The line item value is less than 0.00. The material was shipped by air mail or parcel post. The material was shipped more than 10 days ago by air to the aerial port of embarkation (APOE) or 45 days ago by surface to the water port of embarkation (WPOE). Confirmed cancellations for requisitions with Status code BV may result in billing for transportation charges or contract termination cost. When canceling a requisition, the funds should not be deobligated until receipt of a confirmed cancellation from the supply source. MAINTAINING MATERIAL OUTSTANDING FILES Because of the different automated capabilities of Navy activities, maintenance of material outstanding files will vary by local capabilities. The following paragraphs will provide the guidance you need for maintaining material outstanding files. It applies to you whether you are using paper copies or computer records. REQUISITION RECORD The requisition record will be maintained in date order by document number sequence. Material receipts and status must be promptly processed to the requisition record. REJECTED REQUISITIONS When a supply source rejects a requisition for incorrect entry, remove the original requisition from the file for research and resolution of errors. The Status code for rejected requisitions will be in record positions 65-66 of the document. The DAAS also may reject erroneous requisitions when that activity’s programs cannot read the document. Refer to chapter 11 of NAVSUP P-437 for DAAS processing procedures. The rejected requisition must be researched to determine the error involved. After correcting the error, the requirement must be submitted with a new document number. BACK ORDER FILE After receiving a status that an item has been back ordered by a supply source, move the document to the back order file. This file must be in document number sequence. The requisitions in this file require an ongoing review. As the requisition remains on back order or becomes aged, two conditions may occur. The changing requirements may dictate the item is no longer needed and should be canceled. The other condition is that the requisition will become subject to the cyclic material obligation validation (MOV) process. FILE MAINTENANCE The internal review program provides a process of reviewing requisitions regularly. This is done by comparing outstanding requisitions to known requirements. Some of the known requirements include authorized allowance and high-limit. After the review process, submit cancellation requests for those requisitions that are no longer required. MATERIAL OBLIGATION VALIDATION A material obligation is the untilled quantity of an outstanding requisition, and it is recorded as a commitment against stock or vendors. The material obligation validation (MOV) pertains to those items requisitioned to which status codes BB, BC, BV, and BZ apply. The supply source sends the MOV requests to the requisitioner on a cyclic basis. These requests, from the supply source to requisitioner, is to compare the records and confirm the continued requirement held as material obligations. The requisitioner replies to MOV requests to advise them to hold the material obligation until supplied or cancel all or portion of the material obligation. MOV AGE CRITERIA Material obligations are considered overaged and subject to MOV for priority designators 01 through 08 that have been outstanding for more than 30 days. These include priorities 09 through 15 requisitions that have been outstanding more than 75 days. A special validation is the type of MOV that may be ordered without regard to the age of the material obligations involved. The special validation is discussed later in this chapter. MOV SCHEDULE The annual schedule of cyclic validations includes the cycle number, cutoff date for requests, and the ending date for replies. For cycle 1, the cutoff date for supply sources to prepare and forward requests to customers is January 20. Replies from the requisitioner are due back to supply sources by March 5. The cycle 2 cutoff date for supply sources is April 20, and the reply 4-19