**DoD 4000.25-M, Vol 1**

**CH 2**

*DLM 4000.25, Volume 4, January 22, 2024*

*Change 12*

**C4. CHAPTER 4**

**ADJUSTMENT PROCEDURES**

C4.1.  REQUESTING ADJUSTMENTS

	C4.1.1.  Submission of Adjustment Requests

		C4.1.1.1.  Unless otherwise indicated in this chapter, requests for adjustment, follow-ups, and replies will be submitted by electronic means.

		C4.1.1.2.  Requests are generally prepared using the Request for Billing Adjustment (DLMS 812R, DIC FAE) record.  However, into-plane and bulk fuel related adjustment requests must use the Request for Adjustment of Fuel Billing (DLMS 812 R, DIC FJE).  Refer to other Chapter 4 sections for more specific information on preparing requests for adjustments and follow-ups.

		C4.1.1.3.  Requests for adjustments will normally indicate the billing office as the addressee and will be submitted to DAAS for processing and routing to the billing office.  Requests for adjustments of GSA billings will be addressed to the GSA National Customer Service Center (DoD Activity Address Code (DoDAAC) 476437, RI code GSA).  Correspondence to the Service Center, if necessary, may be directed to:

			General Services Administration

			National Customer Service Center

			1500 East Bannister Road

			Kansas City, Missouri 64131-3087

			Telephone: (800) 488-3111 (DSN) 465-1416

	C4.1.2.  Nonreimbursable.  Forward a request for adjustment in the format prescribed for billing account code (BAC) 14 when the coding of the requisition indicates that the materiel was requisitioned under nonreimbursable procedures and a materiel billing was received.

	C4.1.3.  Accessorial.  A request for adjustment in the format prescribed for BAC 15 will be forwarded whenever accessorial costs are charged and the charges are not authorized.

	C4.1.4.  Timeframes.  All requests for adjustments should be submitted within 30 calendar days of receipt of the billing.  Initial requests for adjustment received after the record retention period for billing records may be denied.  When a discrepancy report or adjustment request is received within prescribed timeframes, nonavailability of records, or the passing of the record by the time the report is validated or the request is processed, may not be used as a basis for denying the adjustment.

	C4.1.5.  Minimum Value

		C4.1.5.1.  Adjustment for Billing Errors.  In general, no request for adjustment should be submitted for billing errors when the amount of the error is $250 or less.  As an exception to the general guideline, no request for adjustment should be submitted for billing errors when the amount of the error is $100 or less and the billing office is GSA or the materiel involved is a subsistence item.

		C4.1.5.2.  Adjustment Types.  There is no minimum value for requesting status on an anticipated or required billing, requesting a corrected bill when the received bill is incomplete, requesting a copy of a bill, requesting a change in the type of billing (interfund to noninterfund and noninterfund to interfund), or requesting adjustments for validated discrepancy reports.

		C4.1.5.3.  Foreign Military Sales Billing Errors.  There is no minimum value for adjustment of foreign military sales (FMS) billing errors.  However, adjustment requests for FMS shipments may not be submitted when the request can be rejected per the general conditions of the U.S. Department of Defense Letter of Offer and Acceptance.

C4.2.  CANCELING OR AMENDING REQUESTS FOR ADJUSTMENT

	C4.2.1.  Canceling Requests.  Submitting offices may cancel requests for adjustments whenever the request is no longer valid or appropriate and the billing office has not provided a final reply to the request.

	C4.2.2.  Amendments.  Requests for adjustments may be amended by canceling the original request and submitting a new request.

C4.3.  FOLLOW-UP ON UNANSWERED REQUESTS FOR ADJUSTMENT

	C4.3.1.  Adjustment Requests.  Except for follow-ups to DAAS, offices submitting adjustment requests will follow-up on requests for adjustments remaining unanswered for more than 14 calendar days after submission.  If the request for adjustment remains unanswered for more than 14 calendar days after follow-up, submitting offices will forward a second and final follow-up by letter or message to the billing office.  In addition to providing the billing office with the information required to process the request, the final follow-up will identify the dates of initial and follow-up request.

		C4.3.1.1.  Follow the procedures prescribed for noncompliance and other problems (see Chapter 1) when requests for adjustments or requests for MRP credits remain unanswered for more than 30 calendar days after the second follow-up or if an interim response was received and the promised date has passed.

		C4.3.1.2.  Follow up to DAAS for copies of interfund bills that were requested but not received.

