DPAS SCR: 02193

Change Request: Process Improvement

Description:

DAF CICPs need ELMS to enable OM&S financial reporting using the Latest Acquisition Cost (LAC) methodology. This is the valuation method selected by the DAF for CICP managed OM&S spare parts. LAC should replace the current Moving Average Cost (MAC) valuation method sent to GAFS-R from the ELMS ICP module. Each ELMS catalog entry will contain a data element identifying the valuation methodology. PDC 1510 will add a data element to the 832N transaction for the valuation methodology. ELMS will need to update their 832N processing for PDC 1510 once its approved. For the existing stock numbers, ELMS will need to update all type asset code = ‘O’ stock numbers in the AF CMP GFP catalog to add the new data element from PDC 1510. ELMS will need to add support for a new Accounting Transaction that will be used to report the revaluation of existing inventory to the LAC. For DAF, this will need to be translated into a Bid Number (new one to be assigned) for GAFS-R reporting. Solution needs to be in place to turn on financial reporting in FY26.

Recommended:

Recommend that ELMS Materiel Mgmt., Catalog, and Accounting services to support the add the LAC valuation methodology to enable financial reporting (replacing MAC), add a data element to the catalog to identify the valuation methodology of OM&S, update the 832N processing for compliance with ADC 1510, update AF CMP GFP catalog with new data element to enable financial reporting, update accounting to support the accounting of OM&S using LAC and for the revaluation of existing inventory to LAC, and implement new bid code GAFS-R.

Mission Critical:

DoD 7000.14-R Volume 4, Chapter 4 2.4.2.3 / SAFFAS 3. Latest Acquisition Cost (LAC). LAC assumes the latest acquisition

inventory cost for all existing stock of the same product, regardless of older purchase prices. When

applying the LAC valuation, management periodically revalues the inventory and establishes an

allowance account for the unrealized holding gains and losses associated with ending inventory.

Benefits:

This provides the ability to financially report DAF CICP OM&S assets to GAFS-R using the DAF approved valuation methodology.

Frequency:

Daily

Users:

This requirement enables the automation of financial reporting for the 100+ DAF CICPs to GAFS-R in addition to providing ELMS users with the option to report OM&S at the Latest Acquisition Cost.