DEFENSE LOGISTICS AGENCY 

HEADQUARTERS 

8725 JOHN J. KINGMAN ROAD 

FORT BELVOIR, VIRGINIA 22060-6221 

Corrected ccmy - January 13, 2015 

December 16, 2016 

MEMORANDUM FOR SUPPLY AND SUPPLY DISCREPANCY REPORT (SDR) PROCESS 

REVIEW COMMITTEE (PRC) MEMBERS 

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

1126, Revised Supply Discrepancy Report (SDR) Routing Rules for Non-Manager 

Owned Suspended Stock Identified at Time of Receipt at DLA Distribution Centers 

and Improved Identification of Owner and Manager on SDR Transactions 

(SDR/Supply) 

The attached change to DLM 4000.25, Defense Logistics Management System, is for 

implementation. See paragraph 9 of the attachment for details of the implementation plan. 

Addressees may direct questions to Ms. Ellen Hilert, DOD SDR System Administrator, 703-

767-0676 or DSN 427-0676, e-mail: ellen.hilert@dla.mil; others must contact their Component 

designated Supply PRC representative or SDR Subcommittee representative available at 

https://www.dla.mil/j-6/dlmso/CertAccess/SvcPointsPOC/allpoc.asp. 

Attachment 

As stated 

cc: 

ODASD (SCI) 

Defense Packaging Policy Group 

~ALDC.P Director 

Defense Logistics Management 

Standards Office 
Attachment to ADC 1126

Revised Supply Discrepancy Report (SDR) Routing Rules for 

Non-Manager Owned Suspended Stock Identified at Time of Receipt at 

DLA Distribution Centers and Improved Identification of Owner and 

Manager on SDR Transactions

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: 

a. Technical POC: Ms. Ellen Hilert, DOD SDR System Administrator, 703-767-0676 

or DSN 427-0676, e-mail: ellen.hilert@dla.mil

b. Functional POC: Ms. Ellen Hilert, DOD SDR System Administrator, 703-767-0676 

or DSN 427-0676, e-mail: ellen.hilert@dla.mil

2. FUNCTIONAL AREA: Supply Discrepancy Reporting 

3. REFERENCES:

a. DLM 4000.25-M, Defense Logistics Management System, Volume 2, Supply, 

Chapter 17, Supply Discrepancy Reporting Procedures 

b. 14-2 PRC Focused Topic Meeting: Quality Related Receipt Notification SDRs (May 

7, 2014)

c. DTR 4500.9-R, Defense Transportation Regulation, Part II, Appendix L

4. APPROVED CHANGE(S): Substantive changes subsequent to formal staffing are 

identified by green highlighting.

a. Brief Overview of Change: 

(1) This change revises routing rules and provides improved procedures for 

processing “receipt notification” SDRs for materiel suspended upon receipt based upon managerprovided screening criteria. These SDRs do not report a supply discrepancy; they instead report 

receipt of materiel meeting specific quality-related criteria identified by the three-position Qseries discrepancy code. The approved procedures will facilitate return of suspended quality 

deficient materiel to the item manager responsible for the screening action and subsequent 

reimbursement for the current owner using defined business rules. In order to support the 

revised procedures, this change establishes: (1) a new SDR action code for use on receipt 

notification SDRs for non-manager owned materiel, and (2) a new interim SDR reply code for 

use by the storage activity in response to premature SDR replies by the owner. Additionally, this 

change authorizes consolidation of two existing receipt notification three-position Q-series 

discrepancy codes.

(2) In conjunction with the above changes, SDR transaction formats are modified 

to support data fields to identify the owner and manager as distinct organizations separate from 

Attachment, ADC 1126

Page 1
the current mixed use data field used for owner, item manager, or source of supply (SoS) 

dependent upon the document type code/scenario.

b. Background:

(1) When the item manager submits a Stock Screening Request (DLMS 842CI 

transaction or equivalent email request) to DLA Distribution Centers, all stock under DLA 

Distribution visibility is screened regardless of ownership. SDRs prepared as a result of 

screening new receipts by DLA Distribution Centers may be submitted to the item manager 

using SDR Document Type 9 (indicating a procurement source receipt), or to the owner using 

