1. 1 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT Prepositioned Materiel Receipt (PMR) Defense Logistics Management Standards Office October 22, 2014

2. 2 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 2 PROBLEM: PMRs are not consistently provided to storage activities FIX: Components ensure supply systems generate PMRs as required by DoD policy and procedures WHY:  Absence of the PMR degrades the receipt process and accurate DoD accountability – can ultimately result in materiel being reported to the wrong owner, high volume of Supply Discrepancy Reports, and time lost time on manual research  Failure to generate PMRs (and timely updates) to receiving storage activities is an Audit Readiness Issue Pre-positioned Materiel Receipt

3. 3 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 3 PMR is required by DoD Policy DoDM 4140.01, Vol 5 (DoD Supply Chain Materiel Management Procedures: Delivery of Materiel), Enclosure 3, page 29 c. For due-in records, receiving activities will: (1) Record all anticipated receipts of materiel from any source (i.e., procurement, redistribution, requisitioning, and returns to include excess, retrograde, and directed return of discrepant or deficient materiel) as materiel due-in. (a) If the source of the materiel due-in is a contractor, the materiel due-in should identify if destination acceptance is required. (b) Classify accounting for progress payments made to contractors as prepaid assets, rather than as inventory consistent with DoD inventory valuation policy. (2) Provide a current record of all anticipated materiel receipts to receiving storage activities through the use of the appropriate prepositioned materiel receipt transactions as defined by Reference (q). DLMSO Comment: Receiving activity in paragraph c, denotes the activity to which the Receipt is being reported (owner) PMR Policy Excerpts – DoD

4. 4 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 4 DoDM 4140.01, Vol 6 (Materiel Returns, Retention and Disposition), Enclosure 3, page 10 d. The materiel manager will: (1) Establish an asset due-in quantity upon directing materiel to be returned to a wholesale stockage or repair location. (2) Establish an asset due-in quantity when confirmation has been received that such materiel has been shipped to a wholesale distribution or maintenance depot, whether organic or commercial. DoDM 4140.01, Vol 6, Enclosure 3, page 10 h. The responsible organization may direct return of discrepant materiel to a specified location, authorize the receiving activity to retain the discrepant materiel at no cost, or dispose locally or through the DLA Disposition Services. Upon directing a return to a DLA Distribution Depot, the responsible organization must establish a due-in and provide a prepositioned materiel receipt to the receiving activity under chapter 12 of Reference (m). PMR Policy Excerpts – DoD

5. 5 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 5 DLM 4000.25, Vol 2, Chapter 11, Materiel Returns, Redistribution of Assets, Directed Discrepant/Deficient Materiel Returns and Retrograde Returns  C11.9 Automatic Returns [Intervening text not shown] “C11.9.6. Source of Supply Processing of Automatic Return Notification. Upon receipt of DLMS 180M [FTA] Automatic Return Notification, the SICA will establish a due- in and generate a PMR transaction to the receiving activity for the quantity in the DLMS 180M Automatic Return Notification transaction. The due-in and the PMR transaction will be created under Chapter 12 procedures. Note: For unserviceable NIMSC 5 items, the SICA will send a DLMS 180M Automatic Return Notification, with data elements specified in C11.9.3, to the PICA. The PICA will establish the due-in and send the PMR transaction to the receiving depot.” Select DLMS Procedure – Automatic Returns

6. 6 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 6 Component (1) FTA Automatic Returns and no PMR generated by Component (2) ERP that received the FTA –Can result in DLA reporting receipt to an incorrect owner when no PMR exists Lack of PMR (Automatic Returns Example)

7. 7 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 7 ADC 1102 (June 5, 2014) excerpt: DLMS, Vol 2, Chapter 13, Receipt  C13.2.8.2.10.11. Receipts Not Due-In (no ARI PMR file) [Intervening text not shown] C13.2.8.2.10.11.2. DoD-Managed Reparable Items. Report the Receipt Transaction to the manager of the shipping DoD Component. Do not include a discrepant receipt management code in the transaction. For materiel shipped between wholesale storage activities, report the receipt citing Reason for Materiel Receipt/Return Code N. IMMs receiving transactions reporting returns not-due-in of phase II reparables, for which they are not the IMM, will follow the materiel returns program procedures to report/ship the materiel as prescribed by the IMM. DLMSO Comment: The procedure in C13.2.8.2.10.11.2 needs to be clarified C13.2.8.2.10.11.3. DoD-Managed Consumable Items. Report receipt to the IMM in the applicable condition and do not include a discrepant receipt management code in the transaction. However, the DoD Components may prescribe reporting to their own item manager for returns from their own Component activities. The Navy and Marine Corps have directed implementation of this procedure as follows: C13.2.8.2.10.11.3.1. Navy-returned consumable items must be reported to the Navy using RIC NRP regardless of the item manager. An SDR will be provided to the Navy owner for information. C13.2.8.2.10.11.3.2. Marine Corps-returned consumable items must be reported to RIC MPB regardless of the item manager. An SDR will be provided to the Marine Corps owner for information. PMR Policy Excerpts – ADC 1102