	C4.3.2.  Credit Follow-Up.  Offices designated to receive Materiel Returns Program (MRP) credit will initially follow-up on the credit due when the credit has not been received and more than 30 calendar days have elapsed since the creditable status was received.  A second follow-up will be submitted if a reply or credit is not received within 30 calendar days of the initial follow-up.

C4.4.  REPLYING TO REQUESTS FOR ADJUSTMENT OR MATERIEL RETURNS PROGRAM CREDIT

	C4.4.1.  Processing Adjustments.  Billing or adjustment processing offices will reply to adjustment requests using Defense Logistics Management Standard (DLMS) 812L, Adjustment Request Reply transaction.  The DLMS Supplement will also be used to reply to follow-up requests.

	C4.4.2.  Responding to Requests.  Billing offices will respond to all requests for adjustment within 13 calendar days of the date the request is received.  Billing offices will respond to follow-up requests for adjustment within 13 calendar days of the date the request is submitted.  Replies to adjustment requests (DLMS 812L, Document Identifier Code (DIC) FAR) and follow-ups (DLMS 812L, DIC FAS) are required and will also be forwarded to DAAS for processing and further routing to the adjustment requestor.  As with the requests, fuel-related replies will follow the equivalent DIC FJ_ series formats.  All adjustment replies will include an appropriate coded reply.

		C4.4.2.1.  Responses to adjustment requests will be forwarded to the office designated by the recipient of billing status code.  Adjustments will be forwarded to the original billed office.

		C4.4.2.2.  Billing offices will respond to initial requests and first follow-up for MRP credit in the DLMS 812L, DIC FTB format.  Responses will be forwarded, via DSN, to the office designated by the materiel receipt status (870M, DIC FTZ).

		C4.4.2.3.  Billing offices will respond to second follow-up requests for adjustments and MRP credit within 30 calendar days of receipt.  If the request cannot be answered within 30 calendar days, an interim response by letter or message will be provided.  The response must be completed within 60 calendar days.

C4.5.  ADJUSTMENT AMOUNT.  In general, adjustments, when warranted, will be at the originally billed price.  Adjustments for validated product quality deficiency reports (PQDRs) will be processed at the current standard price when the original billed price cannot be determined.  Adjustments for Materiel Returns Program (MRP) credits will be at the current acquisition price or at a reduced price if, in the opinion of the Integrated Materiel Manager (IMM), the condition warrants such reduction.

C4.6.  INCOMPLETE OR UNSUPPORTED BILL

	C4.6.1.  An incomplete bill is one in which the interfund or noninterfund bill is not fully supported by detail billing records or information, respectively.

	C4.6.2.  Since DAAS will not pass incomplete interfund bills to billed offices and billing offices will not be reimbursed for bills not submitted to DAAS, a copy of the “incomplete” interfund bill will be requested from DAAS.

	C4.6.3.  Requests for incomplete (i.e., unsupported) noninterfund bills will be addressed to the billing office and must cite BAC 19.  In addition to responding to the request, whenever the bill referred to is on file, billing offices must always provide a fully supported copy or corrected bill to the billed office.

C4.7.  BILLING STATUS PROCEDURES

	C4.7.1.  Obtaining Bill Status.  When requisitioned materiel is received, intended billed offices must use an Adjustment Request (DLMS 812R, DIC FAE) to seek the status of the bill.  When materiel was not ordered, or if ordered and not received, discrepancy report procedures apply.  See DLMS Volume 2, Chapter 17 and DoD 4500.9-R, Defense Transportation Regulation, Volume 2, Chapter 210 for discrepancy report procedures.

	C4.7.2.  Shipment Bill Status.  When shipment status is received for requisitioned materiel and the materiel can be billed only upon evidence of constructive delivery, intended billed offices must use an Adjustment Request (DLMS 812R, DIC FAE) citing BAC 35 to seek the status of the bill.  Billing offices may generate the required billing when properly completed requests are received and a billing is awaiting evidence of constructive delivery.  Billing offices will also initiate appropriate actions with their supply office to identify and resolve problems underlying this condition.

	C4.7.3.  Timeframe.  At least 90 calendar days must have elapsed after receiving the materiel or, in the case of FMS shipments, shipment status before requesting the bill status.  However, the status must be requested within a year of the shipment date (2 years for FMS shipments).  Billing offices may reject requests for billing status that are not submitted within these timeframes.

