DEFENSE LOGISTICS AGENCY

 HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

 FORT BELVOIR, VIRGINIA 22060-6221

 

September 9, 2014

MEMORANDUM FOR SUPPLY AND SUPPLY DISCREPANCY REPORT (SDR) PROCESS 

REVIEW COMMITTEE (PRC) MEMBERS

SUBJECT: Approved Addendum to Approved Defense Logistics Management Standards 

(DLMS) Change 1044A, Clarification of Business Rules associated with Supply 

Discrepancy Report (SDR) Replies for Status Update and Completion Notification 

(Supply/SDR)

The attached change to DLM 4000.25, Defense Logistics Management System, is approved. 

This change is effective upon approval. Delayed implementation will be authorized for DLA

termination of completion notices for selected SDRs requiring no action by the owning activity.

Addressees may direct questions to Ms. Ellen Hilert, DOD SDR System Administrator, 703-

767-0676 or DSN 427-0676, e-mail: ellen.hilert@dla.mil; others must contact their Component 

designated Supply PRC representative or SDR PRC representative available at: 

https://www2.dla.mil/j-6/dlmso/CertAccess/SvcPointsPOC/allpoc.asp (DOD common access 

card restricted). 

 

/s/

DONALD C. PIPP

Director

Defense Logistics Management 

Standards Office

Attachment

As stated

cc: 

ODASD (SCI)
Attachment to ADC 1044A

Clarification of Business Rules associated with SDR Replies 

for Status Update and Completion Notification

1. ORIGINATING SERVICE/AGENCY

a. REQUESTING SERVICE/AGENCY: DLA, DLA Land and Maritime-BAOA, DSN

850-4631

b. TECHNICAL POC: DLA Logistics Management Standards, Ms. Ellen Hilert, DOD 

SDR

System Administrator, e-mail: Ellen.Hilert@dla.mil

2. FUNCTIONAL AREA: Supply/DOD WebSDR

3. REFERENCES:

a. ADC 1044, Enhanced Interim Supply Discrepancy Report (SDR) Reply Capability,

Status Update, and Completion Notification, dated January 22, 2013

b. Defense Logistics Management System Manual, DLM 4000.25, Volume 2, Chapter 17, 

available at: www.dla.mil/j-6/dlmso/elibrary/manuals/dlm/dlm_pubs.asp

4. Brief Overview of Change: This addendum supplements ADC 1044 and provides updates 

to published procedures. The purpose of this change is to clarify business rules associated with 

ADC 1044. It defines use of the completion notice and status update as implemented by DLA 

Distribution Centers for SDRs prepared by the storage activity. It expressly states that 

completion notices are not applicable to information only SDRs and may not be used to revise

SDR data content. Substantive updates subsequent to proposal staffing are identified by green 

highlight.

a. Background:

(1) ADC 1044 was established to enhance communication between storage activities

and Component owner/manager SDR systems. After implementation it became apparent that the 

language in the ADC needed clarification. The ADC documented specific situations and how 

the completion notice or status update would be used in each. It was not apparent to all trading 

partners that the completion notice was planned for use in all SDRs generated by Distribution 

Centers.

(2) Although not documented in the ADC 1044, the DLA Distribution Standard System 

(DSS) prepares a completion notice for every SDR created by the storage activity. This includes 

SDRs provided for information only and requiring no reply. These completion notices are 

system-generated instantaneously upon creation of the transmission of the SDR and are included

Attachment ADC 1044A

Page 1
in the same batch requiring special processing within WebSDR. Since information only SDRs 

are defined by DLMS guidance as not requiring further action by the submitter and are 

considered “auto-closed” in the originator’s system, it is unnecessary to also provide a 

completion notice. While the storage activity may consider various action codes to be 

“informational,” because the SDRs are closed immediately after transmission without awaiting 

action activity response, this guidance only applies to SDR action codes with a specific 

definition indicating they are provided for information only, corrective action, and trend analysis 

and no reply is required, i.e., SDR Action Codes 1H (No action required; information only) or 

3B (Discrepancy reported for corrective action and trend analysis; no reply required). The

second transaction indicating completion/closure adds to the volume and processing time for

transactions processed by WebSDR without adding any value. The SDR Administrator had no 

prior knowledge of this usage and asked that it be terminated immediately after ADC 1044 

implementation.

