DEFENSE LOGISTICS AGENCY

 HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

March 21, 2019 

MEMORANDUM FOR SUPPLY DISCREPANCY REPORTING (SDR) PROCESS

REVIEW COMMITTEE (PRC) MEMBERS

SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 1328, 

Temporary Removal of 500-series Interim SDR Reply Codes from WebSDR Due to 

Lack of Systemic Programming Logic

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

approved for implementation. 

Addressees may direct questions to DLMS.SDR@dla.mil. Others must contact their 

designated SDR PRC available at http://www.dla.mil/HQ/InformationOperations/DLMS/allpoc/.

HEIDI M. DAVEREDE

Director

Enterprise Business Standards Office

Attachment

As stated 

cc:

ODASD (Logistics)
Attachment, ADC 1328

Page 1

Attachment to ADC 1328

Temporary Removal of 500-series Interim SDR Reply Codes from 

WebSDR Due to Lack of Systemic Programming Logic

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: Mr. Ben Breen, 

SDR PRC Chair, e-mail: DLMSSDR@DLA.MIL

2. FUNCTIONAL AREA LOGISTICS AND TRANSACTION CHANGES: 

a. Primary/Secondary Functional Area: SDR

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

 Category  Category  Category

Billing Physical Inventory Contract Admin

 Discrepancies / Deficiencies MILSTRAP DoDAAD

Serialization MILSTRIP MAPAD

Small Arms/Light Weapons MRA LMARS

pRFID Disposition X DLM Publications

GFP DOD BRAC

3. REFERENCES: 

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

Standards and Procedures, Chapter 17, Supply Discrepancy Reporting.

b. ADC 1005, Supply Discrepancy Report (SDR) Distribution to the Defense Contract 

Management Agency (DCMA)

4. REQUESTED CHANGE(S):

a. Brief Overview of Change:

(1) Due to the lack of system programming logic in current SDR systems, this 

change temporarily removes SDR 500-series interim reply codes listed in Appendix 7.28 (Supply 

Discrepancy Report Relevant Data Elements) as shown in Enclosure 1.

(2) In conjunction with the removal of Reply Code 501, DOD WebSDR will no 

longer identify the DCMA DoDAAC as the “current action activity” (retaining the activity that 

forwarded the SDR as the “original action activity”) or as a “secondary action activity” in the 

SDR database, since the use of Reply Code 501 will be removed and rejected if it is used. 
Attachment, ADC 1328

Page 2

WebSDR will not update or remove any previous SDR records that contained the 500-series 

interim reply codes, components will need to update these SDRs accordingly. 

(3) Establish new WebSDR transactional rejection back to submitting system 

with Reply Code 945 when the listed 500-series codes are used erroneously and remove these 

codes from availability in WebSDR for online direct input use. 

(4) This change revises DLM 4000.25 (DLMS) Volume 2, Chapter 17 to remove 

the business processes surrounding the use of these listed 500-series SDR interim reply codes as 

shown in Enclosure 2.

b. Background:

(1) ADC 1005 provides procedures for DOD WebSDR dissemination of action 

copies for DCMA investigation when directed by the action activity reply. This change will 

require WebSDR to identify the DCMA DoDAAC as the current action activity. The DCMA 

DoDAAC will also be retained as a secondary action activity for management reports and 

follow-on actions. However, neither WebSDR nor PDREP have the systemic capability at this 

time to transfer SDRs systemically to DCMA via Reply Code 501. In addition, the EBSO SDR 

team identified further issues with many of the other 500-series interim reply codes being used 

and how DSS interprets these codes. Systemic routing logic supporting the use of the listed 

codes is not in place. When the 500-series interim reply codes are transmitted on the SDR it 

causes the SDR to appear to the user it has been forwarded or transferred to the activity 

associated with the 500-series interim reply code. However, the SDR is not systemically 

transferred and remains in an open state in the current action activity’s system, or the system 

receiving the 500-series interim reply code interprets the codes as they received the SDR for 

action but in fact the SDR was never systemically transferred for action.

(2) In addition, DCMA does not currently have functionality within PDREP to 

respond as an action activity when SDRs are forwarded to DCMA using Reply Code 501. When 

Reply Code 501 is used it has resulted in SDRs appearing to be assigned to DCMA for action 

when in fact they have not been systemically transferred to DCMA in PDREP. 

