DEFENSE LOGISTICS AGENCY

 HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

August 10, 2018 

MEMORANDUM FOR FINANCE PROCESS REVIEW COMMITTEE (PRC) MEMBERS 

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

1308, Extension of Sales Price Condition Code Mapping to Include Navy 

Service/Agency (S/A) Code P (Addendum to ADC 332) (Finance) 

We are forwarding the attached change to DLM 4000.25, Defense Logistics Management 

Standards, for implementation. This change is effective upon publication.

Addressees may direct questions to Mr. Robert Hammond or Nolan Davis, Co-Chairs, 

Finance PRC, e-mail: financehq@dla.mil. All others must contact their Component designated 

Finance PRC representative: http://www.dla.mil/HQ/InformationOperations/DLMS/allpoc/

HEIDI M. DAVEREDE

Director 

Enterprise Business Standards Office

Attachment

As stated

cc:

OUSD(C)

ODASD Logistics
Attachment, ADC 1308

Page 1

Attachment to ADC 1308

Extension of Sales Price Condition Code Mapping to Include Navy 

Service/Agency (S/A) Code P (Finance)

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION:

a. Technical POC: Nolan Davis, Co-Chair, Enterprise Business Standards Office, 

Finance PRC, e-mail: financehq@dla.mil.

b. Functional POCs: Anoop Sukumaran, Security Cooperation Enterprise Solution 

(SCES), Defense Security Cooperation Agency (DSCA), e-mail: 

Anoop.sukumaran.ctr@sces.dsca.mil, phone: 703-888-3519. Bill Kuleck, NAVSUP WSS Code 

N52 International Programs, e-mail: wilhelm.kuleck@navy.mil, phone: 215-697-5118

2. FUNCTIONAL AREA:

a. Primary/Secondary Functional Area: Finance

b. Primary/Secondary Functional Process: Intra-Navy Exchange Price Billing for 

Depot Level Repairable/Security Cooperation

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

 Category  Category  Category

X Billing Physical Inventory Contract Admin

Discrepancies / Deficiencies MILSTRAP DoDAAD

Serialization MILSTRIP MAPAD

Small Arms/Light Weapons MRA LMARS

pRFID Disposition DLM Publications

GFP DOD BRAC

3. REFERENCES:

a. ADC 332, Intra-Navy Exchange Price Billing For Depot Level Repairables, July 8, 

2009

b. DLM 4000.25 Defense Logistics Management Standards, Volume 4, Military 

Standard Billing System – Finance.
Attachment, ADC 1308

Page 2

4. APPROVED CHANGE(S):

a. Brief Overview of Change: This DLMS change extends DLMS procedures for Navy 

Exchange Price billing of Depot Level Repairables (DLRs) under the Navy Carcass Tracking 

program to the Navy S/A Code P, which is reserved for Foreign Military Sales (FMS)/Security 

Cooperation. It extends the DLMS/legacy mapping for Sales Price Condition Code used in this 

process to S/A Code P. DSCA is requesting this change to support its DLMS implementation of 

SCES. This change is an addendum to Reference 3.a., which applies only to Navy S/A Codes N, 

V, and R.

b. Background:

(1) Navy uses a two-tier pricing system for selling DLRs to Navy customers. 

The Navy system is similar to that used by the Army and Air Force, although some of the 

terminology is different. The price applicable to a particular requisition is determined as 

follows:

(a) Standard Price. This is the price representing the full value of the 

DLR item. Navy charges a customer the standard price when the customer does not turn in a Not 

Ready For Issue (NRFI) unit (also referred to as a ‘Carcass’).

(b) Net Price. Also referred to as Exchange Price. This price represents 

the cost of repairing a DLR item, and is the price charged to customers when the customer has 

turned in an NRFI unit or will turn in the NFRI unit later. Navy customers indicate on their 

requisitions whether or not an NRFI unit is available for turn in via the Advice Code field. See 

Reference 3a for a list of the relevant advice codes.

(2) Navy uses the Navy’s Carcass Tracking System to track requisitions where 

the customer indicates they will turn the carcass in later. The customer has 45 days to return the

carcass. This system monitors the requisitions and matches them with carcass returns as they 

occur. The Navy uses Document Identifier Code (DIC) D6A (Materiel Receipt) to identify the 

carcass receipt. This system also generates follow-up transactions to customers who have not 

returned their carcasses as promised. Ultimately, the system will trigger an additional charge to 

the customer if the customer does not turn in the carcass. Navy uses the term Carcass Charge for 

this additional billing, which represents the value between Standard Price and Net (Exchange) 

Price. Navy also refers to this additional billing as a Delta Bill. If the customer turns in the 

carcass after receiving the Carcass (Delta) Bill, Navy reverses the additional billing, resulting in 

a Carcass Charge Reversal (Credit Delta Bill).

(3) The Navy inventory control point has migrated to the DLMS 810L, Logistics 

Bill. The Defense Automatic Addressing System (DAAS) maintains the mapping to the legacy 

80 record position transaction format (i.e., DIC FA1/FA2/FD1/FD2) for customers who have not 

yet migrated to DLMS. FMS/Security Cooperation customers are not yet DLMS capable. Navy 

uses the Sales Price Condition Code in logistics bills to indicate the purpose of the bill.
Attachment, ADC 1308

Page 3

Alignment of DLMS and Legacy Sales Price Condition Codes

Sales Price Condition Code

DLMS Code

(Segment LQ, 

Element 1270)

Legacy DIC 

Sales Price 

Condition Code

Description

EP DIC FA1/FA2

rp 7 = B

Bill at Exchange Price

(Commonly referred to as “Net Price” within Navy)

DB DIC FA1

rp 7 = X

Bill for the Delta amount (Standard Price minus Exchange Price)

(Commonly referred to as “Carcass Charge” within Navy

RB DIC FA2

rp 7 = X

Credit Bill to reverse a Delta Bill (DB) under Exchange Pricing

(Commonly referred to as “Carcass Charge Reversal” within Navy

SC DIC FD1/FD2

rp 7 = B

Credit Bill for Serviceable Credit under Exchange Pricing

(May be Exchange Price or Delta Price for Navy)

(4) Current DAAS mapping applies only to Navy S/A Codes N, R, and V. It 

does not include Navy S/A = P.

