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ADC 415

Attachment

ATTACHMENT TO ADC 415

Revise the DOD Inventory Control Effectiveness (ICE) Report (General Supplies) and 

Revise Type Physical Inventory/Transaction History Code C and Add Code Z

1. ORIGINATOR:

a. Service/Agency: Defense Logistics Agency 

b. Originator: DLA J-3312; DLA Joint Physical Inventory Working Group (JPIWG) 

Representative, DSN 427-1606, Commercial 703-767-1606

2. FUNCTIONAL AREA:

a. Primary: Supply/Physical Inventory Control Program

b. Secondary(ies): None

3. REFERENCES:

a. DOD 4000.25-M, DLMS, Volume 2, Chapter 6, as revised by Approved DLMS Change (ADC)

307 (reference 3d), www.dla.mil/j-6/dlmso/elibrary/manuals/dlms/v2.asp

b. DOD 4000.25-2-M, Military Standard Transaction Reporting and Accounting Procedures 

(MILSTRAP), www.dla.mil/j-6/dlmso/elibrary/Manuals/MILSTRAP/default.asp

c. DLMSO memorandum, April 25, 2007, subject: ADC 237, Rename Location Audit Program to 

Record Reconciliation Program, http://www.dla.mil/j-6/dlmso/eLibrary/Changes/approved3.asp

d. DLMSO memorandum, November 10, 2008, subject: ADC 307, Administrative Update to 

DLMS, Volume 2, Chapter 6, Physical Inventory Control, and DLMS Supplements (DS) 846P, 846R, 

and 888I , www.dla.mil/j-6/dlmso/eLibrary/Changes/approved4.asp

4. REQUESTED CHANGE:

a. Title: Revise the DOD Inventory Control Effectiveness (ICE) Report (General Supplies) and 

Revise Type Physical Inventory/Transaction History Code C and Add Code Z (Supply).

b. Description of Change: 

1) The Defense Logistics Agency (DLA) proposes this change to revise the ICE ReportGeneral Supplies, DD Form 2338-2 (Sep 2000), identified in DOD 4000.25-M, DLMS, Volume 2

(reference 3a), Chapter 6, and DOD 4000.25-2-M, MILSTRAP (reference 3b), Chapter 7, and 

Appendix AP1.2, to enhance data analysis and Inter/Intra Service reporting. Currently the report is 

used by the DLA and DLA Distribution as a management tool to measure the performance of the 

distribution operations. The quarterly report is also forwarded to each Component displaying physical 

inventory performance data for their materiel stored at DLA Distribution facilities. This change 

approves a complete revision of the ICE Report for General Supplies. 
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ADC 415 

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(a) The revised ICE Report Part I focuses on Physical Inventory and Denial 

performance statistics to create a meaningful summary of data for DLA as well as Inter-Service ICE

reporting. 

(b) The revised ICE Report Part II is not applicable to Inter-Service reporting and, 

does not have a prescribed format but recognizes what performance data will be maintained by the 

Components. 

(1) Part II groups Receipt processing, the Record Reconciliation Program, and 

Record Accuracy sampling results into a new section where the method of performance visibility and 

management reporting will vary (i.e. Management Information Systems, Record Reconciliation 

Reports, Performance and Analysis Briefings, etc). While Part II identifies the performance elements to 

be collected and maintained, it would not be used for reporting actual performance statistics.

(2) NOTE: The revised ICE Report Part II does not take into consideration the 

current procedure’s footnote number 8 for Receipt Processing Performance (MILSTRAP C7.9.2.1.2.) 

which states that “Performance data maintained by DLA for materiel stored at DSS locations 

regardless of ownership.” Based on the current chapter 7 footnotes DLA is responsible for 

maintaining performance data for both materiel denials (which is included in the revised report Part I) 

and receipt processing performance; however, receipt processing performance is excluded from the 

revised report, Part I. DLA’s reason for including it in Part II is documented in subparagraph (1) 

above. 

(3) COMMENT PRESENTED TO DLA, IN THE PDC, FOR REVISED 

PART II: Does the report revision mean that the Component will or should maintain intraComponent distribution and/or owner/manager performance data for Receipt processing, Record 

Reconciliation Program, and Record Accuracy in an un-prescribed format for sampling results only?

