CHAPTER 5
MATERIAL EXPENDITURES
The effectiveness of a supply department is
(APA) material results to statistical data only and does
measured primarily by its response to the requirements
not affect operating budget or OPTAR.
of other departments. Within the supply department,
For stock control, issue is a reduction of material
your effectiveness will be measured by your overall
available to support operations. The issue transaction
performance. This chapter will help us learn the types
also includes posting of the demand data for predicting
of documentation and procedures used for each type of
future requirements. Issue also involves reduction of
transaction.
the money value carried on the supply officer's
records. The money value appears as charges to the
EXPENDITURE
operating budget or OPTAR of the customer.
Issue documents used to expend material in
Learning Objective: Identify the procedures
support of maintenance require maintenance data in
used in processing expenditures, offloads and
the Remarks block of the form. For example,
movement.
maintenance data, such as job control number, aircraft
Expenditure is any act that results in a decrease of
bureau number, Type Equipment code, Work Unit
Navy assets (material or funds). Material expenditure
code, Commercial and Government Entity code, part
is the act of removing a specific quantity of items from
number, and Record Type code, should be in blocks
the activity's stock records. Then, the activity passes
L-V of DD Form 1348 (6-pt). These are statistical data
these items to an end-user, another activity, or disposes
produced by the issue documents, and are part of the
of them according to higher authority. Expenditure
Maintenance Data System (MDS). The MDS is a basic
also applies to material that is lost or is no longer usable
element of the 3-M Systems that provides a means of
(shelf-life expired or damaged).
recording maintenance actions in detail. The recorded
information includes labor and material used in
TYPES OF EXPENDITURES
equipment maintenance. The 3-M Systems allow
retrieval of information concerning maintenance
The methods for processing expenditures are
requirements and equipment performance, when
issue, transfer, survey or cash sale. In this chapter we
needed.
are concerned with the material held in supply
department storerooms and its expenditure.
The term onstation issue means the issue of
Expenditure is any requirement that results in a
material from supply department stock to a supported
decrease in Navy assets (material or funds). There are
squadron or unit. It also includes issues to a department
three ways of expending material: (1) issue, (2)
of the issuing ship or station.
transfer, and (3) survey. (Refer to the glossary for the
The term offstation issue means the issue of
definition for these terms.) Of these three, issue is of
material from another supply activity. This transaction
primary importance to the ship.
involves a decrease in the issuing activity's records and
When a survey is approved, it becomes an
billing the receiving supply activity.
expenditure document and will be assigned a serial
number in the expenditure document series.
Transfer
Issue
The term transfer refers to the movement of
material from the custody and records of one activity to
The most often used method of expenditure is the
another activity.
issue. The term issue refers to the physical turnover of
material to the end-user. Material issue results in a
Survey
charge of Navy Stock Account (NSA) material against
A survey is the procedure used for expending lost,
a current operating budget or operating target
damaged, or unserviceable material. An approved
(OPTAR). Issue of Appropriation Purchase Account
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