	C4.7.4.  When the billing status request involves fuels and is forwarded to DLA Energy (RIC S9F), the request will be mailed and must identify the supply source.  If the supply source is a DLA Energy regional location, provide the location’s DoDAAC.  If the supply source is a contractor, including contractor Into-plane, provide the contract number.

	C4.7.5.  Restrictions.  Except for billings awaiting evidence of shipment or receipt, billing offices will not generate bills based solely upon a request for billing status.

	C4.7.6.  DoD 7000.14-R, Department of Defense Financial Management Regulations (FMRS), Volume 10 has allowances for writing off unbilled liabilities and de-obligating the related obligation when an invoice has not been received within 180 calendar days from the date of acceptable final performance and there is documentation on file that at least two written requests for an invoice have been made.  Refer to the reference for other conditions that must be met, such as establishing a reserve for late bills.

C4.8.  BILL COPY PROCEDURES

	C4.8.1.  Requesting Copies.  Requests for copies of interfund bills will be addressed to DAAS if the DAAS record retention period has not expired.  Requests must use the Request for Retransmission of Interfund Bill (DLMS 812R, DIC QB1) format.  See Chapter 6 for DAAS record retention requirements and options for retrieving bill copies.

	C4.8.2.  Retransmitting Copies.  DAAS will retransmit copies of all bills wherein the billing office DoDAAC, bill number, and year within decade and month of credit match the same information on the request.

	C4.8.3.  Copies of Noninterfund Bills.  Requests for copies of noninterfund bills will normally be addressed to the billing office.

C4.9.  REQUESTS FOR CHANGE IN BILLING METHOD

	C4.9.1.  Change in Billing Method

		C4.9.1.1.  When billing offices bill under interfund procedures and MILSBILLS procedures do not allow for such billing, billed offices will forward requests for adjustment in the format prescribed for BAC 52.

		C4.9.1.2.  When MILSBILLS procedures prescribe billing under interfund procedures, billing offices will deny requests for improperly billed interfund.

		C4.9.1.3.  When the requisition or customer asset report improperly designates interfund billing and the interfund billing cannot be processed, refer to the following subparagraph for requesting rebilling under noninterfund procedures.

	C4.9.2.  Properly Billed Interfund to Noninterfund

		C4.9.2.1.  When a billed office is unable to process a billing record under interfund procedures, the billed office may have the item or items billed under noninterfund procedures by forwarding a request for billing adjustment citing BAC 51.  Use of this advice code is an admission by the billed office that the requisition or other document was incorrectly coded.

		C4.9.2.2.  Requests citing BAC 51 may be submitted only when the funds or charge cannot be disbursed or processed under interfund procedures.  All such requests will be honored by the billing office; the billing office may challenge this assertion.

C4.10.  ADJUSTMENTS FOR DISCREPANCY REPORTS

	C4.10.1.  Financial Adjustment

		C4.10.1.1.  Discrepancy reports will be submitted, reviewed, processed, validated, and responded to in accordance with the procedures described in the requirements in Table C4.T1.

Table C4.T1.  Adjustments to Discrepancy Reports

		C4.10.1.2.  Billing offices will 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:

			C4.10.1.2.1.  Discrepancy Not Otherwise Resolved.  The discrepancy was not resolved otherwise; for example, the vendor does not replace deficient materiel for a validated PQDR.

			C4.10.1.2.2.  Materiel Billed and Paid.  The materiel was billed and paid previously ***in*** the case of reporting on a constructed document number, credit will not be authorized per Volume 2 C17.3.and C21.4.

			C4.10.1.2.3.  Materiel Returned.  The materiel is received by the storage activity in those cases where the discrepancy report reply requires the return.  At the discretion of the SoS, adjustments may be processed prior to materiel return and then subsequently rebilled under the original document number due to failure to return materiel as directed.

		C4.10.1.3.  The discrepancy involves GSA shipments and the Transportation Discrepancy Report (TDR) exceeds $25 per line (detail billing record) (DBR) or the Supply Discrepancy Report (SDR) exceeds $50 per line (DBR).  There is no minimum adjustment level on PQDRs involving GSA shipments.  There are no adjustment dollar value limitations for discrepancies involving DoD shipments or materiel in storage reported via Storage Quality Control Report (SQCR).

