Attachment_18_-_DLA_Energy_P-1.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

DLA Energy-P-1 23 December 2013 Incorporating Change 2, Effective 12 October 2016

RECORDING AND PROCESSING INVENTORY TRANSACTIONS

References: See Enclosure 1

1. PURPOSE. This procedural guidance document provides instructions related to daily recording, processing, end-of-month adjustments and reconciliation of Defense Fuel Support Points (DFSP) inventory of Defense Working Capital Fund (DWCF) fuel. This change supersedes DESC-P-1, October 28, 2009. This document uses generic terms that apply to any DFSPs processing transactions into Defense Logistics Agency (DLA) Energy inventory accounting systems.

a. This procedural guidance document also provides instructions to make existing Enterprise Business System (EBS) users aware of changes with the new Energy Convergence data in EBS.

Energy Convergence is designed to bring DLA Energy business into EBS to create a single DLA business system enabling streamlined operations, integrated financial compliance and reduced systems support costs.

b. During the period June 2013 through April 2014, DLA Energy will be replacing Business System Modernization-Energy (BSM-E) and implementing DLA’s Enterprise Business System (EBS) as DLA Energy’s new operation support system, through the Energy Convergence Program. EBS will be rolled out to users in geographic increments at approximately 90-day intervals during this period. As this transition occurs and BSM-E is phased out of Energy supply chain support, new processes are being implemented to reflect EBS protocols. Activities involved in specific rollout increments will receive separate communications regarding the specific process changes and dates for initiation at their site(s). For some functions, in order to obtain all information associated with business activity, users may be required to utilize protocols associated with both BSM-E and EBS until BSM-E is fully retired. Where applicable, BSM-E-specific and EBS-specific protocols are provided within this procedure.

b. FuelsManager® Defense (FMD) will continue to be used as DLA Energy’s accountable property system of record for processing transactions at DFSPs. For specific processing instructions refer to the Base Level Users Guide (BLUG) for the version of FMD used.

2. APPLICABILITY. This procedural guidance is applicable to DFSPs that store Defense Working Capital Fund (DWCF) petroleum products including Government-Owned Government- Operated (GOGO), Government-Owned Contractor-Operated (GOCO), and Contractor-Owned Contractor-Operated (COCO) DFSPs managed by or contracted by DLA Energy and the Military Services. This instruction was reviewed by the Military Service Control Points and approved for publication by DLA Energy as interim guidance pending inclusion to DoD Manual 4140.25.

DLA Energy P-1 Recording and Processing Inventory Transactions

Change 2, Effective 12 October 2016

Navy and Military Sealift Command (MSC) AFLOAT DFSPs will continue to follow Navy processing and transmission guidelines when FMD is not used onboard the ships.

a. Responsible Officers (ROs) or Terminal Managers (TMs) shall ensure compliance with this and other pertinent governing guidance. The Property Administrator (PA) for DLA Energy contracted DFSPs shall include provisions of this interim procedural guidance into routine and scheduled surveillance inspections.

b. DWCF petroleum inventories managed by terms of a NATO, Foreign Government, commercial Transportation Operating Agreement (TOA), or commercial tender agreement are exempt from guidance contained in this document as noted in applicable sections or paragraphs.

3. PROCEDURES. See Enclosures 2-4

4. EFFECTIVE DATE. This guidance is effective upon publication. Copies may be obtained from https://east.esps.disa.mil/dod/dla/dlaenergy/SitePages/Home.aspx.

https://dla.deps.mil/dod/dla/dlaenergy/scm/SitePages/Publications.aspx

R. DOUGLAS HENRY

Colonel, USA Chief of Staff

Enclosures

1. References

2. Recording Inventory

3. Processing Inventory Adjustment Transactions

4. Account Reconciliation Requirements Glossary

DLA Energy OPR: DLA Energy-FENA DLA Energy-LIB DLA Energy OCR: DLA Energy BAFA, DLA Energy-BP, DLA Energy-FEQ DLA Energy- DQ, DLA Energy-R DLA Finance for Energy-F8-F