DLA RESPONSE: Components should maintain the data identified in Part II and that this 

information will not be a part of the ICE Report. DLA understands that the Components may not 

have access to all of this information and will need to contact DLA to obtain the information. (Joint 

responsibility as stated by the Air Force)

 2) Revise Type Physical Inventory/Transaction History Code C and Code Z to provide unique 

codes for storage activity processes. The second part of this PDC modifies DLMS Data Dictionary, and 

MILSTRAP Appendix 2.2, Type Physical Inventory/Transaction History Code as follows:

(a) Code C. Revise the definition for existing code C to authorize it to be used only by 

the storage activity. This would give the storage activity a unique code for inventory accuracy 

improvement initiatives. NOTE: This approved change removes the owner/manager ability to use 

code C to initiate a special inventory for all condition codes for an item. This leaves codes D, H, and I, 

and J, for owner special inventory, all of which have restrictions for use. 

(b) Code Z: This approved change provides a definition for new code Z to be used by 

the storage activity when an adjustment occurs (for a specific supply condition code (SCC)) as a result 

of mismatches within the storage activity’s management system between the storage activity’s location 

balance records for each NSN with location level activity (i.e., balance affecting transactions), and the 

storage activity’s records of the owner balances (i.e. Book-to-Book). 
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c. Procedures:

1) Revise DOD 4000.25-2-M, MILSTRAP Chapter 7, as revised by ADC 237 (reference 3c), 

as shown in Enclosures 1 and 2.

2) Make corresponding changes to DOD 4000.25-M, DLMS, volume 2, Chapter 6, as revised 

by ADC 307 (reference 3d), (changes not shown).

 3) Revise DD Form 2338-2, Inventory Control Effectiveness Report (ICE) (General Supplies) as

shown in the Enclosure 4. This requires a change to a DOD Form. DLA Logistics Management 

Standards office will take action to revise the form upon release of the ADC.

4) Add the following definition for Book-to-Book Adjustments to MILSTRAP and DLMS:

ADJUSTMENTS, BOOK-TO-BOOK. Mismatches within the storage activity’s management system 

between the quantity-by-location and the owner balances.

5) Update DLMS Data Dictionary and MILSTRAP Appendix 2.2 Type Physical 

Inventory/Transaction History Code to revise code C definition and add new code Z, as follows

(change identified by red, bold, italicized text; deleted text is also identified by strike-through) (Full 

code list is shown at Enclosure 5):

Code Definition

C Special Inventory, all supply condition codes (SCC). Initiated by 

owner, accountable officers, or the storage activity in support of 

inventory accuracy improvement initiatives.

Z Special Inventory (specified SCC) systemically initiated by the storage 

activity for quantity mismatches within the storage activity’s

management system between the quantity-by-location and the owner 

balances (i.e. Book-to-Book adjustments). Reserved for future DoD

assignment.

d. Alternatives. None identified.

5. REASON FOR CHANGE: The DLA and Components developed management information 

systems to support and assess Physical Inventory Control Program (PICP) requirements and expressed 

a need to realign the ICE Report information to enhance data analysis. Given the varied range of line 

items managed by the Components and the depth of inventories, the Monetary Values related to 

Record Reconciliation and end of day processing did not provide meaningful performance data. Trend 

analysis was often misleading. Thus, reporting on and including the value of accounting adjustments 

was not required. However, to maintain the integrity and focus on physical inventory adjustment data a

new Part I was created and Part II designed to highlight PICP performance data and accuracy 

requirements.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: The ICE Report is a performance assessment tool to evaluate PICP processes. 
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This approved change makes the report easier to understand and analyze. The data shown in Part I 

provide the DLA and the Services a more meaningful summary of physical inventory performance. 

This will place renewed emphasis on events that cause physical inventory adjustments and actions 

taken to resolve discrepancies to improve inventory accuracy.

 b. Disadvantages: None identified.

7. IMPACT:

a. Data Content/Procedures: 

(1) DD Form 2338-2. DLA Logistics Management Standards will take action to revise the 

Inventory Control Effectiveness Report (General Supplies), DD Form 2338-2, Sep 2000.

(2) May impact Component operating procedures for using the DOD ICE Report.

b. Publication(s): 

(1) DOD 4000.25-2-M, Military Standard Transaction Reporting and Accountability Procedures 

(MILSTRAP), Chapter 7 and DOD 4000.25-M, DLMS, Volume 2, Chapter 6.

(2) May impact any Component implementing publications and procedures.

c. Automated Information Systems (AIS). Component AIS generating the ICE Report for 

General Supplies.

8. PDC 299A COMMENTS/RESPONSES:

# Component Comment to PDC 299A

1 DLA RE: Paragraph C7.9.2.2.2. Location Survey.

Comment: Type ‘3’ errors are not included in calculating the location accuracy percentage. Revise to 

read:

C7.9.2.2.2. Location Survey. The accuracy rate is computed by dividing the locations with 

discrepancies (Types 1, and 2, and 3) by the total locations surveyed (during the reporting period) 

multiplying by 100, and subtracting the result from 100 percent.