		C4.10.1.4.  The original MILSTRIP requisition number is included on the PQDR, SDR, or SQCR.  When the original requisition number cannot be identified, the originator, material owner, or screening point must include a constructed 14 position MILSTRIP document number using the originator, owning activity, or screening point’s DoDAAC for the first six characters, the current Julian date (YDDD) for the next four positions, and a four-position serial number beginning with “U” as the first position of the serial number.  An example of a constructed document number is F123453175 U001.  Code U is also carried as a utilization code under DLMS.  Note: For SDRs, circumstances authorizing the use of a constructed document number are restricted to those described in DLMS, Volume 2, Chapter 17.  For SQCRs, circumstances authorizing the use of a constructed document number are restricted to those descripted in DLMS, Volume 2, Chapter 21. Credit or replacement is not authorized for constructed document numbers.

		C4.10.1.5.  Improper Commitment.  When a reply to a discrepancy report improperly commits the billing office to providing an adjustment (e.g., the shipment was never billed), the billing office will ask the replying office to correct the reply to the discrepancy report.

	C4.10.2.  Other Discrepancy Adjustment Rules

		C4.10.2.1.  Adjusting Discrepancy Reports.  Requests for adjustments related to TDRs will be submitted only when the adjustment is not received and more than 60 calendar days have elapsed since the report was filed.  Requests related to PQDRs, SDRs, and SQCRs should be timely, but must not be submitted until a minimum of 60 calendar days have elapsed since receiving notification that the discrepancy is validated (i.e., that an adjustment is approved).  When the promised adjustment for a discrepancy is contingent upon the return of materiel, the request will not be submitted until a minimum of 60 calendar days have elapsed since shipping the materiel with additional allowance for transportation time to the shipping activity.  When a reply to a discrepancy report is not received, follow up as prescribed by DLMS Volume 2, Chapter 17 or 21, as applicable.

		C4.10.2.2.  The portion of ***payment*** for materiel laterally redistributed may be fully or partially ***recouped*** by the IMM when a discrepancy report documents the materiel was not shipped in a condition warranting full ***payment***.

		C4.10.2.3.  Activities responsible for discrepant shipments may be held responsible for costs incurred for repackaging, disposal, unauthorized returns, deficient packaging, and other item and packaging discrepancies that have been documented and validated under SDR procedures.  Although other mutually agreeable arrangements may be made, such costs will normally be recovered under noninterfund procedures and will be supported by the validated discrepancy report.  In addition, when such returns are creditable, these discrepancy costs may be offset against the credit to which the returning activity is otherwise entitled.

C4.11.  ADJUSTMENTS FOR BILLING ERRORS

	C4.11.1.  The following are billing errors and will not be accepted for processing unless the minimum value criterion (Section 4.1) for requesting adjustment is met:

		C4.11.1.1.  Duplicates

		C4.11.1.2.  Wrong amount billed

		C4.11.1.3.  Wrong office billed

		C4.11.1.4.  Improper billed

		C4.11.1.5.  Promised adjustment not received

		C4.11.1.6.  Other problems

	C4.11.2.  Duplicates

		C4.11.2.1.  Duplicate Billing Line

			C4.11.2.1.1.  A duplicate billing line is a second or later billing for a single shipment or adjustment.  If the second or later billing resulted from a second or later shipment, financial adjustment procedures do not apply.  See, instead, discrepancy report procedures for duplicate shipments in DLMS Volume 2, Chapter 17.

			C4.11.2.1.2.  To obtain adjustment for duplicate detail billing records not previously adjusted by the billing office, submit a separate request for each duplicated billing record in the format prescribed for BAC 11.

		C4.11.2.2.  Duplicate Bill

			C4.11.2.2.1.  This is an interfund or noninterfund bill (SF 1080 or equivalent), that is supported entirely by duplicate detail billing records.  In the case of interfund bills, the bill is also included on the billing office’s interfund report.

			C4.11.2.2.2.  Adjustments for duplicate interfund bills may be requested only upon confirmation that the bills (original and duplicate) were, in fact, reported to the buying service’s Central Accounts Office (CAO).  To obtain an adjustment, submit a Request For Summary Level Billing Adjustment (DLMS 812R, DIC FDE) for each duplicated bill citing:

				C4.11.2.2.2.1.  BAC 42 when the bill, details and summary are identical, including the bill number to a previous bill,

				C4.11.2.2.2.2.  BAC 43 when, except for the bill number, the bill details and summary are identical to a previous bill, and

				C4.11.2.2.2.3.  BAC 44 when all of the supporting detail billing records of one bill have been included on another bill.  The bill containing such previously billed DBRs is the duplicate bill.