SDR Document Type R (indicating a redistribution receipt) or Document Type 8 (indicating a 

return). The screening process is used by the item manager to identify all materiel that is 

associated with a suspected quality deficiency reported via Product Quality Deficiency Report 

(PQDR) or subject to some other type of investigation (e.g., counterfeit materiel/unauthorized 

product substitution (CM/UPS)). In order to accomplish the screening, DLA Distribution creates 

a receipt restriction screen for each applicable location perpetuating applicable criteria from the 

item manager’s screening request. Typical screening criteria include national stock number

(NSN), manufacturer’s commercial and government entity (CAGE) code, or a combination of 

CAGE and manufacturer’s part number. The receipt restriction is established within the 

Distribution Standard System (DSS) for the suspect materiel to ensure that matching materiel 

being received will be screened while the associated stock screening action is open for materiel 

in storage. In addition, a receipt restriction can be requested by the item manager independent 

from the stock screening request, and this can remain open indefinitely. When materiel meeting 

the criteria established for receipt restriction is discovered during receipt, the materiel is 

suspended, and a “receipt notification” is sent to the materiel owner (manager for Document 

Type 9) using the SDR as the reporting mechanism. (This is in addition to the receipt 

transaction.) The quality-related three-position Q-series discrepancy codes used on these SDRs

do not indicate a supply discrepancy, but rather a storage activity receipt of materiel requiring 

special processing due to a potential quality deficiency. When the owner is different than the 

manager requesting the screening, the owner may not understand the underlying reasons for the 

suspension of the materiel (remarks text on the SDR may provide criteria without explanation for 

the cause). The owner has no recourse for obtaining resolution other than to submit another SDR 

for the same materiel to the manager (using SDR Document Type 7), since there are no 

alternative procedures for the owner to obtain credit or disposition instructions from the manger. 

(2) The DLMS transaction was designed to minimize impact when replacing

existing point-to-point transactions used between DSS and the original DLA inventory control 

point (ICP) system. In order to accomplish this, a mixed purpose data field was employed to 

identify the owner, item manager, or SoS based upon the document type code. For example, 

SDRs prepared using the Automated Discrepancy Reporting System (ADRS) within DSS as 

Document Type 9 (procurement source receipt discrepancies) always identified the item 

manager, while SDRs prepared as Document Type 8 (non-procurement source distribution center 

receipts other than redistribution actions) always identified the owner based upon DSS records. 

SDRs submitted to the distribution center for processing by the DSS Incoming SDR (ISDR) 

system by customers were expected to identify the SoS. Unfortunately, this approach has 

resulted is a continuing source of confusion among users and doesn’t accommodate various 

supply support scenarios adopted by DOD over recent years.

Attachment, ADC 1126

Page 2
c. Approved Change in Detail:

(1) Change 1 – Revise DLA Distribution Center Procedures for “Receipt 

Notification” SDRs for Non-Manager Owned Suspended Materiel

(a) SDR Routing. Revise DLA Distribution Standard System (DSS)

logic to identify the SDR action activity as the item manager for receipt notification SDRs 

resulting from manager-directed screening actions. This applies to SDRs containing

Discrepancy Codes Q22 thru Q77 (these procedures are not applicable to Discrepancy Codes 

Q11 (PQDR exhibit receipt) or Q99 (first article testing receipt)) (refer to Enclosure 3 for Qseries discrepancy code definitions). When the owner is other than the manager, the SDR will 

also identify the owner as an information copy recipient. This applies to the following list of 1

(b) SDR Action Code. Each SDR directed to the item manager rather 

than the current owner under these procedures will include new SDR Action Code 4A (item 

manager disposition requested for non-manager owned suspended stock per receipt screening; 

no action by owner pending item manager response).

(c) SDR Remarks. Because the stock screening request criteria is 

perpetuated to the receipt restriction screen used by receiving personnel, this information may 

also be perpetuated to the SDR remarks. Stock screening request and SDR preparation 

guidance must be updated to direct that remarks be as informative as possible and written in a 

way that supports all related uses.

