DEFENSE LOGISTICS AGENCY 

HEADQUARTERS 

8725 JOHN J. KINGMAN ROAD 

FORT BELVOIR, VIRGINIA 22060-6221 

June 05, 2014 

MEMORANDUM FOR SUPPLY AND SUPPLY DISCREPANCY REPORT (SDR) PROCESS 

REVIEW COMMITTEE (PRC) MEMBERS 

SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 1102, 

Enhanced SDR Guidance including SDR Routing for Army-Directed DLA 

Distribution Center Shipments, Procedures for Discrepant or Unauthorized Returns 

to the Distribution Centers, and Administrative Updates (SDR) 

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

Reply code updates are effective July 1, 2014. Changes to DOD WebSDR functionality are 

targeted for implementation within six months from approval. 

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/ dlrnso/CertAccess/SvcPointsPOC/allpoc.asp (DOD common access card 

restricted). 

Attachment 

As stated 

cc: 

ODASD (SCI) 

<ls~~ DONALD C. PIPP 

Director 

Defense Logistics Management 

Standards Office 
Attachment to ADC 1102

Enhanced SDR Guidance including SDR Routing for Army-Directed DLA 

Distribution Center Shipments, Procedures for Discrepant or Unauthorized 

Returns to the Distribution Center, and Administrative Updates

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: 

a. Technical POC: Ms. Ellen Hilert, DOD SDR System Administrator, 703-767-0676 

or DSN 427-0676, e-mail: ellen.hilert@dla.mil

b. Functional POC: Ms. Ellen Hilert, DOD SDR System Administrator, 703-767-0676 

or DSN 427-0676, e-mail: ellen.hilert@dla.mil

2. FUNCTIONAL AREA: Receipt/SDR

3. REFERENCES:

a. Approved MILSTRAP Change Letter (AMCL) 9A, April 4, 2005 

b. DLM 4000.25, Defense Logistics Management System, Volume 2, Supply (including 

procedures applicable to Military Standard Transaction Reporting and Accountability Procedures 

(MILSTRAP) receipt processing, SDR submission, and MILSTRIP Materiel Returns Program. 

c. Approved DLMS Change (ADC) 1022, Procedures for Processing Depot Returns, 

October 19, 2012

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

Status Update, and Completion Notification, January 22, 2012

e. ADC 425, Revised Supply Discrepancy Report (SDR) Codes and Procedures 

including Incorrect Part Number Discrepancy Codes and DoD WebSDR Data Edits and 

Forwarding Enhancements, October 4, 2011

f. ADC 459, DLMS Transactions, Discrepancy Codes, SDR Type/Disposition Services 

Type Codes, and Associated Procedures to Support Supply Discrepancy Reports (SDRs) under 

Reutilization Business Integration (RBI), November 28, 2011

4. APPROVED CHANGE(S): Updates subsequent to proposal staffing are highlighted in 

green.

a. Brief Overview of Change: This change authorizes multiple updates to receipt and 

SDR guidance:

(1) Change 1 - Unauthorized Returns for Consumable Items: This change 

establishes specific guidance to report DLA Distribution Center receipts and SDRs for 

unauthorized consumable item returns to the returning Service using a pre-designated routing 

identifier code (RIC) (rather than the item manager). This guidance is applicable to Navy and 

Attachment, ADC 1102

Page 1
Marine Corps returns where the return lacks a prepositioned materiel receipt (PMR) or 

documentation clearly identifying the owner to which the receipt should be reported and 

MILSTRAP requirements for processing of receipts lacking documentation have been 

unsuccessful in determining the intended owner. This change is not applicable to procurement 

source receipts or reparables, which must be received under MILSTRAP (existing procedures).

(2) Change 2 - SDR Information Copy for Army-Directed Depot Shipments: 

This change revises DOD WebSDR routing rules to require distribution of an information copy 

to the DLA Distribution Center when the shipment was directed by the Army and the materiel 

was shipped from the Distribution Center. This will apply where the action copy of the SDR is 

directed to the Army item manager.