	C4.11.3.  Wrong Amount Billed

		C4.11.3.1.  Purpose.  A wrong amount billed refers to a billing line in which the unit price, quantity, or price extension is erroneous.

		C4.11.3.2.  Exceptions.  Do not request adjustment for wrong amount if:

			C4.11.3.2.1.  The unit price is the correct standard or catalog price and you are questioning the price.  Follow price challenge procedures instead.

			C4.11.3.2.2.  The extension does not agree with the amount billed and Sales Price Condition code B is indicated.  In this case, the unit price shown on the billing record is the inventory carrying value, the standard unit price.  The billing unit price, if needed, must be computed.

			C4.11.3.2.3.  The quantity billed equals the quantity ordered or shipped and a lesser quantity is received.  Follow the appropriate DLMS Volume 2, Chapter 17 discrepancy reporting procedure instead.

	C4.11.4.  Wrong Office Billed

		C4.11.4.1.  Request.  Request an adjustment for wrong office billed when the office billed does not agree with the coded requirements of the requisition or adjustment request and the coding indicated a valid billed office DoDAAC.  A valid billed office DoDAAC is one listed in the DoD Activity Address Directory (DoDAAD) with the proper authority code (See Chapter 6, C6.2.2.1.2 of this volume).

		C4.11.4.2.  Request Denial.  When the billing was prepared in accordance with the requisition or modification received by the Inventory Control Point/Integrated Materiel Manager (ICP/IMM), the request will be denied.

		C4.11.4.3.  Wrong Office Assigned.  When the billing office assigned the billed office as prescribed in Chapter 2 and the office assigned is not the intended office, the billed office will transfer or otherwise process the bill in accordance with procedures prescribed by the DoD Component.  If the offices involved are serviced by the same finance center, the billed office will contact the intended billed office or requisitioner and make arrangements for transferring the bill.

	C4.11.5.  Improper Billing

		C4.11.5.1.  General.  A DLMS 812R, Adjustment Request citing the proper billing advice code should be submitted to billing offices to request adjustments for improper billings.  For purposes of this section, an improper billing is a billing line which:

			C4.11.5.1.1.  Charges for materiel requisitioned under nonreimbursable procedures;

			C4.11.5.1.2.  Charges improperly for accessorial costs;

			C4.11.5.1.3.  Charges for materiel following a reply that a billing could not be rendered; or

			C4.11.5.1.4.  Charges for materiel confirmed cancelled when the materiel is not received.

		C4.11.5.2.  Cancelled.  When a billing for materiel is received on a requisition that was confirmed cancelled by the ICP or IMM and the materiel is not received, a request for adjustment in the format prescribed for BAC 17 will be forwarded to the billing office.  When the materiel was received or if the requisition was not confirmed cancelled by the ICP or IMM, MILSBILLS procedures do not apply.  Follow instead procedures prescribed for reporting SDRs.  Although annotations on a shipping document, in conjunction with other factors, may support a discrepancy report, they do not support an adjustment for improper billing.  A validated discrepancy report is needed.

		C4.11.5.3.  Backordered.  A request for adjustment in the format prescribed for BAC 18 will be forwarded to the billing office whenever a billing is received on a requisition that was backordered and the receipt of the billing status, confirming that the materiel was not received.  Do not submit requests citing BAC 18 prior to obtaining this status.

		C4.11.5.4.  Billing Cannot Be Rendered.  Billed offices will request adjustment in the format prescribed for BAC 20 whenever the billing office issues a bill after advising, in a response to a request for billing status (Billing Status Codes DC and DF), that a bill could not be rendered.

	C4.11.6.  Promised Adjustment Not Received.  Billed offices will forward an Adjustment Request (DLMS 812R, DIC FAB/FJR) with the proper billing advice code to the billing office to follow-up on unreceived promised adjustments and more than 30 calendar days have elapsed since receiving a reply promising the billing or adjustment.

	C4.11.***7***.  Other Billing Problems.  Billed offices or others will request adjustments for problems not covered by billing advice codes by forwarding a letter (or message) of explanation along with the information required to process the request for BAC 55.  The billing office will normally respond with an Adjustment Request (DLMS 812L, DIC FAR or FJR format).

C4.12.  PRICE CHALLENGES AND VERIFICATION.  DoDM 4140.01, DoD Supply Chain Materiel Management Procedures, February 10, 2014 prescribes the basic DoD requirements under Service and Agency Price Challenge And Price Verification Programs.  Price challenges and verification are often mistaken for MILSBILLS "wrong unit price billed" procedures.  Contact IMM/ICP customer service for assistance filing price challenges.

