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What is a Supply Discrepancy Report in Foreign Military Sales?

Updated 27 September 2026Checked against the SAMM: 12 September 2026

A is the purchaser's complaint to the U.S. Government about a delivery that does not match what the agreed: a shortage or overage, the wrong item, damage before the shipper released the shipment to the carrier, a documentation or billing error, or a service not performed as agreed. The resolves it and determines financial responsibility.

Decision tree: which report a Foreign Military Sales delivery problem needs depends on what went wrong, and the Supply Discrepancy Report, the purchaser's own report, then passes a time test and a value test before the Implementing Agency resolves it. WHAT WENT WRONG DECIDES WHICH REPORT fmsedge.com A delivery does not match what the LOA agreed What went wrong: at the shipper, in the item itself, or with the carrier in transit? No evidence of shipment? That is a supply discrepancy too no signed carrier receipt and shipping document at the shipper in the item itself with the carrier Supply discrepancy shortage or overage, wrong item, damage before release to the carrier, documentation or billing error Quality deficiency a defect in new, as-new or repaired materiel, including one a warranty covers Transportation discrepancy lost or damaged by the carrier, after the shipper released the shipment to it How is a Supply Discrepancy Report submitted and resolved?Supply Discrepancy Report the purchaser submits it on Standard Form 364; not for Building Partner Capacity cases What is a Product Quality Deficiency Report?Product Quality Deficiency Report the DoW users' report; a purchaser reports the same defect on an SDR instead What is a Transportation Discrepancy Report in Foreign Military Sales?Transportation Discrepancy Report on DTS legs the SCO submits DD Form 361; the purchaser cannot submit one Who claims when a Foreign Military Sales shipment is lost or damaged?Own or forwarder-arranged carrier: the purchaser claims directly. Who claims, and where money goes what happens to an SDR Within 12 months of delivery or passage of title, whichever comes first (services: end of performance) Worth $200 or more item plus transportation and handling; misdirected or unordered: any value The IA resolves it with the DoW or commercial supply source, and determines financial responsibility Approved: corrected replacement, rework, or a refund or credit to the purchaser's account Later: disallowed, unless a latent defect justifies it Less: documented, but not reviewed for compensation LOA = Letter of Offer and Acceptance. SDR = Supply Discrepancy Report. DTS = Defense Transportation System. SCO = Security Cooperation Organization. IA = Implementing Agency. A warranty defect goes on an SDR within the warranty's own time limit, even when that is shorter. FMS Edge the report moves on · turned away, or routed elsewhere · correction or credit fmsedge.com · Current as of 11 September 2026 · SAMM C6.4.10 · C6.3.8 · C7.21 · DLM 4000.25

Which report a delivery problem needs depends on what went wrong. A shortage or overage, a wrong item, damage before the shipper released the shipment to the carrier, or a documentation or billing error is a supply discrepancy, and the purchaser reports it on a Supply Discrepancy Report. A quality defect goes on the same report: the Product Quality Deficiency Report is for Department of War users. Loss or damage caused by the carrier is a transportation discrepancy, which a U.S. representative reports on a Transportation Discrepancy Report. A Supply Discrepancy Report is disallowed if it arrives later than 12 months after delivery or passage of title, and only one worth $200 or more is reviewed for compensation.

Which report, and what happens to it: SDR, TDR, PQDR · Current as of 11 September 2026 · SAMM C6.4.10 · C6.3.8 · C7.21 · DLM 4000.25 · Download PNG

What is a Supply Discrepancy Report?

In a system as large and diverse as the DoW logistics system, errors are bound to happen. The DoW, recognizing this fact, has set up a system to quickly validate the problem and respond to the international partner, while documenting trends to preclude recurrence of the discrepancy.

A discrepancy is a difference or variance from a standard. If something does not meet the standard in either quantity or quality, a discrepancy exists. The ’s intention is to resolve the discrepancy and ensure that every effort is made to provide the correct or service in the quantity and quality agreed to in the .

There are three categories of discrepancies. Each has unique reporting requirements for .

  • Supply discrepancies, which capture a wide range of issues
  • Product quality deficiencies, caused by the manufacturer
  • Transportation discrepancies caused by damage or loss during shipment

may be submitted for materiel received in damaged condition if the damage is the result of improper preservation, packing, marking, loading, handling, or storage provided prior to title transfer. will not be accepted for damage caused by the carrier.

References

Drawn exclusively from publicly available authorities.

SAMM

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