TABLE OF CONTENTS

ENCLOSURE 1: REFERENCES

ENCLOSURE 2: RECORDING INVENTORY

1. DAILY RECORDING AND PROCESSING TRANSACTIONS

2. EXCEPTIONS TO DAILY RECORDING AND PROCESSING

3. DAILY PHYSICAL INVENTORY

4. RECORDING PHYSICAL INVENTORY

5. RETENTION OF INVENTORY AND DATA

6. VOLUME CORRECTION

ENCLOSURE 3: PROCESSING INVENTORY ADJUSTMENT TRANSACTIONS

1. DWCF PETROLEUM TRANSACTION PROCESSING

2. END-OF-MONTH (EOM) PHYSICAL INVENTORY AND OPERATING GAIN/LOSS

ADJUSTMENT

ENCLOSURE 4: ACCOUNT RECONCILIATION REQUIREMENTS

1. ACCOUNT RECONCILIATION REQUIREMENTS

2. SUSPENDED OR REJECTED TRANSACTIONS

APPENDIX TO ENCLOSURE 4

1. PHYSICAL INVENTORY DOCUMENTATION

GLOSSARY

ENCLOSURE 1

REFERENCES

(a) DoDM 4140.25-M, DoD Management of Bulk Petroleum Products, Natural Gas, and Coal, current version current edition

(b) American Petroleum Institute (API) Manual for Petroleum Measurement Standards, current version current edition

(c) DLA Energy-P-1, Recording and Processing Inventory Transactions, current version current edition

(d) DLA Energy-P-2, Receipt and Shipment of Petroleum Product, current version current edition

(e) DLA Energy-P-3, Document Control and Retention, current version current edition

(f) DLA Energy-P-10, Segregation of Duties, current version current edition

(g) DLA Energy-P-14, Causative Research and Financial Liability Investigation of Property

Loss, current version current edition

(h) DLA Energy-P-18, Requests for Waiver and/or Exception to DoDM 4140.25-M and DLA

Interim Policy Implementation and Procedural Guidance, current version current edition

(i) DLA Energy-I-9, Quality/Technical Management, current version current edition

(j) DLA Energy-I-10, Defense Energy Support Center Business Rules for Challenged

Transactions, current version current edition

(k) DLA Energy-I-11, Standard Operating Procedures for Defense Working Capital Fund

(DWCF) Owned Fuel at Defense Fuel Supply Points Supporting Operation Enduring Freedom, current version current edition

(l) DLA Energy P-37, Processing Reversals/Changes to DWCF Transactions, current version

(m) DLA Energy-I-29, Standard Operating Instruction for Defense Working Capital Fund

(DWCF) Owned Fuels at Kuwait Operating Locations, current version current edition

(n) DLA Energy Contract Clause I119.04, current version current edition

(o) DLA Energy Contract Clause I119.05, current version current edition

ENCLOSURE 2

RECORDING INVENTORY

1. Daily recording and processing. DFSPs shall ensure a source document exists for each DWCF inventory transaction processed. They can be filled out manually or captured by an approved Electronic Point of Sale device as business events occur. DFSPs shall process inventory transactions into the Base Level Support Applications (BLSA) daily during normal business hours, excluding weekends and government holidays. DFSP, TOA, and commercial tender agreement locations that lack direct access shall provide the DLA Energy Region with daily DWCF petroleum transaction data within one business day of each transaction/business event. The DLA Energy Region shall process the transactions and upload same business day when possible, but not later than one business day after transaction data receipt.

2. Exceptions to daily recording and processing. Approved exceptions to standard daily recording and processing of DWCF petroleum inventory transactions are as follows:

a. DFSPs governed by international or NATO agreements shall record and process inventory transactions in accordance with terms of the agreement.

b. Tactical DFSPs shall verify physical inventory in tactical fuel bladders by operationally preferred manual gauge readings using methods outlined in DLA Energy-I-29 and/or DLA Energy-I-11 or by total product rotation through a calibrated meter to coincide with end-of-month (EOM) account closeout actions. Calibrate meters in accordance with American Petroleum Institute Manual for Petroleum Measurement Standards (MPMS) Chapter 4.

c. DFSPs governed by a TOA or commercial tender agreement shall record and process physical inventory transactions to coincide with EOM account closeout actions.