2 Army

S. Cook

Supply PRC

11/14/2009

A review of PDC 299A was conducted with the National Level Community.

Please see the following comments:

AMMO - Concurs, no impact

War Reserve - Concur/w comments- Concur with change. There will be an impact to APS storage site 

business processes and these changes will require changes to LMP. Dependent upon the change 

effective date, CCSS and SDS will require changes to comply. John Page will respond for the APS 

LCMC business processes. 

LOGSA - Concurs, no impact

SCE-BTL – Concur

3 Navy

M. Morra

Supply PRC

6/30/09

The Navy accepts subject PDC 299A without any changes.
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Component Comment to PDC 299A

4 Air Force

T. Frantz

Supply PRC

11/13/09

The SPRC side of the AF concurred with out comments. The AF reps to the JPIWG, Mel Cooper and 

Don Kringen, are reviewing PDC and will present their comments (if they have any) at next week’s (Nov 

2009) JPIWG meeting.

5 Air Force

Comments 

M. Cooper

JPIWG 

12/1/09

DLA 

Response

G. Ziegler

As you recall at the recent JPIWG meeting we discussed the need to include (or not include) Inventory 

metrics in the Performance Based Agreement (PBA) Metrics. In addition we talked the ICE report. Our 

way forward was to convince our analysis experts that there is no value added to including the metrics in 

the PBA. This included ensuring the redesigned ICE report meet our needs.

I have made progress on part one. I have a meeting with our analysis people early next week to finalize 

our position on metrics in the PBA. I have discussed with our Air Staff POC and he has agreed in 

principle that there is no value added. Should be able to convince the analysis folks also if we can 

resolve the following concerns. 

We took an in-depth look at 299A and we do have some questions/concerns: 

USAF Comment 1: In line 2G of the proposed ICE Report form: The ICE Report Form states “Number 

Of Adjustments, Gains And Losses Excluding Book To Book”.

The explanation for the line (para C7.9.2.1.2.7.) says Gains, and Losses including Book-to-Book 

adjustments. The total number of Adjustments, Gains, and Losses including Book-to-Book adjustments 

posted during the reported period. 

Need to know which is correct. 

UPDATED DLA RESPONSE AFTER FURTHER REVIEWAND DISCUSSION:

DLA RESPONSE: We've reviewed the entire ICE Report and determined that BTB adjustments should 

NOT be included in section 1.

C7.9.2.1.1. Number of Physical Inventories and Variance Rate (1) This section refers to Physical 

Inventories which do not include Book-to-Book (DSS internal systemic process) adjustments.

C7.9.2.1.2. Number of Adjustments(2) This section at lines 2G (and 2H) 2A through 2H includes 

Book-to-Book adjustments and is not limited to Physical Inventories (as stated in Title Header it is 

simply Number of Adjustments (systemic and physical). Discussion has centered on using the word 

inventory in the subsequent Line Numbers. Since this is the Inventory Control Effectiveness (ICE) 

Report It should be understood as not restricted to Physical adjustments alone (and can/does include 

systemic adjustments) Not sure if systemic adjustments take place in all Inventory Management 

Programs/Systems but this section is titled adjustments (and should be understood as related to 

inventory-but not physical inventory) .

Ice Report Chart Part 1 Section 1 does not include Book-to-Book

Section 2 does include Book-to-Book and should be included in line 2A through and 2H.

[G. Ziegler comment 11/18/2011: All segments in Part 2 include Book-To-Book. It is not just G and H only.]

Section 4 Should indicate Average Monthly/Yearly Value as per formula stating an average of previous 

12 months(as calculated on last day of each month
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6 USAF Comment 2: MILSTRAP breaks out adjustments by category and goal as follows:

GENERAL SUPPLIES RECORD ACCURACY GOALS

STRATIFICATION SUBPOPULATIONS AND ASSOCIATED GOALS AND TOLERANCE LEVELS

CAT SUB-POPULATION GOAL

(PERCENT)

TOLERANCE

(PERCENT) 

A UNIT PRICE > $1,000 99 0

B UNITS OF ISSUE WHICH MAY BE NONDEFINITIVE OR DIFFICULT TO MEASURE

 OR

(ON-HAND BAL > 50 AND EXTENDED VALUE < $50,000)

 OR

NSN ACTIVITY (# transactions affecting balance in one year) > 50

95 10

C DATE OF LAST INVENTORY > 24 MONTHS 

 AND

ON-HAND BALANCE < 50

95 5

D ALL OTHER MATERIEL NOT MEETING ABOVE CRITERIA 95 0

Does the re-designed ICE report break down the adjustments using the same criteria? It seems to us that if 

DLA measures inventory accuracy this way, then this data needs to be included on the ICE Report. This is 

the type of info our analysis people will be looking for. 