(3) Change 3 - Administrative Updates: This change includes multiple 

administrative updates to the SDR transaction format and discrepancy code list for clarification 

and as a corrective action for identified gaps in data transmission. It documents enhanced 

functionality required for DOD WebSDR direct-Web input including creation of a completion 

notice or status update. Selected reply codes that are obsolete or redundant to other available 

codes are removed from the code list.

b. Background:

(1) Change 1 - Unauthorized Returns for Consumable Items:

(a) Currently, Distribution Centers report consumable item receipts and 

associated SDRs for discrepant returns to the materiel owner when known; however, when the 

materiel return is considered unauthorized (i.e., no PMR/incomplete or missing documentation 

with no identified owner) the receiving activity will transmit the receipt and SDR to the item 

manager. ADC 1022 (Reference 3.b.) also requires that the storage activity identify the returning 

activity, when known, for distribution of an SDR information copy. 

(b) A change to procedures to direct unauthorized returns at Distribution 

Centers to the returning Service was originally proposed under PDC 1022. However, a 

consensus for approval was not obtained and this portion of the proposal was removed from the 

final version of the approved change. The Navy and Marine Corps have since requested that the 

process be re-coordinated allowing variation by Service so that only those Services supporting 

the revised procedures would be impacted.

(c) DLA SDR team representatives reported that the submission of 

receipts and SDRs to DLA for unauthorized returns results in failed transactions, which require a 

significant investment of time and resources to research and reprocess. 

Staffing Note: Receipts/SDRs for unauthorized Military Service returns for items that are not 

managed by DLA must never be directed to DLA. Such inappropriate receipt/SDR submission 

to DLA has been reported as an ongoing concern.

(d) MILSTRAP prescribes procedures for reporting unauthorized return 

of reparable items “to the manager of the shipping DOD Component.” MILSTRAP further 

advises that when the manager to whom the receipt is reported is not the integrated materiel 

manager (IMM), the manager may use the materiel returns program to offer the asset to the 

correct item manager. (See DLMS manual extract at Enclosure 1 for details.) 

Attachment, ADC 1102

Page 2
Staffing Note: This change does not propose an update to this portion of MILSTRAP guidance. 

The Services may wish to propose a separate change to revise these procedures.

(e) MILSTRAP currently authorizes DOD Components to “prescribe 

reporting procedures to their own item manager for returns from their own Component 

activities.” It is apparent that this option is not institutionalized resulting in a lost opportunity for

redistribution of these assets within the purchasing Service and potential lost revenue to the 

returning Service under the materiel returns program.

(2) Change 2 – SDR Information Copy for Army-Directed Depot Shipments:

(a) Currently, the Army is the only Service requiring action copies of 

SDRs for Army-directed depot shipments to be sent to the Army manager. All other 

Services/Agencies authorize the initial action to be directed to the shipping depot while an 

information copy is provided to the manager. When the shipping depot provides a response to 

the customer, a copy is also provided to the manager for further action as appropriate, including 

financial resolution and disposition instructions. If the depot is unable to process the SDR for 

whatever reason, the depot will use the SDR reply process to forward the SDR to the manager 

for action. The SDR System Administrator has attempted on several occasions to standardize 

procedures for routing of SDRs, but has been unable to obtain Army support for the approach 

used by other Services/Agencies.

(b) Under the current procedures, the SDRs reported to the Army require 

off-line communication with the depot for research at the option of the item manager. This may 

result in delaying correction of inventory records. These procedures do not support 

management-level oversight or Distribution Center metrics because the SDRs are not recorded 

properly within DLA’s Distribution Standard System (DSS).

(3) Change 3 - Administrative Updates:

(a) SDR reply codes originally considered exclusive to DLA Distribution 

Centers are also appropriate for non-distribution center storage sites. DLA representatives have

indicated that DLA’s industrial prime vendor (IPV) locations are treated as storage activities for 

the purpose of inventory management and need the capability to use these codes. 

(b) SDR guidance does not currently specifically inform systems 

personnel that special formatting rules are applicable to reply codes using the 300-series reply 

codes. These procedures were requested by DLA Distribution and were implemented at a time 

when these codes were only available to Distribution Centers. In order to open these codes to 

other storage activities, additional clarification must be provided for transaction formatting. A 

new 300-series forwarding code is established for exception use should forwarding ever be 

needed for an item manager not associated with any of the existing 300-series codes (replacing 

the generic Reply Code 510). Staffing Note: PDC 1102 also included a requirement for 

WebSDR to accommodate creation of the 300-series replies for non-DLA Distribution storage 

activities via the direct input. This was unnecessary, as this capability was previously added per 

DLM procedures.

