First, timely processing is essential in reconciling
the physical counts and in-process transactions with
record balances. Delays in processing adversely affect
stock point operations.
Secondly, the DSCs have automatic control
features that will cancel the inventory after a specified
number of days. Inventory counts received after the
controls have been lifted will not proms. As a result,
the DSC records will not be reconciled or updated. If
this happens, the stock point has wasted its mourns.
The scheduled inventories requested by Navy
activities must be completed within 30 calendar days of
the actual cutoff date. Inventories requested by DSC
must be completed within the following time frames:
l For a complete inventory, the results must be
forwarded within 30 days of the actual cutoff date.
l For a sample inventory, the results must be
forwarded within 20 calendar days of the actual cutoff
Unscheduled inventories requested by Navy or
DSC must be completed within 15 calendar days of the
actual cutoff date.
Physical Inventory Adjustments
When a discrepancy between the physical count
and stock record cannot be reconciled, an adjustment
must be processed. The adjustment will result to a gain
or loss on the stock record.
Reversal of Inventory Adjustment
The Military Standard Transaction Reporting and
Accounting Procedures (MILSTRAP), DOD Manual
4140.22-M, permits the reversal of inventory
adjustments. The inventory adjustment must be within
365 days from the date of the adjustment. Reversals of
inventory adjustments are permitted only if the
following conditions are met:
1. If the original adjustment can be identified,
inventory adjustment reversals will be permitted.
2. There has been no separately identifiable
physical inventory conducted between the date of the
original adjustment and the date the reversal is
attempted. If an inventory has been completed between
the date of the original adjustment and the date reversal
action is attempted, the reversal will not be permitted.
If an inventory has been initiated subsequent to original
adjustment, and causative research indicates the
original adjustment was erroneous, a reversal of the
original adjustment is permitted.
3. There are documentations to support the
conclusion that the adjustment is in error.
4. Reversals to adjustments greater than 90 days
old must be approved by the inventory accuracy officer
according to NAVSUPINST 4440.132.
5. Adjustments must be reversed through credit
loss or gain procedures. Transactions should not be
reversed by complimentary financial transactions. For
example, an M4 loss should not be reversed by a D4
gain, but with a credit loss. Refer to Table 5-4 for
definitions of M4 and D4 financial inventory report
Special Reporting Requirements
Results of inventory for controlled items require a
report to be submitted to the applicable item manager.
A Missing, Lost, Stolen, or Recovered (MLSR)
property report is required whenever there has been a
gain or loss of sensitive material. The MLSR report is
used only as an initial report. ADD Form 200, SF 364,
or SF 361 is required as the final documentation of the
gain or loss.
The DD Form 200 is the Financial
Liability Investigation of Property Loss. The Standard
Form (SF) 364 is the Report of Discrepancy. Standard
Form (SF) 361 is the Transportation Discrepancy
Report. Refer to SECNAVINST 5500.4 for detailed
information concerning the MLSR report.
Table 5-4.-Inventory Adjustment FIR Codes