RECEIPT  DISCREPANCIES Material  discrepancies  are  divided  into  two categories. The first category includes discrepancies such as overages, shortages, damages, incorrect, or not-received material. These discrepancies are normally caused by the activity that shipped the material  or  by  the  transportation  system. The second category includes material quality discrepancies. Material received in this category cannot be used for its intended purpose because it does not meet specified (form, fit, or function) requirements. These discrepancies are caused by manufacturing or repair facility or, in some cases, incorrect   specifications. Shipping  Discrepancies Shipping discrepancies attributable to or the responsibility  of  the  activity  shipping  the  material (including  contractors,  manufacturers,  or  vendors) are reported by the receiving activity on a Report of  Discrepancy  (ROD),  Standard  Form  364. For shipments received from DOD activities, GSA  supply  distribution  facilities,  contractors, and manufacturers, a ROD is prepared to report materials  with  one  or  more  of  the  following discrepancies: .  Shortages  or  overages  valued  in  excess  of $100 per line item, except classified or protected items  that  are  reported  regardless  of  the  dollar value. Shortages or overages valued at $100 or less and reported shortages that were not credited or replaced  by  the  consignor  are  processed  as  an original  receipt. .   Erroneous   material,   unacceptable substitutes, or duplicate shipments regardless of dollar value. An exception to this is erroneously issued material that can be readily reconciled with a  local  supply  activity. l  Material  received  from  a  previously  can- celed  requisition  for  which  a  copy  of  the  confir- mation of cancellation is required and the line item is  in  excess  of  $100. . DOD shipments (line item value in excess of $100) when the condition of the item is found to  be  other  than  that  shown  on  the  shipping document. .  Material  with  a  line  item  value  in  excess of  $100  with  an  expired  shelf  life. .  Material  shipped  to  the  wrong  activity, regardless  of  value. .  Material  with  item  technical  data  markings that  are  missing  or  incomplete. .  Material  with  supply  documentation  that is missing or improperly prepared, regardless of dollar  value. .  Items  with  a  line  item  value  in  excess  of $100  that  were  reported  shipped  by  parcel  post but   not   received   or   received   in   a   damaged condition. .  Repair  material  received  that  has  been stripped  of  parts  or  components  without  inventory manager  authorization,  regardless  of  dollar  value. l   Material   with   repetitive   discrepancies observed,   regardless   of   dollar   value. Discrepancies excluded from the reporting procedure described above are as follows: Discrepancies  found  while  material  was  in storage. Discrepancies   involving   local   base   or station deliveries to or return from internal satellite   activities. Discrepancies   involving   shipments   of privately  owned  vehicles. Shipping-type   discrepancies   involving personal  property  shipments. Product  quality  deficiencies. Transportation-type   discrepancies   covered by   NAVSUPINST   4610.33. Discrepancies  resulting  from  UNREP. Packaging  Discrepancies A  discrepancy  report  must  be  made  on  the following  packaging  discrepancies: .  Unsatisfactory  conditions  resulting  from improper packaging that cause or render the item, shipment,  or  package  vulnerable  to  loss,  delay, or damage when the estimated or actual cost of correction exceeds $50. This may include loss or damage to the item, shipment, or package except when the report is otherwise required as prescribed in   NAVSUPINST   4610.33. . Packaging-related discrepancies, resulting in  damaged  material  that  may  endanger  life, impair  combat  or  deployed  operations,  or  affect other  material.  These  types  of  discrepancies  must be reported immediately to the shipping activity, contracting  office,  and  control  point  by  the  fastest communication medium to enable the shipper to 3-12