d. DFSPs shall record and process petroleum product receipts that extend over a period of days or months upon completion of the receipt operation in compliance with DLA Energy-P-2.

e. Annual end-of-year (EOY) Closeout. The Department of Defense Comptroller requires the DoD fiscal year closeout each September 30 regardless of day of the week. DLA Energy provides specific EOY supplemental instructions annually. EOY procedures and referenced interim guidance are available for review in advance of closeout execution dates at https://east.esps.disa.mil/dod/dla/dlaenergy/SitePages/Home.aspx https://dla.deps.mil/dod/dla/dlaenergy/scm/SitePages/Publications.aspx. Additional information concerning EOY inventory reporting requirements is available in DLA Energy Contract Clause I119.04 “Inventory Control Records and Systems of Record” and DLA Energy Contract Clause I119.05 Inventory Control Records and Systems of Record (GOCO) (Air Force). DFSPs and https://www.desc.dla.mil/DCM/Files/I119.05.doc

TOAs shall post transactions and physical inventories to the FMD in accordance with DLA Energy-P-1.

f. AFLOAT DFSPs. MSC vessels that store capitalized DWCF petroleum shall use the

Shipboard Configuration and Logistics Information Program (ShipCLIP) Combat Logistics Force (CLF) Module and Relational Supply (R Supply) desk guides or Relational Supply (R- Supply) for onboard DWCF fuel transaction processing. The vessel shall process Transaction Item Reports (TIR) daily including negative reports while permitted at sea and daily excluding weekends and government holidays.

3. Daily Physical Inventory. The daily-recorded physical inventory shall reflect the total on-hand quantity of each DWCF petroleum product grade stored at a DFSP. The total physical inventory for each product grade shall include the following tanks and pieces of equipment.

a. Active Storage Tanks. The total daily physical inventory for each product grade shall include all active permanent, tactical, and breakout tanks that store DWCF product. DFSPs shall determine inventory quantities based on either calibrated Automatic Tank Gauge (ATG), manual gauge reading, or combination thereof. Calibrated ATG systems shall have certified strapping charts with verified data points to load accurately into the ATG system. DFSPs shall verify that a minimum of twenty-one (21) strapping chart data points are used to assure statistical accuracy and correct extrapolation of converted gauge quantities. Extrapolated gauge quantities computed by the ATG systems shall also be compared /verified against the certified strapping charts and shall be amended as required.

b. DLA uses different types of ATG systems.

(1) On bulk storage tanks systems larger than 30,000 gallons the ATG equipment is Enraf and or MTS which transmit level, density and temperature data back to the FMD server where the strapping data is stored and the look-up/interpolation takes place. A help desk ticket would be needed to obtain this information.

(2) For small tank technology systems (Veeder-Root or Ronan) there are differences between these two systems. The Veeder-Root has the ability to directly print out the data point information that is loaded indirectly from the monitoring console. The Ronan requires the user to hook up a laptop and use hyperlink to access the configuration files and export them to the laptop where they can be converted to another format (Excel, Notepad, Word, etc.) for printing off at a later time. If assistance is needed, contact the DLA Energy Help Desk.

c. Inactive Storage Tanks. It is not necessary to gauge inactive storage tanks not equipped with calibrated ATGs manually each day. Record the previous manual gauge on the DD Form 2921, Physical Inventory Petroleum Products or DD Form 2921C, Physical Inventory Petroleum Products (Continuation Sheet) and include the amount in the daily physical inventory transaction.

All inactive storage tanks will be gauged at least weekly. Gauge inactive storage tanks scheduled for return to active status prior to any DWCF product movement or water extraction/removal operation. DFSPs who have submitted facility work requests and are waiting on certified strapping charts graduated to 1/16th inch increments may continue to use existing strapping charts until the next scheduled API 653 inspection is conducted and new 1/16th strapping charts are provided.

d. Pipelines and Manifolds. DFSPs shall include the total gross pipeline, manifold, and system component inventory capacity for each product in the total daily physical inventory.