Staffing Note: Components will need to identify existing records containing 500-series codes

listed below that will need additional action and update the SDR accordingly. 

(3) During discussion with the SDR community as part of our bi-monthly 

telecons, the community decided that the 500-series interim reply codes being removed will be 

available for use again, once the systemic functionality behind the codes is implemented. The 

redeployment of these codes will be communicated to the community prior to any code being 

added back in for use. 

c. Requested Change in Detail:

(1) Temporarily remove 500-series interim reply codes from Appendix 

7.28, as shown in Enclosure 1. 

(2) WebSDR will remove the list of 500-series codes currently available 

for direct online input. Also, implement new edit for SDR transactions to reject any SDR 
Attachment, ADC 1328

Page 3

using the 500-series interim SDR Reply Codes listed below. WebSDR will reject 

transactions with new Reply Code (SDR reply code additions are shown in red bold 

italics). 

945 SDR Rejected. Invalid 500-series SDR Reply Code used. 

Long text description of the rejection will state, “Invalid use of Interim Reply Code 

XXX. Use of this code is currently not authorized.”

(3) Update DLMS, Volume 2, Chapter 17, to remove business rules 

regarding interim reply code procedures. 

d. Revisions to DLM 4000.25 Manuals:

(1) Update DLMS Volume 2, Appendix 7.28, Supply Discrepancy Report 

Relevant Data Elements, to add new rejection Reply Code 945 as shown in paragraph 4.c.(2). 

Also, temporarily remove the 500-series interim reply codes as shown in Enclosure 1. 

(2) Revise DLMS, Volume 2, Chapter 17, Supply Discrepancy Reporting, as 

shown in Enclosure 2. 

e. REASON FOR CHANGE: This change provides clarity and updates SDR 

procedures and business rules to eliminate selected 500-series interim reply codes from use. 

f. Approved Transaction Flow: Standard SDR business transactions apply.

g. Alternatives: None noted.

5. ADVANTAGES AND DISADVANTAGES:

a. Advantages: These changes will systemically enforce current SDR business process 

and procedures and clarify the business and system requirements in various scenarios to the SDR 

community.

b. Disadvantages: None.

6. ASSUMPTIONS USED OR WILL BE USED IN THE CHANGE OR NEW 

DEVELOPMENT: None.

7. ADDITIONAL COMMENTS TO CONSIDER: None.

8. ADDITIONAL FUNCTIONAL REQUIREMENTS: None.

9. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Upon approval.

10. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: None identified.
Attachment, ADC 1328

Page 4

11. IMPACT: 

a. New DLMS Data Elements: None identified.

b. Changes to DLMS Data Elements: SDR reply codes updated as shown above.

c. Automated Information Systems (AIS): Block use of listed 500-series SDR Reply 

Codes. 

d. Defense Automated Addressing System (DAAS): Update WebSDR tables for 

revised SDR reply code list and implement new Reply Code 945 with the long text description of 

the rejection will state, “Invalid use of Interim Reply Code XXX. Use of this code is currently 

not authorized.”

e. Non-DLM 4000.25 Series Publications: DOD Components may need to update 

internal operating procedures and other published Receipt/SDR guidance.

12. PROPOSED DLMS CHANGE (PDC) 1238 RESPONSE/COMMENT RESOLUTION:

Component Response/Comment Disposition

1. DLA Concur with Comment.

Comment:

Components need to be able to be able to re-instate any 

500 series code once system logic has been implemented 

in their system.

As noted. 

2. Navy Concur without Comment. As noted. Initially 

requested clarification of 

PDC 1329.

3. Air Force Concurs without comment. As noted.

4. US Army Concurs as written. As noted.

5. USMC None Numerous follow up sent 

requesting a response. 

6. DAAS Concurs aa written. As noted.

7. USTRANSCOM Abstains. As noted.

8. AFSAC See Air Force response. As noted.

9. DCMA Concurs as written. As noted.
Enclosure 1, ADC 1328

Page 1

Enclosure 1, Appendix 7.28 (Supply Discrepancy Report Relevant Data Elements). 

Changes are identified with double strike through. 

107 Forward materiel to address shown for inspection/exhibit analysis (must use 

traceable and most economical means available).

108 Forward materiel to contractor address shown for inspection/exhibit analysis 

(must use traceable and most economical means available).

501 SDR assigned to Defense Contract Management Agency (DCMA) for 

investigation.

