text: Chapter 5
  Cost management is one of the key capabilities of funding. Cost management
  depends significantly on timely and accurate reporting of accounting information
  resulting from financial transactions recorded in the Army’s Financial Management
  Information Systems (FMIS). Cost management is a force multiplier to the
  commander by enabling resource informed decisions.
  This chapter describes the key tasks associated with accounting and the basic
  concepts and principles of cost management and how these concepts and principles
  are employed by financial managers in support of contingency operations. The
  chapter also describes the shift from the “budget” culture to the “cost” culture and the
  importance of cost management to decision-making and the proper allocation of
  resources.
  SECTION I – ACCOUNTING SUPPORT
  5-1. Accounting support requires the close participation of ASCC/corps/Division G-8, FMSC, and FMSU
  personnel and supporting DFAS activities in ensuring the proper recording, analyzing, verifying and
  reporting of financial data associated with Army activities. Most important, effective financial data
  capturing is achieved through a joint effort between the FM community, the contracting personnel, and the
  use of applicable FMIS.
  5-2. The DFAS and other national providers issue guidance and provide support back at the home station
  or within the AO that helps the commander maintain control and achieve accountability over resources.
  The DOD Financial Management Regulation, Volume 4, provides the policy and standards by which the
  Component should establish financial control over its assets. Financial control is a main objective of
  accounting and helps ensure proper and authorized use of all assets, as well as adequate care and
  preservation.
  5-3. The status of funds is determined by using a variety of FMIS. Reports generated from these systems
  assist in determining funding balance, commitments, obligations, and disbursements. A description of the
  software and tools required to support the accounting competency can be found in chapter 8, Information
  Management. Financial managers provide timely, accurate, relevant, and reliable financial information that
  enables leaders and managers to incorporate cost considerations into their decision-making process.
  5-4. Financial managers establish and implement financial reporting procedures for their command and
  subordinate units. Accurate account reporting is critical to the commander; the ability to sustain operations
  in theater is dependent upon the availability of funds. The request for funding to support current and future
  operations requires historical and projected financial data. This section describes the stages of a transaction
  and accounting tasks performed at the strategic, operational and tactical levels of support.
  STAGES OF A TRANSACTION
  5-5. A commander must know the status of funds (funding balance, state of financial execution) to make
  informed resourcing and operational decisions. The financial manager obtains this information for the
  commander by tracking commitments, obligations, accrued expenditures/expenses, and disbursements
  daily. Figure 5-1 depicts the stages of a transaction.