RECONCILING COUNT DOCUMENTS AND STOCK RECORDS

multiple locations, record the total quantities in all locations on the count document. Personnel who do the counting must ensure that the quantity and unit of issue of each item inventoried are compatible. For example, if the total count of an item is 100 and the unit of issue is pair (PR), the inventory count should be 50 PR. Inventory personnel should record or check the actual location(s) of material in the count documents. If the prerecorded location does not contain the item, enter a 0 (zero) for quantity inventoried. In some cases, inventory personnel may find the item in another location. If it is impractical to put the item in the prerecorded location, delete the prerecorded location and add the new location. Enter the new location and the quantity in the inventory documents. Inventory personnel are also responsible for keeping themselves apprised of all pending transactions in the inventory segment. These are the receipts, issues, or other transaction documents of items included in the inventory. Inventory personnel should stamp or mark these transaction documents with “BEFORE INVENTORY” or “AFTER INVENTORY,” as appropriate. REVIEWING THE COUNT DOCUMENTS Inventory personnel must review the count documents to ensure that all items scheduled for inventory are counted. During the review, they should ensure that quantities are legible and have a correct unit of issue, and that all added items are identified and legibly recorded. Enter any remarks legibly and state them explicitly. When using manual inventory procedures, document each item in NIIN sequence. Inventory personnel should ensure that count documents have the date and initial of the person who counted the items. RECONCILING COUNT DOCUMENTS AND STOCK RECORDS Physical inventory procedures include comparing the inventoried quantities with the quantities in stock records to check if there are differences. If the inventory and stock record quantities match, post the inventory and date of inventory in the stock records. Also, enter the inventoried quantity in the stock record to reflect the on-hand balance. If differences exist, stock control personnel should reconcile the records. Reconciliation is the process of resolving inventory discrepancies. Reconciliation process consists of several steps. It is dependent upon the type of material, cost, and the circumstances that led to a discrepancy. The reconciliation process may include conducting a preliminary or a causative research. It also includes processing inventory adjustments or adjustment reversals and maintaining supporting documentations. A major difference exists when the physical count of a stock item differs from the confirmed stock record balance by 10 percent or more. A minor difference exists if the count differs less than 10 percent. All ships treat inventory differences for SPECIAL MATERIAL, listed in the previous paragraphs, as major differences. Preliminary Research The preliminary research consists of checking recent transactions, unposted or rejected docu- mentation, and temporary locations. It also includes verifying catalog data, such as unit of issue, quantity per unit pack or other data. Causative Research This is an in-depth investigation of specific inventory discrepancies. Causative research is con- ducted to determine the cause of the inventory discrepancy so corrective action can be taken. This consists of a complete review of all transactions, within the allowable look-back period, in the history files. The transactions that need review are the receipts, change notices, expenditures, location updates, and unposted or errored documents. Normally, causative research is conducted after posting the inventory adjustment to the stock record. The research should be completed within 30 days from the date the adjustment was posted to the stock record. The supply officer reviews the results of causative research periodically. Also, the supply officer initiates actions to prevent recurrence of such inventory discrepancies. Posting Inventory Results The procedures for posting the result of physical inventories may vary from each activity. Posting depends upon the method or equipment used by the activity. Activities using the manual procedures use the Stock Record Card Afloat, NAVSUP Form 1114. Activities using automated procedures may process the results by using the inventory function in the computer program. After posting, file the inventory count documents in the stock control history file in NIIN sequence. Keep the completed count documents in file 10-12