ADC 228 

New Status Code for Free Issue Post-Post Orders 

1. ORIGINATOR: 

a. Service/Agency: Defense Logistics Agency (DLA) 

 b. Originator: DSCC DSN 850-2835, commercial 614-692-2835, and DLA J-33, DSN 

427-1562, commercial 703-767-1562 

2. FUNCTIONAL AREA: Primary: Supply/Finance 

3. REQUESTED ADDITION: 

 a. Title: New Status Code for Free Issue Post-Post Orders 

 b. Description of Change: This change establishes procedures that allow the source of 

supply to modify post-post non-reimbursable requisitions so that they are processed as 

reimbursable with concurrent generation of supply status notification. 

 c. Background: Standard requisitions submitted to DLA for free issue (identified by

Signal Code D or M) are validated based on Project Code, Service Code, and Signal Code to 

assure that the customer is authorized for the free materiel. However, requisitions processed 

on a post-post basis bypass the standard edits. This may result in material being shipped as 

free issue where reimbursement should have been provided. This change is intended to 

support validation of post-post non-reimbursable requisitions and establish appropriate 

procedures where such requisitions fail to pass validation criteria. Since the validation is 

subsequent to shipment in a post-post scenario, a new process is required to notify the 

customer that the free issue will not be honored and that appropriate billing will follow. 

Revisions made subsequent to staffing the proposal are highlighted (yellow=1st coordination; 

blue=2nd final version).

 d. Procedures: 

 (1) Detailed Procedures. Update MILSTRIP Chapter 4, Status, to insert a new 

subparagraph under C4.10. Preparation of Status Transactions, and DLMS, Vol. II, Chapter 

5, Status Reporting, to insert a new subparagraph C5.2.6.11.10. to include new procedures. 

 “C4.10.14 (or DLMS C5.2.6.11.10) Requisitions which fail free issue validation 

will be rejected with CM Status; a new funded requisition may be submitted if the material 

is still required. Requisitions which fail free issue validation subsequent to material 

release (post-post requisitions/issue) may be handled as funded requirements. In this case, 

the source of supply will furnish DT Status alerting eligible status recipients that the postpost requirement is not authorized for free issue and to adjust fund obligation records as 

material will be billed to the requisitioner. 

 C4.10.14.1 Where a post-post requisition contains a free issue Signal Code D or 

M and free issue is not authorized, the signal code will be modified to the applicable 

billable signal code. Where the original requisition identified a valid fund code it will be 
used for billing; otherwise, the fund code will be modified to indicate non-interfund billing 

(Fund Code XP): 

 C4.10.14.1.1 Signal Code D is replaced with Signal Code A to reflect the correct 

shipping activity. (Both D and A ship to the requisitioner as identified in the document 

number of original submission.) 

 C4.10.14.1.2 Signal Code M is replaced with Signal Code J to reflect the correct 

shipping activity. (Both M and J ship to Supplementary Address identified in the original 

submission.) 

 C4.10.14.3 Since post-post orders are already shipped and cannot be split, if 

part of the quantity ordered is not eligible for free issue, the entire order will be denied free 

issue.

 (2) Status Code. Update MILSTRIP Appendix 2.16, Status Codes, and DLMS to 

include a new Status Code: 

 “DT: Free Issue denied; either the complete or partial quantity of a post-post 

requirement (includes DI Code C0_, CQ_, D7_) is not authorized for free issue. Fund code 

and/or signal code corrected as noted. Adjust local fund obligation records.” 

 (3) Fund Code. Multiple options for identification of the fund code/account were 

discussed in the original proposal. Per Component recommendation, the approved change 

specifies that the billing Component will use the fund code from the original requisition 

whenever possible. Fund Code XP (which will result in off-line billing) will only be used 

where no valid fund code is available. The option to use a default fund code which could 

change over time was discarded due to the risk that such fund codes would become invalid or 

obsolete over time and that a new fund code table for this purpose would require 

oversight/maintenance. 

4. REASON FOR ADDITION: 

a. There is no current status code that would be applicable in a free issue post-post order 

that tells the customer they are being billed as a result of failing the free issue check. In 

addition, to correctly reflect MILSTRIP conventions, the Signal Code must be changed to 

something other than D/M to accurately reflect the fact that the order is eligible for billing. 

 b. Post-Post orders currently do not go through free issue edits nor do they have 

corresponding free issue item category codes. Since standard orders must pass this validation, 

it follows that post-post orders should be subject to the free issue validations. 

5. ADVANTAGES AND DISADVANTAGES: 

 a. Advantages: 

(1) DLA has no other protection against free issue abuse in a post-post environment. 

This proposal is designed to apply the correct billing to an order based on the free issue 

validations in BSM. It is presumed that a customer requirement that is urgent enough to 

warrant post-post support has sufficient funding in the event free issue should not have been 

expected. Analysis of 300,000 sales orders in SAP revealed that 42 out of 300,000 BSM 

requisitions or .014% resulted in an incidence of post-post free issue which is a very low 
percentage of DLA orders being affected and therefore should not cause excessive burdens on 

the customer’s financial systems. 

(2) Informing the customer that they are not authorized for free issue and that they 

will be billed for the full quantity via new status code which in turn recoups DLA’s costs. 

(3) Where used as a default method where no fund code is provided, the use of manual 

billing will bring this issue to the attention of a human being and repeated abuse of free issue 

could then be identified and corrected if necessary. 

 b. Disadvantages: 

(1) Customers who have an expectation of free issue within a post-post environment 

will require BSM to bill the customer creating an unexpected obligation on them. 

(2) Customer systems should be programmed to establish financial interface for the 

obligation based upon the DT status and legacy systems may be frozen preventing this from 

occurring. 

6. IMPACT: 

a. Data Content/Procedures/Publications: MILSTRIP/DLMS and Component 

implementing publications. DLMS X12 format 870S or MILSTRIP AE_ applies.

b. Automated Processes: The specific example identified above targets DLA; however, 

all DOD requisition related applications are impacted if the new status code is issued. BSM 

and Component systems will require modifications to handle the new status DT. This new 

code will support all DLA-managed materiel and implementation will begin at DLA BSM. 

DT status may be created by any Component supply source when applicable. Component 

applications may not recognize the DT status pending implementation; however, the status 

will be available in WebVLIPS for research. DLA billing under this business process will 

not be dependant upon Component implementation of the new status code.