(d) DOD WebSDR SDR Reply Distribution 

1. WebSDR will ensure that all replies to SDRs containing Action 

Code 4A are provided to both the owner and the manager. That is, the owner will receive a copy 

of the SDR reply provided by the manager and the manager will receive a copy of the SDR reply 

prepared by the owner, even though the reply identifies the storage activity as the intended 

recipient. If the reply transactions prepared by either the owner or manager doesn’t identify the 

applicable information copy recipient, the information recipient will be added by DOD 

WebSDR. There is one exception to this rule for rejection replies containing Reply Code 522; 

see below. 

2. When the SDR contains SDR Action Code 4A, DSS logic will 

take no action based upon disposition instructions provided by the owner prior to an SDR reply 

from the manager. Based upon the situation, the disposition provided by the manager may return 

the materiel to its original condition or ask the owner to transfer ownership to the manager. DSS 

will respond to the premature SDR reply from the owner using new interim Reply Code 522 

(resolution pending investigation/response from item manager) using a status update reply 

(Transaction Set Purpose Code SU). This transaction will not identify the manager as a recipient 

and will not be copied by WebSDR to the manager.

1 Sentence fragment deleted as administrative correction to ADC on January 13, 2015.

Attachment, ADC 1126

Page 3

 
(e) SDR Processing 

1. The manager will reply to the SDR based upon the situation. 

a. Where an immediate response is not possible due to an 

ongoing investigation, the manager will provide an interim response (e.g. Reply Code 520

(SDR materiel undergoing test/evaluation) Reply Code 521 (SDR resolution pending PQDR 

review)).

b. A typical manager final response may direct the return 

of the materiel to its original supply condition code when the cause for the suspension is resolved 

with no adverse action or the materiel was suspended unnecessarily. The distribution center will 

upgrade the materiel condition and provide a completion notice (Transaction Set Purpose Code 

CN) to both the manager and an information copy to the owner. 

c. Another typical scenario will be for the manager to 

instruct the owner to return the materiel to the manager for reimbursement, thereby allowing the 

manager to subsequently direct return of the materiel to the vendor or shipment to DLA 

Disposition Services. Concurrent with providing the SDR reply instructing this action, the 

manager will provide a Pre-positioned Materiel Receipt (PMR) (DLMS 527/DIC DW_) to the 

distribution center holding the materiel indicating the receipt will be reported to the manager. 

This PMR will allow the manager to monitor for receipt of the directed return by document 

number. The manager’s SDR reply will clearly define the necessary steps:

[1] The reply will specify that the owner return the 

materiel to the manager using “ship-to self/shipment in-place” procedures. The reply will 

include interim reply code 523 (Return materiel to manager at current location). This will be 

accomplished by the owner providing a Materiel Release Order (MRO) (DLMS 940R/Document 

Identifier Code (DIC) A5_) to the distribution center holding the materiel identifying that

distribution center’s DoDAAC as the ship-to activity. This MRO will use the document number 

provided by the manger on the SDR reply. The result of this process is ownership transfer with 

all the necessary transactions for compliance/auditability without physical movement of the 

materiel. DSS will receive a copy of this interim reply transaction, but will not update the 

internal SDR status.

[2] The manager reply will tell the owner to provide an 

SDR reply containing the document number(s), if known, for the original requisition from the 

manager. 

[3] The owner reply will confirm that the MRO has 

been processed and provide document number(s) for credit using interim Reply Code 524 

(materiel returned at current location for credit). If original document number(s) is(are) not 

available, a constructed document number may be substituted for the original requisition 

document number. A constructed document number is recognized by the letter “U” in the first 

position of the document number serial number and by the Utilization Code U in transactions (as 

a DLMS enhancement). DSS will receive a copy of this interim reply transaction, but will not 

update the internal SDR status.

d. DSS will provide a shipment status for materiel 

processed under the ship-to-self process and must assign a unique transportation control number 

Attachment, ADC 1126

Page 4
(TCN) since the document number used for this action is perpetuated from the SDR and,

therefore, represents a prior movement. The document number for a directed return may be 

reused, but TCNs for each “movement” must be unique (see paragraph H of reference 3.c.).

e. Where applicable, credit will be provided upon 

resolution with the completion of the applicable investigation and transfer of materiel to item 

manager ownership. It will not be provided up front, based solely upon the SDR submission. 