502 SDR resolution deferred pending receipt of exhibit.

503 Discrepancy report currently under investigation.

504 SDR forwarded to new action activity as shown.

505 SDR under investigation; SDR forwarded to activity identified for additional 

action.

506 Item has been transferred to new item manager; referred to GIM for 

disposition.

507 SDR forwarded to shipping depot for Proof of Delivery.

508 SDR forwarded to shipping depot for Evidence of Shipment.

509 SDR forwarded to local procurement office for action.

513 SDR forwarded to IL Directorate or Repair and Return Office for research of 

R&R case.

514 Discrepancy report forwarded to the packaging specialist for research.

515 Procurement/DCMA awaiting response from contractor.

516 Receipt of materiel returned by customer has not posted to date; under 

investigation.

517 Defense Finance and Accounting Service (DFAS) billing information 

requested.

518 Your SDR identifies a transportation discrepancy and is being processed as a 

Transportation Discrepancy Report (TDR).

519 Your SDR identifies a quality deficiency and is being processed as a Product 

Quality Deficiency Report (PQDR).

520 Discrepancy report materiel undergoing test/evaluation.

521 Discrepancy report resolution pending PQDR review.

522 Discrepancy report resolution pending investigation/response from item 

manager.

523 Manager notification to owner: return materiel to manager at current location.

524 Owner notification to manager: materiel returned at current location for credit.
Enclosure 1, ADC 1328

Page 2

525 Discrepancy validated by storage activity; credit recommended (use with 300-

series forwarding reply code).

526 Credit authorized; storage activity issue reversal requested

527 SDR returned to storage activity/initial action activity for additional action; see 

remarks

530 Storage activity unable to perform requested issue reversal; see remarks. 

(Must use with 300-series forwarding reply code)
Enclosure 2, ADC 1328

Page 1

Enclosure 2, Defense Logistics Manual (DLM) 4000.25, Volume 2, Revisions

Revise Chapter 17 as shown. Changes are identified with double strike through. 

Preceding text not shown

C17.3.2.9. Receipt Notification SDRs for Quality-Related Issues Identified 

During Distribution Center Receipt. Three-position Q-series discrepancy codes have 

been developed to accommodate materiel owners/managers with special programs 

requiring immediate visibility and notification of quality deficient (or potentially deficient) 

materiel received at the distribution center. These codes are applicable for reporting to 

ICP/IMMs via the SDR process, based upon special inspection requests by the materiel 

manager. These reports are contingent upon pre-existing receipt restriction 

requirements that identify the National Stock Number (NSN) and/or other screening 

criteria and specific actions the materiel managers expects the distribution center to 

perform. Some of the specific programs that require reporting of quality-related 

concerns for receipts, including new procurement and customer returns, are: items 

identified as customer return improvement initiative (CRII) items, critical safety items 

(CSI), items that failed under use, and items requiring First Article Testing. Additionally, 

receipt of PQDR exhibits will be reported to the owner or manager using the applicable 

three-position Q-series discrepancy code. For PQDR exhibits, report the receipt and 

SDR to the same organization (based upon the PMR, when available). Report 

suspended materiel in the appropriate supply condition code (SCC) under 

DLMS/MILSTRAP procedures, to include PQDR exhibit receipts in SCC Q and CSI in 

SCC L for procurement source receipts or SCC K for non-procurement source receipts. 

For other than PQDR exhibits or first article testing, provide the SDR to the manager 

with a distribution copy to the owner, if different. Disposition instructions for these SDRs 

will be provided by the manager. (a response from the owner prior to the manager 

response will be considered premature and will result in a status update from the 

distribution center indicating that the SDR is still pending manager response (Reply 

Code 522)). The manager will provide an interim response if the SDR will remain open 

for an extended period pending investigation. If resolution of the SDR requires the 

materiel to be returned to the manager, the manager will request that the owner direct 

ownership transfer using “ship-to-self/shipment in-place” procedures and provide 

document number(s) applicable to the original requisition (or a constructed document 

number) for reimbursement. Interim Reply Code 523 applies. The manager will provide 

a PMR to the distribution center to ensure proper processing of the receipt resulting 

from the shipment in-place and to allow the manager to monitor for the directed return. 

