Types of Inventories
How often must a periodic wall-to-wall inventory be conducted?
Every 90 days
Who must be physically present during an inventory unless a designated alternative is authorized?
The FSO, unless a Letter of Authorization (LOA) has been signed designating other personnel.
Which NAVSUP form documents the rough inventory when items are physically counted?
NAVSUP Form 1059.
What is an inventory adjustment?
The difference between the quantity recorded in FSM and the quantity physically counted.
What minimum inventory validity must the FSO maintain?
95%
What are the two inventory types identified in FSM 3 as Full and Partial?
Periodic wall-to-wall inventories are Full; spot inventories are Partial.
What must be posted before starting the inventory?
All breakouts, receipts, transfers, surveys, and returns to date.
What must be done when an item’s physical count does not match its recorded quantity?
Recount the item; this is the second count.
What must be done for all unresolved inventory discrepancies?
Adjustments are required.
Which two inventory practices help maintain high inventory validity?
Accurate perpetual inventories and spot inventories.
When an FSO or BSC is relieved, what inventory is required?
A periodic wall-to-wall inventory, performed by both FSOs or BSCs.
What should be done with the next day’s breakouts before inventory begins?
Set them aside in a separate pile.
Who must initial mistakes on the rough inventory, and who signs each page when it is complete?
The FSO initials mistakes; all inventory participants sign each page of the rough inventory.
An adjustment exceeds 2% of the total dollar value on hand. What action is required?
Report it to the CO to determine whether a JAG investigation is required.
Who must investigate line-item discrepancies when validity falls below 95%?
FSO
What percentage of line items must be inventoried under the spot inventory method?
A minimum of 10% of line items twice a month, or 20% monthly, based on the FSO’s decision and inventory accuracy controls.
What must happen before any additional breakouts are conducted during inventory?
The inventory must be complete, discrepancies resolved, and records posted.
After posting the rough inventory to FSM 3, which form is printed, and what discrepancies require investigation?
Print the Inventory Adjustment NAVSUP Form 1059. Discrepancies greater than 5% of total monthly expenditures must be investigated by the FSO and initialed.
Where is the overall positive or negative inventory adjustment posted on NAVSUP Form 338?
Column 16, Food Cost.
Name three inventory problems or controls highlighted in the training slides.
proper receipt and issue procedures, key control, spot inventories, and correctly recorded emergency breakouts.
Who inventories the remaining storeroom quantities after every breakout, and on what form is it recorded?
The BSC; the breakout inventory is recorded on NAVSUP Form 1282.
What two measures help prepare for a smooth inventory while minimizing disruption?
Assign two teams when possible and ensure there are no conflicts with the ship’s routine.
How long are the rough inventory, smooth inventory, and inventory adjustment sheets retained?
Rough inventory until the next full inventory; smooth inventory for 3 years; inventory adjustment sheets for 3 years.
What do ‘heavy on the books’ and ‘light on the books’ mean?
Heavy: FSM records more inventory than is physically in the storeroom. Light: FSM records less inventory than is physically in the storeroom.
What report summarizes total gains, total losses, total adjustment, net adjustment, and actual inventory validity?
The NAVSUP Form 1059 Physical Inventory (PI) Discrepancy Report.