(f) Follow-up. DSS will systemically follow-up on open SDRs, so the 

materiel owner in receipt of the information copy of Q-series SDRs will not need to initiate a 

follow-up to the manager. DSS will also systemically follow-up on open SDRs where the 

manager has requested that materiel be returned, but the owner has not responded with the 

required action. 

(g) SDR Resolution 

1. If the manager has provided an SDR reply indicating that 

materiel should be returned to its original condition and no further action is required, the 

distribution center will take action to close the SDR and provide a completion notice to all 

parties involved.

2. Where transfer of ownership was requested and accomplished, 

the manager will provide final disposition instructions to the distribution center via SDR reply, 

e.g., directing disposal action or return of discrepant materiel to the vendor. The reply 

transaction provided for final disposition will identify the manager RIC as the owner.

(h) Completion Notice. Upon completion of disposition instructions 

provided by the manager, the distribution center will provide a completion notice (Transaction 

Set Purpose Code CN) to all parties.

(2) Change 2 – Combine Selected Q-series Discrepancy Codes. The 

Discrepancy Codes Q22 and Q44 will be merged since these codes are not discernibly different. 

The resulting code explanation will read:

“Q22 New procurement receipt, customer return, redistribution order, or stock screen item 

quality deficiency, contractual non-compliance, including specification and/or 

technical data deficiency”

(3) Change 3 – DLMS Implementation Convention (IC). Revise ICs as shown 

at Enclosure 4. Updates include separate identification of the owner, manager, and SoS data 

fields and an administrative revision.

(a) New Owner and Manager Data fields: 

1. The owner and item manager must be identified by Routing 

Identifier Code (RIC) on storage activity SDRs (Document Type 8, 9, A, N, P, R). The owner 

and manager data fields may be populated concurrently with the same values. 

Attachment, ADC 1126

Page 5
2. For DLA Disposition Services SDRs (Document Type D) the 

owner will be used to identify DLA Disposition Services (RICs S9D or S9W) as the owner for 

materiel turn-ins, with the exception of materiel that was not accepted. For this situation, the 

owner may be left blank and the original owner of the materiel will be understood to be the 

current owner. The manager field will not be mandatory, but should be populated when 

available.

(b) SoS data field:

1. The SoS must be identified by RIC on customer SDRs 

(Document Type 6, 7, and V.) The SoS is the activity that directed the shipment (e.g., issued the 

release order to the storage activity or procured the materiel for direct vendor delivery). The SoS 

is normally the item manager, but may be another organization for lateral shipments within a 

Service. The manager field will not be mandatory, but should be populated when available.

2. For transshipper SDRs (Document Type W), the SoS will be 

identified as the activity that directed the shipment regardless of the type of shipment involved. 

The manager field will not be mandatory, but should be populated when available. The owner 

field will be the same as the SoS since ownership is retained by the original owner while the 

materiel is in-transit. 

d. Revisions to DLM 4000.25 Manuals: Refer to Enclosures 2 and 3.

e. Transaction Flow: Refer to Enclosure 1. 

f. Alternatives: None identified.

g. Proposed DLMS Change 1126 Staffing Response/Comment Resolution:

Originator Response/Comment Disposition

1. DLA Concur

1. The business rules say that all parties will 

receive a copy of all transactions based upon 

the use of Action Code 4A; however DLA will 

not be able to process DSS SDR replies with 

Reply Code 522. 

2. The PDC procedures have the completion 

notice being transmitted after ownership 

transfer, but the SDR must remain open until 

the manager provides final disposition 

instructions. 

3 Additional interim reply codes should be 

assigned to associate SDR transactions with 

steps 11 and 14. This will facilitate DSS 

processing, allowing the SDR to remain open 

until final disposition is given by the manager.

Noted.

1. Procedures updated to require 

DSS to direct Reply Code 522 to 

the owner only without 

WebSDR providing a copy to 

the manager.

2. Procedures updated to insert 

manager disposition instructions 

prior to transmission of the 

completion notice. Based upon 

DLA comments, the flow 

diagram is updated to include 

steps 17 and 18.

3. New interim Reply Codes 

523 and 524 assigned, 

respectively.

Attachment, ADC 1126

Page 6
Originator Response/Comment Disposition

2. Navy Concur Noted.

3. Air Force Concur Noted.

4. Marine Corps Concur

An administrative correction should be made to 

reference (a) on page 4 paragraph 4.c(3). 

