COMNAVAIRFORINST 4440.2E
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CHAPTER 3
PHYSICAL INVENTORY
300
Physical Inventory. Physical inventories and location audits are required to ensure Stock
Item Table (SIT) inventory balances and location data agree with quantities on hand (O/H) and
locations in the storerooms. The inventory program includes consolidation of locations, purging
excess and expired stock and identification and preservation of materiel.
a. NAVSUP WSS, the NWCF-SM inventory manager for the United States Navy,
designates an Inventory Accuracy Officer (IAO) to consolidate quarterly inventory accuracy
reports for all organic activities as per NWCF-SM reporting structure (exhibit 3-1). Inventory
management guidance in this instruction will ensure compliance with the physical inventory
policies and reporting requirements specified in NAVSUP Publication 723, NAVSUP Navy
Working Capital Fund Supply Management (NWCF-SM) Inventory Integrity Standards. Refer
to the latest revision, of the NAVSUP P-723, for most current NWCF asset inventory guidance,
such as inventory standards/frequency, discrepancy research, adjustment approval, and reporting.
b. CVNs must ensure inventory accuracy standards are upheld by conducting periodic
physical inventories, resolving materiel stowage/inventory discrepancies and taking appropriate
corrective action. Submit to CNAP/CNAL POCs all IBS LAP and inventory reports along with
ADHOC queries that will be queued immediately after monthly IBS LAP/INV data upload to
RSupply. See paragraphs 300.1 and 905.1 for detailed reporting requirements.
c. The SOM mandated CVN location audit and physical inventory plan is a monthly
range methodology. When the monthly LAP/INV results for a specific range indicates the
accuracy goals are not met, conduct a second LAP and inventory for the NIINs within the same
location and/or bin. In addition, IBS S6 & S8 coordinator are mandated to report to
CNAP/CNAL N412 POCs if monthly LAP and Inventory range was not met with a detailed
reason of negative completion approved by CVNPAL. Lastly, divisions will submit an updated
LAP and Inventory schedules signed by the Supply Officer to capture specific range not met in
the prior month.
300.1 CVN Navy Working Capital Fund – Supply Management (NWCF-SM) Inventory
Standards and Reporting.
Below are the Location Audit Program and inventory reporting requirements, location validity
and physical inventory standards for CVNs.
a. Inventory and Location Audit Processing. An annual LAP and inventory schedule
must be established for the fiscal year. See Appendix K for detailed guidance.
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Completion
Inventory Category
Inventory
Frequency /
Monthly Data
Location
Validity
Standard
Repairables (FLR and
DLR)#
Quarterly/IBS
LAP/INV Reports
100%
100%
Yes
Non-DLRs with
Unit Price >$1,000#
Annually ADHOC
query after upload of
IBS/LAP
100%
100%
Yes
CIIC items (see Note 1
below)#
Annually ADHOC
query after Upload of
IBS/LAP
100%
100%
Yes
Demand Based Items
(DBI, less MSP)
Annually
All storerooms
98%
98%
No
MSP
Annually, upon
return from
deployment and
during COH, RCOH,
DPIA I/II, SRA,
ESRA, & EDSA.
98%
98%
No
Non-Demand Based
Items (NDBI)
Annually,
All storerooms
98%
98%
No
Classified#
100%
100%
Yes
EKMS/COMSEC#
(See Note 2)
Quarterly and Change
of Custodian
Monthly and Change
of Custodian
100%
100%
Yes
Hazardous Materiel
Annually
98%
98%
No
Supply Officer assets in
custody of other Dept.