DLA RESPONSE: The re-designed ICE report does not break down adjustments to match to the MILSTRAP 

categories. If this is a requested change, it will need to be addressed through the JPIWG via a PDC. If 

approved, it would require a systems change in DSS to provide such a breakout. This system change would 

apply whether it would be through the ICE report or in the PBA. We are currently unable to provide that type 

breakout on a large scale, ongoing report at this time. DDC has done this on a limited basis for some internal 

research/analysis, but have required assistance from an outside data analysis office to accomplish it. Another 

option is for your analysis people to take the NSNs and data from the ADC 255 report and provide the 

breakout.

7 USAF Comment 3) Previous ICE report had individual ICE Reports by storage site. I know we discussed 

this at the JPIWG but I’m still not clear as to why the data is no longer broken down by storage site. The 

perception here is that the AF should be able to look at support metrics by site not just overall data. 

DLA RESPONSE: Previous ICE reports have always been reported by Service and electronically by storage 

site only as a courtesy under the old format. The system programmers have not prioritized development of a 

non-required report since the initiation of the new ICE format. AF owned materiel is stored at most of our 25 

distribution centers. Meeting this request for AF (and each of the Services) would require a rather large 

resource effort, system changes and result in a voluminous ICE report. Again a change of this type would 

have to be addressed at the JPIWG and via a PDC.

8 USAF Comment 4) Does the new report only show adjustments that required causative research or does it 

show all adjustments? If it only shows high dollar adjustments then AFGLSC leadership will most likely 

pursue adding additional metrics to include all adjustments using the PBA.

DLA RESPONSE: The ICE report includes all adjustments, regardless of dollar value. The Storage Activity 

Accountability to Service Materiel Owners Report (ADC 255) lists individual adjustments >$16K which 

coincides with the MILSTRAP causative research criteria guidance.
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9 DLA Logistics Management Standards Comments: Request DLA provide a MILSTRAP/DLMS 

definition for Book-to-Book Adjustments to include in ADC.

NOTE: 

1) Book-to-Book adjustment definition added.

2) Definition for MILSTRAP AP2.2. Type Physical Inventory/Transaction History Code Z revised to 

correlate with Book-to-Book definition; and made more generic consistent with a DOD level code 

rather than a DLA level code specifying DLA’s DSS.

Book-to-Book Definition: ADJUSTMENTS, BOOK-TO-BOOK. Mismatches within the storage activity’s

management system between the quantity-by-location and owner balances.

Code Z as revised for ADC 415 based on Book-to-Book definition: Special Inventory (specified SCC) 

systemically initiated by the storage activity for quantity mismatches within the storage activity’s management 

system between the quantity-by-location and the owner balances.(i.e. Book-to-Book adjustments)

Old Code Z definition in PDC 299A: Special Inventory (specified SCC) systemically initiated by DSS for 

quantity mismatches between the quantity-by-location and owner balance records (e.g. Book-to-Book).
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ADC 415 Enclosure 1

MILSTRAP revisions

ENCLOSURE 1 TO ADC 415

REVISIONS TO DOD 4000.25-2-M, MILSTRAP, CHAPTER 7

(except C7.9.2 which is at Enclosure 2) Changes are identified by red, italicized text or strike-through.

1) Revise section C7.3.4.1:

“C7.3.4.1. Owners, AOs, and storage activities shall initiate special inventories using DI Code 

DJA transactions, prepared in the appendix AP3.15 format. Storage activities may systemically 

initiate inventories internal to their system without using a DJA transaction; or if their system 

requires it, they may use DJA transactions to initiate inventories. If an inventory has not been 

taken within the past 90 calendar days, cite Type of Physical Inventory/Transaction History Code 

C, D, J, or K in the transaction. If an inventory...”

2) Add new sections C7.3.4.4. and C7.3.4.6, renumber current C7.3.4.4. as C7.3.4.5, as follows: 

“C7.3.4.4. Storage activities systemically initiate special inventories, for a specific SCC, as a result 

of quantity mismatches between the quantity-by-location and owner balance records using Type 

Physical Inventory/Transaction History Code Z.

C7.3.4.5. Storage activities may initiate unscheduled inventories as a result of on-hand balance 

mismatches between the locator and property accountability records with DI Code DJA, using Type 

Physical Inventory/Transaction History Code M.