“Change 2 is redundant and should be corrected 

to say “Change 3”.

Noted.

Fixed.

5. Army Concur Noted.

6. SDR 

Administrator

1. The administrative correction (Enterprise 

Identifier note) applies to the DLMS 842A/W

rather than the 842A/R as originally shown. 

2. The PMR must include the WebSDR 

Control Number to link the directed return 

receipt with the SDR since the document 

number for the return will differ from that on an 

SDR for a receipt notification triggered by 

stock screening action/receipt restriction. 

1. IC change table updated.

2. ADC updated to document 

the PMR requirement to be 

submitted by separate PDC.

5. REASON FOR CHANGES: This change provides documented procedures for resolution of 

SDRs resulting in suspended non-manager owned materiel after manager-requested stock 

screening. These procedures eliminate the need for a second SDR for the same receipt (storage 

activity-initiated SDR to owner followed by owner-initiated SDR to manager). Additionally, 

these procedures provide immediate visibility to the manager of all materiel suspended as a result 

of the manager-requested screening action.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: 

(1) New business rules will provide better clarity and more streamlined 

processing of quality-related SDRs identified at the time of receipt, when the materiel owner and 

materiel manager are not the same.

(2) The approved procedures will allow the materiel manager to provide 

disposition and financial resolution without the double SDR reporting that is currently used. 

(3) The procedures outlined provide a step-by-step process that may be repeated 

by all distribution centers, owners, and managers. 

b. Disadvantages: None identified.

Attachment, ADC 1126

Page 7
7. ADDITIONAL COMMENTS:

a. Discrepancy Code Q11. After consultation with DLA and Air Force representatives, 

it was determined that receipt notification SDRs for PQDR exhibit receipt should be excluded 

from the revised routing rules under this change. The exhibit return may have been at the request 

of the owning Service and not the item manager. The appropriate approach for these is for the 

responsible activity to provide a PMR for the exhibit return to ensure that it is properly receipted. 

The SDR should then be directed to the same organization as the receipt, be that the owner or the 

manager. 

b. Discrepancy Code Q99. Receipt of materiel for first article testing will be reported 

to the manager as a procurement source receipt (Document Type 9) and, therefore, will already 

be reported to the correct action activity and will not require subsequent ownership transfer.

8. ADDITIONAL FUNCTIONAL REQUIREMENTS: 

a. A separate DLMS change proposal (identified as draft PDC 1084) is under 

development to document revised procedures for processing Storage Quality Control Reports

(SQCRs) for non-manager owned materiel subsequent to a manager submitted stock screening 

request for materiel in storage. The approach outlined in the this ADC for transfer of ownership 

to the manager after SDR processing is the same methodology planned for transfer of ownership 

to the manager after processing of SQCRs outlined in draft PDC 1084. It is anticipated that DLA 

will implement this ADC in conjunction with draft PDC 1084.

b. DLA will prepare a separate DLMS change proposal to adjust the PMR format to 

include the WebSDR control number. This will link the SDR with the ownership transfer 

accomplished by the ship-to-self MRO provided by the original owner. 

9. ESTIMATED TIME LINE/IMPLEMENTATION TARGET:

a. DLMS IC changes will be published upon approval; the target implementation date 

for data field breakout (SoS/owner/manager) is November 2015. Expedited implementation is 

authorized. Due to staggered implementation dates, Components should ensure transactions do 

not fail if additional data fields are included prior to integrating capability to retain the separately 

identified data fields within the Component SDR system. 

b. Data element code value updates will be published to the DLMS Dictionary March 1, 

2016. 

c. DLA implementation for the new procedures is planned for March 2016. DLA and 

DSS implementation must be concurrent. Due to the extended implementation schedule, all 

Component SDR systems are requested to implement concurrent with DLA systems. 

10. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: Not available.

11. IMPACT:

a. New DLMS Data Elements: None identified.

Attachment, ADC 1126

Page 8
b. Changes to DLMS Data Elements: Refer to Enclosure 3 for detailed information.

(1) Add SDR Action Code 4A, Manager disposition requested for non-manager 

owned suspended stock per receipt screening; no action by owner pending item manager 

response.

