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 7-1