Physical Inventory Guidelines.

TM 38-400/NAVSUP PUB 572/AFMAN 23-210 MCO 4450.14/DLAM 4145.12

quality of the inventory through failure to make

h. In striving for accuracy, nothing can be left to

adequate preparations. The following are some of the

chance. When conducting the physical count, be sure

storage situations that may be observed in a pre-

you know what you are counting-do not guess. You

inventory survey.

cannot count what you cannot see, so examine bulk and

(1) During a preliminary survey, you may

bin locations carefully.

discover conditions such as a pallet rack containing

i. During the first count phase, the quantities

material stored in such a manner that many handling

indicated on containers and pallet and/or stack cards

actions would be necessary to determine quantities.

may be accepted provided an examination of the

When material is originally palletized, every effort

containers reveals no obvious errors. All irregularities

should be made to place containers in such a manner

(warehousing deficiencies) will be reported to the

that nomenclature and quantities can be easily seen.

appropriate activity for correction.

(2) No markings on some of the containers

j. Remember, it does not pay to take too much for

and loose pieces in a rack location mean opening,

granted. Although original containers or packages that

counting, and repackaging most of the stock, thereby,

have been packed and sealed locally, need not be

increasing the chance for error. This is a condition

opened for inventory, counters should be continuously

which should be eliminated during the preliminary

alert for questionable containers. If there is a reason to

survey.

believe that the quantity is inaccurate or the

(3) When material is cartonized and placed to

identification doubtful, the container should be opened,

facilitate convenient recording of quantities without

verified, and count recorded accordingly.

removal of stocks from the rack, time will be saved.

k. Incorrect counting is the prime example of how

Original containers such as these, or sealed and

erroneous adjustments and secondary counts are

properly marked packages, need not be opened for

generated. Counts should be recorded in terms of

inventory counting.

quantity times unit pack times pallet (if applicable).

(4) Loose bin stocks placed in unit packs

Modern scales are accurate to the weight of a paper clip

accelerates the process of counting and helps to

and should be considered when available. After you

eliminate counter errors.

have recorded your count, give it a second look to

(5) Identification and quantities should be

assure that what you are going to report is correct.

exposed in such a manner that counting will be a simple

l. An important part of every inventory is the

matter.

research and investigation conducted on discrepant

(6) Another situation which can cause

items prior to and after the stock records are adjusted.

counting errors is a multi-item stack. A careless counter

(1) Research and investigation is the

could inventory the whole stack as one item. Open

responsibility of the inventory and stock accounting

boxes that are not labeled as open boxes in the stack,

activities. Inadequate research actions will result in

and markings not visible on the box, will also cause

unwarranted adjustments and increase the number of

problems. Storing more than one stock number in a

complete inventories. A review, prior to updating stock

bulk storage stack should be avoided.

records, could eliminate an inventory adjustment.

(7) Another example of warehousing which, if

(2) Retain documents considered during the

not recognized, could cause an inventory error is when

inventory phase to determine if material was infloat or if

multiple rows are the same item, but one row has a

change had occurred which affected the quantity

different size box. An inventory counter, if not alert for

identified or condition of the item. After adjustments

such a condition, might believe these boxes are another

have been processed to the stock records, a complete

item and omit the quantity from the total stock in

and through investigation will be made on items

location.

designated by the accountable officer. Research lists

f. Now that we have approached the starting point,

prepared from the adjustment routine must be screened

let's take a final look at our pre-inventory checklist to

and transaction activity histories prepared on each

assure that we take off in the right direction. When all

major discrepancy. Review histories for receipt, issue,

points check affirmative, we can proceed with physical

and adjustment documents prepared during inventory,

count and get the inventory off the ground, g. When

which may have been in-float at the time count was

starting your physical count, all actions should be aimed

conducted. Determine whether there are posting errors

at one target-ACCURACY. To hit this bull's-eye means

or adjustments of offsetting quantities

a successful inventory with a minimum of effort and

costs.

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