• Military Menu                       

• Introduction
• Systems
• Facilities
• Agencies
• Industry
• Operations
• Countries
• Hot Documents
• News
• Reports
• Policy
• Budget
• Congress
• Links

• WMD
• Intelligence
• Homeland Security
• Space

CHAPTER 8

ACCOUNTING

GENERAL

This company is responsible and accountable for DLA-owned and Army-owned stocks of bulk petroleum. AR 710-2 and DA Pamphlet 710-2 prescribe accounting procedures for Army-owned stocks. DOD 4140.25-M prescribes those for DLA-owned stocks. All losses will be accounted for according to AR 710-2 or DOD 4140.25-M. The accountable office for these stocks is usually at battalion or higher level, where the actual accounting processes take place. This chapter gives an overall view of the requirements for accountability; however, you will usually be accountable only for unit operating stocks. When your company is operating as a separate unit, you are required to prepare all the records and reports discussed in this chapter.

DEFINITIONS

Applicable terms must be understood before a general discussion of accountability. The following definitions apply to the accounting of petroleum products by this company:

• Army-Owned Bulk Fuel. Bulk petroleum products issued to and consumed by Army units are accounted for according to AR 710-2 and are known as Army-owned stocks. The only Army-owned stocks handled by this company are stocks for operation of the pump stations and related equipment and vehicles.

• Bulk Petroleum Products. Liquid petroleum products that are normally transported by pipeline, rail tank car, road tank truck, road tank trailer, barge, harbor or coastal tanker, and ocean-going tanker and are stored in a tank or container having a fill capacity greater than 55 US gallons (208 liters). The exception is fuel in 500-gallon collapsible drums.

• DLA-Owned Stocks. Bulk petroleum products owned by DFSC that are in the pipeline and stored in the terminal operating platoon storage tanks are known as DLA-owned stocks.

• Slate. Monthly reports of planned requirements prepared at theater level are called slates. Slating represents current and future requirements. All slating activities calculate requirements for four months (current plus three months).

REQUIREMENTS

Requirements for bulk fuels are determined by the JPO. The DFSC plans deliveries for the theater based on theater-consolidated slate.

DLA-Managed Stocks. When the product is received at the terminal tank farm, the accountable officer sets up accountability. The product in the terminal storage tanks is DLA-owned. The product remains in the DLA account as it is pumped through the pipeline. Data from the monthly pipeline schedules are used as input for requirements for the oversea slate.

Army-Owned Stocks. The receipt and issue data are accumulated and forwarded to the accountable officer who uses the data to prepare and submit requirements. If the company is operating as a separate company, the company commander is responsible for submitting requirements for the fuel to operate the company vehicles and the pump stations.

DLA-MANAGED STOCKS

The DFSC of the DLA has worldwide responsibilities for inventory management of bulk petroleum products until their delivery to the point of sale to a DOD facility such as DA. The Army has an SCP to manage the products owned by the Army. In oversea areas, there is a JPO and there may be a DFSC Fuel Region Office, representing theater and DLA responsibilities respectively. At various levels (above the company), accountable officers are appointed to control the product and to submit the necessary financial records and reports. Your company will use the accounting documents discussed below in the day-to-day operation of the terminal and pipeline when handling DLA-owned stocks.

Receipts

For bulk petroleum product received or shipped by tankers or barge, the document is DD Form 250-1 (Figure 8-1), regardless of the source of the product. DD Form 250 (Figure 8-2) is used in the movement of bulk petroleum product by overland transport or pipeline. DOD 4140.25-M has detailed instructions for making entries on these forms and for processing them.

DD Form 1149 may be used instead of DD Form 250 to document intraservice issues and returns and sales to other customers, including non-DOD, if this document is agreed upon in advance. Tanker and barge movements are still made only on DD Form 250-1.

DD Form 1348-1 may be used in the same manner as DD Form 1149. Receipts are posted to DA Form 1296 or other authorized stock control records.

