2

ADC 324 

 Procedures for Materiel Returns from NIMS and Industrial Sites under BRAC 

1. ORIGINATOR: 

a. Service/Agency: Defense Logistics Agency

b. Originator: DLA, DSCR-BAPS , 703-325-1258

2. FUNCTIONAL AREA: 

a. Primary: Supply/ Logistics. Receipt/Materiel Returns

b. Secondary: Finance/Billing Adjustment

3. REQUESTED CHANGE: 

a. Description of Change: This change documents procedures for materiel returns to the 

Defense Logistics Agency (DLA) as partially implemented under the National Inventory Management 

Strategy (NIMS) and currently proposed procedures in support of the 2005 Base Realignment and 

Closure (BRAC) decision. The change addresses communication between customer, the distribution 

depot, and the DLA ICP, and establishes new procedures for authorizing and processing customer 

credit for the returned materiel. This change impacts MILSTRIP, MILSBILLS, MILSTRAP, and 

the DLMS equivalents. 

b. Background and Detailed Procedures: 

(1) NIMS. The NIMS is a DLA strategy for extending DLA's consumable item supply chain 

management from the wholesale level to the point of consumption. While DLA was traditionally a 

wholesale distributor, NIMS extended DLA's supply chain management functions to the Servicemanaged retail inventory level. It replaced distinct wholesale and retail inventories with a nationally 

integrated inventory. It provided DLA with a much clearer view of immediate stock requirements by 

replacing redundant levels of management. 

(2) BRAC. As a result of the 2005 BRAC decision, retail supply, storage and distribution 

(SS&D) functions and associated infrastructure supporting Service industrial/maintenance sites will 

transfer to DLA. Under BRAC the affected industrial sites (currently there are 13 sites) can no longer 

maintain retail stock balances. Staffing Note: The original proposed BRAC procedures included a 

variation of the rules for turn-ins from deployed maintenance units outside of the 60-day timeframe

which has been removed by DLA request. 

(3) General Concept. 

(a) Materiel returns under BRAC Inventory Management and Stock Positioning 

(IMSP) and the NIMS differs from normal materiel returns processing. Once the customer has 

determined they have no use for the materiel purchased from DLA, it is returned to the Distribution 
3

Depot/storage site where it is receipted into DLA ownership. DLA shall accept materiel back into 

DLA ownership regardless of the current stock asset position. Based upon business rules described 

below, DLA shall provide zero, partial, or full credit for the materiel to the customer. No credit for 

packaging, crating, handling, or transportation shall be provided. 

(b) Materiel Returns Program (MRP) transactions, e.g., Customer Asset Reports (DI 

FTE), Reply to Customer Asset Report (DI FTR), and ICP/IMM Materiel Receipt Status (DI FTZ) do 

not apply; only those transactions specified in the detailed procedures are used under this concept.

(c) The Military Services shall be responsible for generating a Prepositioned Materiel 

Receipt transaction to the storage activity if it is a co-located DLA storage activity using Distribution 

Standard System (DSS) indicating that the returned materiel is to be receipted into Military Service 

ownership. The Military Service will then direct release resulting in transfer to DLA. Staffing Note: 

There are no currently implemented NIMS sites that have co-located DSS depots. 

(4) Detailed Procedures. Staffing Note: The description below uses terminology unique to 

DLA processing under the DLA Enterprise Business System (EBS). This wording is preserved for 

documentation and better communication. However, the language of the MILS/DLMS publications 

(enclosures) is modified to use standard DoD terminology.

(a) BRAC IMSP 

[1] At the industrial sites there are maintenance units which are authorized 

to turn-in unused DLA-managed materiels to DLA. Maintenance activities will return material to 

DLA with all applicable paper work reflecting at a minimum national stock number, condition code, 

and document number. DLA-J8 has issued a policy to accept this type of retail returns regardless of the 

DLA asset position. The only consideration will be whether to give credit for the return. The materiel 

will be in hand before any credit processes are completed. The return will be to DLA at the forward 

point (the Shop Service Center (SSC)) or to DLA central receiving). 

 [2] The Air Force will make any determination of whether to keep or turn in 

materiel before the materiel is ever physically turned into DLA. The AF systems, Depot Maintenance 

Accounting and Production System (DMAPS)-Naval Air Systems Command Industrial Material 

Management System (NIMMS) will be the entry point for the return of the materiel. The transaction 

includes an internal Air Force Maintenance Document Number (beginning with “M”) and is forwarded 

to D035K which produces a Prepositioned Materiel Receipt (PMR) transaction that is sent to the 

Distribution Depot indicating the Military Service activity to which the receipt will be reported. The 