C7.3.4.6. Storage activities shall initiate special Inventories (for all SCCs) in support of inventory 

accuracy improvement initiatives, using Type Physical Inventory/Transaction History C.”

3) Revise paragraph C7.5.4. as follows: 

“C7.5.4. Performance Assessment. Reversals after causative research allow for the proper posting 

of the correct supply transactions and audit trails. The number of inventory adjustments and related 

monetary values will be separated and identified as follows:

 C7.5.4.1. Absolute adjustment rates shall include all gain and loss reversals from 

reporting and prior quarters’ adjustment transactions. 

 C7.5.4.2. Initial adjustment rates shall not include gain and loss reversals from 

reporting or prior quarters’ adjustments.”

ABOVE SECTION C7.5.4 replaces:

“C7.5.4. Performance Assessment. Reversals against transactions processed within the adjustment period will be 

separated and identified as follows:

C7.5.4.1. Gross adjustment during the current period,

C7.5.4.2. Reversal of prior quarters' adjustment transactions,

C7.5.4.3. Reversal of current quarters' adjustment transactions, and

C7.5.4.4. Total value of net adjustments during the current period (i.e., value of net gains added to 

value of net losses).”
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ADC 415 Enclosure 2

Revised MILSTRAP Section C7.9.2 ICE Report procedures

ENCLOSURE 2 TO ADC 415

MILSTRAP Chapter 7, Section C7.9.2 procedures for the ICE Report-General Supplies.

Replace in its entirety, section C7.9.2., General Supplies Performance Standards and 

Data, with the following (Change from PDC 299A is highlighted):

REVISED C7.9.2. PROCEDURE:

“C7.9.2. General Supplies Performance Standards and Data

“C7.9.2.1. General Supplies Inventory Adjustment Report Data -- Part I. Parentheses with each 

paragraph number refers to data shown on the ICE Report (Report Control Symbol DD-A&L(Q)935)

C7.9.2.1.1. (Line 1.) Number of Physical Inventories and Variance Rate. 1

 C7.9.2.1.1.1. (Line 1.A.) Number of Inventories Completed. The total number of line 

items inventoried (scheduled and unscheduled). Each SCC for a stock number at each storage activity is a 

line item.

 C7.9.2.1.1.2. (Line 1.B.) Number of Inventories with Adjustments. The total number 

of line items inventoried (scheduled and unscheduled) that had an inventory variance.

 C7.9.2.1.1.3. (Line 1.C) Inventory Variance Rate. Reflects the percentage of the line 

items inventoried that had an inventory variance. Compute this figure by dividing the lines with an 

Inventory Variance by the total line items inventoried and multiplying by 100. {(1B/1A) x 100}.

 C7.9.2.1.1.4. (Line 1.D.) Number of Inventory Adjustments Equal to or Greater Than 

(=/>) Causative Research Criteria. The total number of line items inventoried (scheduled and 

unscheduled) that had an inventory variance (overage or shortage equal to or greater than Causative 

Research threshold) (dollar value of the variance is =/> $16,000 for uncontrolled item, $2500 for a 

pilferable item and all adjustments of a sensitive/classified items).

 C7.9.2.1.1.5. (Line 1.E.) Causative Research Variance Rate. The percentage of the

total number of line items inventoried (scheduled and unscheduled) that had an inventory variance that 

met the Causative Research threshold. Compute this figure by dividing the lines that meet Causative 

Research Criteria by the total line items inventoried and multiplying by 100. {(1D/1A) x 100}.

 C7.9.2.1.2. (Line 2.) Number of Adjustments

2

 C7.9.2.1.2.1. (Line 2.A.) Number of Adjustment Gains (D8A). The total number of

inventory gain adjustments.

 C7.9.2.1.2.2. (Line 2.B.) Number of Adjustment Losses (D9A). The total number of 

inventory loss adjustments.

 C7.9.2.1.2.3. (Line 2.C.) Number of Gain Reversals (D8A Reversal). The total 

number of gain reversals of inventory adjustments (from reporting and prior quarters).

 C7.9.2.1.2.4. (Line 2.D.) Number of Loss Reversals (D9A Reversal). The total 

number of loss reversals of inventory adjustments (from reporting and prior quarters).

 1

 Book-to-Book Adjustments are not included in section 1.