(2) Add SDR reply codes:

(a) Reply Code 522, Discrepancy report resolution pending 

investigation/response from item manager,

(b) Reply Code 523, Manager notification to owner: return materiel to 

manager at current location.

(c) Reply Code 524, Owner notification to manager: materiel returned at 

current location for credit.

(3) Revise the narrative explanation for Discrepancy Code Q22 and delete 

Discrepancy Code Q44 (effectively merging these two codes). 

c. Automated Information Systems (AIS): As applicable, Component SDR systems 

must be updated as follows.

(1) Recognize/post all identified code and transaction format revisions described 

above.

(2) Automate business rules to the degree possible. This could include 

precluding premature owner response to SDRs citing Action Code 4A, and scripted narratives for 

manager SDR replies to ensure all the pertinent rules are delineated for the owner. When/if 

feasible, the owner or manager system should be updated to flip the organizations identified to 

receive the SDR reply when applicable, so that the distribution center becomes the copy recipient 

of the reply and the owner or manager (as applicable) is designated as the “to” activity on the 

transaction.

(3) The owner or manager receiving a distribution copy of the reply prepared by 

either the owner or manager must recognize when the contents of the reply are directed toward 

the that activity rather than the distribution center.

(4) The manager must be able to provide credit based upon an SDR identified by 

Document Type 8 (systems such as DLA’s Enterprise Business System (EBS) provide credit on 

customer SDRs (Document Type 7) rather than distribution center receipt SDRs). 

(5) DSS changes include recognizing the scenario and properly constructing the 

SDR with the new action code and proper routing of the SDR to the manager with an 

information copy to the owner. DSS must also recognize premature owner replies and respond

with a status update to clarify that the SDR will remain open pending the manager response.

d. DLA Transaction Services: Significant changes to DOD WebSDR include the 

following.

Attachment, ADC 1126

Page 9
(1) Recognize/post all identified code and transaction format revisions described 

above. WebSDR screens will be modified to add two additional data fields for identification of 

the owner and manager and require that these be populated for storage activity prepared SDRs

(Document Type A, P, N). 

(2) Ensure that the applicable owner or manager replies are distributed to all

parties (distribution center, owner, and manager), even if not identified by the activity preparing 

the reply. If prepared by the owner, the manager will be designated as a party to receive a copy; 

if prepared by the manager, the owner will be designated as a party to receive a copy. As an 

exception, SDR rejection replies with Reply Code 522 will not be copied to the manager.

e. Non-DLM 4000.25 Series Publications: Process revisions may require update to 

internal operating procedures.

Attachment, ADC 1126

Page 10
Enclosure 1, Process Flow Diagram

ADC 1126, Enclosure 1

Page 1
Enclosure 2, Defense Logistics Manual (DLM) Revisions

Changes are identified by bold red italics and strike-though text.

A. Revise DLM 4000.25, Defense Logistics Management System, Volume 2, Chapter 17, Supply 

Discrepancy Reporting, as shown. 

C17.3.2.9. Receipt Notification SDRs for Quality-Related Issues Identified During Distribution 

Center Receipt. Three-position Q-series discrepancy codes have been developed to accommodate materiel 

owners/managers with special programs requiring immediate visibility and notification of quality deficient 

(or potentially deficient) materiel received at the distribution center. These codes are applicable for 

reporting to ICP/IMMs via the SDR process, based upon special inspection requests by the materiel owner

manager. These reports are contingent upon pre-existing receipt restriction requirements that identify the 

National Stock Number (NSN) and/or other screening criteria and specific actions the materiel owners

managers expects the distribution center to perform. Some of the specific programs that require reporting 

of quality-related concerns for receipts, including new procurement and customer returns, are: PQDR 

exhibits, items identified as customer return improvement initiative (CRII) items, critical safety items,

(CSI), items that failed under use, and items requiring First Article Testing. Additionally, receipt of PQDR 

exhibits will be reported to the owner or manager using the applicable three-position Q-series discrepancy 

code. For PQDR exhibits, report the receipt and SDR to the same organization (based upon the PMR, 

when available). Report suspended materiel in the appropriate supply condition code (SCC) under 