Distribution Depot will report the receipt (DLMS 527R/D6A) to the Military Service activity as 

identified on the PMR. If D035K determines an internal Air Force need for the material (possible 

backorder), it will forward an issue document to the Distribution Depot for action. If there is no 

internal Air Force need for the material, and because the AF can no longer hold retail materiel in the 

retail account (not at the maintenance level, but in the defense depot), D035K will create a materiel 

release order (DLMS 940R/A5_) using a 'FB' document number to the depot, directing release of the 

material to DLA (citing the Distribution Depot DoDAAC in the Supplemental Address/ship-to). The 

Distribution Depot will recognize this as a “wash” transaction, i.e., a transfer of ownership-in-place, 

and report the receipt (DLMS527R/D6B, Materiel Receipt - Other Than Procurement Instrument (DoD 

Activities) (returns from other DoD activity users into inventory, excludes receipt of end items from 

repair activity)) to the DLA Supply Chain owner. Staffing Note: This requires a DSS program 

change to correctly assign the Document Identifier Code (D6B vice current D6T) and the comparable 
4

alphabetic code identifying the type of receipt in the DLMS 527R at LIN01. 

 [3] The DLA ICP will recognize the receipt (DLMS 527R/D6B) as being 

from the retail customer by the DoDAAC (Depot Retail Supply DoDAAC (“FB20__”) Customer 

Group 3 = RET in the DLA Materiel Master) and from NIMS by the use of Project Code ‘NIM” in the 

return document). The DLA EBS system will check the NIIN, quantity, date, and condition code of 

materiel on the receipt and search for previously completed sales orders from the retail customer with a 

delivery date within the last 60 days. If the turn-in quantity is less than or equal to the quantity on the 

sales order history, the system will process 100% credit equal to the original purchase price. Internal 

to DLA EBS, a “Credit Memo” with reference to the sales order selected is established. This triggers 

Finance to generate the applicable credit. Concurrently, EBS will post the return and increment the 

inventory. If more than one sales order must be used to provide credit for the total quantity on the 

return, a Credit Memo with Reference must be created for each sales order used. If one or more sales 

orders are found with credit memo(s) previously created, the system will continue to look for sales 

orders that have not been used. The system will be aware of any sales orders previously used in the 

return process to prevent reuse. If the turn-in quantity is greater than the quantity on the sales order 

history, the system will process 100% credit up to the sales order history quantity and pass the 

remaining quantity on to the simulated MRP process. The system will be aware of any sales orders 

previously used in the return process to prevent reuse. If no previous sales orders are found, if the 

return is not in the same condition code as issued, or if the return in outside of the 60-day window, the 

request for credit will flow through the simulated MRP process. Any credit granted will be provided 

through standard channels on a monthly basis through the summary billing report (FA2 transaction) 

issued by Finance. Since DLA can not push the credit down to the user level, it is the responsibility of 

the Air Force General Support Division (AF-GSD) to accomplish this. 

 [4] The simulated MRP process is basically the same as the FTE/FTR process 

except the receipt (DIC D6B) is the document used to begin the material return process in EBS. An 

internal offer/response (DIC FTE/FTR) action is simulated. This action will allow the internal 

comparison of assets on-hand/due-in to the Creditable and Retention Levels for a NIIN simply for the 

purpose of making a credit/no-credit decision. Planning will treat the D6B, recognizing it as being 

from a BRAC industrial customer, as an FTE to create Quote and Return Delivery. Credit will be 

determined, the receipt posted and credit triggered per the logic in the normal MRP process. Any 

credit granted will be provided through standard channels on a monthly basis through the summary 

billing report (FA2 transaction) issued by Finance. The Planning Process will be modified to suppress 

the exit of the FTZ/FTR since the material is already in hand. The AFMC has said that they do not 

need to receive status (FTZ) since they have already decided to turn in the materiel. This process is just 

for credit determination and to keep the financial records straight. 

 [b] NIMS. All processes above are the same except those noted below: 

 [1] The document number used for the return must be exactly the same as the 

document number used for the original sales order. 

 [2] The return document transaction must contain the project code “NIM”. 

 [3] No Prepositioned Materiel Receipt transaction is required for NIMS 

returns since the turn in location is a Naval storage activity that does not operate under DSS. 

c. DAASC Mapping: No changes required.
5

d. Alternatives: Note identified at this time. 

4. REASON FOR CHANGE: Per BRAC direction, DLA will accept all DLA managed materiel 

from industrial BRAC sites regardless of condition or current asset position of materiel for item(s) 

being returned. The agreement between DLA and Air Force to provide a full refund equal to the 

original sale price for material returned within 60 days of the sale is a new precedent. EBS requires 

systemic identification of Industrial and NIMS materiel returns to apply unique processing logic. 

5. ADVANTAGES AND DISADVANTAGES: 

a. Advantages: EBS and DSS will be able to comply with DLMS standards for the IMSP 

process.

b. Disadvantages: Unique procedures/system processing required.

6. IMPLEMENTATION SCHEDULE: The proposed AF site BRAC schedule is Aug 2009 

through Jan 2010. NIMS sites are implemented.