(c) Some SDR reply codes are used on a specific subset of SDR reply 

transactions referred to as Status Updates and Completion Notices. Although functionality for 

Attachment, ADC 1102

Page 3
these types of transactions was identified during the original WebSDR design, the specific 

business rules were not coordinated until ADC 1044 (Reference 3.d.). This ADC restricted use 

of these reply codes from direct WebSDR input until additional functionality to support status 

updates and completion notices could be adopted. Since this functionality is now identified as 

required for DLA industrial prime vendor (IPV) contractors, this change specifically addresses 

requirements for DOD WebSDR direct input.

(d) Action Code 3C was implemented under ADC 459 (Reference 3.f.) to 

allow DLA Disposition Services Field Offices to reject materiel back to the turn-in activity and 

require pick-up. When established, this code was not specifically limited to DLA Disposition 

Services, however when used by customers reporting to their source of supply, the SDR 

transaction may fail due to an unexpected code use. This code should be restricted and not be 

available for general use. If a requirement is identified for wider applicability this restriction will 

be lifted and the code re-defined for Component implementation.

(e) Additional administrative updates are identified below to standardize 

data applicable to wrong item SDR replies.

 

c. Change in Detail:

(1) Change 1- Unauthorized Returns of Consumable Items (no PMR/incomplete 

or missing documentation with no identified owner):

(a) Distribution Center procedures will be modified to report receipt of 

unauthorized returns of consumable items by Navy and Marine Corps activities to the Navy or 

Marine Corps, as applicable, using the following owner RICs. In addition to the receipt, the 

SDR will be prepared with the action copy directed to the same owner RIC and an information 

copy directed to the returning/shipping activity.

• Navy: NRP (NAVSUP Weapons Systems Support)

• Marine Corps: MPB (MCLC, Weapon Systems Management 

Center, P70)

(b) Distribution Centers will continue to report Service-managed 

unauthorized consumable item returns under MILSTRAP business rules (i.e., to the Service 

manager).

(2) Change 2 – SDR Information Copy for Army-Directed Depot Shipments: 

(a) DOD WebSDR will be modified to route information copies of SDRs 

to Distribution Centers for Army-directed shipments from Distribution Centers. This routing 

logic will apply to Web-entered SDRs and transactions processed from Service systems where 

the SDR identifies a customer-identified discrepancy (Document Type 7). The SDR must 

identify an Army ICP action activity and the shipper field must identify a DLA Distribution 

Center. Army ICPs are identified by Routing Identifier Codes (RICs) AJ2, AKZ, A12, A35, 

B14, B16, B17, B46, B64, and B69. The information copy will be transmitted using Transaction 

Type Code 22. 

Attachment, ADC 1102

Page 4
(b) DSS will record the SDR for review prior to closure. Distribution 

Centers will take internal action as appropriate to the discrepancy reported. If research confirms 

shortage, overage, or wrong item discrepancy, Distribution Center inventory records will be 

corrected as appropriate and the associated inventory adjustment transactions will be directed to 

the Army ICP. No depot-generated reply will be provided to the submitter. No completion 

notice will be transmitted by DSS subsequent to closure.

(c) The Distribution Center will not be required to initiate either SDR 

transactional or off-line communication with the Army item manager as a result of the 

information SDR.

Staffing Note: The SDR System Administrator recommends the Army consider adopting the 

Distribution Center-prepared Status Update for notification of storage activity review and action 

taken. It would allow the Distribution Center to communicate with the Army item manager 

systemically should this be appropriate after researching an information copy SDR for an Armydirected shipment. This would require a systems change to current DSS design, but would be 

consistent with the original intent for DLMS SDR procedures for the Status Update. 

(3) Administrative Updates:

(a) Expand DOD WebSDR direct Web-input functionality:

 

1. Provide capability to prepare status update and completion 

notice transactions. Add screen link to new functionality directly below Supply Source/Shipper 

Disposition Reply to read: “Storage Activity Status Update” and “Storage Activity Completion 

