Types of Inventories
Inventory Preparation
Procedures and Forms
Adjustments and Differences
Validity & Common Problems
100

How often must a periodic wall-to-wall inventory be conducted?

Every 90 days

100

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.

100

Which NAVSUP form documents the rough inventory when items are physically counted?

NAVSUP Form 1059.

100

What is an inventory adjustment?

The difference between the quantity recorded in FSM and the quantity physically counted.

100

What minimum inventory validity must the FSO maintain?

95%

200

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.

200

What must be posted before starting the inventory?

All breakouts, receipts, transfers, surveys, and returns to date.

200

What must be done when an item’s physical count does not match its recorded quantity?

Recount the item; this is the second count.

200

What must be done for all unresolved inventory discrepancies?

Adjustments are required.

200

Which two inventory practices help maintain high inventory validity?

Accurate perpetual inventories and spot inventories.

300

When an FSO or BSC is relieved, what inventory is required?

A periodic wall-to-wall inventory, performed by both FSOs or BSCs.

300

What should be done with the next day’s breakouts before inventory begins?

Set them aside in a separate pile.

300

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.

300

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.

300

Who must investigate line-item discrepancies when validity falls below 95%?

FSO

400

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.

400

What must happen before any additional breakouts are conducted during inventory?

The inventory must be complete, discrepancies resolved, and records posted.

400

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.

400

Where is the overall positive or negative inventory adjustment posted on NAVSUP Form 338?

Column 16, Food Cost.

400

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.

500

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.

500

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.

500

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.

500

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.

500

What report summarizes total gains, total losses, total adjustment, net adjustment, and actual inventory validity?

The NAVSUP Form 1059 Physical Inventory (PI) Discrepancy Report.