An inventory is a method of verifying the accuracy of, or reconciling the difference between, receipt and expenditure transactions. Inventories verify that stocks are maintained at allowance levels and are accurately recorded on the stock record cards. Ideally, each command should seek to achieve a 100 percent stock validity on each inventory conducted. This is accomplished by accurate and timely posting of receipts and expenditures to the stock record cards.

Results of inventories are reported to the COMOMAG each month, and a stock validity of 90 percent is acceptable. Anything less than this percentage must be reported with the reasons for the

Figure 2-16-Ammunition Lot/Location Card (Green) (NAVSUP Form 1297).

Figure 2-17.-Ammunition Serial/Location Card (Blue) (NAVSUP Form 1356).

unacceptable validity and with corrective actions taken to remedy the situation.

A physical inventory of 100 percent of on-hand stock must be completed each year. In addition to that requirement and to the below-listed inventories, a complete inventory of any item is held each time there is an issue or a receipt of that item. The results of this inventory are noted in the upper-right corner of the receipt document or in block 11 of DD Form 1250-1. When the transaction is posted to the stock record card, the inventory is verified.

Inventory Types

The term inventory refers to the quantity of on-hand stock that is maintained on the stock record cards. A physical inventory of these items is required for proper inventory control. Other goals that should be accomplished during an inventory are as follows:

1. Reconcile differences between the actual count and the stock record count.

2. Stop reoccurring discrepancies by effecting controls.

3. Determine stock deficiencies that require corrective action.

4. Ensure that material is correctly identified.

5. Ensure that material is properly stowed, packaged, and preserved.

The rest of this section describes some of the inventories you will be involved with at your command.

RANDOM-SAMPLE INVENTORY.- Random-sample inventories are used to verify previously conducted inventories, such as the monthly onetwelfth inventory. In the main random-sample inventory, all items in stock are eligible to be counted and must have an equal chance of being selected. The initial item is selected from the first 20 cards and then every 20th card thereafter. In other words, if you pick the 15th item, then after that you pick the 35th, the 55th, the 75th, etc.

SELECTED-ITEM INVENTORY.- The selected-item inventory is designed to be used on certain fast-moving or frequently demanded items. It tests the readiness of the supply department by ensuring that there are sufficient quantities of material to build up your command's weapons.

MONTHLY ONE-TWELFTH INVENTORY.- The monthly one-twelfth inventory is accomplished by preparing inventory cards and dividing them by 12 equal sections. One of these sections is used to complete the inventory each month. You must remember to update the inventory cards as items are added to or deleted from your command's allowance.

Inventory Records

Once the inventory has been completed, all efforts must be made to correct any discrepancies before recording the results of the inventory. The results are posted to the stock record cards in red ink, and all records are maintained.

Material Lost or Gained by Inventory

When a physical count of material shows a quantity difference between the stock record card and the actual count, it is called either a loss by inventory (LBI) or a gain by inventory (GBI). A loss or a gain must be reviewed carefully to ensure that the suspected loss or gain is valid and that later inventories will not show the count difference to be the same as the loss or the gain made in a previous inventory.

Once the loss or the gain has been verified and has been considered a minor difference, an adjustment NAVSUP Form 1250 is prepared in accordance with NAVSUP P-485, and the quantity difference is then posted to the stock record card. If it is decided that there is a major difference, it must be determined if the material is to be reported on an M-L-S-R government property report or is to be surveyed.