**Proprietary Transaction Code Modifications (FY 2024)**

**Operating Materials and Supplies**

**1) D542**To record the classification of operating materials and supplies ~~held for use or future use~~ that were damaged and cannot be consumed in operations. This entry also applies to excess or obsolete operating materials and supplies when the net realizable value is less than the book value.

**Reference:** USSGL implementation guidance; FASAB SFFAS No. 3, "Accounting for Inventory and Related Property"

**Budgetary Entry**

None

**Proprietary Entry**

Debit 151300 Operating Materials and Supplies - Excess, Obsolete, and Unserviceable  

Debit 729000 Other Losses     

	Credit    151100 Operating Materials and Supplies Held for Use     

	Credit    151200 Operating Materials and Supplies Held in Reserve for Future Use

	Credit    151400 Operating Materials and Supplies Held for Repair

	Credit    151600 Operating Materials and Supplies in Development

**2) E602** To record inventory or operating materials and supplies acquired through exchange of nonmonetary assets.

**Comment:** An entity receiving assets of greater value than those exchanged recognizes a gain and an entity receiving assets of lesser value recognizes a loss.

**Budgetary Entry**

None

**Proprietary Entry**

Debit 151100 Operating Materials and Supplies Held for Use  

Debit 151200 Operating Materials and Supplies Held in Reserve for Future Use  

Debit 151300 Operating Materials and Supplies - Excess, Obsolete, and Unserviceable

Debit 151400 Operating Materials and Supplies Held for Repair

Debit 151600 Operating Materials and Supplies in Development  

Debit 152100 Inventory Purchased for Resale  

Debit 152200 Inventory Held in Reserve for Future Sale  

Debit 152300 Inventory Held for Repair  

Debit 152400 Inventory - Excess, Obsolete, and Unserviceable  

Debit 152500 Inventory - Raw Materials  

Debit 152600 Inventory - Work-in-Process  

Debit 152700 Inventory - Finished Goods  

Debit 721000 Losses on Disposition of Assets - Other     

	Credit    151100  Operating Materials and Supplies Held for Use     

	Credit    151600  Operating Materials and Supplies in Development     

	Credit    152100  Inventory Purchased for Resale    

	Credit    711000  Gains on Disposition of Assets - Other

**3) D540** To record a gain when inventory or operating materials & supplies are revalued at the end of the period, using the latest acquisition method.  

**Comment:** Reverse this transaction if there is a loss upon revaluation using the latest acquisition method.  Held For Repair asset accounts should only be used in this transaction when the allowance method for repairs is used.  

**Reference:** USSGL implementation guidance; FASAB SFFAS No. 3, "Accounting for Inventory and Related Property"

**Budgetary Entry**

None

**Proprietary Entry**

Debit 151100 Operating Materials and Supplies Held for Use

Debit 151200 Operating Materials and Supplies Held in Reserve for Future Use

Debit 151400 Operating Materials and Supplies Held for Repair

Debit 152100 Inventory Purchased for Resale 

Debit 152300 Inventory Held for Repair 

Debit 152700 Inventory - Finished Goods

	Credit    151900 Operating Materials and Supplies - Allowance  

Credit    152900 Inventory - Allowance

Page 2 of 2                                        IRC Handout 02/15/2024