DEFENSE LOGISTICS AGENCY

 HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

 FORT BELVOIR, VIRGINIA 22060-6221

June 15, 2018

MEMORANDUM FOR SUPPLY PROCESS REVIEW COMMITTEE (PRC) MEMBERS

SUBJECT: Approved Addendum to ADC 1227 to include the Moving Average Cost and Latest 

Acquisition Cost (Supply/Finance) (ADC 1227A)

The attached change to DLM 4000.25, Defense Logistics Management Standards (DLMS), 

is approved for implementation. The Enterprise Business Standards Office will post the updated 

DLMS Implementation Convention (IC) to the Web at 

http://www.dla.mil/HQ/InformationOperations/DLMS/elibrary/Transformats/140_997/, within 

10 days from the above date

Addressees may direct questions to Mr. Eric Flanagan, DOD MILSTRIP 

Administrator, email: Eric.Flanagan@dla.mil, Mr. Rafael Gonzalez, DOD MILSTRAP 

Administrator, email: Rafael.Gonzalez@dla.mil, or DLMS Supply, DLMSSupply@dla.mil. 

Others must contact their designated Supply PRC representative available at 

http://www.dla.mil/HQ/InformationOperations/DLMS/allpoc/. 

 

HEIDI M. DAVEREDE

Director

Enterprise Business Standards Office

Attachment

As stated 

cc: 

ODASD (SCI)

OUSD DPAP (PDI)

Air Force Finance PRC Representative
Attachment, ADC 1227A

Page 1

ADC 1227A

Approved Addendum to ADC 1227 to Include Moving Average Cost and 

Latest Acquisition Cost in the DLMS 832N

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION:

a. Technical POC: Mr. John “Jack” Dillon, HAF/A4PT; 937-904-0815; DSN: 674-

0815; or email: john.dillon.2.ctr@us.af.mil

b. Functional POC: Mr. Colquitt “Quitty” Lawrence, HAF/A4LR; 703-692-2348; 

DSN: 222-2348; or email: colquitt.lawrence.civ@mail.mil

2. FUNCTIONAL AREA LOGISTICS AND TRANSACTION CHANGES: 

a. Primary/Secondary Functional Area: Supply

b. Primary/Secondary Functional Process: Government Furnished Property (GFP) 

Accountability

c. Logistics and Transaction Changes (Check All That Apply):

 Category  Category  Category

X Billing X Physical Inventory Contract Admin

Discrepancies / Deficiencies MILSTRAP DoDAAD

Serialization MILSTRIP MAPAD

Small Arms/Light Weapons MRA LMARS

pRFID Disposition DLM Publications

X GFP DOD BRAC

3. REFERENCES:

a. Approved DLMS Change (ADC) 1227, Update DLMS 832N Catalog Data Support 

Transaction to Add Catalog Data Elements for Air Force Contractor Inventory Control Point 

(CICP) Use under Government-Furnished Property-Accountability, June 2, 2017

b. ADC 1224A, Addendum to Approved Defense Logistics Management Standards 

(DLMS) Change (ADC) 1224, Requirements for Air Force Government Furnished Property 

(GFP) Accountability including Identification of the Contractor Inventory Control Point (CICP), 

the Physical Location of Property, the Authorizing Procurement Instrument Identifier (PIID), 

Disposal Information in the Issue Transaction, and Enhanced Data Content in Inventory-Related 

Transactions (Supply/Contract Administration), March 5, 2018 
Attachment, ADC 1227A

Page 2

c. ADC 1225, Revise DLMS 527R Receipt Transaction for Intra-Air Force Government 

Furnished Property (GFP) Accountability to Include Identification of the Contractor Inventory 

Control Point (CICP), Addition of Moving Average Cost (MAC), and Authorization to Use 

Latest Acquisition Cost (LAC) and Acceptance Date (Supply), March 7, 2017

4. APPROVED CHANGE(S):

a. Brief Overview of Change:

(1) ADC 1227 (Reference 3.a.) added new data elements to the DLMS 832N 

Catalog Data Support Transaction to allow Air Force CICPs to transmit catalog data pertaining 

to non-cataloged property (equipment and materiel) identified by local stock number (LSN). The 

Air Force CICPs transmit the DLMS 832N to the Government Furnished Property –

Accountability (GFP-A) Accountable Property System of Record (APSR) (Defense Property 

Accountability System (DPAS)).

(2) This approved addendum adds a new segment and two data elements to the 

DLMS 832N that will enable the CICP to convey the Moving Average Cost (MAC) and Latest 

Acquisition Cost (LAC).

