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 Cancelled. 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 limitation holder. Authorization accounting activity is the activity designated to perform the accounting for an operating budget. 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 issuing activity. 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 appropriated funds. 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 activity’s 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 commander). 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 holder). 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. 6-3