(3) During development of the procedures there were two different time standards 

discussed for follow-up on SDRs prepared by the storage activity for receipt of counterfeit 

materiel/unauthorized product substitution (CM/UPS) materiel. The SDR System Administrator 

recommended that DLA reduce the proposed 12 month standard to 6 months. However, the 

original design and programming within the DLA Enterprise Business System (EBS) and the 

DSS were based upon the 12 month standard proposed by DLA to accommodate the extended 

period for which CM/UPS are often suspended for investigation. Due to a miscommunication, 

the published version of the ADC carried both time standards causing confusion. Rather than 

require a programming change in both systems, the published guidance will be revised to show 

only the 12 month follow-up time standard.

b. Approved Change in Detail:

(1) The following procedures were implemented in conjunction with ADC 1044 

(Reference 3.a.) and are documented here for clarification:

(a) When the materiel owner needs to request more information, an SDR reply 

using Transaction Set Purpose Code 11 is sent to the SDR submitter with a Reply Code 104

(additional clarification required). Remarks text is required and must clearly explain the 

additional information that is needed. The SDR submitter will use the new status update 

functionality to reply using Transaction Set Purpose Code SU with Reply Code 321 to provide 

additional information that was requested.

(b) The Transaction Set Purpose Codes CN (Completion Notification) and SU

(Status Update) will always originate from the submitter and are sent to the materiel 

owner/manager. The Party to Receive Copy (PK) functionality should not normally be used with 

the CN or SU transactions. The CN and SU is a direct communication between the 

originating/submitting storage activity and the materiel owner. Processing or generating 

information copies outside the originating and receiving system is unnecessary and could result 

in the generation of non-actionable and/or confusing transactions. 

(c) Transaction Set Purpose Codes CN and SU cannot be used to change any data 

elements used on the original SDR or a subsequent correction. If necessary, the process used by 

Attachment ADC 1044A

Page 2
the submitting activity to change a data element is a correction identified by Transaction Set 

Purpose Code CO. ADC 1044 did not change this process. 

(d) Subsequent to the receipt of disposition instructions, the storage activity may 

close the SDR due to no materiel associated with the SDR. Additional clarification is provided 

for the scenario resulting in a completion notice with Reply Code 411 (SDR closed due to zero 

balance on record). For DLA Distribution Centers, the automatic closure with the Reply Code 

411 happens daily when DSS checks for quantity-by-location (QBL) balances. The SDR 

remarks are a generic system-generated statement. These closures may not result in a stock 

readiness investigation, since this happens automatically by the system. The closure will only 

occur when there is zero balance in ALL condition codes, regardless of the SDR quantity and 

condition code. This generally results when a materiel release order/disposal release order was 

already successfully processed for the stock number originally reported as discrepant, leaving 

zero balance on record. The storage activity is, therefore, unable to accomplish the disposition 

instructions and the SDR is closed.

(2) This change revises SDR procedures to clearly indicate circumstances where a 

completion notice does not apply. 

(a) When the submitting activity receives disposition from the materiel owner and 

disposition is completed successfully, a completion notice reply is sent to the materiel owner 

using Transaction Set Purpose Codes CN with a Reply Code 410 (SDR closed. Disposition 

action complete.). 

(b) Under selected scenarios, the storage activity may provide a completion notice 

without a response from the owner/manager. This may occur when the storage activity indicates 

discrepant materiel is being retained and the SDR is automatically closed by the originator or 

originating system immediately after transmission of the SDR. SDR Action Codes 1B (Materiel 

being retained) and 1G (Reshipment not required; item to be re-requisitioned) apply. A 

completion notice will be provided.

(c) A completion notice is not applicable to SDRs provided for information only 

since they require no disposition from the owner/manager and are automatically closed by the 

storage activity. Completion notices will not be provided for SDRs specifically indicating no 

reply is required as identified by Action Code 1H (No action required; information only) or 3B 

(Discrepancy reported for corrective action and trend analysis; no reply required). 

(d) The completion notice remains applicable for all other SDR action codes.

c. Revisions to DLM 4000.25 Manuals: Revise DLM 4000.25 Volume 2, Chapter 17 as 

shown.

