CHAPTER 7
MATERIAL EXPENDITURE AND MOVEMENT
This chapter will help you identify the procedures
used in processing expenditures, offloads, and
shipments of material. It will also help you learn the
types of documentation used and the required record file
for each type of transaction. To understand the
procedures better, you need to learn the meaning of
terms used in this chapter.
EXPENDITURE
Expenditure is any act that results in a decrease of
Navy assets (material or funds). Material expenditure is
the act of removing a specific quantity of items from the
activity’s stock records. Then, the activity passes these
items to an end-user, another activity, or disposes of
them according to higher authority. Expenditure also
applies to material that is lost or is no longer usable
(shelf-life expired or damaged).
TYPES OF EXPENDITURES
The methods for processing expenditures are issue,
transfer, survey or cash sale.
Issue
The most often used method of expenditure is the
issue. The term issue refers to the physical turnover of
material to the end-user. Material issue results in a
charge of Navy Stock Account (NSA) material against
a current operating budget or operating target (OPTAR).
Issue of Appropriation Purchase Account (APA)
material results to statistical data only and does not
affect operating budget or OPTAR.
For stock control, issue is a reduction of material
available to support operations. The issue transaction
also includes posting of the demand data for predicting
future requirements. Issues also involve reduction of the
money value carried on the supply officer’s records. The
money value appears as charges to the operating budget
or OPTAR of the customer.
Issue documents used to expend material in support
of maintenance require maintenance data in the
Remarks block of the form. For example, maintenance
data, such as job control number, aircraft bureau
number, Type Equipment code, Work Unit code,
Commercial and Government Entity code, part number,
and Record Type code, should be in blocks L-V of DD
Form 1348 (6-pt). These are statistical data produced by
the issue documents, and are part of the Maintenance
Data System (MDS). The MDS is a basic element of the
3-M Systems that provides a means of recording
maintenance actions in detail. The recorded information
includes labor and material used in equipment
maintenance. The 3-M Systems allow retrieval of
information concerning maintenance requirements and
equipment performance, when needed.
The term onstation issue means the issue of material
from supply department stock to a supported squadron
or unit. It also includes issues to a department of the
issuing ship or station.
The term offstation issue means the issue of material
from another supply activity. This transaction involves
a decrease in the issuing activity’s records and billing
the receiving supply activity.
Transfer
The term transfer refers to the movement of
material from the custody and records of one activity to
another activity.
Survey
A survey is the procedure used for expending lost,
damaged, or unserviceable material. An approved
survey is an expenditure document, and it should have
an assigned serial number in the expenditure document
series.
EXPENDITURE DOCUMENT NUMBER
The Military Standard Requisitioning and Issue
Procedures (MILSTRIP) provides the numbering
system for expenditure documents. The document
number consists of the service designator code, unit
identification code (UIC), four-digit Julian date, and a
four-digit serial number. Expenditure document
numbers must not duplicate those assigned to
requisitions unless the requisitions are for replacement
items.
EXPENDITURE RECORD LOG
The purpose of the expenditure record log is to
control document number assignments. It also provides
a record of all expenditures (except issues to the
activity’s work centers and supported units). The log
contains an entry for each transfer, cash sale, and survey
processed by the activity. Some activities have the
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