DD Form 362 Statement of Charges: Uses, Calculation, and Replacement

The DD Form 362, Statement of Charges/Cash Collection Voucher, is the document the Army uses to collect money from a soldier who voluntarily admits responsibility for lost, damaged, or destroyed government property. The charge cannot exceed one month of your basic pay, and no one can order you to sign it. Your signature creates a legally binding debt, so read the form carefully and, if anything looks off, walk it past your installation’s legal assistance office before you sign.

When a Statement of Charges Can Be Used

Army Regulation 735-5 sets three conditions that must all be true before this form can be processed against you. You admit liability. The total charge does not exceed your monthly basic pay. And there is no mandatory requirement for a formal investigation for the type of property involved.¹ If any one of those fails, the command cannot use this form.

The voluntary piece is where most misunderstandings happen. If you believe you weren’t negligent, or the loss came from fair wear and tear, you have every right to refuse. The command then has to initiate a Financial Liability Investigation of Property Loss using DD Form 200, which puts an appointed investigating officer between you and the charge.¹ That process takes longer and creates more paperwork for the unit, which is why some NCOs push soldiers to “just sign.” You are not obligated to make that easier at your own expense.

Situations That Require a Formal Investigation Instead

Even if you’re willing to sign, the Statement of Charges is off the table for certain categories of property. AR 735-5 requires a formal Report of Survey for sensitive items, including weapons smaller than 40mm, small arms ammunition, fire control equipment, field glasses, compasses, bayonets, radiac meters, and other items susceptible to pilferage.¹ Lose a set of night vision goggles and you’re going through the full investigation regardless of how eager you are to settle it.

A formal investigation is also required when the loss resulted from fire, theft, or a natural disaster; when it involves public funds or negotiable instruments; when higher authority directs it; or when the depreciated value exceeds your monthly basic pay.¹ If supply hands you a Statement of Charges for any of these categories, the form is improperly prepared and you should not sign it.

DA Form 7923 Is the Current Replacement

In March 2024, the Army introduced DA Form 7923 to replace the DD Form 362. Both forms serve the same purpose and follow identical procedures under AR 735-5.² Some commands still process the older DD Form 362; Army Cadet Command, for instance, still accepts it for online payments through Pay.gov. The rights and limits described here apply to either version.

How the Charge Amount Is Calculated

Supply identifies each item using its National Stock Number, a thirteen-digit code assigned to anything repeatedly stocked and issued through the federal supply system.³ The nomenclature must match the property book entry exactly, and the unit price comes from the Army Master Data File price in effect at the time of the loss. When no standard price is available, supply uses the current market price of a comparable item or documents an estimate with supporting justification.¹

You are not charged the full replacement price for a used item. AR 735-5 requires depreciation at 5 percent per year of service, up to a maximum of 75 percent. New property that was never used gets no depreciation reduction. A piece of equipment that has been in service for ten years would be depreciated by 50 percent, so you’d pay half of its current catalog price.¹ Check the math yourself before signing. Depreciation errors are one of the most common problems with these forms.

Payroll Deduction or Cash Payment

The form gives you two ways to settle the debt. A “Type of Action” block lets you select either payroll deduction or cash collection.⁴ By signing the certification block, you confirm the articles are not in your possession and authorize the payment method you selected.²

With payroll deduction, the finance office withholds the amount from your upcoming pay. With cash collection, you take the form to finance, pay the amount, and receive a receipt. Cash payment can be the better option if you’re approaching a PCS or separation and want to avoid an open debt following you off the installation.

Processing Timelines

AR 735-5 sets different deadlines by component. Active Army units must initiate and deliver the completed form to the Finance and Accounting Office within five workdays of discovering the loss. Army National Guard units have 45 workdays to initiate the form and forward it to the United States Property and Fiscal Officer. U.S. Army Reserve units get 60 days.¹ These clocks run from the date of discovery, not the date of actual loss. If your command is presenting you with a Statement of Charges months after an inventory, ask when the discrepancy was first identified.

What Happens If Property Is Recovered After You Pay

Gear turns up. If the lost property is found after payment has already been collected, the command must prepare an amendment to the original Statement of Charges, attach it as an exhibit, and forward a memorandum signed by the commander to the Finance and Accounting Office directing repayment to you as a “collection erroneously received.”¹ The accountable officer also gets a copy with instructions to put the recovered item back on the property book.

If the property turns up before the form has been assigned a document or voucher number, the commander simply lines through the recovered items and initials next to each one. If every item listed on the form is recovered before processing, the form is destroyed.¹ You should not be left paying for property the Army has back in its hands. If your unit drags its feet on the amendment, escalate through the chain or visit legal assistance.

Unpaid Debts at Separation

If you separate with an outstanding Statement of Charges balance, DFAS accelerates the debt and tries to collect the full amount from your final paycheck.⁵ If the debt can’t be fully collected from your last military pay, it becomes an out-of-service debt, and DFAS sends you a notice within 60 to 90 days after separation with options to settle.

Ignoring that notice is a serious mistake. DFAS is required to report delinquent debts to credit bureaus and may transfer your account to the Department of the Treasury for collection. Treasury can offset the balance from your federal income tax refunds, garnish civilian wages, or refer the debt to a private collection agency that can add fees exceeding 30 percent on top of what you originally owed.⁶ If you reenlist or return to active duty later, DFAS may refer the remaining balance plus interest and penalties to your current finance office for immediate collection. A $200 Statement of Charges you walked away from can turn into a much larger problem. Settle it before you clear the installation.

1
Army Publishing Directorate. Army Regulation 735-5 – Policies and Procedures for Property Accountability
2
U.S. Army Fort Stewart. DA Form 7923 – Statement of Charges/Cash Collection Voucher
3
Defense Logistics Agency. What is a National Stock Number
4
U.S. Army. DD Form 362 Statement of Charges/Cash Collection Voucher
5
U.S. Army. U.S. Army Fort Cavazos Separation and Retirement Briefing
6
Defense Finance and Accounting Service. Failure to Pay a Debt