8. 8 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 8 BACKUP PMR

9. 9 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 9 DLM 4000.25-2, MILSTRAP, Chapter 4, Due-In and Advance Receipt Information  C4.3. PRE-POSITIONING DOCUMENTS FOR RECEIPTS C4.3.1. Owners/Managers will transmit advance notification of scheduled materiel receipts to maintenance and storage activities. C4.3.2. Storage activities receiving PMRs will maintain them in a suspense file pending receipt of the materiel or of PMR updates from the ICP. C4.3.3. Upon arrival of the materiel, storage activities will use the PMR suspense records to report the receipt to the ICP. [Intervening text not shown.] Absence of a PMR is not to delay prompt recording and reporting of materiel receipts. Deletion of pre-positioned suspense records is controlled by the ICP. To delete a suspense record, the ICP will transmit a reversal (reversal indicator in record position 25) of the original PMR to the storage activity. New PMRs and replacement PMRs for deleted documents do not contain the reversal indicator. Proper and accurate maintenance of the PMR suspense file by storage activities is extremely important. Timely updates by the owner/manager are essential to proper and accurate maintenance of the PMR suspense file by the storage activity. PMR Policy Excerpts – MILSTRAP

10. 10 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 10 DLM 4000.25, Vol 2, Chapter 11, Materiel Returns, Redistribution of Assets, Directed Discrepant/Deficient Materiel Returns and Retrograde Returns  C11.11. ICP/IMM Processing Of Customer Asset Reports [Intervening text not shown] “C11.11.2. Materiel Required. If it is determined that the materiel is required, forward DLMS 870M, Materiel Returns Supply Status (From ICP/IMM) citing Status Code TA, TB, TH, or TJ to the reporting activity. The ICP/IMM will establish a due-in for the quantity of materiel to be returned and generate DLMS 527D, PMR, transaction to the receiving depot.” [Intervening text not shown] “C11.15. Cancellation of Customer Asset Reports C11.15.1. Reducing Quantity in All Applicable Cancellation Requests. Upon receipt of a customer cancellation (DLMS 180M, Materiel Returns Reporting), ICP/IMM will cancel or reduce the quantity in all applicable documents affected by DLMS 180M, including the decision to return, due-in record, PMR, and credit suspense, if applicable.” Select DLMS Procedure Excerpts – DLMS

11. 11 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 11 DLM 4000.25, Vol 2, Chapter 11, Materiel Returns continued  “C11.19. Returns to DLA from Industrial Sites Under BRAC Supply, Storage and Distribution and National Inventory Management Strategy Site Customers” “C11.19.1. Industrial Sites Procedures” “C11.19.1.1. The return of DLA-managed material will be accomplished without processing the standard MRP program transactions. The individual maintenance customer will determine when it has no immediate requirement for the materiel and will initiate the return process. The materiel will be physically returned to the DLA storage activity with the applicable documentation. The returning activity will provide a DLMS 527D, Due-In/Advance Receipt/Due Verification (MILSTRAP PMR (DIC DW_)), transaction to the storage activity identifying the DoD Component activity to which the receipt will be reported…” “C11.19.2. National Inventory Management Strategy Procedures. Materiel returns from a NIMS site customer will be processed as per C11.19.1.1. through C11.19.1.3. including use of the PMR…” Select PMR Procedure Excerpts – DLMS

12. 12 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 12 DLM 4000.25, Vol 2, Chapter 11, Materiel Returns continued  “C11.20. Directed Discrepant/Deficient Materiel Returns And Retrograde Returns” [Intervening text not shown] “C11.20.2.1. A PMR is required for all returns to a DLA Distribution Center/Storage Activity. This requirement is applicable to DLMS-capable applications and MILSTRAP legacy applications. Detailed procedures associated with the PMR are listed in paragraph C11.20.3.” [Intervening text not shown] “ C11.20.3.1.2. The organization responsible for the SDR reply will take action to establish a due-in and generate a PMR transaction to the receiving activity. The PMR will include the return quantity and the appropriate supply condition code. Action to establish the due-in and create the PMR transaction will be accomplished under MILSTRAP/DLMS. The PMR will perpetuate the document number associated with the SDR, normally the document number of the original shipment. The DLMS PMR will include a Return Type Code indicating the reason for return for which the PMR is established and will perpetuate the DoD WebSDR control number associated with the SDR.” [Intervening text not shown] “C11.20.3.1.5. Upon receipt of materiel returns shipment status, the ICP/IMM will recalculate the EDD to equal the original time allowed for shipment and return of materiel (i.e., reset the EDD using the date of the shipment status as the starting date, comparable to MILSTRIP MRP EDD procedures) and provide a replacement PMR to the receiving location. This action will ensure that both records have the same EDD date.” Select PMR Procedure Excerpts – DLMS

13. 13 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 13 DLM 4000.25, Vol 2, Chapter 12, Due-In and Advance Receipt Information  “C12.1.1. Standard Procedures. This chapter prescribes standard procedures for sending information about incoming materiel between wholesale managers and storage activities and between owner/managers and maintenance activities, and between losing inventory manages (LIM) and gaining inventory managers (GIM). The procedures require timely establishment of due-in information for all anticipated receipts of materiel, and requires that managers provide receiving storage activities with information for anticipated receipts.”  C12.3. “Providing The Storage Activity With Advance Receipt Information [PMR]” “C12.3.1. Due-In Information Requirements. IMMs will provide maintenance and storage activities with due-in information for scheduled materiel receipts by providing them with ARI PMR transactions…” “C12.3.2. Storage Activity Requirements. Storage activities receiving DLMS 527D [PMR] will keep them in an ARI a PMR file pending receipt of the materiel or the receipt of updates to the PMR from the IMM...” “C12.3.3. IMMs will send PMR transactions and PMR transaction reversals as due-in records are revised, so that receiving storage activities can maintain the records to show status equivalent to IMM due-in records. IMMs will send PMR reversals to the storage activities when deleting due-in records. IMMs will also send PMR reversals when revising due-in records (e.g., dates, quantities, destinations) and simultaneously send replacement PMR transactions showing revised due-in record data.” Select PMR Procedure Excerpts – DLMS