Notice.” Existing reply tool screens will be re-used for the new reply transaction types. Output 

formats will use Transaction Set Purpose Codes SU (Status Update) or CN (Completion Notice),

as appropriate. Status update and completion notices will be formatted using the owner RIC as 

the action activity (this is the owner to which the original SDR was transmitted). Business rules 

established in ADC 1044 (Reference 3.d.) apply. No distribution recipients will be included. No 

data content will be updated from the prior SDR transaction. (If changes are required, they must 

be identified separately prior to completion or status update via an SDR correction). A subset of 

the SDR disposition/reply codes will be used. At this time, the following disposition/reply codes 

are authorized by transaction type. Additional codes will be added as requirements for use of 

these transaction types expand.

a. If completion notice (CN), disposition/reply codes must 

be one of the following:

410 SDR closed. Disposition action complete.

411 SDR closed SDR closed due to zero balance on record.

412 SDR closed. Materiel disposition could not be completed due to zero balance at storage 

location.

b. If status update (SU), disposition/reply codes must be:

320 Reclassification of materiel complete. 

321 Documentation/technical data/other information are being forwarded. 

Attachment, ADC 1102

Page 5
(b) Update Action Code 3C to indicate that it has a restricted use:

3C Receiving activity not authorized to accept property (pick-up by original owner required) 

(Disposition Services use only)

(c) Delete redundant/obsolete SDR Reply Codes 510 and 511, and revise 

terminology for 300 and 600-series reply codes to make these codes available to nonDistribution Center storage sites.

The 300-series codes indicate Distribution Center storage activity status on SDRs forwarded to 

the owner/manager for action:

301 Interim reply; SDR forwarded to USA for disposition instructions or final resolution.

302 Interim reply; SDR forwarded to USAF for disposition instructions or final resolution.

303 Interim reply; SDR forwarded to USMC for disposition instructions or final resolution.

304 Interim reply; SDR forwarded to USCG for disposition instructions or final resolution.

305 Interim reply; SDR forwarded to USN for disposition instructions or final resolution.

306 Interim reply; SDR forwarded to GSA for disposition instructions or final resolution.

307 Interim reply; SDR forwarded to DLA for disposition instructions or final resolution.

308 Interim reply; SDR forwarded to the identified Item Manager for disposition 

instructions or final resolution.

320 Reclassification of materiel complete. (Use only with Status Update.)

321 Documentation/technical data/other information are being forwarded. (Use only with 

Status Update.)

The 500-series (and some 100-series) codes indicate an interim reply:

510 SDR forwarded to Item Manager for research and/or disposition instructions.

511 SDR forwarded to Industrial Operations Command for action.

The 600-series codes indicate an ICP reply to the Distribution Center storage activity:

601 Change supply condition code and submit as new complaint (original complaint cannot 

be modified to show new supply condition code).

602 Item(s) unsuitable; destroy.

603 Remark and return to stock.

604 Repackage and return to stock.

605 Reidentify and return to stock.

606 Safety hazard; destroy.

607 Safety hazard; dispose.

608 Reclassify materiel as instructed.

Attachment, ADC 1102

Page 6
(d) Renumber DLMS 4000.25, Volume 2, Appendix 3, Supply 

Discrepancy Report Relevant Data Elements as Appendix 7.26. This will align the SDR data 

element definitions and code sets within the appropriate Volume 2, Appendix 7, Data Elements 

and Codes.

(e) Renumber DLMS 4000.25, Volume 2, Appendix 4, Instructions for

Preparation of Standard Form 364 as Appendix 6.39. Rename the appendix: Preparation of 

Supply Discrepancy Report using Standard Form (SF) 364. This will align the existing appendix

within the appropriate Volume 2, Appendix 6, Forms/Message Formats.

(f) Revise the DLMS 842A/R SDR Reply implementation convention 

(IC) to correct administrative errors:

# Location Change Table for 

842A/R Standard SDR Reply

Reason

1. DLMS 

Introductory 

Note

Add ADC 1102 to DLMS Introductory note: 

- ADC 1102, Enhanced SDR Guidance 

including SDR Routing for Army-Directed DLA 

Distribution Center Shipments, Procedures for 

Discrepant or Unauthorized Returns to the 

Distribution Centers, and Administrative 

Updates

To identify DLMS changes included 

in the DLMS.

2. 2/NCD03/2300 Revise DLMS Note for Assigned Identification:

Assigned Identification

DLMS Note:

1. Use as a counter to satisfy ANSI syntax. Cite 

numeric 1. EXCEPT where additional NCD 

loops are used to provide disposition for 

incorrect (wrong) item(s) received. In these 

instances, increase incrementally by 1 for each 

wrong item. Each wrong item and associated 

CIIC/DEMIL codes are identified in separate 

NCD loops. Currently a maximum of two wrong 

items may be identified.

