DEFENSE LOGISTICS AGENCY

 HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

 FORT BELVOIR, VIRGINIA 22060-6221

May 21, 2021

MEMORANDUM FOR SUPPLY DISCREPANCY REPORTING (SDR) PROCESS 

REVIEW COMMITTEE (PRC)

SUBJECT: Approved Standards Change (ADC) 1347B, Addendum to ADC 1347 Replies After 

SDR Closure Notices and Action Codes 1H and 3B (SDR)

The attached change to DoD Enterprise Business Standards, as outlined in the 

attachment, is approved for implementation.

Addressees may direct questions to Mr. Ben Breen, Discrepancy/Deficiency 

Administrator, e-mail: EBSO.SDR@dla.mil. Others may contact their designated PRC 

representative available at http://www.dla.mil/HQ/Information/s/Operations/DLMS/allpoc/. 

THOMAS A. DELANEY

Director, Enterprise Business Standards Office

Attachment

As stated 

cc: 

ODASD(Logistics)
Attachment, ADC 1347B

Page 1

ADC 1347B

Addendum to ADC 1347, Replies After 

SDR Closure Notices and Action Codes 1H and 3B (SDR)

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: Enterprise 

Business Standards Office (EBSO), Mr. Ben Breen, Deficiency/Discrepancy Administrator, 

e-mail: EBSO.SDR@dla.mil.

2. REFERENCES:

a. Approved Defense Logistics Management Standards (DLMS) Change (ADC) 1347, 

Mandatory Closure Notices for Supply Discrepancy Reports, June 29. 2020

b. ADC 1347A, Addendum to ADC 1347 Mandatory Closure Notices for Supply 

Discrepancy Reports, February 1, 2021

c. DLM 4000.25, Volume 2, Supply Standards and Procedures, Chapter 17, Supply 

Discrepancy Reporting 

3. APPROVED CHANGE(S):

a. Brief Overview of Change:

(1) This addendum will enhance WebSDR processing rules for records with 

Action Codes 1H/3B. WebSDR will identify these SDRs as closed and put them in a “closed 

status.” When the Inventory Control Point (ICP) responds to these SDRs with any reply code 

(for example, a 103, 144 or any other reply), WebSDR will keep this SDR status as Closed. This 

will also allow WebSDR to properly update Supplier Performance Risk System (SPRS) if a reply 

changes, adds, or removes a cause code on an SDR with Action Codes 1H/3B but WebSDR will

not reject this reply and will keep the status of the SDR as closed.

(2) Clarifies that WebSDR will allow a Completion Notification (Transaction Set 

Purpose Code (CN)) to be generated by the submitting system identification code. This will 

allow WebSDR to ensure that CNs are only generated by the system which created the SDR.

b. Background: 

(1) Currently, SDRs with Action Codes 1H (No action required; information 

only) and 3B (Discrepancy reported for corrective action and trend analysis; no reply required)

do not require the use of the CN to place the record in a closed status. ADC 1347 enhanced

communication between the submitting SDR system and the action activity. It documents and 

expands upon procedures regarding CNs generated for all SDRs regardless of submitting system 

or activity. (References 3.a., 3.b., and 3.c.)

(2) Currently the DLMS 842A/R transaction does not allow for a DoDAAC to be 

used when creating a CN to close the SDR. Therefore, when a new (00) SDR is generated with 
Attachment, ADC 1347B

Page 2

the submitter activity DoDAAC, when the CN is generated it is using the submitter activity 

Routing Identifier Code (RIC). WebSDR will only look at the submitting system identification 

code and validate the CN is generated by the same system which submitted the SDR. This will 

allow for better controls and ensure CN for SDRs will only process for SDRs created by the 

same system.

c. Approved Change in Detail:

(1) This addendum will enhance WebSDR processing rules for SDRs with 

Action Codes 1H/3B. WebSDR will identify these SDRs as closed and put them in a “closed 

status.” When the Inventory Control Point (ICP) responds to these SDRs with any reply code 

(for example, a 103, 144 or any other reply), WebSDR will keep this SDR status as Closed. This 

will also allow WebSDR to properly update SPRS if a reply changes, adds, or removes a cause 

code on an SDR with Action Codes 1H/3B but WebSDR will not reject this reply and will keep 

the status of the SDR as closed.