Pipeline, manifold, and system component inventory is not required to be volume corrected to 60˚F, or 15/20°C if measured in liters. With the exception of retail points (military or contractor operated gas stations) a qualified Civil Engineer/Public Works or equivalent individual shall certify and record the capacities on Office Memorandum. NATO/Foreign Government DFSPs, TOAs, and COCO DFSPs are exempt from requirement to report gross inventory capacity when the system components do not contain DWCF petroleum product.

e. Rolling Stock. DFSPs shall include the total product quantity of DWCF petroleum products stored in all mobile transport/refueling vehicles in the total daily physical inventory.

Manually compute mobile vehicle(s) inventory as the standard fill capacity less any product issue transactions plus any product return transactions. DFSPs that use the BLSA to monitor/track mobile vehicle inventories and fillstand quantities may use the BLSA query function to determine the on-hand book refueling vehicle inventory. DWCF petroleum products that are in transit by mobile vehicle to another DFSP or end use customer and processed as a shipment or sale shall not be included in the daily DFSP physical inventory quantity.

f. Barges. Barges owned and operated by DFSP as individual floating tanks shall be included in the total daily physical inventory reported for the DFSP. Manually compute inventory daily. DWCF petroleum products that are in transit by mobile vehicle to another DFSP or end use customer and processed as a shipment or sale shall not be included in the daily DFSP physical inventory quantity.

4. Recording Physical Inventories. DFSPs shall record daily physical inventory of each DWCF petroleum product grade on DD Form 2921 and DD Form 2921C where operational ATG systems are not in use. Physical inventory summary reports produced at DFSPs by approved/operational ATG systems may serve as source documents for physical inventory gauge readings and fuel/water quantity conversions. When the ATG summary report is used with DD Forms 2921/2921C, DFSPs shall record the net 60˚F or 15/20°C converted physical inventory quantity reflected on the summary report on the DD Form 2921 at Part III, line 7(2) (Total Net Quantity from Other Pages). Attach the ATG summary report to the DD Form 2921 and retain in the DFSP document control file.

5. Retention of Inventory and Data. DFSPs shall retain inventory and data records in accordance with DLA Energy-P-3 and/or DLA Energy Contract Clause I119.04, or I119.05 as applicable. DLA Energy-P-3 contains document and data control requirements. Additionally, Appendix 1 identifies daily and end of month physical inventory documentation requirements.

6. Volume Correction. MPMS Chapters 7 and 9 prescribe approved temperature and density determination methods. API MPMS Chapter 12, Calculation of Petroleum Quantities, prescribes standardized procedures for calculating gross and net quantities, including the application of volume correction factors (VCFs). API MPMS Chapter 11.1 contains tables for determining corrected API gravity/density and VCFs and methods for their use. DLA Energy-P-2 provides additional agency-specific guidance on determination of quantity.

a. Permanent Fixed Storage Tank Inventory. DFSPs shall perform daily physical inventory of tanks with capacity of 5,000 gallons and larger and shall temperature correct to 60˚F or 15/20°C if measured in liters.

b. Rolling Stock Inventory. Daily physical inventory of mobile refueling/line haul vehicles with a total storage capacity of 5,000 gallons and larger shall be volume corrected to 60˚F or 15/20° C if measured in liters. For example, a DFSP has five refueling vehicles that service a single product grade: three refuelers each with a 1,000-gallon storage capacity and two with 2,000-gallon storage capacity. The DFSP therefore has a total of 7,000 gallons of storage that requires on-hand inventory volume correction. The temperature and API gravity/density reading of the primary issue tank that supplies the vehicle loading rack/fillstand(s) at time of the daily closeout shall be used to volume correct the vehicle inventory to 60˚F or 15/20°C if measured in liters.