2. Use of the NCD segment looping structure 

to describe multiple wrong items received in 

association with Discrepancy Code W5, Mixed 

Stock, is reserved for future implementation.

Corrects oversight in removing 

obsolete requirements related to 

wrong item SDRs per ADC 425 

(Reference 3.e.)

Attachment, ADC 1102

Page 7
d. Revisions to DLM 4000.25 Manuals: Refer to Enclosure 1.

e. Transaction Flow: The transaction flow is shown in Enclosure 2.

f. Alternatives: None identified.

g. Proposed DLMS Change (PDC) 1102 Staffing Response/Comment Resolution:

3. 2/QTY01/2700 Add Qualifier 75 and associated DLMS notes:

75 Receipts

DLMS Note:

1. Use to indicate the number of incorrect 

(wrong) items received.

2. Wrong item quantity is applicable when 

multiple discrepancies are reported on an SDR 

and only a portion of the total discrepant 

quantity is associated with the wrong item(s) 

received. If not populated on the SDR reply, 

the total discrepant quantity is recognized as 

the wrong item quantity.

3. For 75: WebSDR field length for incorrect 

item quantity = 7

This a separate data field from the 

discrepant quantity received. It is 

added for consistency with wrong 

item data content used on the SDR 

report. This will allow input of the 

wrong item quantity when wrong 

item data content is added during 

shipping activity processing (e.g.,

when the original SDR did not 

contain a W-series discrepancy 

code, but the submitter remarks 

indicated that a wrong item receipt 

being reported). 

4. 2/PER/4600 Close the PER segment at position 4600 Obsolete requirement. The PER 

segment is used to provide point of 

contact (POC) information. The 

PER at position 4600 does not 

currently specify which organization 

it applies to (the specific N1 loop 

that should include the PER). The 

available organizations at this 

location include the billing 

DoDAAC for disposal of hazardous 

materiel, the report initiator if not 

identified as the addressee on the 

reply, the ship-to for returns, the 

transfer-to RIC populated for 300-

series forwarding replies, and the 

source of supply or owner, as 

applicable. None of these require 

the inclusion of POC information 

under current guidance.

Staffing Note: No Component 

identified a requirement for use of 

the PER at this location during 

staffing.

Attachment, ADC 1102

Page 8
Originator Response/Comment Disposition

1. DLA Concur Noted.

2. Air Force Concur Noted.

3. Army Concur with comment.

RE: Section 4.c.2.a - Add RIC AJ2 as a valid 

Army RIC for Information Copy distribution to 

DLA for Army directed shipments from 

Distribution Centers.

Noted.

ADC updated.

4. Navy Concur Noted.

5. Marine Corps Concur Noted.

6. USTRANSCOM Abstain. There is no impact to USTRANSCOM 

systems based on this change.

Noted.

7. DSCA Nothing has changed with regards to the dollar 

limit for FMS SDRs. The LOA Standard Terms 

and Conditions states, "The Purchaser may submit 

SDRs for documentation purposes regardless of the 

dollar value, but only SDRs valued at $200 or more 

will be reviewed for possible compensation 

regardless of the type of discrepancy. This 

minimum value includes the value of the item plus 

any transportation and handling costs. The one 

exception for the $200 minimum would be items 

that are classified, sensitive, arms, arms parts or 

explosives. This is spelled out in the DSCA 

standard note that's included on every FMS LOA.

The DLMS change appears to contradict the FMS 

LOA Standard Terms and Conditions. Request the 

PDC be revised to reflect the above language for 

FMS SDRs.

No change to ADC required. 

The referenced paragraph on 

materiel returns is referring 

to DoD activities receiving 

materiel returned by others 

including FMS returns.

The dollar threshold is to 

report the discrepancy in the 

returned materiel, e.g., if the 

FMS customer was told to 

return 10 items for whatever 

reason and they report the 

return of 10, but the 

receiving depot only receipts 

8, the depot could file an 

SDR on the return movement 

to alert the SoS.

8. DLMSO MILSTRAP Administrator comments:

1) Add Approved MILSTRAP Change Letter 

(AMCL) 9A, April 4, 2005 to the 

References for the ADC 1102. 