2 Book-to-Book Adjustments are included in section 2.
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ADC 415 Encl 2

Revised MILSTRAP Section C7.9.2 

 C7.9.2.1.2.5. (Line 2.E.) Total Number of Inventory Adjustments. The total number 

of inventory gain or loss adjustments including the number of gain and loss reversals (from reporting and 

prior quarters) processed during the report period. {(2A + 2B + 2C + 2D)}

 C7.9.2.1.2.6. (Line 2.F.) Number of Issues and Receipts (Transactions). The total 

number of Issues and Receipts posted during the report period.

 C7.9.2.1.2.7. (Line 2.G.) Number of Adjustments, Gains, and Losses including Book-toBook adjustments. The total number of Adjustments, Gains, and Losses including Book-to- Book 

adjustments posted during the reported period.

 C7.9.2.1.2.8. (Line 2.H.) Transaction Adjustment Rate {2G/2F}. The total number of 

Adjustments, Gains, and Losses including Book-to- Book adjustments posted during the reported period 

compared to the total number of Issues and receipts posted during the report period. Compute this figure 

by dividing the total number of Adjustments, Gains, and Losses including Book-to- Book adjustments by 

the total number of Issues and receipts. {(2F/2G)} 

 C7.9.2.1.3. (line 3) Monetary Value of Adjustments ($000)

3

 C7.9.2.1.3.1. (Line 3.A.) Value of Adjustment Gains (D8A). Monetary value of gain 

adjustments excluding the monetary value of gain reversals processed during the report period. 

 C7.9.2.1.3.2. (Line 3.B.) Value of Adjustment Losses (D9A). Monetary value of loss 

adjustments excluding the monetary value of loss reversals processed during the report period. 

 C7.9.2.1.3.3. (Line 3.C.) Value of Gain Reversals (D8A). The total monetary value of 

gain reversals processed during the reporting period. 

 C7.9.2.1.3.4. (Line 3.D.) Value of Loss Reversals (D9A). The total monetary value of 

loss reversals processed during the reporting period. 

 C7.9.2.1.3.5. (Line 3.E.) Total Value of Inventory Adjustments. Monetary value of 

gains and losses resulting from inventory adjustments including the monetary value of gain and loss 

reversals (from reporting and prior quarters) processed during the report period. {(3A+3B+3C+3D)}

 C7.9.2.1.4. (Line 4) Adjustment Rates 4

 C7.9.2.1.4.1. (Line 4.A.) Average Value of Materiel in Storage. The average value of 

on-hand assets as reflected on storage activity's owner/manager property accountability records for the 12 

months prior to the report cutoff date (i.e., current quarter plus three quarters).

 C7.9.2.1.4.2. (Line 4.B.) Record Value of Items Inventoried. The extended value prior 

to inventory adjustments being posted during the reporting period.

 C7.9.2.1.4.3. (Line 4.C.) Absolute Adjustment Rate for Materiel in Storage. Divide 

the value of the total number of inventory adjustments (including reversals) by the average value of 

materiel in storage. {(3E/4A) x 100}

 3 Book-to-Book Adjustments are included in section 3.

4 Book-to-Book Adjustments are included in section 4. 
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ADC 415 Encl 2

Revised MILSTRAP Section C7.9.2.

 C7.9.2.1.4.4. (Line 4.D.) Absolute Adjustment Rate for Items Inventoried. Divide the 

value of the total number of inventory adjustments (including reversals) by the record value of items 

inventoried. {(3E/4B) x 100}

 C7.9.2.1.4.5. (Line 4.E.) Initial Adjustment Rate as Percentage of Materiel In Storage. 

Divide the value of the total number of inventory adjustments (without reversals) by the average value of 

materiel in storage. {(3A + 3B / 4A) x 100}

 C7.9.2.1.4.6. (Line 4.F) Initial Adjustment Rate as Percentage of Items Inventoried. 

Divide the value of the total number of inventory adjustments (without reversals) by the record value of 

items inventoried. {(3A + 3B) / 4B}

 C7.9.2.1.5. Materiel Denials

 C7.9.2.1.5.1. (Line 5.A.) Lines Directed for Shipment. The total number of line items 

directed for shipment (A5_ MRO, A4_ referral order, and A2_ redistribution order).

 C7.9.2.1.5.2. (Line 5.B.) Total Materiel Release Denials. The total materiel denials 

(sum of total and partial denials, and warehouse refusals). Include denial transactions classified by denial 

Management Codes 1, 2, 3 (subsistence only) 4 and 5 (see appendix AP2.6) in the total.

. C7.9.2.1.5.3. (Line 5.C) Materiel Denial Rate . Compute this figure by dividing the 

total denials by the line items directed for shipment and multiplying by 100. {(5B /5A) x 100}

C7.9.2.2. General Supplies - Accuracy and Performance Data -- Part II. Each DoD 

Component shall collect and maintain visibility of the following performance data for collective 

analysis of accuracy trends and corrective actions required.