C4.13.  DISPUTED RESPONSES TO REQUESTS FOR ADJUSTMENT.  Billing and billed offices are expected to resolve their differences regarding adjustment requests.  However, when a billed office does not agree with the billing office’s response and the billed office considers the amounts involved significant, the billed office may consider the dispute an unresolved problem and follow the procedures prescribed in Chapter 1.

C4.14.  ADJUSTMENTS FOR CHANGE NOTICES

	C4.14.1.  Recording Undelivered Orders.  If an order is placed with or through the DWCF, an undelivered order (obligation) should be recorded when the order is placed.  A non-stock numbered item should be recorded as an undelivered order when the order is accepted.  An adjustment to the undelivered order should be processed when a change notice affecting price, quantity, or an acceptable substitution of a like item is received from the stock fund.  Refer to DoD 7000.14-R Volume 6 for more specific information on the above requirements.

	C4.14.2.  Customer Not Receiving Change Notice.  If a DBOF customer does not receive a change notice at all or in time to cancel or modify the order and additional funds are required, the materiel may be refused or returned to the DBOF and an adjustment requested.  Adjustments for this reason will be forwarded by mail and must be signed by the activity accounting officer.  The request must meet the following requirements and will state essentially:

"As a result of a price change, quantity change, or authorized substitution, the value of the materiel received exceeds amounts obligated and all available obligation authority.  Request credit for the indicated quantity and items delivered under the following requisition document and suffix number.  Please also provide us with the return instructions for the materiel."

	C4.14.3.  Honoring Requests.  The billing office will honor all such requests and provide adjustment, without regard to dollar value, after the materiel is returned.  The ordering activity will also contact the ICP/IMM to arrange for the return.

C4.15.  SECURITY ASSISTANCE DISCREPANCIES AND BILLING ERRORS

	C4.15.1.  The Military Department may automatically grant adjustments[footnoteRef:1] and charge or credit the administrative surcharge fund when: [1:  Automatic adjustments may be withheld from specific customers if there is a pattern of abuse of this authority.  When such a pattern exists, all discrepancies and billing errors from that customer should be researched.] 

		C4.15.1.1.  The request cannot be rejected per the general conditions of the U.S. Letter of Offer and Acceptance, and

		C4.15.1.2.  The transaction was billed on a DD Form 645A, Foreign Military Sales Statement.

		C4.15.1.3.  The amount of the adjustment requested is either (1) less than $100 or (2) less than the amount approved[footnoteRef:2] for that Military Department by the Defense Security Cooperation Agency. [2:  Military Departments may request approval for a different adjustment level.  The dollar amounts of automatic adjustments will be determined by an agency cost effectiveness study which compares the administrative cost of conducting necessary research to determine specific responsibility versus the cost which will be incurred by the administrative surcharge pool if an automatic refund is authorized.  The agency cost effectiveness study must be submitted to Defense Security Cooperation Agency for review and approval.] 

	C4.15.2.  Adjustments for IMM/ICP charges that may not be automatically charged to the administrative fund will be prepared and forwarded to the IMM/ICP in accordance with the procedures contained in this chapter.

C4.16.  CREDITS FOR EXCESS REPORTS (MATERIEL RETURNS PROGRAM)

	C4.16.1.  Procedures.  Materiel returns program procedures are prescribed by DLMS Volume 2.

	C4.16.2.  Processing Credits.  Billing offices will process credits for excess reports during the first billing cycle after receiving notification that materiel authorized for return under creditable procedures has been received in a condition warranting credit.  The portion of credits for materiel laterally redistributed may be fully or partially reversed by the IMM when a discrepancy report documents that the materiel was not shipped in a condition warranting full credit.

	C4.16.3.  Materiel Returns Program or Procurement Offset Status Request (In-Storage Visibility for Both Consumables and Reparables).  Offices expecting MRP or procurement offset (ISV for both consumables and reparables) will request credit status using the Follow-up for Materiel Returns Program Credit (DLMS 812R, DIC FTP).  The initial request should be prepared when the credit has not been received and more the 30 calendar days have elapsed since the Materiel Receipt Status (DLMS 870M, DIC FTZ), citing a creditable status or the Shipment Status (DLMS 856S, DIC AS6) is received by the IMM/ICP.

C4-2

CHAPTER 4

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