(3) This change also revises the DLMS 832N to allow the Air Force CICP to 

identify the APSR by routing identifier code (RIC) if the Air Force lacks sufficient RICs to 

assign to each program manager.

b. Background:

(1) ADC 1227 authorized Air Force CICPs to include intra-Air Force data 

elements when transmitting the DLMS 832N to the Air Force GFM-A APSR for local stock 

numbers. ADC 1227 did not include the MAC or LAC because the Air Force assumed that the 

CICPs would transmit this information in the DLMS 527R when reporting the receipt of a newly 

acquired asset.

(2) While assisting the CICPs with DLMS implementation, the Air Force 

discovered that some CICPs could not compute the MAC of a newly acquired item during the

receipt process The MAC calculation requires data that may not reside in a CICP’s inventory 

management system at the time it transmits the DLMS 527R to the APSR. As a result, the Air 

Force revised the receipt process to require CICPs to compute the MAC as soon as possible after 

the new acquisition. CICPs must convey the MAC for local stock numbers in a DLMS 832N.

(3) Air Force CICPs will use their own inventory management systems to 

transmit a DLMS 832N to the Air Force APSR in accordance with Reference 3.a. The CICP 

must forward this transaction to the APSR in order to update the MAC and LAC after a new 

acquisition. The Air Force APSR will mirror the CICP’s inventory management system.

(4) The Air Force also noticed that the DLMS 832N does not support 

identification of the APSR by routing identifier code (RIC). Air Force CICPs identify the Air 

Force program manager’s APSR account by DoDAAC. However, not all Air Force program 

manager DoDAACs contain a RIC. To address this situation, this ADC implements the changes 
Attachment, ADC 1227A

Page 3

to the N1 – Name segment that EBSO authorized for other transaction sets in Reference 3.b. 

This change will allow the CICPs to identify an Air Force program manager account by a generic 

APSR RIC. A second N1 segment iteration will contain the Air Force program manager 

DoDAAC. 

c. Approved Change in Detail: Substantive updates subsequent to staffing are 

highlighted in green.

(1) Air Force CICPs that can compute the MAC at the time of receipt will 

continue to transmit the MAC and LAC on the DLMS 527R in accordance with Reference 3.c.

(2) Air Force CICPs that cannot compute the LAC at the time of receipt will

record the LAC and compute the MAC of the newly acquired asset as soon as possible. The Air 

Force CICP will transmit a DLMS 832N to the APSR after calculating the MAC. The DLMS 

832N will contain the LAC and the MAC. The APSR will use the LAC and MAC to compute 

inventory valuation for Air Force financial statements.

(3) This change adds Code OW – Owner of Property or Unit and Identification 

Code Qualifier M4 – Department of Defense Routing Identifier Code (RIC) to the N1 Name 

Segment in the DLMS 832N. The Air Force CICPs will use Code OW to identify the APSR by 

its generic RIC if the Air Force has insufficient RICs available to identify the specific program 

manager by RIC. This procedure will allow the APSR to post the record to the appropriate 

program manager account.

(4) The enclosure contains the approved changes to the DLMS 832N

implementation convention.

d. Revisions to DLM 4000.25 Manuals: Revise DLMS 832N Catalog Data Support 

Transaction, as shown in the enclosure.

e. Approved Transaction Flow: This change does not modify existing transaction 

flows for the CICP interface with the Air Force APSR.

f. Alternatives: None identified.

5. REASON FOR CHANGE: This change supports the Air Force GFP-A Capability Initiative 

by addressing a material weakness on the Air Force Financial Statements and supports Financial 

Improvement and Audit Readiness (FIAR) compliance. This change allows Air Force CICPs to 

communicate LSN catalog data changes to the Air Force APSR. Adding GFP-A LSN catalog 

data elements will ensure Air Force APSR asset accountability records reflect current item 

details as recorded in the Air Force CICP Inventory Management System.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: Providing detailed information for inventory accounting transactions 

and records allows the Air Force to automatically update asset valuation and maintain key 

supporting documents used by FIAR auditors for contractor-managed and possessed, Air Force 

owned GFP in the Air Force APSR.
Attachment, ADC 1227A

Page 4

b. Disadvantages: The Air Force CICPs may need to modify their systems in order to 

accommodate the MAC and LAC data.

7. ASSUMPTIONS USED IN THE CHANGE OR NEW DEVELOPMENT: The Air Force 

will provide Air Force CICPs with guidance on computing MAC.

8. ADDITIONAL COMMENTS TO CONSIDER:

a. The Air Force GFP-A Capability Initiative relies on DLMS transactions from the Air 

Force CICPs to accurately record asset quantities and valuation. The Air Force must use a 

manual workaround if the Air Force APSR cannot receive MAC and LAC through DLMS 

transactions. The use of manual workarounds increases the risk that the contractor will misreport 

the Air Force contractor managed and possessed Air Force-owned GFP assets on its financial 

statements.

b. Air Force CICPs are the sole source for the LSN catalog data for the assets they 

manage.

9. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: This change authorizes 

implementation of the enclosed procedures immediately upon release.

10. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: The Air Force is unable to provide a savings/cost 

estimate at this time. The Air Force does not have adequate data to calculate the cost of a 

manual workaround. This change will enable the DLMS compliant services to meet FIAR 

requirements.

11. IMPACT:

a. New DLMS Data Elements:

(1) New DLMS data elements added under this change are below. See the 

enclosure, Revisions to the DLMS 832N Catalog Data Support Transaction, for data element 

definitions and characteristics.

(a) Price Identifier Code (DE 236) LCP – Latest Acquisition Cost

(b) Price Identifier Code (DE 236) MAC – Moving Average Cost

(2) EBSO refers to these codes as “migration codes” since they are obtained from 

a higher ASC X12 version/releases (e.g., 5030). The codes do not exist in X12, version 4030, 

but the semantic meaning and syntax will be consistent with the higher version/release. 

(3) All trading partners must agree to use these two migration codes with their 

current X12 version/release. Manual intervention may be required for some X12 parsers to 

accept the higher version/release code.

b. Changes to DLMS Data Elements: None identified.
Attachment, ADC 1227A

Page 5

c. Automated Information Systems (AIS): The Air Force APSR and Air Force CICPs 

must modify interfaces accordingly.

d. Defense Automatic Addressing System (DAAS): DAAS must implement DLMS 

832N mapping changes.

e. Non-DLM 4000.25 Series Publications: The Air Force should update procedures 

documenting requirements contained herein as necessary.

12. PROPOSED DLMS CHANGE (PDC) 1227A RESPONSE/COMMENT 

RESOLUTION:

Component Response/Comment Disposition

1. DLA Concur with Comment Noted.

2. Navy Concur without Comment Noted.

3. Air Force Concur without Comment Noted.

4. US Army No response.

5. USMC Concur without Comment Noted.

6. DAAS Concur without Comment Noted.

7. USTRANSCOM Abstain Noted.
Enclosure, ADC 1227A

Page 1

Enclosure, Revisions to the DLMS 832N Catalog Data Support Transaction

# Location DLMS 832N Catalog Data Support Reason

1. DLMS 

Introductory Notes

Add ADC 1227A to the DLMS Introductory Note:

- ADC 1227A, Addendum to ADC 1227 to Include Moving 

Average Cost and Latest Acquisition Cost in the DLMS 

832N

To identify changes 

made to the IC.

2. 1/N101/1500 Add Entity Identification Code and DLMS Note:

OW Owner of Property or Unit

DLMS Note:

For Air Force GFP accountability, use to identify the Air 

Force program manager in the accountable property system 

of record (APSR). Must identify the program manager by 

RIC. If the program manager DoDAAC does not have an 

assigned RIC, use the generic Air Force GFP APSR RIC 

with 1/N106=TO and use an additional iteration of this N1 

loop (repeating Code OW without 1/N1061=TO) to provide 

the program manager DoDAAC. Refer to ADC 1227A.

This change allows 

the Air Force CICP 

to identify the Air 

Force Program 

Manager by the 

APSR’s RIC, if 

necessary. If using 

the APSR’s RIC, the 

CICP will identify 

the AF Program 

Manager by 

DoDAAC in a 

second N1 iteration.

3. 1/N103/1500 Add Identification Code Qualifier and DLMS Note:

M4 Department of Defense Routing Identifier Code (RIC)

The Air Force CICP 

must identify the 

APSR RIC if the Air 

Force Program 

Manager does not 

have a RIC. 

4. 1/N106/1500 Rename Federal Note as a DLMS Note

FR Message From

DLMS Note: Federal Note:

Must use with the appropriate 1/N101/1500 code to indicate 

that the organization cited in N104 is originating the 

transaction set.

TO Message TO

DLMS Note: Federal Note:

Must use with the appropriate 1/N101/1500 code to indicate 

the organization cited in N104 is receiving the transaction.

To identify the 

APSR RIC.

5. 2/CTP02/1700 Add qualifier and DLMS Note:

LCP Last Cost Price

DLMS Note:

1. Used by Air Force CICPs to transmit the latest acquisition 

cost of new acquisitions to the APSR. Refer to ADC 1227A.

2. Qualifier LCP is a migration code approved for use in 

X12 version 4050.

This qualifier allows 

the Air Force CICP 

to provide the LAC
Enclosure, ADC 1227A

Page 2

# Location DLMS 832N Catalog Data Support Reason

3. DLMS enhancement. See introductory note 10.

6. 2/CTP02/1700 Add qualifier and DLMS Note:

MAC Moving Average Cost

DLMS Note:

1. Used by Air Force CICP to transmit the moving average 

cost of new acquisitions to the APSR. Refer to ADC 1227A.

2. Qualifier MAC is a migration code approved for use in 

X12 version 6030.

3. DLMS enhancement. See introductory note 10.

This qualifier allows 

the Air Force CICP 

to provide the MAC.