7. PUBLICATIONS: 

a. Update MILSTRIP, MILSTRAP, and MILSBILLS as indicated. A comparable change will 

be published to the DLMS Manual. 

b. An update to the overarching policy/procedures under DoD 4140.1-R, DoD Supply Chain 

Materiel Management Regulation is required. A revision shall be submitted by DLA during the recoordination of the proposed re-issuance. 
1

Enclosure 1 

DoD 4000.25.1-M, MILSTRIP

C9. CHAPTER 9

MATERIEL RETURNS PROGRAM (MRP) AND LATERAL 

REDISTRIBUTION OF RETAIL ASSETS

C9.1. GENERAL

 C9.1.1. This chapter provides procedures for the interchange of information, between the owning 

organization and the item manager, on the reporting and disposition of assets. In addition, This 

chapter provides procedures for ICP/IMM directed lateral redistribution of retail assets identified by an 

Inter- or Intra-Service retail asset visibility system. In addition, this chapter provides special 

procedures for returns to DLA from selected sites in support of Base Realignment and Closure 

(BRAC) Retail Supply, Storage And Distribution (SS&D)/Inventory Management and Stock 

Positioning (IMSP) and National Inventory Management Strategy (NIMS). These procedures also 

establish the necessary controls to ensure timely processing of related transactions and provide for the 

automatic return of materiel under specified conditions. 

 C9.1.2. Policy regarding the reporting, transfer, lateral redistribution, and use of assets as an 

alternative to procurement (also known as the procurement offset portion of Total Asset Visibility 

(TAV)) is contained in DoD 4140.1-R, Supply Chain DoD Materiel Management Regulation. 

 C9.1.3. Customer Asset Reports (DI FTE) and follow-on documentation transmitted by 

electronic means will always be routed through DAAS. 

 C9.1.4. Credit for materiel returns is granted on the basis of receipt and classification by the 

consignee. Policy for granting credit is covered under DoD 4140.1-R1. Procedures for the timeframes 

and transactions for providing credit for materiel returns, lateral redistributions, and materiel provided 

for the procurement offset portion of TAV are contained in DoD 4000.25-7-M (MILSBILLS). 

MILSBILLS also cover credit procedures for packing, crating, and handling (PC&H) and 

transportation (T). In addition, MILSBILLS provides formats for Follow-up for MRP Credit (DI FTP) 

and Reply to Follow-up for Credit (DI FTB). 

 C9.1.5. U.S. Government activities returning materiel are cautioned that the returning activity 

may be held responsible for costs incurred by the receiving activity when discrepancies are reported 

and validated using SDR procedures (DLAI 4140.55 et al. and DLAI 4140.60 et al.). This includes 

returns made in violation of prescribed materiel returns procedures, returns exhibiting packaging 

discrepancies, and returns of reparable items unaccompanied by required technical data. Recoupment 

 

1

 DoD 4140.1-R revision pending. DLA is required to request approval of new procedures supporting BRAC/NIMS 

allowing full materiel credit for returns regardless of asset position with no credit for PCH&T. 
2

action by the ICP against the initiator may include all cost reimbursable actions performed by the 

receiving activity such as repackaging, marking, and disposal. 

C9.2. APPLICABILITY AND SCOPE

 C9.2.1. The provisions of this chapter are applicable to all activities offering or returning 

materiel to a Service ICP, DoD IMM, or the GSA. These procedures also apply to activities receiving 

and processing lateral redistribution orders of retail assets. These procedures apply to BRAC SS&D 

and NIMS site returns to DLA. Policy regarding utilization and redistribution of MAP materiel is 

contained in DoD 5105.38-M, chapter 11, section II. These procedures also apply to the processing of 

non-consumable items. 

C9.2.2. BRAC SS&D/IMSP and NIMS 

 C9.2.2.1. Background. Under NIMS, DLA's consumable item supply chain 

management extends from the wholesale level to the point of consumption, replacing the Servicemanaged retail inventory level. Subsequent to the 2005 BRAC decision, retail SS&D functions and 

associated infrastructure supporting Military Service selected industrial sites transfers to DLA. As a 

result, selected industrial and NIMS sites can no longer maintain retail stock balances; once the 

customer has determined they have no use for the materiel, it is returned to DLA. 

 C9.2.2.1.2. A variation of the MRP Program is used for processing materiel returns to 

DLA from selected sites in support of the BRAC SS&D/IMSP and NIMS. Standard MRP 

transactions: e.g., Customer Asset Reports (DI FTE), Reply to Customer Asset Report (DI FTR), 

and ICP/IMM Materiel Receipt Status (DI FTZ) do not apply; only those logistics transactions 

specified in the detailed procedures under paragraph C9.20 are used. Under the NIMS/BRAC 

returns program, DLA accepts returned DLA-managed materiel back into DLA ownership 

regardless of the current stock asset position. Based upon specified business rules, DLA provides 

zero, partial, or full credit for the materiel to the customer. No credit for packaging, crating, 

handling, or transportation is provided. 