DLMS/MILSTRAP procedures, to include PQDR exhibit receipts in SCC Q and CSI in SCC L for 

procurement source receipts or SCC K for non-procurement source receipts. For other than PQDR 

exhibits or first article testing, provide the SDR to the manager with a distribution copy to the owner, if 

different. Disposition instructions for these SDRs will be provided by the manager (a response from the 

owner prior to the manager response will be considered premature and will result in a status update 

from the distribution center indicating that the SDR is still pending manager response (Reply Code 

522)). The manager will provide an interim response if the SDR will remain open for an extended 

period pending investigation. If resolution of the SDR requires the materiel to be returned to the 

manager, the manager will request that the owner direct ownership transfer using “ship-to-self/shipment 

in-place” procedures and provide document number(s) applicable to the original requisition (or a 

constructed document number) for reimbursement. Interim Reply Code 523 applies. The manager will 

provide a PMR to the distribution center to ensure proper processing of the receipt resulting from the 

shipment in-place and to allow the manager to monitor for the directed return. The owner will provide 

an SDR reply with applicable document number(s) for credit and confirm materiel release order for 

ownership transfer at the current location. Interim Reply Code 524 applies. In this situation, the SDR 

will remain open until the manager has provided disposition instructions for the discrepant materiel and 

the distribution center has completed this action. At this point, the distribution center will provide a 

completion notice to the manager with an information copy to the original owner.

ADC 1126, Enclosure 2

Page 1
Enclosure 3, DLM Appendix Updates 

Revise DLM 4000.25, Volume 2, Appendix 3, Supply Discrepancy Report Relevant Data Elements, as 

shown. 

Changes are identified by bold red italics and strike-though text. Intervening text between updated 

paragraphs or sections is not shown.

AP3.2. SHIPPING AND PACKAGING DISCREPANCY CODES

Quality-Related Deficiency Receipts/Stock Screening (DLA Distribution Center Only)

Q11 Returned or stock screen item, PQDR exhibit deficiency

Q22 New procurement receipt, customer return, redistribution order, or stock screen item quality 

deficiency, contractual non-compliance, including specification and/or technical data deficiency

Q33 Returned, redistribution order, or stock screened item suspected materiel deficiency (DLA

Customer Returns Improvement Initiative (CRII) items only)

Q44 New procurement receipt, customer return, redistribution order or stock screen item contracting 

deficiency, for specification and/or technical data deficiency

Q55 Item under investigation

Q66 Customer return or stock screen item failed under use

Q77 New procurement receipt, customer return, or redistribution order receipt of stock screen item 

identified as a suspected critical safety item (CSI) discrepancy

Q99 New receipt item received for First Article Testing

----------

AP3.3 SDR REQUESTED ACTION CODES. The SDR Requested Action Code is used to provide a 

description of the action requested by the initiator of the SDR. This data element may be referred to as the 

SDR Action Code. This is a two position alphanumeric code. Only one action code may be used per SDR 

under DLMS. Preprinted codes on the face of the SF 364 may be supplemented from this list.

SDR ACTION CODES

4A Manager disposition requested for non-manager owned suspended stock per receipt screening; 

no action by owner pending manager response.

----------

AP3.4 DISCREPANCY STATUS OR DISPOSITION (REPLY) CODES. 

Action activities use the Discrepancy Status or Disposition (Reply) Codes to codify a response to an SDR. 

This data element may be referred to as an SDR Reply Code. It is a three position numeric code. Up to 

three reply codes may be used on a single report to provide complete financial and materiel disposition 

instructions and provide additional information as needed. Codes may be used to replace or supplement 

preprinted information on the reverse side of the SF 364. System design should accommodate clear text for 

ease of use and interpretation.

ADC 1126, Enclosure 3

Page 1
Reply Codes

The 500-series (and some 100-series) codes indicate an interim reply:

520 SDR materiel undergoing test/evaluation.

521 SDR resolution pending PQDR review.

522 Discrepancy report resolution pending investigation/response from item manager.

523 Manager notification to owner: return materiel to manager at current location.

524 Owner notification to manager: materiel returned at current location for credit.

ADC 1126, Enclosure 3

Page 2
Enclosure 4, DLMS Implementation Conventions (ICs) Revisions

Revise DLMS SDR transactions as shown:

# Location Change Table for 

842A/R Standard SDR Reply

Reason

1. DLMS 

Introductory 

Note

Add ADC 1126 to DLMS Introductory note: 

- ADC 1126, Revised Routing Rules for Non-Manager-Owned 

Suspended Stock Identified at Time of Receipt at DLA 

Distribution Centers and Improved Identification of Owner and 

Manager on SDR Transactions

To identify DLMS changes 

included in the DLMS.