The owner will provide an SDR reply with applicable document number(s) for credit and 

confirm materiel release order for ownership transfer at the current location. Interim 

Reply Code 524 applies. In this situation, the SDR will remain open until the manager 

has provided disposition instructions for the discrepant materiel and the distribution 

center has completed this action. At this point, the distribution center will provide a 

completion notice to the manager with an information copy to the original owner.
Enclosure 2, ADC 1328

Page 2

Intervening text not shown

C17.3.12.1.2.1.4. Source of Supply Returning SDR 

Disposition Instructions to Storage Activity/Initial Action Activity after Storage 

Activity Response.1

C17.3.12.1.2.1.4.1. Following initial action activity 

reply/forwarding and closure of the SDR by the initial activity system, the source of 

supply for the shipment may need to return the SDR to the storage activity/initial action 

activity to reopen the SDR and perform directed disposition instructions. To accomplish 

this, the SDR reply must identify the storage activity/initial action activity as the 

Transfer-To party and the appropriate interim reply code: Reply Code 526 (Credit 

authorized; storage activity issue reversal requested) or Reply Code 527 (SDR returned 

to storage activity/initial action activity for additional action (see remarks)). WebSDR 

will recognize this construct and make distribution to the SDR submitter and the 

identified action activity (or reject inappropriately forwarded SDRs with Reply Code 

945). 

C17.3.12.1.2.1.4.2. The storage activity/initial action 

activity system must reopen the SDR upon receipt of the incoming reply. Storage 

activity/initial action activity personnel will review the requested disposition and respond 

as appropriate within 25 days. If the storage activity/initial action activity is able to 

complete the requested action, that activity will provide a new reply to the customer 

citing applicable reply codes including Reply Code 151 (Replacement/revised 

disposition/status; prior response is superseded). WebSDR will distribute the reply to 

the SDR submitter and to the source of supply based upon inclusion of the source of 

supply in the owner/manager/source of supply field.2 If the storage activity/initial action 

activity is unable to complete the requested deposition for issue reversal, it may forward 

the SDR to the source of supply for action using Reply Code 530 (Storage activity 

unable to perform requested issue reversal) and the appropriate 300-series forwarding 

reply code. If the storage activity/initial action activity is otherwise unable to complete 

the requested disposition, the 300-series forwarding reply applies. The source of supply 

should contact DLA Distribution if it does not receive a response to the returned SDR 

within 30 days.

Intervening text not shown

C17.3.12.1.2.1.5. Item Manager Forwarding to Defense Contract 

Management Agency (DCMA). SDRs may only be forwarded to DCMA for action when 

the contract indicates that DCMA is responsible for inspection or acceptance. SDRs 

lacking this evidence of the discrepancy will make it difficult for DCMA to support a 

claim of vendor noncompliance. Therefore, if the SDR submitter did not provide 

evidential matter substantiating the discrepancy at time of creation, the item manager 

will reply to the SDR submitter and request additional information using Reply Code 

104. The item manager will annotate in SDR remarks requesting photographs or 

 1 Refer to ADC 1217.

2 Current processing uses a single multi-purpose field. Upon implementation of ADC 1126, separate 

discrete data fields will identify the owner, manager, and source of supply. 
Enclosure 2, ADC 1328

Page 3

documentation supporting the discrepancy reported. DLA Distribution Centers will reply 

to the request for evidence of the discrepancy using a Status Update with Reply Code 

321. Customers (or others lacking status update functionality) must provide an SDR 

Correction in response to the request. SDR submitters my upload attachments via SDR 

if their SDR system does not provide attachment functionality. DCMA is required to 

reply to SDRs forward for action (Reply Code 501) within 25 days. If DCMA is unable to 

conclude their investigation within 25 days, DCMA will generate an interim response 

(e.g., citing Reply Code 503 or 515) indicating the expected timeframe for closure.

C17.3.12.1.2.1.6. DCMA Response to the Item Manager. DCMA 

will include the findings of their investigation in the remarks; additional information may 

be included using the SDR attachment functionality. These findings may include but are 

not limited to: validation of reported discrepancy, cause of deficiency, responsibility of 

deficiency, and corrective action take to prevent reoccurrence of deficiency. DCMA will 

forward the SDR to the responsible item manager (original action activity) using the 

300-series forwarding reply code. DCMA must provide the appropriate disposition reply 

in conjunction with the 300-series forwarding reply code regardless of whether or not 

contractor noncompliance is determined. The 300-series forwarding reply code dictates 

the structure of the reply transaction requiring the action activity identified as the item 

manager and will trigger the appropriate transfer of action in WebSDR and the receiving 

Component item manager system. If the item manager incorrectly forwards the SDR to 

DCMA for action, DCMA will return (forward) the SDR to the item manager with the 

appropriate 300-series reply code and clarifying remarks, (e.g., “Forwarding to DCMA 

for action not authorized; DCMA not responsible for inspection or acceptance.”) The 

item manager will provide the final reply as appropriate. 