 C9.2.2.1.3. Unlike MRP, under the BRAC SS&D/NIMS return procedures it is the 

responsibility for the returning Military Service to provide a Prepositioned Materiel Receipt 

transaction to the applicable storage activity if that activity is a co-located DLA storage activity 

using Distribution Standard System (DSS). The only transaction exchange with DLA prior to 

financial processing, is the DLMS receipt transaction (527R /DI D6B) which is reported by the 

storage activity to the DLA ICP. 

----------------------(Intervening text not shown) -------------------- 

C9.20 RETURNS TO DLA FROM INDUSTRIAL SITES UNDER BRAC SS&D AND NIMS SITE 

CUSTOMERS

 C9.20.1. Industrial Sites Procedures 

 C9.20.1.1 The return of DLA-managed material will be accomplished without processing 

the standard MRP program transactions. The individual maintenance customer will determine 
3

when he has no immediate requirement for the material and will initiate the return process. The 

material shall be physically returned to the DLA storage activity with the applicable documentation. 

The returning activity shall provide a MILSTRAP Prepositioned Materiel Receipt (DW_) 

transaction to the storage activity identifying the Military Service activity to which the receipt will be 

reported. Upon notification of receipt by the storage activity by a DLMS 527R (D6A), the Military 

Service activity shall determine if there is a need for the material by another maintenance user 

(backorder). If so, an issue document will be forwarded to the storage activity for action. If not, a 

Materiel Release Order will be initiated, directing shipment-in-place (citing the shipto/supplemental address of the storage activity), authorizing a change of ownership to DLA. The 

receipt of the returned materiel from the Military Service ownership to DLA will be accomplished 

with a DLMS 527R (D6B). 

 C9.20.1.2. Upon notification of receipt, the DLA ICP shall determine if a corresponding 

sale to Service maintenance (identified by DoDAAC series/internal customer group) has occurred 

for the same materiel and condition code, within a 60 day time frame. If there is a matching sale, 

the customer will receive credit equal to the original sale. The Service’s financial system will be 

notified of a credit via a DLMS/MILSBILLS Billing for Issue from Stock (810L/DI FA2). 

 C9.20.1.3. If no sale has occurred or the condition code differs from that on the original 

sale, DLA will provide credit based upon stock position. If the return quantity exceeds that of 

previous sales, credit will be provided equal to the original sale quantity and credit on the remaining 

quantity will be based upon stock position. DLA ICP business rules for determining whether to 

provide credit/credit amount are equivalent to the MRP program and policy contained in DoD 

4140.1-R. The Service’s financial system will be notified of a credit via a DLMS/MILSBILLS 

Billing for Issue from Stock (810L/DI FA2) 

 

 C920.2. NIMS Procedures. Materiel returns from a NIMS site customer will be processed as 

per C9.20.1.1 through C9.20.1.3, above, including use of the PMR, receipt to the Military Service, 

followed by the materiel release order directing shipment-in-place triggering receipt to the DLA 

ICP. The DLA ICP will process the receipt and determine if a sale has occurred for the same 

materiel, condition code, and customer within a 60 day time frame reflecting the exact same 

document number as the receipt (return) document. If there is an exact matching sale, the customer 

will receive credit equal to the original sale. Credit for any quantity returned over the original 

amount, in a different condition code than the original sale, or unmatched are subject to DLA ICP 

business rules equivalent to the MRP for determining whether to provide credit/credit amount. 
Page 1 

Enclosure 2 

Enclosure 2 

DoD 4000.25-7-M, MILSBILLS 

C2. CHAPTER 2.

BILLING PROCEDURES

C2.2. PREPARATION OF BILLS

 C2.2.1. General. Bills shall be prepared within 30 calendar days of the criteria 

provided in section C2.2 and must identify each shipment, delivery, service performed, or refund 

earned. 

 C2.2.2. Materiel Billing And Credit Amounts. In general, billings for materiel shall 

be at the standard price in effect at the time shipment and credit adjustment (refunds) shall be at the 

price originally billed. Exceptions are identified in the following subparagraphs. Billings and credits 

for services or allowances related to materiel shipments shall be processed as prescribed by section 

C2.5. 

 C2.2.2.1. Lateral Redistribution Credits. Reimbursements for materiel laterally 

redistributed shall be processed at the standard price in effect at the time of shipment. Credits may be 

fully or partially reversed by the IMM/ICP when a validated discrepancy report documents the 

materiel was not shipped in a condition or quantity warranting full credit. 

 C2.2.2.2. ISV Procurement Offset and MRP Credits. Credits shall be processed 

at the acquisition cost in effect at the time of receipt. Credits may be less, if in the opinion of the 

IMM/ICP the materiel received is not in a condition and or quantity to warrant full credit. 

 C2.2.2.3. Quality Deficiency Reports. When the original requisition number 

cannot be identified, the credits shall be at the current standard price. 

