Nutrition Services Division Management Bulletin |
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| Purpose: Policy, Beneficial Information | |
To: Food Distribution Program Recipient Agencies, Commodity Supplemental Food Program Agencies, U.S. Department of Agriculture Foods Processors, Food Distribution Program Warehouses |
Number: USDA-FDP-03-2011 |
Attention: Food Program Director, U.S. Department of Agriculture Foods Manager/Specialist |
Date: May 2011 |
Subject: Electronic Receipting for U.S. Department of Agriculture Direct and Multi-Food Shipments |
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| Reference: U.S. Department of Agriculture (USDA) Policy Memo FD-062, Title 7, Code of Federal Regulations, Section 250.16, USDA Food and Nutrition Service (FNS) Instruction 709-5 | |
This Management Bulletin (MB) notifies Food Distribution Program recipient agencies, processors, and warehouses who receive direct shipments of food from the U.S. Department of Agriculture (USDA) of a new mandatory requirement regarding the receipt of USDA Foods.
With the recent conversion to the new Web-Based Supply Chain Management (WBSCM) system, receiving organizations must now submit receipts electronically in WBSCM for shipments of USDA Foods received.
The USDA has replaced USDA Food and Nutrition Service (FNS) form FNS-57 (the Over, Short and Damaged Report) and the former Electronic Commodity Ordering System (ECOS) receipting function with a new, mandatory WBSCM Shipment Receipt Function and the accompanying WBSCM Shipment Notification Report. Combined, the WBSCM Shipment Receipt Function and Shipment Notification Report meet USDA regulations in Title 7, Code of Federal Regulations, Section 250.16, for receipting of shipments. The WBSCM Shipment Receipt Function will also eliminate the need for receiving organizations to fax multi-food receipts to the national multi-food warehouses. This MB should be used in conjunction with FNS Instruction 709-5, which provides procedures regarding the shipment and receipt of foods. The FNS Instruction 709-5 is available at the USDA Web page http://www.fns.usda.gov/fdd/hdbks-instruct/709-5_ShipmentsReceipts.pdf (PDF; Outside Source).
As a result of this change, receiving organizations are now required to enter all shipment receipts within three business days of delivery, using the WBSCM Shipment Receipt Function. This requirement applies both to direct and multi-food shipments of USDA Foods.
The WBSCM Shipment Receipt Function allows receiving organizations to issue receipts for USDA Foods electronically, thereby communicating delivery status information in real-time. This action also changes the status of the order to Order Received (OREC) status. The WBSCM also contains a Shipment Notification Report that can be used to verify when a shipment has been received. In addition, the following items are critically dependent upon proper WBSCM receipting:
- Vendor Payment Matching Process: Electronic documentation generated by entering receipting information is used as part of the vendor payment matching process, which allows for accurate and timely payments to USDA vendors;
- Value of Commodities Received Report: Only receipted requisitions and sales orders display on the Value of Commodities Received Report; which the California Department of Education must retain and report annually for audit purposes.
- Claims: Proper documentation is necessary for USDA to submit claims for shortages and/or damaged products with vendors. Without an accurate receipt, a claim cannot be pursued.
- Recalls: Systematic tracking of received product and the reporting of product disposition requires a record of receipt.
A complete explanation of the shipment receipting function can be found in the WBSCM application under Help> Training> Work Instructions> External> Fulfillment (WI-Ext) > Domestic> Enter Customer Shipment Receipt.
This new procedure will streamline operations, result in administrative cost savings for the receiving organizations, and provide just-in-time order status information.
If you have any questions or need further clarification of this process please contact the WBSCM Help Desk by e-mail at WBSCMHelp@ams.usda.gov or by phone at 703-305-2914.
The attached policy memo is available at the USDA Web page http://www.fns.usda.gov/fdd/policymemo/pmfd062_AllFDP-ElectronicShipReceiptsRevised042511.pdf (PDF; Outside Source).
If you have any questions regarding this MB, please contact Marina Villalpando, Commodity Distribution Unit, by phone at 916-324-0577 or by e-mail at mvillalp@cde.ca.gov, Irene Boubalos, Business Operations and Processing Unit, by phone at 916-323-7181 or by e-mail at iboubalos@cde.ca.gov, or Jessica Gray, Business Operations and Processing Unit, by phone at 916-324-6150 or by e-mail at jgray@cde.ca.gov.
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