Administrative  cancellation  is  a term that applies to the following transactions: (1) the financial cancella- tion of an unfilled order by the OPTAR holder with the accounting office without reference to or action by the supply   system;   (2)   the   completion   of   the   below threshold unfilled order by the accounting office instead of establishing partial orders; and (3) the processing of credit  unfilled  orders. Aged unfilled order  is  an  unfilled  order  submitted by an OPTAR holder to the accounting office, held for 3  months  in  the  files,  and  has  not  matched  with  a corresponding expenditure document and has not been Cancelled. Appropriation  subhead  is a major subdivision of a budget activity of an appropriation. The subheads of the appropriation for the citation of the operating forces are structured to identify the major claimant, five-year defense  program,  or  budget  activity,  and  expense limitation  holder. Authorization  accounting  activity  is the activity designated to perform the accounting for an operating budget. Budget activity  is the smaller part or segment of the appropriation  that  is  identified  by  subheads. Confirmed cancellation is the official notification from the supply system that the requisition is canceled and no other supply action will be taken. Cost center is the subdivision  of  the  responsibility center. A ship, squadron, or other operating unit having a unit identification code and incurring costs against an operating budget is classified as a cost center. Credit transaction  is a transaction that results in an increase  in  OPTAR  balance. For   example,   the confirmed  cancellation  of  an  unfilled  order  will  result in a credit to the OPTAR. Debit transaction  is a transaction that results in a decrease of the OPTAR balance. For example, the amount of obligation (in an unfilled order) is less than the  matching  expenditure  document  forwarded  by  the issuing  activity. Difference  is the adjustment value required to make the  value  of  the  unfilled  orders  and  the  matching expenditure to agree. A debit difference indicates an Underestimate  and  credit  difference  is  an  overestimate of  an  unfilled  order  (obligation). Expenditure   is  a  disbursement  or  payment  of appropriated funds. For  example,  an  expenditure occurs when the supply system issues material; the expenditure  document  is  forwarded  to  the  accounting office   for   matching   with   the   unfilled   order;   the accounting activity charges the activity’s funds. Expenses  are the costs of material or services that have been consumed or applied. Expense  authority  is  the  budgeted  amount  within an operating budget approved for incurring expenses. Expense element  is  a  classification  of  expenses  for cost accounting and reporting. The fund codes used on requisitions and purchase requests identify specific expense elements or subdivisions of expense elements. Expense  limitation  is  the  financial  authority  issued by a major claimant (such as fleet commanders) to an intermediate  level  command  (such  as  the  type commander). Filled order  is  a  requisition,  purchase  request,  or order  that  has  matched  with  a  related  expenditure  and is  considered  as  financially  complete. Five-year defense program is the major financial plan of the Department of Defense for accomplishment within a five-year period. Major claimant  is any bureau, office, or command designated   as   administering   offices   under   the operations  and  maintenance  appropriations.  Major claimants  receive  operating  budgets  directly  from  the Chief of Naval Operations. Obligational  authority  is the budgeted amount within  an  operating  budget  approved  in  a  fixed  amount for incurring obligations or unfilled orders. Operating budget is the annual budget and financial authority of an activity or command containing the resources to perform its mission. Operating target (OPTAR)  is the annual fund issued by the type commander (or other operating budget holder). Reconciliation  is  the  process  of  matching  a requisition  or  other  unfilled  order  with  corresponding expenditure(s)  performed  by  the  accounting  office. Reimbursable OPTAR  is a separate OPTAR granted by  the  type  commander  or  other  operating  budget holder to a ship or activity for specific work or services. The work or services performed is chargeable to the reimbursable  order  accepted  by  the  type  commander  or other  budget  holder. 6-3