 C2.2.2.4 Materiel Returns to DLA from Industrial Sites under Base 

Realignment and Closure (BRAC) Retail Supply, Storage And Distribution (SS&D)/Inventory 

Management and Stock Positioning (IMSP), and National Inventory Management Strategy (NIMS) 

Sites1. A variation of the MRP Program is used for processing materiel returns to DLA from 

selected sites in support of the BRAC SS&D/IMSP and NIMS. Standard MRP DLMS/MILSTRIP 

transactions do not apply. No credit for packaging, crating, handling, or transportation shall be 

provided. 

 C2.2.2.4.1 Industrial Sites. DLA-managed materiel returned by an 

industrial customer at BRAC industrial sites will be accepted into DLA inventory regardless of DLA 

wholesale asset stock position. Credit shall be processed based upon a receipt of the returned 

materiel corresponding to a sale to Service maintenance (identified by DoDAAC series/internal 

customer group) for the same materiel and condition which was completed within the 60 day period 

prior to the date on the return. Credit shall be processed at the full selling price of the item on the 

original order(s) used as reference, up to 100% credit for a return quantity less than or equal to the 

 

1

 DoD 4140.1-R revision pending. DLA is required to request approval of new procedures supporting BRAC/NIMS 

allowing full materiel credit for returns regardless of asset position with no credit for PCH&T.
2

quantity on the order(s) used as reference. DLMS/MILSBILLS Billing for Issue from Stock 

(810L/DI FA2) shall be used to provide credit under modified business rules. Credit for any quantity 

returned over the original amount, in a different condition code than the original sale, or 

unmatched is subject to DLA ICP stock position using business rules equivalent to the MRP for 

determining whether to provide credit/credit amount contained in DoD 4140.1-R. The Service’s 

financial system will be notified of any resulting credit via a DLMS/MILSBILLS Materiel Returns 

Program Credit (810L/DI FD2). 

 C2.2.2.4.2 NIMS Sites. Credit for materiel returns from a NIMS site 

customer will be processed based upon the return receipt. The DLA ICP shall process the receipt 

and determine if a sale has occurred for the same materiel, condition code, and customer within a 

60 day time frame reflecting the exact same document number as the receipt (return) document. If 

there is an exact matching sale, the customer shall receive credit equal to the original sale. Credit 

for any quantity returned over the original amount, in a different condition code than the original 

sale, or unmatched is subject to DLA ICP stock position using business rules equivalent to the MRP 

for determining whether to provide credit/credit amount. The Service’s financial system will be 

notified of any resulting credit via a DLMS/MILSBILLS Materiel Returns Program Credit 

(810L/DI FD2) 

 

 ---------------------------(Intervening text not shown) --------------------------------------------------- 

 C2.6.1.3. Packing, Crating, Handling, and Transportation

 C2.6.1.3.1. Reimbursements for packing, crating, and handling costs for (a) 

IMM/ICP directed lateral redistributions, (b) IMM/ICP authorized MRP and sales returns, and (c) 

IMM/ICP directed procurement offset returns associated with ISV shall be a percent of the materiel 

credit price. The percentage rate shall be at 3.5 percent for consumable items and at 1 percent for 

reparable items. Billing offices shall use the Accessorial and Other Miscellaneous Billings (DI code 

FN_) record format to support these billings and reimbursements. 

 C2.6.1.3.2. Reimbursements for transportation costs for (a) IMM/ICP directed lateral 

redistributions, (b) IMM/ICP authorized MRP and sales returns, and (c) IMM/ICP directed 

procurement offset returns associated with ISV shall be for an amount equal to the IMM/ICP’s cost 

recovery rate for second destination transportation included in the selling price of the materiel and 

shall be supported by a Billing for Transportation (DI code FQ_ ) record format. 

 C2.6.1.3.3. Billing offices shall use the Accessorial and Other Miscellaneous Billings 

(DI code FN_ ) or other appropriate record to support billings and reimbursements for other authorized 

PCH&T, administrative, or accessorial charges. 

 C2.6.1.3.4. Reimbursement for packing, crating, handling, and transportation shall 

not be provided for materiel returns to DLA from industrial sites under BRAC SS&D/IMSP, or 

NIMS Sites.2

 Refer to C2.2.2.4. 

 

 

2 DoD 4140.1-R revision pending. DLA is required to request approval of new procedures supporting BRAC/NIMS 

allowing full materiel credit for returns regardless of asset position with no credit for PCH&T.
1

Enclosure 3 

DoD 4000.25-2-M 

MILITARY STANDARD TRANSACTION REPORTING AND 

ACCOUNTING PROCEDURES (MILSTRAP) MANUAL 

C4.3. PRE-POSITIONING DOCUMENTS FOR RECEIPTS

 C4.3.1. Owners/Managers shall transmit advance notification of scheduled materiel 

receipts to maintenance and storage activities. Use PMRs, prepared in the appendix AP3.42 or 

AP3.43 format and identified by DI codes in the DU or DW series, for this purpose. 