(1) Revise interim reply guidance:

“C17.3.12.1.2.1.1. For suspected CM/UPS, the ICP/IMM may use interim Reply Code 520 

(SDR materiel undergoing test/evaluation) to indicate that materiel may be suspended for an 

extended period of time. Upon receiving the Reply Code 520, the storage activity will limit 

systemic follow-up requests to once every 6 12 months. There will be no limit on the follow-ups 

Attachment ADC 1044A

Page 3
allowed. Once the investigation is complete, final disposition will be provided by the ICP/IMM 

to the storage activity.”

(2) Revise status update guidance:

“C17.3.12.1.2.2. Status Updates.8 Status updates (Transaction Set Purpose Set Code SU) 

are a unique form of reply prepared by the activity that submitted the SDR in response to the 

action activity. This type of transaction goes directly to the identified recipient without being 

copied to other parties, except to specifically identified copy recipients identified in the 

transaction. It is used by the storage activity to provide a status update to the ICP/IMM, often in 

response to an interim reply requesting clarification of the discrepancy. Using the status update 

format the SDR may engage in a two-way communication with the action activity. The status 

update may not be used to modify originally reported SDR data elements. The status update 

may also be used to send a research findings/ recommendations to the ICP/IMM (Army directed 

shipments only).

______________

8 Refer to ADC 1044A Clarification of Business Rules associated with SDR Replies for Status 

Update and Completion Notification.”

(3) Revise completion notice guidance:

“C17.3.12.1.2.4. Completion Notification.

9

 A completion notification, identified by 

Transaction Set Purpose Code CN in the SDR reply, will be used by the storage activity to 

communicate with the ICP/IMM that final action has been taken on an SDR requiring a materiel 

disposition action. This is equivalent to indicating that the storage activity has closed the SDR. 

The receiving SDR system may close the SDR as well or keep it open for additional actions. 

Submission of a completion notice is appropriate for all SDRs prepared by the storage activity,

with the exception of those clearly identified as being provided for information only and 

requiring no action activity reply (SDR Action Codes 1H or 3B only). The completion notice 

may not be used to modify originally reported SDR data elements. It may be provided in the 

following specific situations and will be available for additional use as needed.”

C17.3.12.1.2.4.1. The storage activity will use a completion 

notification to inform the ICP/IMM that all action is complete using Reply Code 410.

C17.3.12.1.2.4.2. Under selected scenarios, the storage activity 

may provide a completion notice without a response from the owner/manager when the SDR is 

automatically closed immediately after transmission. SDR Action Codes 1B (Materiel being 

retained) and 1G (Reshipment not required; item to be re-requisitioned) apply. A completion 

notice will be provided using Reply Code 410.

C17.3.12.1.2.4.2. The storage activity will prepare a completion 

notification to notify the ICP/IMM that the SDR has been closed due to zero balance on record. 

This will not result in an investigation as it is generally the result of processing a release order 

during the interim period after the SDR was prepared and prior to execution of the disposition 

instructions. The ICP may close the SDR due to the materiel no longer being available. If SDR 

is a Document Type 9, then the ICP must take further action to locate new procurement materiel.

Attachment ADC 1044A

Page 4
C17.3.12.1.2.4.3. The storage activity will use a completion 

notification to inform the ICP/IMM that materiel disposition could not be completed due to zero 

balance at storage location using Reply Code 412 and clarifying remarks. The ICP may close the 

SDR due to the materiel no longer being available. If the SDR is a Document Type 9, the ICP 

must take further action to locate the new procurement materiel.”

d. Transaction Flow: No changes to SDR transaction flow identified.

e. Alternatives: None identified.

f. Staffing Response to PDC 1044A:

Originator Response/Comment Disposition

1. Army The Army SDR community concurs, but 

must note that LMP will be unable to 

process reply transactions in the near 

future. A secondary Change Request was 

required to be submitted for this 

functionality as it was deemed out of 

scope for the DLMS compliant Change 

Request that is currently in process. 

Noted.

2. Navy Navy has no comment. Noted.

3. DLA Concur.

DLA Distribution:

Just for clarification, PDC 1044A states 

that "CN" (with 144 reply codes) won't be 

sent on SDRs with a "1H" action code. 

But we can still send "CN" (with 144 

reply codes) for action codes: 1B, 1G, 3B?

