DEFENSE LOGISTICS AGENCY

HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

November 5, 2018 

MEMORANDUM FOR SUPPLY PROCESS REVIEW COMMITTEE (PRC) MEMBERS 

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

1225A, Approved Addendum to ADC 1225, Accommodate Moving Average 

Cost and Latest Acquisition Cost to Materiel Receipts (Supply) 

The attached change to DLM 4000.25, Defense Logistics Management Standards 

(DLMS), is approved for implementation. The Enterprise Business Standards Office will post 

the updated DLMS Implementation Conventions (IC) to the Web at 

http://www.dla.mil/HQ/InformationOperations/DLMS/elibrary/Transformats/140_997/,

within 10 days from the above date. 

Addressees may direct questions to Mr. Eric Flanagan, DOD MILSTRIP Administrator, 

email: DLMSSupply@dla.mil. Others must contact their designated Supply PRC 

representative 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 1225A

Page 1

Approved Addendum to ADC 1225 

Accommodate Moving Average Cost and Latest Acquisition Cost in 

Materiel Receipts

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION:

a. Technical POC: Mr. John “Jack” Dillon, HAF/A4PT; 937-904-0815; DSN: 674-

0815; or email: john.dillon.2.ctr@us.af.mil

b. Functional POC: Mr. Colquitt “Quitty” Lawrence, HAF/A4LR; 703-692-2348; 

DSN: 222-2348; or email: colquitt.lawrence.civ@mail.mil

2. FUNCTIONAL AREA LOGISTICS AND TRANSACTION CHANGES:

a. Primary/Secondary Functional Area: Supply/Finance

b. Primary/Secondary Functional Process: Government Furnished PropertyAccountability (GFP-A)

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

 Category  Category  Category

Billing Physical Inventory Contract Admin

Discrepancies / Deficiencies X MILSTRAP DoDAAD

Serialization MILSTRIP MAPAD

Small Arms/Light Weapons MRA LMARS

pRFID Disposition DLM Publications

X GFP DOD BRAC

3. REFERENCE: Approved DLMS Change 1225, Revise DLMS 527R Receipt Transaction 

for Intra-Air Force Government Furnished Property (GFP) Accountability to Include 

Identification of the Contractor Inventory Control Point (CICP), Addition of Moving Average 

Cost (MAC), and Authorization to Use Latest Acquisition Cost (LAC) and Acceptance Date 

(March 2017)

4. APPROVED CHANGE(S): Substantive revisions from the PDC are highlighted in green.

a. Brief Overview of Change: This change modifies the DLMS 527R Materiel Receipt

Implementation Convention to allow Air Force Contractor Inventory Control Points (CICPs) to 

identify the moving average cost (MAC) and latest acquisition cost (LAC) in the same receipt.
Attachment, ADC 1225A

Page 2

b. Background:

(1) ADC 1225 (see paragraph 3) added qualifiers to allow Air Force CICPs to 

identify the MAC and LAC in the DLMS 527R. Air Force CICPs send this information to the 

Air Force Accountable Property System of Record (APSR) to allow the Air Force to report the 

value of CICP-managed assets.

(2) The Monetary Amount Information (AMT) segment in the DLMS 527R 

conveys both the MAC and the LAC. Qualifier JJ (Cost Basis) indicates the LAC, and Qualifier 

AVE (Average) indicates the MAC. The AMT segment is located in the Receiving Conditions

(RCD) loop. In some cases, the CICP must simultaneously provide both the MAC and the LAC

within the same materiel receipt transaction. For example, the CICP will include the LAC in 

every materiel receipt, but will only include the MAC when a receipt causes that value to change.

The MAC and LAC must apply to an item in a single RCD segment. This is problematic because 

the X12 527 transaction set only allows one instance of the AMT segment within each RCD 

loop. The CICP cannot provide an additional RCD loop because doing so would indicate the 

receipt of a different quantity. Consequently, the Air Force brought this issue to the Enterprise 

Business Standards Office for resolution.

(3) To resolve the issue, this ADC opens the monetary amount data element in 

the Furnished Goods and Services (GF) segment within the RCD loop. The RCD loop can 

convey both the GF and AMT segments at the same time. This approach allows CICPs to 

provide the MAC and the LAC in the same transaction, without repeating the RCD loop. The 

CICPs will continue to use the AMT segment to convey the LAC, but will use the monetary 

amount data element in the GF segment to convey the MAC. The monetary amount data 

element in the GF segment does not require a qualifier, so the ADC removes the AVE qualifier 

from the AMT segment.

c. Approved Change in Detail: Modify the DLMS 527R IC as follows:

(1) Remove Qualifier AVE (Average) from the AMT segment (2/AMT01/100).