 C4.3.2. Storage activities receiving PMRs will maintain them in a suspense file pending 

receipt of the materiel or of PMR updates from the ICP. 

 C4.3.3. Upon arrival of the materiel, storage activities will use the PMR suspense records 

to report the receipt to the ICP. Change or add only those suspense record data elements which 

are required to prepare the materiel receipt transactions shown in appendix AP3.1 or AP3.2. 

Assure that DI Codes in the materiel receipt transaction are changed to D4_ for DU suspense 

records and to D6_ for DW_ suspense records. Absence of a PMR is not to delay prompt 

recording and reporting of materiel receipts. Deletion of pre-positioned suspense records is 

controlled by the ICP. To delete a suspense record, the ICP will transmit a reversal (reversal 

indicator in record position 25) of the original PMR to the storage activity. New PMRs and 

replacement PMRs for deleted documents do not contain the reversal indicator. Proper and 

accurate maintenance of the PMR suspense file by storage activities is extremely important. 

Timely updates by the owner/manager are essential to proper and accurate maintenance of the 

PMR suspense file by the storage activity. 

 C4.3.4. Under the National Inventory Management Strategy (NIMS) concept of operation, 

the Integrated Materiel Manager (IMM) may own materiel for managed NSNs down to the retail 

level. Such arrangements will be based on agreements between participating DoD Components. 

Replenishment of the IMM-owned retail will be accomplished under a push scenario. 

Redistribution from depot inventory will be accomplished using the MILSTRIP DI Code A2_ 

Redistribution Order transaction. When assets are available to push, DI Code DWK PMR will 

be sent to the NIMS site using standard PMR procedures. Optionally, the DoD Component 

agreements may authorize the use of DI Code DWK for the IMM to notify the NIMS site that 

materiel to support a NIMS site requirements is delayed. In this instance, the DI Code DWK 

will contain the quantity not available for push replenishment, the delay notification status code 

“BD” and Estimated Shipping Date. If at the time push replenishment is required only a partial 

quantity is available, then two DWKs will be generated; one for the quantity pushed and one for 

quantity delayed. These two DWKs will have different documents numbers and the delayed one 

will have the “BD” notification. Subsequently, if only a partial amount of the quantity 

previously delayed becomes available to push, two DWKs will be generated. The one for the 

quantity pushed will maintain the document number of the original delayed notification with the 
2

“BD” indicator eliminated. The DWK for the quantity still delayed will be assigned a new 

document number and a “BD” delayed indicator. If the total quantity is initially delayed and 

subsequently the total quantity is shipped, the DWK will have the same document number 

throughout the process. The IMM will update/replace the DWK delayed notification any time 

either the replenishment quantity or the estimated shipping date changes. New delayed 

notification will maintain the same document number unless a partial push occurs. Replacement 

delayed notification under the same or new document number will not require the reversal of the 

previous DWK. Reversal logic for DWKs indicating that a push shipment has been initiated will 

follow the requirement in paragraph C.4.3.3 above. 

C4.3.5. PMR for Materiel Returns under NIMS and Base Realignment and Closure 

(BRAC) Retail Supply, Storage and Distribution (SS&D)/Inventory Management and Stock 

Positioning (IMSP). The PMR is used in a variation of the Materiel Returns Program for 

processing DLA-managed materiel returns to DLA from selected sites in support of the BRAC 

SS&D/IMSP and NIMS. The returning activity shall be responsible for submission of a PMR 

to the storage site identifying the Military Service activity to which the receipt will be reported 

for these returns of DLA-managed items. Because the Military Service sites will no longer 

retain retail stock balances under these programs, DLA will assume ownership of all materials 

regardless of asset position. Upon notification of receipt by the storage activity by a DLMS 

527R (D6A), the Military Service activity shall determine if there is a need for the material by 

another maintenance user (backorder). If so, an issue document will be forwarded to the 

storage activity for action. If not, a Materiel Release Order will be initiated, directing 

shipment-in-place (citing the ship-to/supplemental address of the storage activity), authorizing 

a change of ownership to DLA. The receipt of the returned materiel from the Military Service 

ownership to DLA will be accomplished with a receipt (DLMS 527R receipt with 2/LIN01/10 

code ‘J’; MILSTRAP DI Code D6B). 
Enclosure 4, Comment Resolution 

 Submitting 

Component 

Comment 

1. Army 1. The Army National level Community concur with this PDC only if a sub note is allowed to specifically spell out that a 

result in credit not being generated. 2. The detail concurrences/non-concurrences are:  a. SCE-BTL - Non-Concur. As written, Para 3.b.3.c requires the "services" shall be responsible for generating a Preposiunderstand the systems, the material return generates a PMR, but not always. We believe this is a violation of MILSTRIP. the receipt, lacking a PMR cannot be justification for denying credit. That would be a violation of both MILSTRIP and MIinfo is left in this action, a sub note should specifically spell out that a missing PMR will not result in credit not being geneto be too many important details that still need to be worked out prior to this being accepted.  b. LOGSA - Concur (No Impact).  c. AMMO - Concur. The PDC is discussing changes to MILS/DLMS transactions for Materiel returns to DLA, and discprocedure for the materiel, so it appears this has no ammo impact. 

