1 of 4 

ADC 349 

Attachment 

ATTACHMENT TO ADC 349 

Revise DLMS Supplement (DS) 536L Logistics Reassignment Management Data 

Transaction to Add a Moving Average Cost (MAC) Field (Supply/Finance) 

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: 

 a. Service/Agency: Defense Logistics Agency (DLA) 

b. Originator: DLA J-3 & J-7 

 c. Functional POC: DLA J-73, 703-767-1350, DSN 427 

 DLA J-3314, 703-767-1637, DSN 427 

2. FUNCTIONAL AREA: 

 a. Primary/Secondary Functional Area: Acquisitions / Logistics / Finance 

 b. Primary/Secondary Functional Process: Pricing / Logistic Reassignments 

3. REFERENCES: 

a. DOD 7000.14-R, Financial Management Regulation, http://www.defenselink.mil/comptroller/fmr/. 

b. Statement of Federal Financial Accounting Standards No. 3, http://www.fasab.gov/pdffiles/sffas3.pdf

4. BACKGROUND: 

a. Intent of the transaction change: To transmit Moving Average Cost (MAC) from a Losing 

Inventory Manager (LIM) to a Gaining Inventory Manager (GIM) during a Logistics Reassignment (LR). 

 b. Scenario for which the transaction is used: Whenever an LR occurs and the LIM maintains a 

MAC in its financial system for the asset being reassigned. 

 c. Procedures, transactions, data elements, processing details in use today: DLMS 536L 

conveys various management information from the LIM to the GIM during an LR. No MAC 

information is being transmitted across DoD Components currently during the LR process. 

Note: Initially DLA addressed adding ‘MAC’ to MILSTRAP DI Code DLW, Logistics Reassignment 

Contract History Data. DLMSO noted that MILSTRAP is not being changed as the DOD Components 

modernize under DLMS, and the MAC code is therefore being added to the DLMS 536L which 

encompasses DI Code DLW functionality. DLMS 536L provides functionality of MILSTRAP DI 

Codes DLS through DLX. No change is being made to MILSTRAP DI Code DLW by this ADC. 

5. PROPOSED CHANGE(S): 

a. Requested change in detail: Add an ID entitled “MAC” to the CTP02 segment, “Price 

Identifier Code”, as well as the Name, “Moving Average Cost” to be associated with the “MAC” ID. 
2 of 4 

ADC 349 Att 

 b. Proposed procedures: Revise DLMS Supplement (DS) 536L as follows: 

Item # Location 

CHANGE TABLE for 

DS 536L, LR Management Data Reason 

Federal 

IC 

Impact 

1. DLMS 

Introductory

Note 4 

Add new note 4e:

4e. Data associated with a DLMS enhancement 

authorized for implementation by modernized 

systems under DLMS migration. This data 

(including expanded field sizes) should be adopted 

during, or subsequent, to modernization when 

applicable to the Component’s business process. 

Prior coordination is not required. Components 

should ensure that inclusion of this data in a 

DLMS transaction does not cause inappropriate 

rejection of the transaction. 

Administrative update to add 

standard notes used in DLMS 

for authorized DLMS 

migration enhancements. 

No 

impact. 

2. DLMS 

Introductory

Note 5 

Add ADC 349 to DLMS Introductory note 5:

- ADC 349, Revise DLMS Supplement (DS) 536L 

Logistics Reassignment Management Data 

Transaction to Establish a Moving Average Cost 

(MAC) Field (Supply/Finance) 

To identify DLMS changes 

included in the DS 

No 

impact. 

3. 2/CTP/90 Add segment level DLMS note:

DLMS Note: May use additional repetition in 

2/HL/010 contract loop to provide the moving 

average cost (MAC). 

To address inclusion of MAC. No 

impact. 

4. 2/CTP02/90 Add the following data element level notes:

Federal Note: Use any code. 

DLMS Note: For DLMS, only the following codes 

are authorized.

Administrative update to add 

standard notes used in DLMS 

transactions 

Update 

Required

5. 2/CTP02/90 Add new qualifier to be used for the moving 

average cost:

MAC Moving Average Cost 

DLMS Notes: 

1. Use to indicate the moving average cost 

(MAC). Refer to ADC 349. 

2. Authorized DLMS migration enhancement. 

See introductory DLMS note 4e. 

3. At this time a local code ‘MAC’ is established 

for use in 536L, version 4010. A data 

maintenance action has been submitted for 

establishment of ‘MAC -Moving Average Cost 

code’ in a future version. 

Adds qualifier so that the 

MAC can be conveyed in DS 

536L. 

Staffing Note: DLMSO is

proposing use of a “local” code 

while we submit a data 

maintenance request to ASC X12 

for approval of new code MAC. 