 C7.9.2.2.1. Receipt Processing. The accuracy rate is computed by dividing the 

total number of receipts (all types ... new procurements, redistributions, returns from maintenance, 

etc.) posted and stored to the property accountability record on time by total number of receipts and 

multiplying by 100 during the reporting period. The Components may separately measure receipt 

processing timeframes by the type of receipt (i.e. D4_, D6A, D6Ks, etc) based on business processes 

and negotiated agreements.

C7.9.2.2.2. Location Survey. The accuracy rate is computed by dividing the 

locations with discrepancies (Types 1, and 2 and 3) by the total locations surveyed (during the 

reporting period) multiplying by 100, and subtracting the result from 100 percent.

C7.9.2.2.3. Location Reconciliation. This performance figure represents the total 

number of location records reconciled (i.e. sum of line items on the Inventory Manager's record and 

line items which were not on the Inventory Manager's record but were on the storage activities' 

records) during a specified reporting period. The accuracy rate is computed by dividing the number of 

discrepancies (as defined in paragraph C7.6.2.2.) by the number of records reconciled, multiplying by 

100, and subtracting the result from 100 percent.

C7.9.2.2.4. Record Accuracy. This performance element represents the results of 

Type Physical Inventory/Transaction History Code N Sample Inventories. The sampling model 

incorporates a hierarchical approach where the total population of items is included and a single 
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ADC 415 Encl 2

Revised MILSTRAP Section C7.9.2 

sample is randomly selected. Each line item (NSN/SCC) selected is placed in only one of the four 

categories by determining whether it meets a category's criteria, in sequential order. Table C7.T.1 

provides General Supplies Record Accuracy categories, goals and tolerances.”

C7.9.3. Ammunition Performance Standards and Data

NOTE: Section C7.9.3 and DD Form 2338-1, ICE Report (Ammunition), are not being revised by this 

ADC.
ADC 415 

Enclosure 3

Revised ICE Report

INVENTORY CONTROL EFFECTIVENESS (ICE) REPORT - PART I

REPORT CONTROL 

SYMBOL

DD-A&L(Q)935

GENERAL SUPPLIES - INVENTORY ADJUSTMENT REPORT DATA

(Dollar Data Expressed in Thousands)

REPORTING ORGANIZATION QUARTER ENDING: FISCAL YEAR: TO DATE:

1. NUMBER OF PHYSICAL INVENTORIES & VARIANCE RATE

 A. NUMBER OF INVENTORIES COMPLETED

 B. NUMBER OF INVENTORIES WITH ADJUSTMENTS 

 C. INVENTORY VARIANCE RATE {(1B/1A)X100}

 D. NUMBER OF INVENTORY ADJUSTMENTS =/> CAUSATIVE RESEARCH CRITERIA

 E. CAUSATIVE RESEARCH VARIANCE RATE {(1D/1A)X100} 

2. NUMBER OF ADJUSTMENTS

 A. NUMBER OF ADJUSTMENT GAINS 

 B. NUMBER OF ADJUSTMENT LOSSES 

 C. NUMBER OF GAIN REVERSALS 

 D. NUMBER OF LOSS REVERSALS 

 E. TOTAL NUMBER OF ADJUSTMENTS {(2A+2B+2C+2D)}

 F. NUMBER OF ISSUES AND RECEIPTS (TRANSACTIONS)

 G. NUMBER OF ADJUSTMENTS, GAINS AND LOSSES 

 H. TRANSACTION ADJUSTMENT RATE (2G/2F)

3. MONETARY VALUE OF ADJUSTMENTS ($000)

 A. VALUE OF ADJUSTMENT GAINS 

 B. VALUE OF ADJUSTMENT LOSSES 

 C. VALUE OF GAIN REVERSALS 

 D. VALUE OF LOSS REVERSALS 

 E. TOTAL VALUE OF ADJUSTMENTS {(3A+3B+3C+3D)} 

4. ADJUSTMENT RATES

 A. AVERAGE VALUE OF MATERIEL IN STORAGE

 B. RECORD VALUE OF ITEMS INVENTORIED OR ADJUSTED 

C. ABSOLUTE ADJUSTMENT RATE FOR MATERIEL IN STORAGE ((3E/4A)X100)

D. ABSOLUTE ADJUSTMENT RATE FOR ITEMS INVENTORIED OR ADJUSTED 

 ((3E/4B)X100)

E. INITIAL ADJUSTMENT RATE AS PERCENT OF MATERIEL IN STORAGE ((3A + 

 3B/4A)X100)

F. INITIAL ADJUSTMENT RATE AS PERCENT OF ITEMS INVENTORIED OR 

 ADJUSTED {(3A + 3B/4B)

5. MATERIEL DENIALS

 A. LINES DIRECTED FOR SHIPMENT

 B. TOTAL MATERIEL RELEASE DENIALS

 C. MATERIEL DENIAL RATE (5B/5A X 100)
ADC 415 Enclosure 4

MILSTRAP AP2.2.

