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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 netrealizable value islessthan 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
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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