2) Enclosure 1, Defense Logistics Manual 

(DLM) Revisions: Update paragraph 

C13.2.8.2.10.11.1. GSA Managed Items, to 

identify the Navy and Marine Corps owner 

RICs which PDC 1102 proposed for 

C13.2.8.2.10.11.3. DoD-Managed 

1) ADC updated.

2) ADC updated.

Attachment, ADC 1102

Page 9
Originator Response/Comment Disposition

Consumable Items. 

3) Note that DLA was previously requested by 

the MILSTRIP Administrator to review & 

update C13.2.8.2.10.11.1. reference to Base 

Operating Supply System (BOSS) since this 

system is being replaced by DSS

3) PDC 1081 under 

development.

5. REASON FOR CHANGE:

a. This change will establish a more efficient process by which the Service would retain 

ownership of materiel purchased from other Service/Agency sources of supply that have been 

improperly returned.

b. This change provides a means to notify Distribution Centers via automated transaction 

distribution when a discrepancy is reported to Army item managers for Distribution Center

shipments. 

c. This change documents administrative corrections necessary to support desired SDR 

procedures.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: 

(1) This change documents clear rules for reporting of unauthorized return of 

consumable items to the owning Service where owning Service has established a designated RIC 

for this purpose. This reduces the volume of failed SDRs directed to DLA and provides an 

opportunity for the owning Service to redistribute usable assets or offer the materiel for credit 

under the MILSTRIP materiel returns program.

(2) Distribution Centers receiving information copies of Army SDRs will have 

the opportunity to immediately research inventory records to correct any inaccuracies due to 

reported overage, shortage, or wrong item shipments. Information copies will be retained within 

the work flow for systemic monitoring and may later be used in metrics reporting.

(3) The expanded functionality within DOD WebSDR will allow non-DSS 

storage sites to employ procedures currently available only to DSS activities.

b. Disadvantages: None noted.

7. ADDITIONAL COMMENTS TO CONSIDER: None identified.

8. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Reply code updates are 

effective July 1, 2014. Changes to DOD WebSDR functionality are targeted for implementation 

within six months from approval.

9. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: Not available.

Attachment, ADC 1102

Page 10
10. IMPACT:

a. New DLMS Data Elements: None identified.

b. Changes to DLMS Data Elements: Revise SDR reply code list as indicated.

c. Automated Information Systems (AIS): All systems must recognize reply code 

updates as indicated. In addition, the following revisions are identified.

(1) DSS: 

(a) System changes may be required to route SDRs for unauthorized 

consumable item returns from Navy and Marine Corps activities to the Service-designated RIC.

(b) System changes may be needed to ensure information copy SDRs are 

reviewed prior to closure and ensure no reply or completion notice is transmitted.

(2) Army Logistics Modernization Program (LMP): No change required. 

Staffing Note: Functionality to accept Status Updates would provide the foundation to receive 

notification of depot review and action subsequent to receipt of an information copy for an 

Army-directed shipment discrepancy.

d. DLA Transaction Services: Significant changes to DOD WebSDR include:

(1) Adopt functionality to support Web-based creation of Status Updates and 

Completion Notices.

(2) Generate an information copy to DLA Distribution Centers where SDRs are 

routed to the Army ICP and a DLA Distribution Center is identified as the shipping activity.

(3) Allow for inclusion of the wrong item quantity on the SDR reply format.

(4) Revise text names associated with updated SDR reply codes.

e. Non-DLA Logistics Management Standards Publications: Process revisions may 

require update to internal operating procedures. DLA Distribution Center training will require 

updated guidance for Army-directed shipments.

Attachment, ADC 1102

Page 11
Enclosure 1, Defense Logistics Manual (DLM) Revisions

Changes are identified by bold red italics and strike-though text.

A. Revise DLM 4000.25, Defense Logistics Management System, Volume 2, Chapter 13, 

Materiel Receipt, and the equivalent section of DLM 4000.25-2, Military Standard Transaction 

Reporting and Accountability Procedures (MILSTRAP), Chapter 4, Receipt and Due-in, as 

shown. 