ENCLOSURE 3

PROCESSING INVENTORY ADJUSTMENT TRANSACTIONS

1. DWCF Petroleum Transaction Processing. DFSPs shall process physical inventory adjustment transactions for each product daily, regardless if product movement occurred on that day, excluding weekends and holidays. The Responsible Officer, DLA Region, or Property Administrator shall request proposed waivers to daily transaction processing in accordance with DLA Energy-P-18. Contractors at COCOs and GOCOs shall submit waiver requests to contractual requirements to the Contracting Officer with a copy to the PA.

a. Transactions sent to the Accountable Property System of Record (APSR) in excess of 365 days are aged transactions and require a script to enable processing. The DFSP shall contact the DLA Energy Help Desk and request assistance processing these DWCF petroleum transactions should they fail to post. This does not apply to EBS users.

b. Processing re-bill or secondary sale transactions to the APSR in excess of 365 days such as In-Flight/Aerial Tanker sales and Organizational Tank Issues is cost prohibitive. Military service components shall process these aged transactions through the appropriate service financial systems. This does not apply to EBS users.

c. DFSPs will request permission in advance to process regrade and downgrade from DLA Energy Regional Offices and will process the approved transactions within one business day IAW DLA Energy-I-9. The permission and processing instructions received from DLA Energy will be retained on file along with the daily paperwork.

2. End-Of-Month (EOM) Physical Inventory and Operating Gain/Loss Adjustment.

a. The EOM physical inventory transaction shall reflect the closing physical inventory for the preceding month and dated as the last calendar day of the preceding month regardless if that day falls on a normal weekend or holiday.

b. DFSPs shall process EOM physical inventory adjustment transactions and operating gain/loss adjustment transactions for each DWCF petroleum product grade within two business days following the last calendar day of each month, regardless if a zero quantity condition exists or if other transactions have not successfully processed. DFSPs shall not permit unresolved rejects to delay timely EOM transaction processing. Compute book inventories and determinable gain/loss transactions based on all transaction quantities including rejected transactions. Additionally, do not correct physical inventories with the reverse-post function if processing to the APSR. DLA Energy P-37 prescribes procedures to correct determinable loss/gain quantities for non EBS transactions.

c. Process operating gain/loss adjustment transactions for all petroleum product accounts regardless if quantities are within or exceed allowable gain/loss tolerance thresholds. Transaction quantities shall reflect the cumulative gains/losses for the last calendar day of the preceding month. Operating gain/loss transactions shall also reflect the appropriate determine type (“Operating Gain/Loss Out of Tolerance” or “Operating Gain/Loss In Tolerance”) based upon tolerance factors displayed at Table 1.

Table 1: Inventory Operating Gain or Loss Tolerances Product Group Allowable / Standard DOD

Operating Tolerance Gain/Loss Percentage *

Distillates (Diesel Fuels, Jet A1, JP5, JP8, JPTS, F76, Kerosene, other residuals,…etc)

.0025 or .25%

JP4 .003 or .3% Aviation and Motor Gasoline (AVGAS (130), MOGAS (MUR, MUP, etc))

.005 or .5%

Fuel System Icing Inhibitor (FSII) and Lube Oils .0025 or .25%

* Note: Where applicable, commercial pipeline tender and TOAs governed by Surface Deployment and Distribution Command (SDDC) shall comply with rules prescribing lower allowable operating tolerances.

(1) FMD Processing Locations. FMD automatically creates an EOM report and generates an Operating Gain/Loss adjustment when a physical inventory adjustment transaction is processed. Further the FMD generates and electronically transmits a copy to the RO or TM for signature, this DD Form 1348-8 provides a memo data field to explain inventory variances and should be e-mailed to the respective DLA Energy Region Office.

(2) DFSPs, TOAs, and Commercial Tenders Lacking Connectivity. DFSPs, TOAs, and Commercial Tenders that lack connectivity shall provide the appropriate DLA Energy processing office such as Region, with daily and/or EOM transaction data during normal business hours and in compliance with specified contractual or transportation tender obligations. The DLA Energy processing office shall process uploaded transactions in FMD the same business day of transaction data receipt when possible, but not later than end of the following business day.

