,000), 95 percent for class B-high
readiness (item military essentiality code 3,4, or 5),95
percent for class C-high variability (average quarterly
demand greater than 3 or unit of issue not equal to each
[EA]), and 95 percent for class D-all other.
Stock points will maintain a location survey of no
less than 98 percent each quarter.
The computation for gross monetary adjustment
(GMA) rate excludes SERVMART/manual ready
supply stores/shop stores and fuel. The gross
adjustment rate is expressed as the ratio of absolute
dollar value of gains plus losses to the value of line items
inventoried plus in-house receipt losses. The gross
adjustment rate should not exceed 3 percent per quarter.
The location reconciliation between the NAVICP
and stock points will be maintained at no less than 97
percent accuracy rate.
The financial adjustments (gains and losses) to
SERVMART must not exceed one percent of the dollar
value of sales that have transpired since the last
The net total of the adjustment gains and losses for
shop stores/manual ready supply stores are computed
by cognizance (COG) symbol. The adjustments for
each Navy Stock Account (NSA) and Appropriation
Purchase Account (APA) COG should not exceed one
percent of dollar value throughput (receipts and issues).
When the adjustment goal is exceeded, the stock point
must provide an explanation for adjustments. Refer to
NAVCOMPT Manual, Volume VIII, Financial
Inventory Accounting, Reporting, and Billing for
Gains and losses of bulk petroleum products must
not exceed the standards provided by DOD Manual
4140.25-M and OPNAVINST 4020.25. All monthly
loss adjustments greater than established standards
require survey action.
Retention of Records
It is necessary to keep records of inventories and
actions directly affecting inventories such as location
surveys, warehouse refusals, receipts, and so forth, to
provide an audit trail. These records help in conducting
research and in preparing required reports.
Stock points must retain records as follows:
l Retain records pertaining to physical inventory
such as the inventory counts, adjustments, schedules,
and so forth for a minimum of one year. For sensitive
items, arms, ammunitions, and explosives, retain for 1
year if there is no adjustments or 2 years if adjustments
. Retain transaction ledgers and causative
research packages for two years.
. Retain the location survey listings and
unmatched and manually prepared location survey
cards for one year. STATLOC activities are required to
retain only the listings and reports applicable to errors
that have been corrected.
l Retain source documents of receipts and issues
for one year. Foreign military sale (FMS) issues are
retained for 2 years.
. Retain reports of discrepancy (ROD), MLSRs,
and surveys (Financial liability investigation of
property loss, DD Form 200) for 2 years.
l Retain location reconciliation listings, cards, and
other records pertaining to location reconciliations for 1
. Retain physical inventory, location survey, and
location reconciliation reports for 2 years.
The procedures of inventory management afloat are
basically the same as the procedures ashore. They
require an accurate allowance list, stock records,
transaction processing, and a system of adjusting stock
record balances with actual physical quantities of
material on hand. In addition, establish a method to
record and evaluate material usage data so that future
requirements can be anticipated. The main objective of
supply inventory managers and supervisors afloat is to
make sure there is a balance between material
requirements and assets on hand to support the ships
Effective material management procedures afloat
require personal involvement by supply managers and
supervisors in all supply functions. Supervision and
training are vital to the supply departments ability to
support the assigned operating departments and
deployed units. Properly performed tasks, along with
keen supervision often results in an effective material
management program. Some of these supply tasks are
allowance list maintenance, issue control processing,