Intervening text not shown

C17.3.13.2.10. DCMA will respond to SDRs forwarded for action within 

25 calendar days.

Intervening text not shown

C17.3.13.3.2. Response Coordination. It is not the responsibility of the 

SDR initiator to forward copies of the SDR to all parties involved. Instead, it is the 

responsibility of the LIM to coordinate with the GIM for an appropriate 

response/disposition to the submitter. The LIM may provide an interim response citing 

financial resolution and including Reply Code 506 (indicating the SDR is forwarded to 

the GIM for disposition of materiel) and the appropriate 300-series forwarding reply 

code. The transaction must identify the GIM as the RIC-To in accordance with 

formatting rules for this type of forwarding. WebSDR will use this value to populate the 

Transfer-To activity in the forwarded transaction, which will be provided to the customer 

and to the GIM. Additionally, the presence of Reply Code 506 will trigger WebSDR to 

provide an information copy of the SDR to the GIM. The LIM must maintain the SDR in 

an open status until the GIM has provided a disposition response.

Intervening text not shown
Enclosure 2, ADC 1328

Page 4

C17.3.20.1.1.6. DoD WebSDR will route submitter transactions for 

follow-up to the current action activity when SDR history indicates a new or updated 

action activity has been identified (such as based upon prior Reply Code 504, 526/527

or a 300-series reply code). WebSDR will disseminate other transaction types based 

upon the identified action activity (current action activity after Reply Code 504 

forwarding) and SDR distribution rules.

Intervening text not shown

C17.3.20.2.6.2. New SDRs directed to DCMA as the initial action 

activity will be rejected with Reply Code 929 and remarks text indicating that the SDR 

must be submitted to the responsible Service/Agency action activity (e.g. ICP/IMM) 

whose the contract performance resulting in the reported discrepancy. DCMA may be 

identified as a distribution copy recipient.

Intervening text not shown

C17.3.20.2.20. WebSDR will reject Historical SDRs (Transaction Set 

Purpose Code 49) containing Reply Code 501 (SDR assigned to DCMA for 

investigation). SDRs forwarded to DCMA must be processed using a reply transaction 

through WebSDR in order to maintain visibility of the transfer of action. WebSDR will 

use Reply Code 938 (Transaction rejected. Missing or invalid disposition/reply code) 

and include the appropriate narrative remarks.3

C17.3.20.2.21. WebSDR will reject any SDR reply from DCMA that 

does not contain a 300-series forwarding reply. Use of the 300-series reply code is 

required to maintain visibility of the transfer of action back to the item manager(action 

activity). WebSDR will use Reply Code 927 (Transaction rejected. Missing or invalid 

disposition/reply code) and include the appropriate narrative remarks.4

C17.3.20.2.22. WebSDR will reject attempted return of SDRs to the 

storage activity/initial action activity using Reply Code 526/527 when the identified 

Transfer-To party is not identified or consistent with SDR history (must be same action 

activity that received and processed the original SDR response) using Reply Code 

945.5

Intervening text not shown

C17.3.20.4.4. WebSDR will forward SDR replies containing Reply Code 

501 to DCMA for investigation. The SDR database will be updated to show DCMA as a 

secondary action activity and as the current action activity. The activity forwarding the 

SDR will be retained as the original action activity. Subsequent to the DCMA reply, 

WebSDR will reassign the original action activity as the current action activity, and the 

DCMA DoDAAC will be retained as a secondary action activity. Subsequent to 

 3 Refer to ADC 1181A.

4 Refer to ADC 1181A.

5 Refer to ADC 1217.
Enclosure 2, ADC 1328

Page 5

forwarding to DCMA, WebSDR will ensure that both DCMA and the original action 

activity receive all follow-on transactions.

Intervening text not shown

C17.3.20.4.6.5. WebSDR will provide an information copy of the SDR to 

the GIM when an SDR is forwarded by the LIM to the GIM for disposition instructions 

after a logistics reassignment (Reply Code 506).