In preparation for the inventory, all receipts and expenditure documents should be posted to the NAVSUP Form 209, NAVSUP Form 335, and NAVSUP

Form 367. All GM food items should be arranged by case lots with labels facing out and in NAVSUP Form 1059 sequence, if possible.

Physical Inventory

When the FSO is being relieved, both the present and the relieving FSOs should take the inventory. Personnel assigned responsibility for GM stock should be present and participate in the inventory of their respective spaces. Separate rough inventories should be taken of areas assigned to different individuals. Food items should not be moved from one storage area to another during the inventory. The FSO should make sure no issue, transfer, or sale of food items is made from GM stocks except in an emergency. When such expenditures occur, the inventory should be adjusted and initialed by the persons taking the inventory.

RECORDING INVENTORY DISCREPANCIES.- The rough inventory should be recorded on the NAVSUP Form 1059 or other appropriate recording document.  Regardless of the form used, the rough inventory must be recorded in ink. Only an original rough inventory will be prepared. Errors and adjustments should be lined out, but not obliterated. Corrections must be initialed by the persons responsible for the inventory. Each page of the rough inventory must be signed by the FSO and the persons responsible for the storage areas.

RECONCILING INVENTORY DISCREPANCIES.-The quantities on the rough inventory will be compared with the balances on the NAVSUP Form 335. A list should be made of discrepancies between inventory quantities and on-hand balances. These discrepancies will rechecked by the persons conducting the inventory. All discrepancies greater than 5 percent of total expenditures will be investigated and initialed by the FSO. If the inventory is initially correct, it may be posted at that time. However, if there are discrepancies, these discrepancies should be resolved before posting. If a discrepancy cannot be resolved, an inventory adjustment should be made. Required corrections will be made to the rough inventory and initialed by each person involved with the inventory.

AFTER THE INVENTORY.- After all the corrections have been made, the inventory should be recapped in duplicate on a NAVSUP Form 1059. The FSO should compare the smooth recapped inventory with the rough inventory before signing the smooth inventory. The rough inventory sheets should be placed in the accountability file until the next inventory has been completed, after which they may be destroyed. The original and duplicate of the smooth inventory should be priced at the last receipt prices, extended, and totaled. The original should be retained by the FSO and filed with the retained returns.

The duplicate copy should be used for posting to the NAVSUP Forms 209, 335, and 367. Inventory quantities should be posted to the NAVSUP Form 209 and the NAVSUP Form 335. The total value of the inventory should be posted to the Expenditures side of the NAVSUP Form 367. After posting is completed, the duplicate copy should be used to prepare returns and then destroyed except for a copy to be retained by the relieving accountable officer.

Optional Inventory Posting Procedure

Upon completion of the inventory, quantities on hand are posted to the NAVSUP Form 335. Quantity

differences (either plus or minus) between the inventory and the NAVSUP Form 335 balances are posted to the Issued to General Mess column of the NAVSUP Form 335 and to the NAVSUP Form 1059 or the NAVSUP Form 1282, on which each item is priced using fixed prices, extended, and totaled. The total value of the differences is posted to the General Mess Control Record, NAVSUP Form 338, to reflect the actual food cost.

At the end of the quarter, the quantities on hand, as shown on the NAVSUP Forms 335, are posted to the NAVSUP Form 1059. These forms should be priced at last receipt prices, extended, totaled, and signed by the FSO. The value is posted to the NAVSUP Form 367 as the value of subsistence inventory carried forward at the end of the accounting period and is reported under Expenditures in the Balance Sheet section of the General Mess Operating Statement, NAVSUP Form 1358, opposite the caption Balance on Hand.