Requisitions

When a customer needs DLA-owned product, he sends a requisition to the terminal complex. DD Forms 1149 (Figure 8-3), 1348, or 1348-1 (Figure 8-4), depending on desires and capabilities of the individual customer, is used. DD Form 1149 is prepared according to DOD 4140.25-M; DD Forms 1348 and 1348-1, according to MILSTRIP (AR 725-50). The requisitions are distributed as outlined in DOD 4140.25-M. Usually the company is only required to consolidate the issue documents and send them to the accountable officer. If the company is operating as a separate company, issues made on these requisitions are posted to the stock record account and the following reports are required:

• Bulk Petroleum Storage Facilities Report (CONUS and overseas) RCS DD-MIL (A) 506. The report is submitted to USAPC every three years by activities with a 500-barrel capacity or more, either singly or in a manifold configuration.

• Bulk Petroleum Storage Facilities Report (CONUS) AMC 830. This report will be submitted to USAPC annually upon request, by activities with a capacity under between 200 and 21,000 gallons.

• Bulk Petroleum Message Report RCS DLA (W) 1884 (DFSC). This report will be submitted to DFSC weekly.

• Prepositioned War Reserve Requirements for Terminal Storage RCS DLA (A) 1887 (DFSC). This report will be submitted to USAPC annually.

• Source Identification and Ordering Authorization Control Records RCS DLA (M) 1882 (DFSC). This report is submitted to DFSC monthly from information obtained from DD Form 1886 maintained by the activity.

• Defense Energy Information Systems Report (DEIS I and DEIS II) RCS DD-M (AR) 1313. This report will be submitted monthly to their respective MACOM.

Figure 8-1. DD Form 250-1 (Tanker/Barge Material Inspection and Receiving Report)

Figure 8-2. DD Form 250 (Material Inspection and Receiving Report).

Figure 8-3. DD Form 1149 (Requisition and Invoice/Shipping Document)

Figure 8-4. DD Form 1348-1 (DOD Single Line Item Release/Receipt Document)

Other Issues

The issue documents used to issue DLA-owned petroleum to the distribution section for local delivery to authorized activities, to vehicles, to pumps and other equipment, to aircraft on an emergency basis, and for bulk reduction for supported units are indicated in the SOP and in directives from higher headquarters. The following documents may be used for these issues:

• DD Form 1348-1--usually for issues to tank trucks and tank and pump units.
• DA Forms 2765 or 2765-1--usually for issues to supported units.
• DA Form 3643--for issues to vehicles.

The issue documents for issues (except those to vehicles) are posted to DA Form 1296 (Figure 8-5) as "issues." The issues to vehicles that are in the area and in need of fuel are recorded on DA Form 3643 (Figure 8-6). These issues are totaled each day and posted to DA Form 3644 (Figure 8-7). The total quantity for the month as shown on DA Form 3644 is posted to the document register and to the stock accounting record as "issues."

NOTE If fuel is to be dispensed to vehicles of other services (such as Navy and the foreign countries in the area), make a separate DA Form 3643 for each service or country.

Physical Inventories

A monthly physical inventory of DLA-owned products is taken at the beginning of the first working day of each month (according to DOD 4140.25-M) for the purpose of reconciling records with actual quantities on hand. Volume measurements and correction to 60°F (15°C) are accomplished and the data are forwarded to the battalion operations office, accountable officer, or other activity designated in the SOP. You may be required to submit the results of the gaging and the temperatures along with the inventories to back up the computations. After inventories are completed, the records are posted and the required adjustments are made.

Adjustments for DLA-owned stocks are discussed in detail in DOD 4140.25-M. Terminal operating losses of aviation and motor gasolines are allowed up to the extent of the actual loss when they do not exceed 0.5 percent of the total of the opening plus the receipts for the monthly period covered. The allowable loss for jet fuels, distillates, and residuals (JP-5/JP-8/DF-2) is 0.25 percent of the total of the opening inventory plus the receipts. The following adjustment documents are prepared and submitted to the activity indicated in the SOP.