“C13.2.8.2.10.11. Receipts Not Due-In (no ARI file)

C13.2.8.2.10.11.1. GSA Managed Items. GSA does not normally 

authorize return of assets to DoD storage activities. Receipts not due-in are, therefore, 

considered DoD-owned assets that have not been reported to GSA under the materiel returns 

program. The DoD Components will establish internal procedures for recording these assets on 

a storage activity record and an owner record within the DoD Component for later issue, excess 

reporting under the materiel returns program, or release for DLA Disposition Services. The DoD 

Components will identify an owner RIC to be used when the DLA storage activity processes a 

Receipt transaction for the DoD Components’ unauthorized return of GSA-managed assets.

In the absence of guidance from the DoD Components for reporting receipt of unauthorized 

return of GSA assets to their Component, DLA storage activities will receipt the assets to the 

local Base Operating Supply System (BOSS) for use by the depot. If the materiel cannot be used 

locally send it to disposal. This procedure ensures the assets are recorded on a DoD record. The 

Navy and Marine Corps have directed implementation of this procedure as follows:

C13.2.8.2.10.11.1.1. Report Navy-returned GSA-managed 

items to Navy RIC NRP. An SDR will be provided to the Navy owner for information.

C13.2.8.2.10.11.1.2. Report Marine Corps-returned GSAmanaged items to Marine Corps RIC MPB. An SDR will be provided Marine Corps owner for 

information.

C13.2.8.2.10.11.2. DoD-Managed Reparable Items. Report the 

Receipt Transaction to the manager of the shipping DoD Component. Do not include a 

discrepant receipt management code in the transaction. For materiel shipped between wholesale 

storage activities, report the receipt citing Reason for Materiel Receipt/Return Code N. IMMs

receiving transactions reporting returns not-due-in of phase II reparables, for which they are not 

the IMM, will follow the materiel returns program procedures to report/ship the materiel as 

prescribed by the IMM.

C13.2.8.2.10.11.3. DoD-Managed Consumable Items. Report 

receipt to the IMM in the applicable condition and do not include a discrepant receipt 

management code in the transaction. However, the DoD Components may prescribe reporting to 

their own item manager for returns from their own Component activities. The Navy and Marine 

Corps have directed implementation of this procedure as follows:1

Enclosure 1, ADC 1102

Page 1
C13.2.8.2.10.11.3.1. Navy-returned consumable items must be 

reported to the Navy using RIC NRP regardless of the item manager. An SDR will be 

provided to the Navy owner for information.

C13.2.8.2.10.11.3.2. Marine Corps-returned consumable 

items must be reported to RIC MPB regardless of the item manager. An SDR will be provided 

to the Marine Corps owner for information.”

------------

1 Refer to ADC 1102.

B. Revise DLM 4000.25, Volume 2, Chapter 17, Supply Discrepancy Reporting, as shown. 

Renumber subsequent paragraphs.

“C17.3.4. Materiel Returns

C17.3.4.1. Discrepancy Greater Than $100. Continental United States (CONUS) 

and Outside Continental United States (OCONUS) activities receiving materiel returns (excess 

or redistributed materiel, or reparable materiel, including returns from FMS customers) shall 

submit an SDR for discrepancies specified above regardless of condition when the dollar value is 

equal to or greater than $100 per line-item. Discrepancies pertaining to controlled inventory 

items shall be reported by SDR regardless of dollar value or condition.

C17.3.4.2. Unauthorized Returns (no PMR/incomplete or missing 

documentation/no identified owner).

1 Discrepancy reports for distribution center receipts of 

unauthorized material returns will be routed under MILSTRAP for receipt reporting: 

 

C17.3.4.2.1 . Repairable Items. Report discrepant receipt SDR to the 

owner/manager associated with the shipping activity.

C17.3.4.2.2. Consumable Items. Report discrepant receipt SDR to the 

applicable item manager except:

C17.3.4.2.2.1. Navy-returned consumable items must be reported 

to the Navy using RIC NRP regardless of the item manager. An SDR will be provided to the 

Navy owner for information only.

C17.3.4.2.2.2. Marine Corps-returned consumable items must be 

reported to RIC MPB regardless of the item manager. An SDR will be provided to the Marine 

Corps owner for information only.”