(2) Submitting SDR systems must be able to accept an SDR reply after the record 

has closed the SDR without causing rejections. 

(3) WebSDR will validate the submitting system identification code, and only 

allow CNs to process for SDRs which the same system created the original SDR. If the 

submitting system identification code generating the CN is different from the system which 

created the new original (00) SDR, WebSDR will reject this transaction with Reply Code 950 

(reference 3.a)

d. Revisions to Defense Logistics Manuals: Revise DLM, Volume 2, Chapter 17, 

Supply Discrepancy Reporting, as shown in the enclosure.

e. Approved Transaction Flow: Standard SDR business transactions apply.

4. REASON FOR CHANGE: Allow for replies to process for Action Code 1H/3B SDRs 

while keeping the status of the SDR as closed. 

5. ADVANTAGES AND DISADVANTAGES:

a. Advantages: SPRS will accurately reflect the vendor cause code after the vendor 

challenge process has been completed.

b. Disadvantages: None.

6. ADDITIONAL COMMENTS TO CONSIDER: None.

7. ESTIMATED TIMELINE/IMPLEMENTATION TARGET: Components to implement 

upon approval.

8. IMPACT: 

a. New/Changes Data Elements: None identified.
Attachment, ADC 1347B

Page 3

b. Automated Information Systems (AIS): Product Deficiency Reporting and 

Evaluation Program (PDREP), GSA Vision, DLA Distribution Standard System (DSS), Army 

Logistics Modernization Program (LMP), Air Force Security Assistance and Cooperation 

(AFSAC), Air Force Wholesale DO35K, Air Force Integrated Logistics System Supply (ILS-S) 

and DLA Enterprise Business System (EBS) SDR systems must be updated to process SDR 

replies to change the cause code after the CN has posted. Also, submitting systems must be 

updated to accept an incoming SDR reply after the CN has posted and closed the SDR. 

c. Defense Automatic Addressing System (DAAS): Update WebSDR to reflect 

changes identified in this change upon approval. Also, enforce generation of CNs by associating 

user roles to their System Access Request (SAR) roles and responsibilities. This will ensure only 

authorized personnel will be able to generate CNs for SDRs they are authorized to do so for. 

d. Non-DLM Publications: None identified.

9. PROPOSED DLMS CHANGE (PSC) 1347B RESPONSE/COMMENT RESOLUTION:

Component Response/Comment Disposition

1. DLA Concur without comment As noted.

1. Navy/PDREP Concur without comment As noted.

2. Air Force Concur without comment As noted. 

3. US Army Concurs without comments. As noted.

4. USMC Concur without comment. As noted.

5. DAAS Concur as written. As noted.

6. USTRANSCOM None. None noted.

7. GSA None. None noted.

8. ODASD Concur without comment. As noted.
Enclosure, ADC 1347B

Page 1

Enclosure 

Defense Logistics Manual (DLM) 4000.25, Volume 2, Supply Standards and Procedures

Make the following changes to Volume 2. Additions are shown in red bold italics and deletions shown 

in double strikethrough.

Chapter 17, Supply Discrepancy Reporting 

Intervening text not shown

C17.3.12.1.2.5. Completion Notification.

1 The submitting system will use a 

completion notification, identified by Transaction Set Purpose Code CN or Completion 

Notification in the SDR reply, will be used by the submitter to communicate with the action 

activity that final action has been taken on an SDR requiring a materiel disposition action.

The SDR system receiving the Completion Notification may close the SDR as well or keep 

it open for additional actions. Submission of a Completion Notification is required for all 

SDRs prepared by the submitter, with the exception of those clearly identified as being 

provided for information only and requiring no action activity reply (SDR Action Codes 1H or 

3B only). Action Code 1H or 3B SDRs will automatically be placed into a closed status

in WebSDR metrics. The completion notice may not be used to modify originally reported 

SDR data elements. The following sub-paragraphs provide more detailed information 

regarding Completion Notification processing. 