2 Navy With regard to the PDC 312. More issues have come up. The POC for the PDC was listed as DLA, DSCR-BAPS 

04 who has more questions is unable to contact them. Since you are in the DLA building would you please send me the nasomeone who created the subject 312 and is available for further discussions. Although, earlier we might not have had any appears after a closer look Navy needs to discuss this further with the POC who developed this proposal. We will need an date until Navy is better able to understand the impact. So at this moment Navy will not concur with this change until SUP questions. 

3 DLA Below is some late input I just received from DSCC regarding subject PDC: 

1. Under number 8 on page 4 the Demand Planner is mentioned. I am guessing this should reference the RIM, SP, or CAS2. For DoD 4000.25.1-M, C9.1.1 mentions the item manager. Who is this referring to? 3. For DoD 4000.25-7-M, C2.2.2.4.1 Only mentions the quantity must match and does not mention the condition code. Fo

the customer in condition code A and the customer tries to return it in Condition code F are we going to give them full cred

From DSCR: 4. What happens if the material is NOT a DLA managed material number? Should there be some pointer and/or some plawill be performing a check to see if the materiel number is a DLA managed part? 

Page 2: 3. Requested Change (3) General concept paragraph (a) Need to make sure DLA-Managed materiel is specified. 

sentence: "DLA shall accept DLA-managed materiel back into DLA ownership regardless of the current stock position." 
5. Page 5: (b) NIMS [1] correct spelling. "unites" should probably read "units" 6. Page 5: Item [9](b) says, "Staffing Note: DLMSO requests confirmation that the PMR and the materiel release order dir

will be prepared by the NIMS site..." Has Navy given their concurrence on this? 7. Enclosure 1 DoD 4000.25-1-M (this says "Enclosure 2" at the top but I believe it should be "Enclosure 1") 8. Page 2: C9.2.2.1.2 Suggest change to sentence: "DLA shall accept DLA-managed materiel back into DLA ownership re

stock position." 9. Page 4: "C920.2" I believe the numbering of this paragraph should be "C9.20.2" 10. Enclosure 2 DoD 4000.25-7-M Page 1: C2.2.2.4.1 change to Industrial Sites. "DLA-managed materiel returned by an industrial customer at BRAC industrial........" 11. From J6: This will require an SCR in both the Planning and Order Fulfillment process areas. 12. DDC M Concurs with PDC 312. 

4 DFAS DFAS concurs and has no comments. 5. Air Force 1. This entire process makes it seem as if DLA is dealing directly with the Maintenance customer and not through the lega

DLA is giving credit to GSD, who in turn will give credit to Depot Maintenance based on D035K logic. We have tried to business rules.  See paragraphs 9.b. and c. below. 2. The changes cited in this document also need to be reflected in the MILSTRIP and MILSBILLS chapters. 3. This process, as amended, will change when ECSS is implemented. At that time there should be no need for GSD to be 

We have been told that ECSS will have the option to apply customer funds to orders. 4. Process says that customer will receive 100% credit based on the previous sale. When DLA begins using their Local R

be returned to the customer? If not Maintenance will be forced to always lose some money every time they turn an asset b

The previous sale price includes the recovery rate. 5. Somewhere the document should address that when an AF Depot Maintenance unit deployed for more than 60 days has 

credit and the turn-in transaction is initiated, the AF Depot Maintenance IT system (NIMMS) does not allow entry of a prothe turn-in transaction, the appropriate Depot Supply person should be contacted to re-input the turn-in into the AF D035K 
code “_T” and project code “REX”. This will generate transmission to DSS of a PMR update containing the project code. MILSTRAP/MILSTRIP updates? The how is not documented just the what is that not correct? 6. From PDC 312 paragraph 3.b.(4)(a)[1]: “All maintenance turn-ins from an individual site will use the same DoDAAC in the document number assigned to the orig For AF sites, this is not true. The Maintenance turn-in transaction will contain a Depot Maintenance organization number positions 1-6 (starts with “M”). However, the receipt transmitted from DSS to EBS will contain a Depot Retail Su