(3) DFSPs that lack connectivity shall report EOM transaction data to the DLA Energy Help Desk. The DLA Energy office shall process the transactions to the applicable DLA Energy system of record on the same business day received when possible but no later than the end of the following business day.

d. Review, Disposition and Retention of EOM Inventory Transaction Documents. The RO and TM/PA shall review, validate, and sign the completed DD Form 1348-8. Further the RO/TM shall immediately investigate any out-of-tolerance operating gain/loss and annotate the DD Form 1348-8 memo data field to report investigation results and describe management action(s) taken to determine the excessive gain/loss and must include a determination if a Report of Survey is required. Refer to DLA Energy-P-14. The RO/TM shall forward a copy of the signed DD Form 1348-8, both in-tolerance and out of tolerance, to the applicable DLA Energy Region office by facsimile or a scanned copy by electronic mail NLT the 10th Business day following the End of Month. The processing office and the RO/TM shall retain the signed copy of the DD Form 1348-8 and supporting documentation in the DFSP document control file in accordance with DLA Energy-P-3.

e. The DLA Energy inventory manager/technician/analyst responsible to process transactions for COCO, TOA, NATO, or foreign government DFSP accounts that do not process account transactions shall prepare the end-of-month report and DD Form 1348-8. The approving official for end-of-month reports shall be an individual within the inventory manager/technician chain of command/supervision. The inventory manager/technician/analyst shall maintain signed copies of the DD Form 1348-8 in the document control file.

f. Correction of EOM Operating Gain/Loss Determine Transactions. DFSPs shall correct an EOM operating gain/loss determine transaction whenever a subsequent processed transaction results in change to a previously reported book inventory, physical inventory, or gain/loss determine. The RO/PA shall authorize/approve these transactions IAW DLA Energy-P-10.

ENCLOSURE 4

ACCOUNT RECONCILIATION REQUIREMENTS

1. Account Reconciliation Requirements. DFSP personnel shall reconcile each petroleum product account on a daily basis except on weekends and holidays.

a. DFSPs shall satisfy the following conditions to reconcile FMD petroleum product accounts:

(1) DFSPs shall process all petroleum product movements, transaction events, and inventories into FMD. Processing personnel shall verify the accuracy of all transactions prior to processing into FMD and clear all rejects within two business days.

(2) DFSPs TOAs and Commercial Tenders that lack FMD connectivity may use local accounting systems to record transaction events and ensure forwarding of all pertinent account transactions to the appropriate DLA Energy region office or when necessary HQ Energy Inventory Division Inventory Accountability Division, DLA Energy-LI for processing into FMD.

b. DFSPs shall input the EOM closing physical inventory for each petroleum product account into FMD. When a transaction event processing is delayed due to unfinished receipt or shipment operations that carry over to the next month, the closing physical inventory for the month shall reflect the on-hand inventory of the receipt or issue tank(s) prior to commencement of the receipt or shipment operation.

c. DFSPs shall, where possible, schedule deliveries so that shipment and/or receipt events do not extend into the next month.

d. DFSPs shall process daily and/or EOM determinable gain/loss transactions with appropriate “Determine Type” for each petroleum product account to FMD and record any out-of-tolerance operating gain/loss investigation results in the DD Form 1348-8 memo field.

e. DFSPs shall ensure that the FMD petroleum product account’s cumulative gain/loss reflects zero quantity in order to reconcile.

f. DFSPs shall forward copies of the signed DD Form 1348-8, DFSP Inventory Accounting

Document and End-of-Month Report to the responsible DLA Energy processing office NLT the 10th Business Day following the end of month and also retain a copy in the document control file.

2. Suspended or rejected transactions.

a. DFSPs shall not delete rejected transactions but shall contact the DLA Energy Help Desk for assistance.

b. DLA Energy Region personnel may occasionally require the DFSP to reverse-post and/or reprocess transactions, in such cases the respective DLA Energy Region office requesting the change will do so in accordance with DLA Energy P-37.

c. DWCF sales and credits are governed by business rules that establish point-of-sale billing by use of purchase devices such as DD Form 1896, DoD Fuel Identaplate, government credit card, or VIL Key assigned or issued to specific customer fund accounts. DFSPs shall not amend or change any purchase device data because the billed customer organization “loaned” an aircraft, vehicle, or equipment item to another organization. Customers may seek reimbursement from an appropriate organization through the respective service financial system in accordance with DLA Energy-I-10.