(5) Navy FMS follows the Navy U.S. Fleet process for Repair and Return 

(Exchange). Navy FMS is transitioning to DLMS via SCES. FMS/Security Cooperation 

customers are not DLMS capable. Absent this DLMS Change to add S/A = P, Navy will not be 

able to fully implement the DLMS 810L within SCES, as there is no DAAS mapping for S/A = P. 

Navy will also not be able to implement Standard Line of Accounting (SLOA) in this process, 

which can only be done in a DLMS variable length transaction and not in a legacy Defense 

Logistics Standards System (DLSS) or Military Logistics Standards System (MILS) 80 record 

position transaction.

c. Approved Change in Detail: Modify the DAAS mapping for Sales Price Condition 

Code to include Navy S/A Code P, which is reserved for FMS/Security Cooperation. Note the 

changes in bold red italics.

Revised 810L DAAS Map

Field Name

Record 

Position 

(DLSS/

MILS)

Conditions

DLMS 

Data 

Element

Table

Sales Price 

Condition Code

7/60-61 If RP1-3=FA1, FA2 and RP30=N, P, R, 

V and RP7=B

LQ01=54

LQ02=EP

2

Sales Price 

Condition Code

7/60-61 If RP1-3=FA1 and RP30=N, P, R, V and 

RP7=X

LQ01=54

LQ02=DB

2

Sales Price 

Condition Code

7/60-61 If RP1-3=FA2 and RP30=N, P, R, V and 

RP7=X

LQ01=54

LQ02=RB

2

Sales Price 

Condition Code

7/60-61 If RP1-3=FD1, FD2 and RP30=N, P, R, 

V and RP7=B

LQ01=54

LQ02=SC

2
Attachment, ADC 1308

Page 4

d. Revisions to DLM 4000.25 Manuals: None.

5. REASON FOR CHANGE. Extend DAAS DLMS/MILS mapping to Navy Exchange 

Pricing for Navy FMS/Security Cooperation transactions.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: Fills a gap from legacy to DLMS mapping for FMS/Security 

Cooperation Navy Exchange Pricing. Allows Navy to implement SLOA in this process.

b. Disadvantages: A future Defense Audit Remediation Working Group (DARWG)

decision regarding Generally Accepted Accounting Principles (GAAP) with respect to advance 

credit for Supply Turn-Ins may later nullify this DLMS Change. See additional considerations

below.

7. ADDITIONAL COMMENTS TO CONSIDER: 

a. The joint Office of the Deputy Assistant Secretary of Defense Office (ODASD) 

Logistics, and the Office of the Under Secretary of Defense, Comptroller (OUSD(C)) 

Supply/Finance Policy Alignment Working Group is currently reviewing a broad Financial 

Improvement Audit Readiness issue regarding advance credit for depot level repairable carcass 

turn-in through exchange pricing (Non-GAAP Accounting Practice - Supply Turn-Ins, FY 17-

DoD Wide-DCFO Issue-10168-32). There is no clear accounting guidance regarding turn-ins of 

repairable carcasses to a Working Capital Fund activity. OUSD(C) is considering various 

options in order to reach a DOD standard solution to account for materiel turn-ins and their 

associated credits. The Supply/Finance Policy Alignment Working Group will present this issue 

to the DARWG for a decision.

b. The appropriateness of advance credit for carcass exchange is a part of the ongoing 

analysis. Toward that end, the Defense Security Cooperation Agency staff is currently 

researching authority, as it pertains to Security Cooperation agreements with our foreign trading 

partners.

8. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: This change is effective 

immediately. DAAS will implement this change within 30 days. SCES may program upon 

issuance and may complete testing with DAAS on a mutually agreed schedule.

9. IMPACT:

a. New/Changed DLMS Data Elements: None.

b. Automated Information Systems (AIS): None.

c. Automated Information Systems (AIS): None.

d. Defense Automatic Addressing System (DAAS): Update the DAAS map for 810L 

as defined in 4.c above.
Attachment, ADC 1308

Page 5

10. PROPOSED DLMS CHANGE (PDC) 1308 STAFFING RESPONSE/COMMENT 

RESOLUTION:

Originator Response/Comment Disposition

1. Army -- Follow-ups did not get a response.

2. Navy Concur Noted.

3. Air Force Concur Noted.

4. Marine Corps Concur Noted.

5. DLA Concur Noted.

6. DFAS Concurs with comment:

VISTA would be able to process documents

beginning with S/A Code P. However, VISTA 

only receives and processes Interfund billings 

where the summary buyer S/A Code is N, R, V.

** IF summary buyer S/A Code is N, R, V AND 

document number in detail begins with P ==> 

VISTA can process

** IF summary buyer S/A Code is P ==> VISTA 

cannot process

Follow-on communications determined 

that for Navy FMS, Management 

Information System for International

Logistics (MISIL) currently processes 

the Interfund bills and generates the 

Register 06 records, not VISTA. 

Similarly, as SCES takes over cases 

from MISIL, SCES will be responsible 

for Register 06 for FMS and will not 

involve VISTA.