occasional inventories of a large range of items.
Physical inventories should be conducted at a time when
storeroom transactions can be frozen, except for
An inventory schedule outlines, in progression
order, the segments of material planned for physical
inventory during a fiscal year. The schedule is prepared
by the supply officer before the start of each fiscal year
and lists the material categories and frequency as shown
in table 5-1.
The inventory schedule for stock material in other
than supply department custody should reflect the time
frames jointly determined by the supply officer and the
respective department heads. For each segment listed,
the schedule must indicate the number of items to be
inventoried, the applicable storerooms or storage areas,
and the inclusive dates during which inventory of each
segment is to be done. The schedule should also include
a column for recording the accuracy rate of the stock
records for each completed inventory.
The supply officer should exercise maximum
control to make sure the inventory schedule is followed.
Storage and stock control supervisors must coordinate
the scheduling of inventories for each storeroom so that
the y can be conducted at a time when storeroom
transactions can be frozen (except for emergency
issues), and so that the receipt and issue documents in
process can be completed before the inventory begins.
Refer to chapter 6 of NAVSUP P-485 or chapter 7 of
NAVSUP P-567 for a sample of an inventory schedule.
Preparation for Inventory
Before the physical inventory, all outstanding
receipts and issue transactions, suspense items, overdue
receipts, and pending issues must be processed.
Materials included in the stock segment to be
inventoried are inspected and arranged accordingly. The
supply department personnel or departmental
custodians must ensure that the following actions are
l Loose units of small items are
standard bulk lots
. All items are properly marked,
l Cartons and Containers are stored with labels or
other identifying information plainly visible
. Uniform-sized packages are stacked in rows and
tiers to speed up the counting process
l Containers with broken seals and full counts of
originally packaged quantities are resealed
ADVANCE NOTICE. At least one week before
a scheduled inventory of stock material, the supply
officer should publish an official notice (normally in the
plan of the day) of the segment of stock to be inventoried
and the inclusive dates during which the inventory will
be taken. The notice should include a statement to the
effect that while the prospective inventory is in progress,
issue of items included in the material segment being
inventoried is restricted to emergency requirements
INVENTORY PERSONNEL. The physical
inventory of stock material and controlled equipage in
the custody of the supply department is the
responsibility of the supply officer. The supply officer
provides advisory assistance to other department heads
during the physical inventory of material in their
custody. The personnel in the inventory team are
assigned by the supply officer. The inventories are
normally performed by the material custodians provided
they are considered properly qualified. In some cases,
inventories for special items may be performed by the
supply officer or a specifically designated person.
Some of the special items are classified material,
precious metals, narcotics, and so forth.
QUALITY ASSURANCE. A quality assurance
(QA) team should be established in the supply
department. he team consists of a permanent group of
trained personnel. The purpose of the QA team is to
verify the accuracy of completed physical inventories
and location audits. The QA team should sample at least
5 percent of the inventoried material. The accuracy of
the physical count and location audit accuracy should
be according to the requirements listed in table 5-1. If
these goals are not reached, a complete physical
inventory should be repeated.
Reconciliation is the process of resolving all
inventory discrepancies between the actual count of
material and the stock record balances. The inventory
reconciliation process depends on the type of material
being inventoried, the cost of the material, and the
circumstances responsible for the discrepancy.
Procedures for reconciliations are discussed in the
PRELIMINARY RESEARCH. All potential
inventory adjustments in excess of 0 per line item
are subject to preliminary research to determine the