Administrative cancellation is a term that applies to
the following transactions: (1) the financial cancella-
tion of an unfilled order by the OPTAR holder with the
accounting office without reference to or action by the
supply system; (2) the completion of the below
threshold unfilled order by the accounting office instead
of establishing partial orders; and (3) the processing of
credit unfilled orders.
Aged unfilled order is an unfilled order submitted
by an OPTAR holder to the accounting office, held for
3 months in the files, and has not matched with a
corresponding expenditure document and has not been
Appropriation subhead is a major subdivision of a
budget activity of an appropriation. The subheads of
the appropriation for the citation of the operating forces
are structured to identify the major claimant, five-year
defense program, or budget activity, and expense
Authorization accounting activity is the activity
designated to perform the accounting for an operating
Budget activity is the smaller part or segment of the
appropriation that is identified by subheads.
Confirmed cancellation is the official notification
from the supply system that the requisition is canceled
and no other supply action will be taken.
Cost center is the subdivision of the responsibility
center. A ship, squadron, or other operating unit having
a unit identification code and incurring costs against an
operating budget is classified as a cost center.
Credit transaction is a transaction that results in an
increase in OPTAR balance.
For example, the
confirmed cancellation of an unfilled order will result
in a credit to the OPTAR.
Debit transaction is a transaction that results in a
decrease of the OPTAR balance.
For example, the
amount of obligation (in an unfilled order) is less than
the matching expenditure document forwarded by the
Difference is the adjustment value required to make
the value of the unfilled orders and the matching
expenditure to agree. A debit difference indicates an
Underestimate and credit difference is an overestimate
of an unfilled order (obligation).
Expenditure is a disbursement or payment of
For example, an expenditure
occurs when the supply system issues material; the
expenditure document is forwarded to the accounting
office for matching with the unfilled order; the
accounting activity charges the activitys funds.
Expenses are the costs of material or services that
have been consumed or applied.
Expense authority is the budgeted amount within
an operating budget approved for incurring expenses.
Expense element is a classification of expenses for
cost accounting and reporting. The fund codes used on
requisitions and purchase requests identify specific
expense elements or subdivisions of expense elements.
Expense limitation is the financial authority issued
by a major claimant (such as fleet commanders) to an
intermediate level command (such as the type
Filled order is a requisition, purchase request, or
order that has matched with a related expenditure and
is considered as financially complete.
Five-year defense program is the major financial
plan of the Department of Defense for accomplishment
within a five-year period.
Major claimant is any bureau, office, or command
designated as administering offices under the
operations and maintenance appropriations. Major
claimants receive operating budgets directly from the
Chief of Naval Operations.
Obligational authority is the budgeted amount
within an operating budget approved in a fixed amount
for incurring obligations or unfilled orders.
Operating budget is the annual budget and financial
authority of an activity or command containing the
resources to perform its mission.
Operating target (OPTAR) is the annual fund issued
by the type commander (or other operating budget
Reconciliation is the process of matching a
requisition or other unfilled order with corresponding
expenditure(s) performed by the accounting office.
Reimbursable OPTAR is a separate OPTAR granted
by the type commander or other operating budget
holder to a ship or activity for specific work or services.
The work or services performed is chargeable to the
reimbursable order accepted by the type commander or
other budget holder.