APPENDIX

Physical Inventory Documentation

INCLUDED IN PHYSICAL INVENTORY

PHYSICAL

INVENTORY

PROCESSING

FREQUENCY

STORAGE TANKS

(TANK GAUGE

READINGS

METHODOLOGY)

LINE

INVENTORIES

Mobile Refueling Equipment

UNIT

INVENTORIES

PHYSICAL

INVENTORY

DOCUMENTATION

Daily, Excluding weekends and holidays

100% (All Tanks) Certified / Calibrated, and fully operational ATG

All line inventories are loaded in the Base Level FuelsManager® Defense Application from certified line inventories

All Refueling Equipment inventories are loaded / tracked electronically in the Base Level FuelsManager® Defense Application

DD Form 2921 or ATG Summary Report are to be reviewed / signed by the accounts Responsible Officer or Terminal Manager and Property Administrator

End of Month 100% (All Tanks) Certified/Calibrated, and fully operational ATG

All line inventories are loaded in the Base Level FuelsManager® Defense Application from certified Pipeline and Manifold inventories

All Refueling Unit inventories are loaded/tracked in the Base Level FuelsManager® Defense Application

FuelsManager® Defense Printout and DD Form 1348-8 are to be reviewed / signed by the accounts Responsible Officer or Terminal Manager and Property Administrator

End of Month Combination of Certified/Calibrated, and fully operational ATG, and manual tank gauge readings

Some or all line inventories are loaded in the Base Level FuelsManager® Defense Application from certified Pipeline and Manifold inventories

Some or all Refueling Unit inventories are loaded/tracked in the Base Level FuelsManager® Defense Application

FuelsManager® Defense Printout, DD Forms 2921/2921C and DD Form 1348-8 are to be reviewed/signed by the accounts Responsible Officer or Terminal Manager and Property Administrator

**Note: DLA Energy-P-3, Document Control and Retention provides DLA document and data control requirements for DFSPs.

APPENDIX

Physical Inventory Documentation

APPENDIX: Physical Inventory Documentation (continued)

INCLUDED IN PHYSICAL INVENTORY

PHYSICAL

INVENTORY

PROCESSING

FREQUENCY

STORAGE

TANKS

(TANK GAUGE

READINGS

METHODOLIGY)

LINE

INVENTORIES

Mobile Refueling

UNIT

INVENTORIES

PHYSICAL

INVENTORY

DOCUMENTATION

Daily, Excluding weekends and holidays

Manual Tank Gauge Readings

Certified Pipeline and Manifold Line Inventories

Refueling Unit inventories are loaded/tracked Manually

DD Forms 2921/2921C are to be reviewed / signed by the Responsible Officer or Terminal Manager and Property Administrator

End of Month Manual Tank Gauge Readings

Certified Pipeline and Manifold Line Inventories

Refueling Unit inventories are loaded/tracked Manually

DD Form 2921/2921C and DD Form 1348-8 are to be reviewed / signed by the Responsible Officer or Terminal Manager and Property Administrator

**Note: DLA Energy-P-3, Document Control and Retention provides DLA document and data control requirements for DFSPs.

GLOSSARY

PART 1. ABBREVIATIONS AND ACRONYMS

APSR Accountable Property System of Record ATG automatic tank gauge

BLSA Base Level Support Applications BLUG base level user guide BSM-E Business Systems Modernization-Energy

CLF Combat Logistics Force COCO contractor-owned contractor-operated

DFSP Defense Fuel Support Points DLA Defense Logistics Agency DLA Energy-N DFSP Management DLA Energy-NI DFSP Management/Inventory Accountability DLA Energy-RR Retail Management Division DLA Energy-LI Logistics Operations, Inventory Accountability Division DWCF Defense Working Capital Fund

EOM end-of-month EOY end-of-year

F Fahrenheit FMD FuelsManager® Defense

GOCO government-owned contractor-operated GOGO government-owned government-operated

MFCS Material Financial Control System MFCS-PC Material Financial Control System Personal Computer MPMS Manual of Petroleum Measurement Standards MSC Military Sealift Command

NATO North Atlantic Treaty Organization

PA property administrator

RO responsible officer

GLOSSARY

PART 1. ABBREVIATIONS AND ACRONYMS (continued)

SCP Service Control Points SDDC Surface Deployment and Distribution Command ShipCLIP Shipboard Configuration and Logistics Information Program

TIR transaction item reports TM terminal manager TOA Transportation Operating Agreement

VCF volume correction factors VIL vehicle identification link

PART II. DEFINITIONS

Active storage tank. An active storage tank is a permanent, tactical, or breakout tank that stores DWCF petroleum product from which product has moved into or out of storage including water extraction/removal since the last reported daily physical inventory.

