What is on a Foreign Military Sales billing statement?

The DD Form 645, FMS Billing Statement is prepared by DFAS-IN. In the absence of a special billing arrangement, the FMS Billing Statement represents the USG’s official claim for payment to the international partner for the articles and/or services agreed to on the case. It also furnishes an accounting to the international partner for case costs incurred to date. In addition to identifying deliveries or performance of services made on the international partner’s case, the DD Form 645, FMS Billing Statement also reflects the forecasted costs, which relate to the next quarter’s financial requirements on that same case. These forecasted costs may include anticipated progress payments, contractor holdback, TL reserve, accrued and future deliveries, and associated costs (e.g., NC, CAS, administrative/accessorial, etc.). For example, the DD Form 645, FMS Billing Statement for the period ending 31 December would contain delivery transaction data provided to DFAS-IN in October, November, and December and a forecasted financial requirement for April, May, and June.

In addition to the DD Form 645, FMS Billing Statement, the international partner is provided certain attachments, as applicable, which contains more detailed information. The DD Form 645, FMS Billing Statement, supporting attachments include: (1) FMS Delivery Listing, (2) FMS Reply Listing to Purchaser Requests for Adjustments, (3) FMS financial forecast, (4) holding account statement, and the (5) accelerated case closure suspense account statement.

A delivery listing is prepared in support of the delivery entries on the DD Form 645, FMS Billing Statement. The delivery listing is an itemized listing of all items physically delivered and services performed during the reporting period. It is cross referenced to specific document numbers and allows international partners to validate receipt of the materiel or services. The delivery listing is sorted by country case, line, DSC, and then the accounting date.

DFAS-IN provides a consolidated listing of the actions taken in response to Supply Discrepancy Reports (SDRs), entitled “FMS Reply Listing to Purchaser Requests for Adjustments”. All responses to SDRs shall be listed separately for each international partner and case. The Reply Listing is prepared in the same basic sequence as the billing statement and FMS delivery listing. The Adjustment Reply Code (ARC) documents the USG decision/action for the international partner submitted SDR.

The financial forecast reflects forecasted amounts of payments due, by quarter, over the remaining life of an FMS case. It essentially portrays the same information as the case estimated payment schedule.

The international partner may request DFAS-IN to draw upon its country holding account(s) for transfers to specific cases as a need arises. The holding account balances are not included in the totals of the DD Form 645, FMS Billing Statement. Separate holding account statements are provided to the country showing deposits and withdrawals to the holding account(s) and is considered an off-line billing statement. The international partner must advise DFAS-IN of its desires relative to the controls over holding account transactions. For example, DFAS-IN needs to know if the international partner desires automatic refunds, or if the international partner wants to request refunds on a case-by-case basis.

For those international partners participating in accelerated case closure procedures, DFAS-IN must record the case’s estimated Unliquidated Obligation (ULO) value in a summary account entitled “Case Closure Suspense Account” (CCSA). A statement of the country’s CCSA will be provided with each quarterly bill. This account statement is similar to the holding account statement in that it summarizes activity, by case, for the current quarter. The statement also shows the previous and current quarter balances for the account.