Responsible officers at bulk terminals initiate DA Form 4697. It is used to fix responsibility and serve as a basis for initiating corrective action. A DA Form 4697 is required when actual loss is greater than allowable loss authorized by DOD 4140.25-M. The report will show the entire quantity lost.

When there are discrepancies in shipment of bulk petroleum, SF 361 is used, if the monthly gain/loss exceeds the allowable tolerance IAW DOD 4140.25-M.

ARMY-OWNED STOCKS

Unit operational stocks for use at the pump stations and fuels in storage for use in organic vehicles and equipment are Army-owned stocks. Data on issues, inventories, and adjustment from these stocks are forwarded to the battalion or higher headquarters. If your company is operating as a separate company, the following information will help you account for the Army-owned fuel for which the company is responsible.

Figure 8-5. DA Form 1296 (Stock Accounting Record)

Figure 8-6. DA Form 3643 (Daily Issue of Petroleum Products)

Figure 8-7. DA Form 3644 (Monthly Abstract of Issues of Petroleum Products and Operating Supplies)

Receipts

When bulk fuel is drawn from the pipeline for unit operational stock and for operation of vehicles and equipment, a DA Form 2765 or DD Form 1348 (as specified by the SOP or other directive) is prepared as a receipt document. The receipt document is assigned a document number from DA Form 2064 (Figure 8-8) and is posted to the property book (DA Form 3328) (Figure 8-9) according to AR 710-2 and DA Pamphlet 710-2-1.

Issues

Issues to vehicles are recorded on DA Form 3643. Each day the quantity issued is totaled and recorded on DA Form 3644. The quantity issued to operate the pump station and equipment is determined by gaging. The DA Form 3644 for the issues of Army-owned stocks for the company's use is recorded on DA Form 2064 and 3328.

NOTE Daily issues are usually recorded on some sort of daily status report that should be identified in local SOPs. This is an internal control and is consolidated and sent to battalion or used in preparing reports and setting up controlling actions as needed.

Physical Inventories

In addition to the daily and weekly inventory, a physical inventory of Army-owned petroleum is conducted for each product type handled by the company. The inventory will reflect the quantity on hand as of 0800 local time, the last day of the month. When the last day of the month is a nonduty day and no issues or receipts are made, the monthly inventory may be conducted at the close of business the last workday of the month. FM 10-67-1 gives detailed instructions for measuring the product. DA Form 4702-R (Figure 8-10) is prepared; it serves as the supporting document to the adjustment action. Results of the inventories are posted to the property book or stock record account, as appropriate. See AR 710-2 for posting procedures.

Adjustments. AR 710-2 gives detailed instructions for determining losses for Army-owned bulk petroleum. All losses shown on DA Form 4702-R are posted to DA Form 2064 and the property book.

Reports of Survey. When the allowable loss exceeds that set by AR 710-2, DA Form 4697 is prepared as an RS for the entire loss and processed according to AR 735-5.

Requisitions

Requisitions are directed to the supply support activities for replenishment of unit operational stocks. DD Form 1348 series or DA Form 2765 are used. If the SOP or directive from higher headquarters indicates that a DD Form 1348, 1348M, 1348-1, or 1348-1 is the form required, it is prepared as outlined in AR 725-50 and submitted to the higher headquarters. In some cases, the requesting document may be DA Form 2765 for a mechanical system or DA Form 2765-1 for a manual system. These forms are prepared according to AR 710-2 and submitted to the supply support activity.

Figure 8-8. DA Form 2064 (Document Register for Supply Actions)

Figure 8-9. DA Form 3328 (Property Record)

Figure 8-10. DA Form 4702-R (Monthly Bulk Petroleum Accounting Summary)