“) perpetuated from the MRO transmitted from D035K to DSS to wash the asset balance from AF to DLA ownership. The DoDAAC will be the same as the DoDAAC assigned to the original sale (DLA-to-AF) transaction. 7. From PDC 312 paragraph 3.b.(4)(a)[1]: “The return will be to DLA at the forward point (for Air Force, the Shop Service Center (SSC)).”  This is not necessarily true. The return to DLA could occur at Central Receiving. 8. From PDC 312 paragraph 3.b.(4)(a)[2]: “For these, the DLA depot employee will manually input the receipt (DLMS 527R/D6B) into DSS citing the DLA BRAC 

upon the documentation provided with the materiel indicating prior coordination has occurred.”  a. Not true. The receipt will be systemically generated (not manually input) in DSS from the wash MRO transmi

 b. Also, the process designed and agreed to will cause DSS to generate a D6T (not D6B) to EBS. 9. From PDC 312 paragraph 3.b.(4)(a)[4]: “The DLA ICP will recognize the receipt (DLMS 527R/D6B) with the BRAC SS&D project code as being from the retail (Customer Group 3 = RET in the DLA Materiel Master).”  a. Is this sentence implying that the BRAC SS&D project code will be in all receipts that result from maintenance 

ins that from deployed units that are outside of 60 days from original issue? Our office knows of no plans to include a partroutine returns.  b. Also, the process designed and agreed to will cause DSS to generate a D6T (not D6B) to EBS. 10. PDC 312 paragraph 3.b.(4)(a)[5]:  a. Is this paragraph describing a scenario different from that described in paragraph 3.b.(4)(a)[2]? It’s hard to undparagraph 3.b.(4)(a) are discussing the routine turn-in process, as opposed to that for deployed units outside of 60 days.  b. This paragraph needs to include that the AF working capital fund (General Support Division – GSD) manager supply, must receive a copy of the credit approval prior to Maintenance turning in the item. This will allow a forced credit honored. Since DLA credit determination is done systemically in all cases there is no way to provide the AF with credit ap

 c. This paragraph says that Order fulfillment will recognize this by the RET in the Customer Group 3 field and ththen check to see if there is an outstanding sales order and if not they will reject it. This review needs to be part of the origOnce the approval is given, there should not be the ability or requirement to revoke that credit. If that cannot be done, then 

added to advise the GSD manager that the expected credit was denied. They will, in turn, reverse the credit GSD gave to Maintenance. 
11. From PDC 312 paragraph 3.b.(4)(a)[5][a]: “The documentation authorizing the delayed return will be attached to the materiel alerting the Distribution Depot to recorusing a DLA-assigned BRAC SS&D project code to identify the return as an exception.”  a. The receipt will be systemically generated (not manually input) in DSS from the wash MRO transmitted from  b. Also, the process designed and agreed to will cause DSS to generate a D6T (not D6B) to EBS. It is my understanding that the paperwork must still accompany the material when physically returned to DLA storage/cust

12. From PDC 312 paragraph 3.b.(4)(a)[5][b]: “If found, the return will be accepted and a manual Credit Memo with Reference will be created with the D6B document n The process designed and agreed to will cause DSS to generate a D6T (not D6B) to EBS. 13. From PDC 312 paragraph 3.b.(4)(a)[5][c]: Two references to “D6B”.  The process designed and agreed to will cause DSS to generate a D6T (not D6B) to EBS. 14. From PDC 312 paragraph 3.b.(4)(a)[5][d]: “Since the receipt (D6B) is input from DLA employees, a conflict with other project codes would not occur.”  a. The receipt will be systemically generated (not manually input) in DSS from the wash MRO transmitted from 

 b. Also, the process designed and agreed to will cause DSS to generate a D6T (not D6B) to EBS. 15. PDC 312 paragraph 3.b.(4)(a)[6]:  References to “D035-K” should be changed to “D035K”.  Reference to “D6B” should be changed to D6T, iaw above comments. 16. PDC 312 paragraph 3.b.(4)(a)[8]:  Reference to “D6B” should be changed to D6T, iaw above comments. 17. PDC 312 paragraph 6:  Current AF implementation schedule is Aug 09 through Jan 10. 18. Enclosure 2 (DoD 4000.25.1-M, MILSTRIP C9.Chapter 9), paragraph C9.2.2.1.3:  Reference to “D6B” should be changed to D6T, iaw above comments. 19. Enclosure 2 (DoD 4000.25.1-M, MILSTRIP C9.Chapter 9), paragraph C9.20.1.1:  Reference to “D6B” should be changed to D6T, iaw above comments. 20. Enclosure 2 (DoD 4000.25.1-M, MILSTRIP C9.Chapter 9), paragraph C9.20.1.4.1: “The storage activity shall prepare the receipt to DLA reflecting the DLA-assigned BRAC IMSP return project code to ide

exception procedures.” 
 The receipt will be systemically generated (not manually input) in DSS from the wash MRO transmitted from D0

6 DLMSO In addition to administrative comments, DLMSO identified three substantive issues that needed to be addressed. 

1. DLMSO requested that DLA review selection of the type of receipt used for the receipt reported to DLA and ensure comMILSTRAP/DLMS. 2. DLMSO requested clarification of the requirement for the PMR for NIMS sites which seemed to apply to Navy NIMS s3. DLMSO requested clarification of references to credit provided to AF-GSD which appeared to be unique.