5. Actual Cutoff Date. This date is established at
the close of business for the day or as the first order of
business the next day. The stock point record balances
are obtained at this time.
6. Date Count Commences. The count should
begin on the first workday after the actual cutoff (if run
as the last days order of business) or the day of cutoff
(if run as the first order of business).
7. Estimated Number of Unscheduled Inventories.
This is the estimated number of spot and special
inventories to be conducted during each quarter of the
COPIES OF INVENTORY SCHEDULE. A
copy of the inventory schedule is provided to the areas
that process receipts, issues, reidentification, catalog
changes, and so forth. In automated activities, a copy
of the scheduled inventory is provided to the data
processing activity. The data processing activities are
responsible for running the physical inventory program
according to the schedule.
PHYSICAL INVENTORY LOTS OR
SEGMENTS. The physical inventory segments for
general supplies are formed according to the number of
line items that can be counted and balances verified or
adjustments processed within 30 calendar days.
The physical inventory lots of ammunition are
formed on the basis of the number of locations that can
be processed within 30 days.
Conducting the Physical Inventories
A physical inventory consists of three basic steps.
They are physical counts, post-count validation, and
A physical inventory is
considered complete when the stock point record
balance has been verified as correct or when the
adjustment quantity has been determined and
processed. Refer to enclosure 3 of NAVSUPINST
4440.115 for detailed procedures in conducting
physical counts and reconciliations.
Physical inventories are normally conducted on an
open for business as usual basis. With very few
exceptions, inventories are normally conducted in this
manner because management cannot shutdown or
freeze supply operations without adversely affecting
support to the customer. The stock point ensures that
there is positive control over all in-process or infloat
transactions and material that may affect the inventory
count. If a positive control cannot be achieved, take the
1. Suspend processing of low-priority requisitions
(issue priority 9 to 15) while the item is under inventory.
2. A shut down or closed inventory in which all
transaction and material processing is frozen is
permitted if customer support will not be adversely
Those items that are controlled on a serial number
basis must be reconciled by serial number. This
reconciliation process is conducted as part of the
Physical Inventory Report
The physical inventory reporting activities (see
enclosure 13 of NAVSUPINST 4440. 115) must submit
quarterly reports to COMNAVSUPSYSCOM not later
than 15 calendar days after the end of each quarter. The
report is a summarization of the results of physical
inventories and in-house receipt losses (UADPS-SP
activities only). Each reporting activity must also
submit a copy of the quarterly report to their major
command. Refer to enclosure 5 of NAVSUPINST
4440.115 for detailed information concerning physical
Physical Count and Reconciliation
The preliminary inventory controls must be
established at least 7 days but no more than 15 days
before the cutoff date. his ensures that transactions
that will affect the physical inventory cutoff and the
count are identified.
Obtain the count cards/listing for all locations
recorded for all condition codes and items qualifying
for inventory. As a minimum, the count cards/listing
should contain material identification information,
location, cutoff date, and inventory serial number. The
count cards/listing should not have the stock record
balance (quantity on-hand). Controls are maintained to
ensure the count cards/listings are returned by
personnel assigned as counters.
The first count starts by the first workday following
the actual cutoff date and is completed and returned to
the inventory office within 3 workdays.
COUNT PROCEDURES. Inventory counters
must verify the information between the count
cards/listings/bar code labels with material in location.
Annotate any discrepancies on the count cards/listings.
Count all the items during the first count. Pull and count
the items in all open or nonstandard unit pack boxes or