Noted.

Although initially documented to 

terminate completion notices 

applicable to SDRs identifying 

Action Code 1H, the final version 

also terminates completion notices

applicable to Action Code 3B. 

Also, completion notices for Action 

Codes 1H and 3B will need to be 

discontinued AFTER EBS makes 

the program change on their side, 

since they still need the CN to close 

out the SDR record; this will have a 

delayed implementation.

The DLM is updated to clarify that 

SDRs with Action Code 1B and 1G

will be closed without waiting for a 

reply.

4. Air Force Concur. Noted.

Attachment ADC 1044A

Page 5
Originator Response/Comment Disposition

5. Marine Corps Concur. Noted.

6. USTRANSCOM Abstain. There is no impact to 

USTRANSCOM systems based on this 

change.

Noted.

7. DLMSO The intent is to eliminate the high volume 

of unnecessary SDR transaction 

transmission for completion notices for 

SDRs which are automatically closed by 

the originator when this intent is clear 

from the action code designation of 

information only or indicates that no reply 

is required. Initially, the procedures were 

written to apply to Action Code 1H, but 

upon further consideration, this same 

principle is applicable to Action Code 3B. 

Action Code 3B has high volume use by 

the Consolidation and Containerization 

Points (CCP) and is specifically designed 

to auto-close by the originating system 

with no reply from the owner/manager.

ADC updated to include Action 

Code 3B.

5. REASON FOR CHANGE: This change is provided to expand and clarify DOD WebSDR 

business rules associated with ADC 1044 providing visibility to all trading partners and 

improving SDR guidance. 

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: Provides clear business rules and supporting system enforcement of the 

rules and ensures all SDR submissions remain DLMS compliant.

b. Disadvantages: None identified.

7. ADDITIONAL COMMENTS TO CONSIDER: 

a. The DLA EBS is currently dependent upon the DLA DSS transmission of a 

completion notice for information only SDRs in order to trigger closure of these SDRs in EBS. 

Therefore, DSS cannot terminate transmission of completion notices for information only SDRs 

until EBS is modified to systemically close these records (without a subsequent completion 

notice). 

Staffing Note: Alternative procedures must be available for systemically closed information 

only SDRs ensuring that they are monitored periodically and used for trend analysis and 

determination of corrective action.

Attachment ADC 1044A

Page 6
b. Pending systemic implementation of status updates and completion notices by the 

receiving Service/Agency SDR system, DOD WebSDR will suppress transmission of storage 

activity completion notices with a positive response (Reply Code 410). Only negative responses 

indicating the requested disposition could not be accomplished will be transmitted. This is to 

reduce the high volume of transactions, particularly for users supported by e-mail. Note that 

DOD WebSDR does provide visibility of all transactions via query. 

8. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: This change will be 

effective upon publication of the ADC. Delayed implementation is authorized for DSS 

termination of completion notices for information only SDRs (Action Codes 1H and 3B). Joint 

implementation between DSS and EBS is required with the timing for implementation dependent 

upon EBS modification to remove expectation for unnecessary completion notices.

9. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: Eliminating completion notices applicable to 

information only SDRs will reduce processing costs.

10. IMPACT:

a. New DLMS Data Elements: There are no new data elements associated with this 

change.

b. Changes to DLMS Data Elements: There are no changes to data elements.

c. Automated Information Systems (AIS):

(1) DSS must terminate transmission of completion notices for information only 

SDRs (Action Codes 1H and 3B). All other procedures associated with this change are already 

implemented.

(2) DLA EBS must be updated to remove reliance on receipt of completion notices 

for information only SDRs (Action Codes 1H and 3B). 

(3) Army Logistics Modernization Program (LMP) and General Services 

Administration (GSA) VISION requires update to accept transmission of status update and 

completion notice transactions.

(4) There is no identified impact to the Navy Product Data Reporting and Evaluation 

Program (PDREP) SDR application.

d. DLA Transaction Services: Upon development of capability to support completion 

notices via direct WebSDR input for non-DSS storage activities, WebSDR must block creation 

of completion notices of information only SDRs (Action Codes 1H and 3B). 

e. Non-DLA Logistics Management Standards Publications: Component internal 

guidance may be impacted by updated guidance.

Attachment ADC 1044A

Page 7