Upon approval, ‘MAC’ would 

become a migration code when 

passed in the 536L, version 4010. 

Use of a “migration code” refers 

to establishing an agreement with 

all trading partners to use a valid 

X12 code from a higher version, 

with its approved X12 definition, 

at a lower version of X12. (Refer 

to Approved DLMS Change 329, 

Use of Borrowed and Migration 

Codes in DLMS Supplements) 

No 

impact 
3 of 4 

ADC 349 Att 

6. REASON FOR CHANGE: Current 536L data element ID 236 ‘Price Identifier Codes’ in segment 

CTP02 lacks a code to identify a price as Moving Average Cost when inputted into the Unit Price field of 

CTP03.

7. ADVANTAGES AND DISADVANTAGES: 

 a. Advantages: Capability of transmitting MACs from LIMs to GIMs would assist DoD in 

complying with the reference 3.a. Financial Management Regulations, Volume 4 (Accounting Policy and 

Procedures), Chapter 4 (Inventory and Related Property), and the Statement of Federal Financial Accounting 

Standards No. 3, which require that DoD Components hold their inventory at moving average cost. 

 DOD 7000.14-R defines moving average cost as: “Moving Average Cost. Moving average cost 

(MAC) is determined each time costs are incurred for a purchase or a reparable item is 

repaired/remanufactured by dividing the cost of total units available at the time (inventory plus 

current purchase or remanufacturing costs) by the number of total units available at that time...” 

 Statement of Federal Financial Accounting Standards No. 3 defines ‘Moving Average’ as: 

“MOVING AVERAGE: An inventory costing method used in conjunction with a perpetual 

inventory system. A weighted average cost per unit is recomputed after every purchase. Goods 

sold are costed at the most recent moving average cost.” 

 b. Disadvantages: None identified. 

8. RESPONSES TO PDC 369: 

COMPONENT RESPONSE DLMSO COMMENT 

DLA Concurs without comment. 

This will have EBS impact, and given DLA’s current SCR 

workload, DLA is probably looking at the FY11 

timeframe for the earliest available implementation. 

Noted. 

USA Concur. Noted. 

USN Concurs as written. Noted. 

USAF The Air Force concurs with PDC 369. 

We do, however, have the following comment from our 

CAV-AF Program Manager: 

These specific changes to these record formats were done 

to satisfy the Navy ERP requirements. They may impact 

any system using standard EDI MILSTRIP/MILSTRAP 

formats. CAV AF does not but we do use these same 

records in a DLMSO approved XML schema. We already 

were aware of what NAVSISA was doing and requested 

them to review the XML schemas and make a 

determination if they should also be requesting DLMSO 

approve changes to it as well. With this detail we can see 

what exactly was changed and have again asked 

NAVSISA if these specific changes impact the XML. 

Noted. 

The AF XML comment is noted. 

DLMSO notes that DLMSO has only 

approved the EDI-based XML---these 

XML are identical to the EDI 

transactions and what is in the 

supplements. If AF is referring to 

ebXML or CICA XML, these schema 

are not yet approved and DLMSO has 

not disseminated the schemas. 

The only XML transactions that have 

been approved are the EDI-based 

XML and three passive RFID 

Visibility Transactions. 

USTRANSCOM Abstains. Noted. 
4 of 4 

ADC 349 Att 

9. ASSUMPTIONS USED OR WILL BE USED IN THE CHANGE OR NEW DEVELOPMENT: 

Assumption that all DoD Components will eventually transition to MAC as the principal method for valuing 

inventory per DOD’s Financial Management Regulations. 

10. ADDITIONAL COMMENTS TO CONSIDER: None 

11. NOTE ANY REGULATIONS OR GUIDANCE: DOD FMR Vol. 4, Chapter 4 and SFFAS No. 3 

12. ADDITIONAL FUNCTIONAL REQUIREMENTS: None 

13. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Unknown; CTP segment revision can 

occur before DOD components have fully transitioned to MAC. [See DLA implementation information at 

paragraph 8, Responses to PDC 369.] 

14. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH IMPLEMENTATION OF 

THIS CHANGE: Uncertain 

15. IMPACT: 

a. Publication(s): DLMS 536L 

b. DOD Components will be in compliance with DoD FMR Vol. 4, Ch. 4 and SFFAS No. 4, thus helping to 

increase the probability of clean audit opinion of DOD by an independent, outside party. 

c. Automated Information System: Requires interface between Inventory Control Point (ICP) supply and 

financial areas for LIM to provide MAC in DS 536L LR Management Data transaction and for GIM to use the data. 

 d. DAASC Mapping: Updates required to DAASC mapping. 

 e. New DLMS Data Element: This change adds new local code for ‘Moving Average Cost (MAC)’ to 

536L, which is not used in any other DLMS transaction.