ENCLOSURE 4 TO ADC 415

MILSTRAP AP 2.2 

TYPE OF PHYSICAL INVENTORY/

TRANSACTION HISTORY CODES

NUMBER OF CHARACTERS: One

TYPE OF CODE: Alpha/Numeric 

EXPLANATION: Used in physical Inventory/transaction history documents to 

identify the type of Inventory being conducted/ requested, or to 

identify requests for/transmission of custodial 

balances/transaction history.

RECORD POSITION: 70 

CODE DEFINITION

A through B Reserved for future DoD assignment.

C Special Inventory, all supply condition codes (SCC). Initiated by owner, accountable officers, 

or the storage activity in support of inventory accuracy improvement initiatives.

D Special Inventory, all supply condition codes. Initiated by owner as a result of end of day 

processing imbalances.

E Spot Inventory due to denial (all SCCs). Initiated by the storage activity or owner as a result 

of denials.

F Reserved for future DoD assignment.

G Scheduled Inventory. Inventory to be conducted within a specified period of time according 

to an established plan on controlled items and all other items or categories designated by the 

DoD Component.

H Special Inventory, all SCCs. Initiated by owner when an Inventory is necessary and the date 

of last Inventory is less than 90 days.

I Scheduled Inventory. Initiated by owner based on owner’s inventory prioritization 

methodology.

J Special Inventory, all SCCs. Initiated by owner as a result of location reconciliation errors.

K Special Inventory, all SCCs. Initiated by storage activity as a result of location survey errors.

L Scheduled Inventory, specified SCCs. Initiated by owner for a random statistical sample 

Inventory.

M Special Inventory, all SCCs. Initiated by storage activity as a result of onhand balance 

mismatches between the locator and property accountability records.

N Scheduled Inventory, specified SCCs. Initiated by storage activity for the annual statistical 

sample Inventory.
2 of 2

ADC 415 Encl 4 

MILSTRAP AP2.2

CODE DEFINITION

O Reserved for future DoD assignment.

P Scheduled Inventory, specified SCCs. Initiated by storage activity for a random statistical 

sample Inventory.

Q Reserved for future DoD assignment.

R Special inventory, specified SCC. Initiated by storage activity in an effort to resolve a 

customer report of discrepancy.

S Special inventory, specified SCC. Initiated by storage activity as part of receipt follow-up 

(intransit) resolution process.

T Special inventory, specified SCC. Initiated by storage activity as a result of a disposal release 

order directing ownership transfer to the Recycling Control Point.

U Special inventory, specified SCC. A location-level inventory initiated by storage activity for 

low asset visibility counts.

V Special inventory, specified SCC. Initiated by storage activity as a result of a location-level 

inventory adjustment or exceeding predetermined thresholds.

W Automatic submission of transaction history from storage activity to owner/ manager.

X Storage activity transaction history requested by owner/manager or transaction history 

response from storage activity to owner.

Y Annual (Total) Transaction History (optional for use to distinguish history associated with 

annual reconciliation from other transaction history).

Z Reserved for future DoD assignment.

Special Inventory (specified SCC) systemically initiated by the storage activity for quantity 

mismatches within the storage activity’s management system between the quantity-bylocation and the owner balances ( i.e., Book-to-Book). 

0 through 7 Reserved for future DoD assignment.

81 Distribution depot/storage activity has no transaction for the stock or part number requested 

for the dates specified, but transactions are available since the date of last location 

reconciliation. For use with DLMS Supplement 846P when beginning segment Report Type 

Code (1/BIA02/20) is 'AD'. Used only with DLMS.

92 Distribution depot/storage activity has no transactions available for the dates specified or 

since the date of last reconciliation. For use with DLMS Supplement 846P when beginning 

segment Report Type Code (1/BIA02/20) is 'AD'. Used only with DLMS.

 1 As an interim exception, DLA vendor storage activities do not use codes 8 or 9 under DLMS. DLA vendor storage 

activities 8-fill or 9-fill the document number field, until such time as they fully implement ADC 198. 2 See footnote 1.