2. 2/N101/4100 Revise DLMS note for existing Qualifier SUS and add new 

Qualifiers HA and KA with associated DLMS notes:

SUS Supply Source

DLMS Note:

1. Use as applicable to identify the source of supply (SoS) by 

Routing Identifier Code (RIC). Must use for customer SDRs 

(Document Type 6, 7, and V), to identify the source of supply 

(SoS) source by Routing Identifier Code (RIC); this is the party 

that directed the shipment. For storage activity-generated SDRs 

for new procurement, returns, and redistributions this will be the 

owner.

2. For transshipper prepared SDRs (Document Type W), use to 

identify the party that directed the shipment.

HA Materiel owner

DLMS Note: 

1. Use as applicable to identify the materiel owner by RIC. 

Must use for storage activity SDRs (Document Type 8, 9, R, A, 

N, and P).

2. For DLA Disposition Services prepared SDRs (Document 

Type D), use to identify DLA Disposition Services as the owner 

for materiel turn-ins with the exception of materiel that was not 

accepted. For this situation, the owner may be left blank and 

the original owner of the materiel will be understood to be the 

current owner.

KA Materiel manager 

DLMS Note:

Use as applicable to identify the item manager by RIC. Must 

use for use for storage activity SDRs (Document Type 8, 9, R, 

A, N, and P). 

Allows for separate identification 

of the owner, manager, and SoS.

ADC 1126, Enclosure 4

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# Location Change Table for 

842A/W Standard SDR Report

Reason

1. DLMS 

Introductory 

Note

Add ADC 1126 to DLMS Introductory note: 

- ADC 1126, Revised Routing Rules for Non-ManagerOwned Suspended Stock Identified at Time of Receipt at DLA 

Distribution Centers and Improved Identification of Owner 

and Manager on SDR Transactions

To identify DLMS changes 

included in the DLMS.

2. 2/N1/2800 Delete segment level DLMS Note:

DLMS Note: 

Use in IUID loop to identify the Enterprise Identifier.

Administrative correction not 

related to this ADC business 

process. This note is obsolete; 

the enterprise identifier for item 

unique identification (IUID) is 

not provided via an SDR.

3. 2/N101/2800 Revise DLMS note for existing Qualifier SUS and add new 

Qualifiers HA and KA with associated DLMS notes:

SUS Supply Source

DLMS Note:

Use to identify the owner or manager by Routing Identifier; this 

is the party that directed the shipment (Source of Supply) when 

applicable to wholesale requisitions.

1. Use as applicable to identify the source of supply (SoS) by 

Routing Identifier Code (RIC). Must use for customer SDRs 

(Document Type 6, 7, and V), to identify the source of supply 

(SoS) source by Routing Identifier Code (RIC); this is the party 

that directed the shipment. For storage activity-generated SDRs 

for new procurement, returns, and redistributions this will be the 

owner.

2. For transshipper prepared SDRs (Document Type W), use 

to identify the party that directed the shipment.

HA Materiel owner

DLMS Note: 

1. Use as applicable to identify the materiel owner by RIC. 

Must use for storage activity SDRs (Document Type 8, 9, R, A, 

N, and P).

2. For DLA Disposition Services prepared SDRs (Document 

Type D), use to identify DLA Disposition Services as the owner 

for materiel turn-ins with the exception of materiel that was 

not accepted. For this situation, the owner may be left blank 

and the original owner of the materiel will be understood to be 

the current owner.

KA Materiel manager 

DLMS Note:

1. Use as applicable to identify the item manager by RIC. 

2. Use to identify the item manager for the incorrect (wrong) 

item received by Routing Identifier (RI).

3. Must use for use for storage activity SDRs (Document Type 

8, 9, R, A, N, and P). 

Allows for separate identification 

of the owner, manager, and SoS.

ADC 1126, Enclosure 4

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