C17.3.12.1.2.5.1. When a Completion Notification processes against 

an SDR, the SDR cannot be reopened. The Completion Notification puts the SDR into a 

closed status and signifies the submitter has taken disposition action provided by the action 

activity. For SDR Document Type Code 6/9/P/W, WebSDR will process a Reply (Transaction 

Set Purpose Code 11) only when the action activity determines the cause code needs to be 

updated after the vendor challenge process has been completed. WebSDR will also allow a 

reply to process for all SDRs with Action Code 1H or 3B regardless of reply code. This 

will allow a Cause Code, acknowledgment (103) or any other reply indicating pertinent 

information to process on the SDR. All SDRs with the Completion Notification or 

Action Code 1H or 3B will remain in a closed status regardless if a reply processes. 

WebSDR will reject any other subsequent transaction submitted after a CN has processed 

with Reply Code 952.

C17.3.12.1.2.5.2. Completion Notifications can only be 

generated by the submitting system. WebSDR will reject with Reply Code 950 any attempt to 

generate a Completion Notification for an SDR that did not originate in the submitting 

system.

C17.3.12.1.2.5.3. The submitter will use a Completion Notification 

to inform the action activity that all action is complete using Reply Code 410.

C17.3.12.1.2.5.4. Under selected scenarios, the submitter will 

provide a completion notice without a response from the owner/manager when the SDR is 

automatically closed immediately after transmission. SDR Action Codes 1B (Materiel being 

1 Refer to ADC 1044A Clarification of Business Rules associated with SDR Replies for Status Update and 

Completion Notification
Enclosure, ADC 1347B

Page 2

retained) and 1G (Reshipment not required; item to be re-requisitioned) apply. A completion 

notice will be provided using Reply Code 410.

C17.3.12.1.2.5.5. The submitting system will prepare a completion 

notification using Reply Code 411 to notify the action activity that the SDR has been closed 

due to zero balance on record. This will not result in an investigation as it is generally the 

result of processing a release order during the interim period after the SDR was prepared and 

prior to execution of the disposition instructions. The action activity may close the SDR due 

to the materiel no longer being available. If SDR is a Document Type 9, then the action 

activity must take further action to locate new procurement materiel.

C17.3.12.1.2.5. Exceptions to the Completion Notification (CN) 

Requirement. SDRs with Action Codes 1H and 3B do not require the Completion 

Notification and will be placed in a closed status. When a reply is submitted, it will be 

posted to the record, but remain in the closed status without being systemically 

rejected by WebSDR. 

Intervening text not shown

C17.3.19. Defense Automatic Addressing System (DAAS) SDR Processing

C17.3.19.1. Under DLMS, SDRs are integrated with standard logistics transaction 

processing through DAAS. DLMS transaction formats are available in ASC X12 EDI or EDIbased XML. Guidance for transaction content is provided in DLMS ICs available on the 

DLMS IC page. DoD WebSDR will perform the following actions:

Intervening text not shown

C17.3.19.1.2.9. Edit new submission SDRs (transactions and direct 

input) to enforce the serial number convention that the serial number maximum field length 

may not exceed 30 characters and may only include alpha numeric (A-Z, 0-9), dashes and 

forward slashes. Spaces are not allowed. Reject SDRs with serial numbers not meeting this 

convention using new Reply Code 947 (Transaction Rejected. Invalid serial number length or 

convention.

C17.3.19.1.2.10. WebSDR will reject with Reply Code 952 any 

subsequent transaction submitted after a Completion Notification has processed except 

when the action activity must update the vendor non-compliance cause code once the DOD 

vendor challenge process is completed for SDR Document Type Codes 6/9/P/W SDRs. 

C17.3.19.1.2.11. WebSDR will reject with Reply Code 950 any attempt 

to generate a Completion Notification for an SDR that did not originate in the submitting 

system.

C17.3.19.1.2.12. WebSDR will reject with reply code 927 any 

Completion Notification with a reply code other than 410, 411 or 412. The narrative 

rejection comments will state” Reply Code 410, 411 or 412 are the only authorized reply 

codes used with Completion Notification transactions.” 
Enclosure, ADC 1347B

Page 3

C17.3.19.1.2.13. WebSDR will place SDRs with Action Codes 1H or 

3B into a closed status. The ICP may respond with any reply code (for example, a 103, 

144 or any other reply) and WebSDR will process any replies without rejecting them 

and the record will remain in the closed status.