DEFENSE LOGISTICS AGENCY 

HEADQUARTERS 

8725 JOHN J . KINGMAN ROAD 

FORT BELVOIR, VIRGINIA 22060-6221 

April 22, 2015 

MEMORANDUM FOR SUPPLY PROCESS REVIEW COMMITTEE (PRC) AND 

JOINT PHYSICAL INVENTORY WORKING GROUP (JPIWG) MEMBERS 

SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 1085, 

Revise Procedures for End of Day Processing to Include and Clarify Programmed 

Research of Imbalances using Transaction History Data and Authorize Up to Seven 

Work Days to Complete Programmatic Research 

The attached change to DLM 4000.25, Defense Logistics Management Standards and 

DLM 4000.25-2, Military Standard Transaction Reporting and Accountability Procedures 

(MILS TRAP) is approved for implementation. As of the date of this issuance this is an IntraDLA requirement that has been implemented. Other Components may implement at any time. 

Addressees may direct questions to Mr. Lou Madrigal, 703-767-2011 or DSN: 427-2011 

or email to: luis.madrigal@dla.mil. Others may direct questions to their Component designated 

Supply PRC representative. 

Attachment 

As stated 

cc: ODASD (SCI) 

cc: Supply PRC 

Director 

Defense Logistics Management 

Standards Office 
ATTACHMENT TO ADC 1085

Revise Procedures for End of Day Processing to Include and Clarify Programmed 

Research of Imbalances using Transaction History Data and Authorize Up to Seven Work 

Days to Complete Programmatic Research.

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION:

a. Technical POC: DLA HQ, J62

b. Functional POC : DLA HQ Inventory Management, J332, DSN 427-3605

2. FUNCTIONAL AREA:

a. Primary/Secondary Functional Area: Supply/Logistics

b. Primary/Secondary Functional Process: Physical Inventory Control

3. REFERENCES:

a. DLM 4000.25-2, Military Standard Transaction Reporting and Accountability 

Procedures (MILSTRAP), Chapter 7

b. DLM 4000.25, Defense Logistics Management Standards (DLMS), Volume 2, 

Chapter 6

4. APPROVED CHANGE(S):

a. Brief Overview of Change: The purpose of this change is to extend the time 

standard to a maximum of seven work days for the completion of the programmatic research 

portion of the end of day reconciliation process. This change does not affect the transactional 

flow or data elements required to complete end of day processing. It restates procedures to 

include: closing balance comparisons at end of day; and, for imbalances, the programmatic

research elements to be considered to include in-float, suspended, and duplicate transactions 

prior to adjusting the Total Item Property Record (TIPR). 

b. Background:

(1) References 3.a. and 3.b. require an end of day reconciliation between 

owners/managers and storage activities for all active records to compare on-hand balances daily. 

Historically, DLA runs an end of day reconciliation with 50+ sites in different time zones with 

an average of 53,000 active line items. A typical week’s worth of daily matches results in 

identification of 5,000 – 6,000 line items with unmatched balances.

(2) For records with imbalances, owners/managers will send a Transaction 

History Request transaction (DLMS 846P with Report Type Code TF (MILSTRAP legacy DIC 

DZJ)) to the storage activity. The storage activity responds using the appropriate DLMS 

historical submission transactions to provide transaction history details. Under DLMS, the 

storage activity will send transaction history data by submitting the affected transactions that are 

Attachment, ADC 1085

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identified by beginning segment Action Code W1, as an historical submission. DLMS 

transactions subject to historical submission are: Receipt, Issue, Materiel Release Order, 

Materiel Release Advice, and Inventory Adjustment (DLMS 527R, 867I, 940R, 945A, and 947I, 

respectively). A Response to Transaction History Request (No History Available) (DLMS 846P 

with Report Type Code AD) is used when no history is available for the selected timeframe.

Storage activities still operating under MILSTRAP legacy transactions send legacy DIC DZK 

Transaction History Transmittal for transactions affecting the balance for the requested 

timeframe.

(3) The historical transaction submission data is critical to DLA's Inventory 

Records Management processes because it was designed to programmatically use the storage 

activity’s transaction history detail to ensure consideration of in-float, suspended, failed and 

missing transactions. This allows DLA to systematically resolve imbalances and 

programmatically accept the unresolved mismatched quantities. However, DLA has found that 

the total cycle time (inclusive of DLA, as well as the storage activities system processing 

between submission of a Location Reconciliation Request transaction (DLMS 846R with Report 

Type Code LC (legacy DIC DZH)) and handling of historical transaction submission data) is not 

feasible within the same day/24 hour timeframe. For this reason DLA runs a weekly cycle rather 

than end of day, using the most recent Location Reconciliation Request transaction (DLMS 

846R/legacy DZH), to give the storage activities a chance to respond to the Transaction History 

Requests (DLMS 846P/legacy DIC DZJ). Weekly management reports and resources are then 

focused on the actual adjustments and causative research conducted in accordance with the value 

of the adjustment and type of item. 

