ii

ADC 280 

PQDR/SDR/TDR Credit Tracking 

1. ORIGINATOR: 

a. Service/Agency: Naval Supply Systems Command (NAVSUP) and Defense Logistics 

Management Standards Office (DLMSO)

b. Originators: NAVSUP, Code 131, DSN 430-5712 and DLMSO, DSN 427-2117

2. FUNCTIONAL AREA: 

a. Primary: Financial

b. Secondary: Supply

3. REFERENCE: 

 a. DOD 4000.25-7-M, Military Standard Billing System (MILSBILLS) 

4. REQUESTED CHANGE: 

a. Title: Product Quality Deficiencies Report (PQDR)/Supply Discrepancy Report (SDR)/ 

Transportation Discrepancy Report (TDR) Credit Tracking.

b. Description of Change. This change to MILSBILLS will allow for better tracking of credits for 

PQDRs, SDRs and TDRs. There is currently no way to easily capture PQDR/SDR/TDR credits from a 

financial aspect. There are general codes that exist to capture PQDR/SDR/TDR credits, but they need 

to be more specific. Capturing these codes on the detail billing record will allow instantaneous 

identification of a PQDR/SDR/TDR credit issue. 

c. Background: Deficiencies uncovered in the execution of the Navy PQDR Program, which 

encompasses a number and variety of users and supporting activities, prompted an examination of the 

procedures involved in the PQDR Program process. A short-term Process Improvement Working 

Group and an Executive Steering Committee (ESC) to provide oversight were established by ASN 

(RD&A) to conduct this examination and provide recommendations on areas for improvement, 

including designation of a single process owner. The ESC decided that the role of PQDR Process 

Owner be DoN, established under the direction of the Naval Supply Systems Command (NAVSUP). 

NAVSUP assigned the direct responsibility of PQDR process ownership within the NAVSUP 

enterprise to Commander, Naval Inventory Control Point (NAVICP). The Assistant Secretary of the 

Navy for Research, Development and Acquisition (ASN-RD&A) assigned NAVSUP as the process 

owner for the Department of Navy (DoN) PQDR process. The Process Owner, with support from the 

System Commands (SYSCOMs) and involved process stakeholders, will report to the Deputy 

Assistant Secretary of the Navy for Logistics (DASN-L) who will serve as the ASN(RD&A) lead for 

quality. One approved improvement initiative under the responsibility of the DoN PQDR Process 

Owner is the examination, development, and improvement of the restitution process related to material 

quality deficiency reports. This involves developing and implementing an efficient and effective 
iii

process for total visibility, traceability, and measurement of all PQDRs, to include credits. Similar 

issues exist for tracking credits for SDRs and TDRs.

d. Procedures. (STAFFING NOTE. Based upon comments during staffing that implementation of 

new Type of Bill Codes should be delayed to allow implementation by all components simultaneously, 

Type of Bill code WU has been left intact for TDRs, SDRs and PQDRs for use until new separate 

Type of Bill for TDRs, SDRs and PQDRs codes are implemented. Accordingly, a new Type of Bill 

Code TD has been added for TDRs. In addition, Appendix 3.1 has been modified from the PDC to 

delete the entry for Billing Advice Code 24, as it was determined that the routing identifier (RI) 

granting credit would always be the same as the RI in the detailed billing record. 

1. Revise MILSBILLS as indicated in bold italics:

CHAPTER 4 - ADJUSTMENT PROCEDURES

C4.2.7.2. Billing offices shall process financial adjustments or claims citing the applicable Type of 

Bill Code (QD, WP, WU or TD) based on the discrepancy report when the discrepancy report is 

validated and all of the following MILSBILLS or GSA criteria are met: 

APPENDIX 2.3. BILLING ADVICE CODES

Code Description

21 TDR (SF 361) submitted over 60 days ago; adjustment bill not received. Request 

credit. 

24 Reply to Product Quality Deficiency Report (SF 368) indicated adjustment 

authorized, request refund (Note that this change was made to MILSBILLS in the 

last reissue without having been formally staffed.) 

26 Reply to Supply Discrepancy Report (SF 364) indicated adjustment authorized; 

however, adjustment billing not received. Request credit status. 

APPENDIX 2.5. TYPE OF BILL CODES

Code Description

QD (Note that this code was added to 

MILSBILLS in the last reissue without having 

been formally staffed.) 

Bill to refund amount, return to a PQDR. Bill to 

adjust the amount previously billed due to 

approval of a PQDR.

WP Bill to adjust the amount previously billed due to 

approval of an SDR. 

WU Bill to adjust the amount previously billed due to 

approval of a discrepancy report. Use until codes 

QD, WP and TD are implemented. 

TD Bill to adjust the amount previously billed due to 

approval of a TDR.
iv

APPENDIX 3.1 REQUEST FOR ADJUSTMENT OF NON-FUEL BILLING AND FOLLOWUP ON REQUEST FOR ADJUSTMENT OF NON-FUEL BILLING

Field Legend Position(s) Entry and Instructions

RI Code 4-6 Perpetuate from the detail billing record (DBR) except when Billing 

Advice Code (BAC) is one of the following: 

 24 Enter the RI Code of the office which replied to the PQDR 

5. ADVANTAGES AND DISADVANTAGES: 

 a. Advantages: This change will allow visibility of the disposition of credit for PQDRs, SDRs 

and TDRs to the requisitioning activity. Unique document identification established for credits would 

allow traceability and measurement of credits authorized and, more importantly, granted. 

 b. Disadvantages: None noted. 

7. IMPACT: 

 a. Data Content/Procedures: DoD Components may need to revise 

Component regulations and/or automated information systems for reporting 

requirements. 

b. Publication: DOD 4000.25-7-M, Military Standard Billing System (MILSBILLS) 

c. Implementation: Coordinated implementation will occur on February 1, 2010. 

.