physical characteristics, costs, or other reasons,
are specifically designated for separate identifica-
tion and inventory control. Physical inventory of
such material is required on a scheduled basis, as
prescribed in chapter 6 of NAVSUP P-485.
A spot inventory is an unscheduled type of
physical inventory to verify the existence of a
specific item. It is usually conducted when a req-
uisition is returned showing the item is not in stock
and the stock records indicate the item is on hand.
It is also conducted when directed by higher
authority or when a specific item has been found
to be defective.
A velocity inventory is based on the premise
that the faster an item moves, the greater the room
for error. This type of inventory is required on
items with a relatively high turnover rate, the
periodicity determined by local authority.
Random Sampling Inventory
A random sampling inventory is considered
to be part of the annual scheduled inventory pro-
gram. It is done as a measure of the stock record
accuracy for a segment of material on hand.
Guidelines for conducting a physical inventory by
random sample are outlined in chapter 6 of NAV-
Keeping in mind that inventories are con-
ducted in order to bring stock and stock records
into agreement, you can see the importance of a
complete and accurate inventory. In order to
reduce errors that may occur, you must:
. Maintain concentration on the inventory.
. Write quickly but without haste.
. Write legibly.
. Ensure the count is correct.
. Ensure that the correct unit of issue is used
in taking the count.
Documents authorized for conducting inven-
tory counts of stock material include NAVSUP
1075 (whether or not maintained as locator
records), electronic accounting machine (EAM)
cards, and machine or manually prepared listings.
Stock Record Card, Afloat, NAVSUP 1114, even
when maintained in storerooms, are not to be used
as inventory count documents. A complete and
correct item count is basic to conducting a physical
inventory. You must ensure that the total quan-
tity of each item is determined as accurately as
Promptly upon completion of the physical
inventory and prior to matching inventoried quan-
tities against stock record balances, review the in-
ventory documents to ensure that:
All items scheduled for inventory have
been counted or verified as nonexistent.
Quantities counted are legibly recorded
and compatible with related units of issue.
All locations applicable to the inventory
segment have been checked.
Added items are adequately identified
and legibly recorded.
Items are documented in National Item
Identification Number sequence.
Count documents are dated and initialed.
RECONCILIATION OF COUNT
DOCUMENTS AND STOCK RECORDS
Upon completion of the physical count and
review of the count documents, the next step in
the inventory process is to compare count
documents with the stock records. This is done
to determine if a difference exists between the
physical count and the amount recorded on stock
When the count documents are correct and
complete, compare them, item by item, with the
applicable stock records to determine whether dif-
ferences exist. If no differences exist, post the
matched count cards or items in the inventory
listing to the applicable stock record. Enter the
Julian date of the inventory and the notation
INV in the REQUISITIONS OUTSTAND-
ING column and enter the inventory quantity in
the ON-HAND column. The inventory quantity