(2) Open 2/GF04/060, Data Element 782, Monetary Amount and add a segment 

and data element DLMS Note to authorize the intra-Air Force use for Moving Average Cost.

d. Revisions to DLM 4000.25 Manuals: This ADC does not revise DLM 4000.25 

publications.

e. Approved Transaction Flow: This ADC does not change the process flow illustrated 

in Enclosure 2 of ADC 1225 (see paragraph 3).

f. Alternatives: This ADC does not propose any alternatives.

5. REASON FOR CHANGE:

a. The Air Force requires its CICPs to provide the MAC and the LAC at the time of 

receipt. The CICP must be able to provide this information in the same transaction without

repeating the RCD loop.
Attachment, ADC 1225A

Page 3

b. The Air Force APSR must mirror the CICP’s inventory management system at all 

times. To accomplish this, the CICP must report materiel receipts to the APSR, and include 

relevant cost and item information. The Air Force requires the MAC and LAC in order to 

provide accurate financial reporting for Air Force-owned, contractor-managed and possessed 

assets.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: This change accommodates the Air Force’s requirement for CICPs to 

convey both the MAC and the LAC in the same transaction without major modifications to 

DLMS 527R IC.

b. Disadvantages: This ADC does not identify any disadvantages.

7. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: The Air Force may 

implement this change upon the release of the ADC. 

8. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: The Air Force did not provide estimated cost 

savings or avoidance for this approved change.

9. IMPACT:

a. New DLMS Data Elements: This ADC does not add new DLMS data elements.

b. Changes to DLMS Data Elements: This ADC removes qualifier AVE from location 

2/AMT01/100 in the DLMS 527R IC.

c. Automated Information Systems (AIS): This ADC is applicable to affected Air 

Force CICP information systems and the Air Force APSR, which is currently the Defense 

Property Accountability System (DPAS).

d. Defense Automatic Addressing System (DAAS): DAAS must update the DLMS 

527R map.

e. Non-DLM 4000.25 Series Publications: The Air Force and its contractors must

update relevant publications.

10. COMPONENT RESPONSE/COMMENT RESOLUTION: 

Originator Response/Comment Disposition

1. DLA Concur without comment. Noted.

2. DAAS Concur without comment. Noted.

3. Air Force Concur without comment. Noted.

4. Army No response. Noted.

5. USMC Concur without comment. Noted.

6. Navy Concur without comment. Noted.
Attachment, ADC 1225A

Page 4

7. USTRANSCOM Abstain. Noted.

8. DSCA Concur without comment. Noted.
Enclosure, ADC 1225A

Page 1

Enclosure to ADC 1225A

# Location DLMS 527R Materiel Receipt Reason

1. DLMS 

Introductory Notes

Add ADC 1225A to the DLMS Introductory Note:

- ADC 1225A, Approved Addendum to ADC 1225 

Accommodate Moving Average Cost and Latest 

Acquisition Cost in Materiel Receipts

To identify changes 

made to the IC.

2. 2/GF/060 Add DLMS Note

DLMS Note:

1. On an intra-Air Force basis only, Air Force CICPs will

use this segment to provide the moving average cost (MAC). 

Refer to ADC 1225A.

2. Use only with nonprocurement source receipt (MILSTRAP 

legacy DIC D6_ functionality) and MRA transactions. Use

only with those MRA and Receipt transactions associated with 

materiel issued to contractors as government furnished 

materiel (GFM), and with MRA transactions associated with 

Contractor Furnished Materiel (CFM) obtained from 

government supply sources. Identify the controlling document 

number in 2/N9/030. This restriction is not applicable to Air 

Force CICPs that use this segment to provide the moving 

average cost. Authorized DLMS enhancement. Refer to ADC 

390.

To authorize intraAir Force use of the 

GF segment. 

3. 2/GF04/060 Mark Data Element GF04 as used and add DLMS Note

DLMS Note: For intra-Air Force use only. Air Force CICPs 

will enter the moving average cost (MAC) when available. 

Refer to ADC 1225A.

To allow Air Force 

CICPs to convey a 

MAC in addition to 

the latest acquisition 

cost identified in 

2/AMT01/100.

4. 2/AMT01/100 Remove Qualifier AVE

AVE Average

DLMS Note: For intra-Air Force use in wholesale receipts of 

property by the Air Force Contractor Inventory Control Point 

to identify the Moving Average Cost (MAC) of the item 

received.

This ADC moves 

the MAC dollar 

amount to 

2/GF04/060.