------------

1 Refer to ADC 1102.

(Intervening text not shown)

C17.3.10.2. SDR Distribution for Shipment (Item) Discrepancies

Enclosure 1, ADC 1102

Page 2
C17.3.10.2.1. DoD Originated Shipments

C17.3.10.2.1.1. Army Directed Shipments. Initial action shall be 

directed to the source of supply (SoS). The only valid Army action activity/SoS RICs are AKZ, 

A12, A35, AJ2, B14, B16, B17, B46, B64, and B69. WebSDR will provide an information copy 

to DLA Distribution Centers when the shipping activity is identified. These information copies 

will be used for metrics and correction of inventory records where applicable; DLA 

Distribution Centers are not authorized to respond to the submitter via SDR reply. Army users 

are advised not to submit SDRs to single stock fund (SSF) site RICs or to Army shipping depot 

RICs via DoD WebSDR. There are currently no WebSDR interfaces to support SSF sites or 

Army shipping depots. The Army action activity can be determined from the shipping 

documentation (e.g., the RIC in record position 67-69 of the DD 1348-1A), or as part of a 

NIIN/NSN or Part Number search in WebFLIS (http://www.dlis.dla.mil/webflis/). Note that the 

FLIS SoS will not apply if the requisition was filled by AJ2, Non-Army Manager Item (NAMI) 

SoS. Services ammunition users are advised to send SDRs to B14 for ammunition commodity 

discrepancies. These SDRs will be further routed by the Army to Army ammunition storage 

depots that manage Army, Service common, and Service unique ammunition stock. 

(Intervening text not shown)

“C17.3.12.1.2.1. Interim Replies. Interim replies may be used to 

inform the submitter that an SDR has been forwarded to another organization for investigation or 

resolution. Responsible activities must provide an interim reply where a final reply cannot be 

provided within the established timeframes. Failure to meet the established timeframes must be 

caused by reasons outside the control of the ICP/IMM or GSA. Such interim replies shall 

indicate when additional status will be provided. Identify the interim disposition/status using the

appropriate Reply Code (Appendix 3). When the storage activity forwards an SDR to the SoS

for action using a 300-series interim reply code, the SDR transaction must be formatted to 

identify the SoS RIC as the action activity. WebSDR will provide notification of forwarding 

action to the SDR initiator. This “forwarding” process and associated format will allow the 

reply transaction, including the initial responder’s reply remarks, to be transmitted to the new 

action activity. WebSDR will recognize the new action activity for reports and Web responder 

role access. If no coding exists to specifically identify the reasons for the delay, select Code 137 

and provide a clear-text explanation.”

Enclosure 1, ADC 1102

Page 3
Enclosure 2: Process Flow Diagrams

Unauthorized Returns

Yes

Customer returns 

consumable materiel to 

DLA Distribution Center

Is there a 

PMR? 

Yes Yes

No

Is the returning 

activity a USN or 

USMC activity?

No

Send SDR to Item 

Manager

Send SDR Info 

Copy to returning 

activity

Returning activity alerted to 

problem. May contact SDR 

POC with additional info to 

resolve problem. 

Send SDR to the 

default owner RIC:

USN: NRP

USMC: MPB

Owner will provide 

disposition as applicable

Invoice to returning 

activity for 

reimbursable costs 

(optional)

Send SDR to 

Owner

Is there a 

discrepancy? 

Does supporting 

documentation identify 

the owner?

Yes

Process with normal 

business rules

No

No

Enclosure 2, ADC 1102

Page 1
Army-Directed DLA Distribution Center Shipments

No

Customer submits Yes

an SDR

Is the SDR applicable to 

an Army ICP-directed 

shipment? See Note 1

Yes

No

Continue processing 

per business rules

Storage activity conducts 

review and takes corrective 

action as necessary.

See Notes 3 and 4.

Send SDR to Army ICP and 

Information copy to the 

Distribution Center

See Note 2.

Does the shipper field 

identify a Distribution 

Center?

If necessary, associated 

inventory adjustment 

transactions will be 

directed to the Army ICP

Send SDR to Army 

ICP

Note 1: Web-entered SDR transactions will pre-populate ICP and shipping activity 

when available.

Note 2: The DLA Distribution Center will not be required to initiate either SDR 

transactional or off-line communication with the Army item manager as a result 

of the information copy of the SDR.

Note 3: No Distribution Center-generated SDR reply transaction will be provided 

to the submitter or the Army ICP.

Note 4: No completion notice will be transmitted by DSS when record is closed.

Staffing Note: DLMSO recommendation for process enhancement is adoption of 

the SDR Status Update to allow the Distribution Center to systemically inform 

the Army ICP of research and findings. Enclosure 2, ADC 1102

Page 2