Book inventory. Book inventory is the calculated inventory that should be on-hand for each petroleum product grade. Book inventory is reflected in the BLSA and is the last reported physical inventory quantity plus any inventory increase resulting from receipts, returns, and positive regrades or recovered products – minus inventory decrease resulting from sales, shipments, and negative adjustments such as spills and regrades from the petroleum product account.

DLA Energy petroleum issue. A DLA Energy petroleum issue is a DFSP petroleum product transfer that results in a product change of custody. Categories of petroleum issues are either sales or shipments.

Determinable gain/loss. A determinable gain/loss is a product loss or gain attributed to a specific event such as a pipeline break or recovered abandoned product.

Gross quantity. The volume of a DWCF petroleum product at ambient temperature that is not corrected to 60˚F or 15/20° C if measured in liters.

Inactive storage tank. An inactive storage tank is a permanent, tactical, or breakout tank that stores DWCF petroleum product from which product has not moved into or out of storage including water extraction/removal since the last reported daily physical inventory.

Inventory transaction. An inventory transaction is any event that effects or changes the DWCF petroleum inventory account. Inventory transactions include receipts, sales, credits, shipments, regrades, determinable gains/losses, physical inventory adjustments, and end- of-month (EOM) operating gain/loss adjustments.

Net quantity. The volume of a DWCF petroleum product that is volume corrected to 60˚F or 15/20° C if measured in liters.

Operating gain/loss. Operating gain/loss is the difference between the physical inventory and the book inventory (physical inventory minus book inventory). A positive difference is a gain and a negative difference is a loss. Example: A petroleum product account calculates 10,100 gallons of product as on-hand book inventory, while the physical inventory measured by a calibrated automatic tank gauge (ATG) or a manual gauge indicates only 10,000 gallons of on-hand inventory. The negative difference between the book inventory and the physical inventory reflects a 100-gallon loss.

Operating gain/loss tolerance. The operating gain/loss tolerance is a predetermined percentage allowed as acceptable petroleum product gain or loss caused by routine product handling operations.

Physical inventory. Physical inventory is the total on-hand quantity of each petroleum product grade to include petroleum products stored in all permanent storage tanks, tactical storage tanks, breakout tanks, pipelines, manifolds, system components such as filter separators and basket strainer housings, mobile transport vehicles and petroleum dispensing equipment that store DWCF petroleum products.

Petroleum receipt. A petroleum receipt is the transfer of product from one DFSP or contract supplier/source to another DFSP that results in a product change of custody.

Petroleum return/credit. A petroleum return/credit is the return of product from an end user/customer back to DLA Energy capitalized inventory that results in a corresponding monetary reimbursement from the DWCF to the end user/customer DoDAAC.

Petroleum sale. A petroleum sale is a DFSP transfer of capitalized petroleum product to an end user/customer that DLA Energy invoices/bills for DWCF reimbursement. A sale may also result in product replacement through terms of a replacement-in-kind (RIK) or fuel-exchange agreement (FEA) with partner nations. In these instances, upon RIK/FEA balance reconciliation, the RIK/FEA partner normally pays for product owed by bank check or occasionally by product replacement.

Petroleum shipment. A petroleum shipment is a DFSP transfer of a capitalized petroleum product and its accountability to another DFSP.

Product downgrade. A product downgrade is an approved re-designation of a petroleum product that does not meet specification requirements to another petroleum product for which it does meet the specification requirements.

Product regrade. A product regrade is the approved re-designation of a petroleum product that meets its specification requirements to another petroleum product for which it also meets the specification requirements.

Rolling stock. The term rolling stock identifies DWCF owned petroleum that is stored in mobile conveyances such as tank trucks, line haul trucks, or rail cars.

Reconciled Account. An account is reconciled when the DFSP BLSA product account and corresponding product accounts are identical and the Running gain/loss equals zero. All transactions must also process and post successfully to the DLA Energy system of record.