c. Approved Change in Detail: There is no change to the requirement to transmit to 

owners the end of day balance for all items having balance affecting transaction during the 

previous 24 hours. This change only extends the time standard to a maximum of seven work

days for the completion of the programmatic research portion of the end of day reconciliation 

process as described in paragraph 4.d., below.

d. Revisions to DLM 4000.25 Manuals:

(1) Revision to DLM 4000.25-2, Defense Logistics Management System 

(DLMS), Chapter 7, as follows: (Note administrative change of “shall” to “will”, consistent with 

a style change for DoD issuances, will be made throughout Chapter 7 when this change is 

published in the manual)

C7.2.6.3. Owner shallwill match the storage activity location reconciliation 

request transactions to affected records. Imbalances shallwill be programmatically 

researched to assureensure consideration of in-float documents, delayed/suspended

transactions, and duplicate transactions. For owners who compare storage activity

transaction history detail to owner transaction data when performing programmed 

research the owner will send a DIC DZJ request (see C7.2.6.5 below) for all

imbalances. The storage activity will send transaction history data (see C7.4.4.2 for 

requested timeframe). Programmed research will be completed within 7 work days

from receipt of the initial DIC DZH. For unresolved mismatched quantities, the 

owner/manager shallwill update the affected record on-hand balance with the storage 

Attachment, ADC 1085

Page 2
activity's closing on-hand balance. The mismatched quantity (gains and losses) shallwill

be adjusted with a DIC D8B/D9B, Inventory Adjustment Increase/Decrease (Accounting 

Error) transaction.

(2) Revision to DLM 4000.25, Volume 2, Chapter 6 as follows: (Note 

administrative change of “shall” to “will” ”, consistent with a style change for DoD issuances, 

will be made throughout Chapter 6 when this change is published in the manual)

C6.2.6.3. Owner shallwill match the storage activity location reconciliation 

request transactions (DLMS 846R BIA06 Action Code Z; MILSTRAP legacy DIC DZH 

with Type Code 1 in record position 7) to affected records. Imbalances must be 

programmatically researched to ensureassure consideration of in-float documents, 

delayed/suspended transactions, and duplicate transactions. For owners who compare 

storage activity transaction history detail to owner transaction data when performing 

programmed research the owner will send a Transaction History Request transaction 

(see C6.2.6.5 below) for all imbalances. The storage activity will send transaction 

history data (see C6.4.4.2) for requested timeframe. Programmed research will be 

completed within 7 work days from receipt of the initial Location Reconciliation 

Request transaction. For unresolved mismatched quantities, the owner/manager

shallwill update the affected record on-hand balance with the storage activity's closing 

on-hand balance. The mismatched quantity (gains and losses) shallwill be adjusted with 

Inventory Adjustment Increase/Decrease (Accounting Error) (DLMS 947I with Quantity 

or Status Adjustment Reason Code AB; MILSTRAP legacy DIC D8B/D9B). 

e. Approved Transaction Flow: No change required in transaction flow.

f. Alternatives: No alternatives, except to discontinue programmed research. 

However, if manual research was required to determine in-float, missing, and duplicate 

transactions, this would have a significant impact on resources.

5. REASON FOR CHANGE: This change recognizes the total cycle time in End of Day 

Processing, to include: Comparison of storage activity closing balance; determining potential 

imbalances; and, requesting, obtaining, and using detail Transactional History data to

programmatic research imbalances to ensure consideration of in-float, delayed, suspended, and 

duplicate transactions. It further recognizes that storage activity systems, such as the 

Distribution Standard System (DSS), with high daily volumes of balance affecting transactions 

require more than a day to complete programmatic research.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: The implementation of this change will allow reasonable completion 

time for automated research as a result of discrepancies found via the End-of-the-Day process.

b. Disadvantages: None available at this time.

7. ADDITIONAL COMMENTS TO CONSIDER: This change authorizes the current 

programmatic research practice programmed within EBS for the reasons described in the 

background, paragraph 4.b.

Attachment, ADC 1085

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8. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Implemented.

9. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: N/A --- Implements total cycle time processing 

requirements to ensure End of Day imbalances are programmatically researched to consider infloat documents, delayed transactions, and duplicate transactions prior to adjusting the Total Item 

Property Record (TIPR).

10. IMPACT:

a. New DLMS Data Elements: There are no new DLMS data elements or changes to 

existing ones introduced by this DLMS change.

b. Automated Information Systems (AIS): Previously implemented, of this change 

requires no additional system changes.

c. DLA Transaction Services: This change does not impact any transaction flows 

through DAAS.

d. Non-DLA Logistics Management Standards Publications: Any Component level 

procedures documenting the applicable programmatic research requirements contained herein 

should be updated as necessary.

11. Proposed DLMS Change (PDC) 1085 Staffing Response/Comment Table:

Originator Response/Comment

1. DLA Concur without comment.

2. Air Force Concur without comment.

3. Army Concur without comment.

4. Navy Concur without comment.

5. Marine Corps Concur without comment.

6. DLA EBS & DSS Concur without comment.

7. USTRANSCOM Abstain.

Attachment, ADC 1085

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