5) I have spoken with numerous people concerning realtime printing
of P.O.'s. It appears to be a very complex task that at best
has some technical pitfalls. However, there may be a relatively
simple solution based on operating procedures. The Purchasing
System Data Processing Guide provides the key. The Purchasing
files must be closed to CICS while running program PSCB 4000.
This job pulls P.O.'s from the PSFM 100 file and builds the PSFM
900 (P.O. print file). Information Expert (IE) is used to print
out the PSFM 900 file. This can be run concurrently with CICS.
Therefore, the files could be closed to CICS for 15 monutes at
lunch while the print file was being prepared. Orders created
in the AM could be printed after lunch. By organizing those
orders that had to be reviewed in draft form prior to release,
the entry, review, and release cycle could be done without
delay.
MANAGEMENT SCIENCE AMERICA, INC ? MACK CENTRE IV ? 61 SOUTH PARAMUS ROAD ? PARAMUS, NEW JERSEY 07652-1217 ? [phone]
Declassified in Part - Sanitized Copy Approved for Release 2013/10/24: CIA-RDP90-00191R000100050008-0
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Declassified in Part - Sanitized Copy Approved for Release 2013/10/24: CIA-RDP90-00191R000100050008-0
CAJ LI
STAT
STAT
Page Two
Sept. 16, 1987
(6) The Purchasing - Mfg. interface may be
originally estimated. At such time as
we should reexamine all potential
insure there is a mutual understanding
Very truly yours,
John M. Holmes
JMH/js
cc:
R. Hunt
easier than we
the project is a formal
system modifications to
of the required scope.
Declassified in Part - Sanitized Copy Approved for Release 2013/10/24: CIA-RDP90-00191R000100050008-0
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Declassified in Part - Sanitized Copy Approved for Release 2013/10/24: CIA-RDP90-00191R000100050008-0
WIRE TRANSFERS
Wire transfers are Used as another means of disbursing- funds to pay
accounts payable liabilities. The Accounts Payable System facilitates
the Use of wire transfers in the following manner. The key to proper
accounting for wire transfers is segregating cash that will be disbursed
for wire transfers, printing a facsimile "check" as an audit trail, and
generating the proper accounting registers to report and control the
.cash,disbursed. The recomended procedures are as follows.
You Should designate a separate bank as the bank to be used for wire
transfer funds. The use of 4 separate bank account allows you to
? segregate the funds to be disbursed by wire transfer on both the'
Prepayment Register (AP3730) and the Bank Balance Requirements report
(AP3732). The use of a separate. bank account will also accumulate wire
transfer funds on one Check Register (AP4530). You .can then establish a
unique series of "check" number's for wire transfers within this bank and
print the facsimile check on regular paper stock. The checks. printed on
the regular paper Stood( will then become a permanent record of the wire
transfer transactions and create an audit trail between the issuing
parties and the Accounts Payable System.
The separate bank account then becomes the keT identifying factor for
invoices to be paid by wire transfer of funds. The separate bank could
be coded at the Vendor-level, therefore-stating_that all invoices for.
this vendor are to be 4:i4 by wire transfer out of a specified banl.C7'
account. The wire' transfer bank account can alSO be coded in both the-7-7
Invoice Header (IA) and the Batch Header to:identify wire transfer.
invoices. The separate bank would be coded in' the cash field of the
Invoice Header (IA) and would serve to, override the normal.cash
disbursement default hierarchy. The Sane feature can also be employed'
in the Batch HeaderAo:pay all items in the batch by wire transfer. AS.;
an additional identifying feature, you could encode the words "wire
-'transfer" in the remittance message field, of theAOptional Invoice-Beader
(IB). This message would then appear on the facsimile checks printed by
the System. The General Ledger account distribution entries for-wire
transfers are generated in the same manner as a normal invoice.
24307
Declassified in Part - Sanitized Copy Approved for Release 2013/10/24 : CIA-RDP90-00191R000100050008-0
Declassified in Part - Sanitized Copy Approved for Release 2013/10/24: CIA-RDP90-00191R000100050008-0
TRACKING COST TYPE CONTRACTS
The following operating routine assumes a client wishes to track the
monthly financial data under a cost plus fixed fee contract containing
a 15% hold back on invoiced cost. This method will apply to all cost
reimbursement type contracts.
In order to segregate this type order from normal purchasing activity,
a separate buy entity should be established; ie, COST. The buyer(s)
authorized to issue cost contracts are set up in the normal manner.
The IDF file is then created with four items. One each for cost, fee,
holdback and a generic description cost type.
For every cost type contract, two orders would be entered in the
system. First, an order is created using the generic description.
Basically, you are "buying" one (ea) cost type contract for a total
(Cost and fee) dollar amount. Item comments would be used to detail
descriptions and reference, as needed, other documentation.
Next, a second order using the same number with a prefix (C) in the
first position is ,set-up. There would be three line items for each
"C" prefixed order. (This order would never be sent to the supplier -
it is for tracking purposes only.)
Line number 001 is for cost, line 002 for fee and 003 is for
withholding. The quantity ordered field is used for the dollars and
price field is used as the increment; ie, $1.00. A $700,000 cost base
contract would call for 700,000 (ea) at $1.00 per. Line 002 would
call for 70,000 (ea) at $1.00 (assuming a 10% fee). Line 003 would
state 105,000 (ea) at $1.00. The required delivery date would show
the planned completion date of the contract.
As monthly invoices were received, you would use RSU to partially
"receive" the units of measure for each line item. An invoice for
$50,000 in cost, with a $7,500 holdback and $4,250 in fee would be
received as follows.
Order CXXXXX Line 001 50,000 ea
Line 002 7,500 ea
Line 003 4,250 ea
Receiving tolerances could be used to control the "dollars" received.
By accessing TXN PLI the user could select as needed any or all of the
inquiry screens shown (PLG, PLO, PLC, PLR, PLF, or PLI).
Declassified in Part - Sanitized Copy Approved for Release 2013/10/24: CIA-RDP90-00191R000100050008-0