Monthly and Change
of Custodian
100%
100%
No
Shelf Life Materiel
(non-DLR/non CIIC)
Annually and a
month before
expiration
98%
98%
No
3-2
Inventory
Validity
Standard
Reporting
to NAVSUP
COMNAVAIRFORINST 4440.2E
01 FEB 2022
Controlled Flight
Clothing#
Quarterly or Change
of Custodian
ADHOC query after
upload of IBS/LAP
100%
100%
Yes
Flight Clothing
Quarterly or Change
of Custodian
100%
100%
No
Q-COSAL Stock
Materiel
Annually
98%
98%
No
Q-COSAL In-Use Materiel
Quarterly or Change of
Dept. Head
100%
100%
No
Nuclear Water Chemicals
Quarterly
100%
100%
No
Radioactive Materiel#
Semi-annually
ADHOC query after
upload of IBS/LAP
98%
98%
Yes
Level One
Annually and Change
of Custodian
100%
100%
No
MAMs/TBIs
Semi-Annually and
Change of Supply
Officer or Dept. Head
100%
100%
No
Never Out
(See Note 3)
Weekly from TSTA to
end of deployment &
quarterly-other time
100%
100%
No
VPOOL
Monthly
100%
100%
No
All Other#
Annually
100%
100%
Yes
IBS LAP/INV
Reports
Note 1: This includes the following Controlled Inventory Item Codes (CIICs): A, B, C, D,
E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, V, W, X, Y, Z & 1, 2, 3, 4, 5, 6, 8, 9.
Note 2: Inventory and location audits for EKMS/COMSEC materiel consists of S/N
verification with SF-153 between RMB and the EKMS Manager.
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Note 3: Never Out materiel is identified in the SIT with LMC=NO. Previously separated
CVN Aviation Never Out (LMC=AN) and Surface Never Out (LMC=NO) have been combined
into Never Out (LMC=NO)
Note 4: # sign denotes inventory category that requires CNAP/CNAL IAO reporting to
NAVSUP IAO.
b. Complete the monthly LAPs and physical inventories according to the annual
schedule validated by CNAP/CNAL POCs. “EOM INV Tracker” ADHOC queries as detailed in
Appendix R will be prepared and provided to the ships by CNAP/CNAL NFL SMEs each month
to run after monthly LAPs and inventories are uploaded to RSupply In addition to the ADHOC,
an SQL will be provided to the ships quarterly to run a location validity and inventory accuracy
as outlined in NAVSUP P-723. RSupply query outputs are inventory adjustments posting and
item Date Inventoried/DINV setting verification tools, and tickler for items requiring causative
research/survey documentation which must be accomplished within 30 days of transaction
posting. Return the ADHOC query outputs to CNAP/CNAL POCs to ensure FIAR compliance
and adherence to the End of Month monitoring metric, “Monthly LAP and Inventory
Verification.” RSupply ADHOC SQL query outputs must also be utilized for location validity
and inventory accuracy determination for specific NWCF-SM materiel categories outlined in
NAVSUP P-723 and as indicated in paragraph 300.1a above.
c. CVN TYCOM reporting to NAVSUP IAO. To facilitate CNAP/CNAL’S reporting
to NAVSUP IAO via CNAP/CNAL POCs, CVNs will determine and report the materiel stowage
location and inventory validity via the CVN Supply Readiness Performance cover letter.
CNAP/CNAL will collate the data for the months of each quarter and consolidate the reported
location and inventory validity of NWCF-SM materiel categories indicated by # in paragraph
300.1a above.
CNAP/CNAL IAO will submit a consolidated report which is due to NAVSUP IAO within 30
calendar days after the end of each fiscal quarter.
300.2 Location Audit Program (LAP). The LAP process verifies materiel in the storeroom
location agrees with the materiel recorded in the SIT location. It also identifies discrepancies,
such as misplaced materiel, items found in a storeroom location that are not listed in RSupply,
erroneous barcode labels, items with locations in more than one storeroom, etc. Storeroom
preparations, such as proper lighting, barcode labeling, trash removal, stanchion placement,
shelving, and preservation, are essential for a successful physical inventory or LAP. The
Location validity is determined two ways:
a. Location to SIT Validity. This refers to the comparison of the NSNs in a specific
storeroom location against the NSNs and locations on the R-Supply SIT. Validity is determined
by adding the number of matching NSNs to the number of unmatched NSNs (NSN in the
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location, but not reflected on the SIT) then dividing the matching NSNs by the total matched and
unmatched.
b. SIT to Location Validity. This refers to the comparison of NSNs listed in a specific
location on the R-Supply SIT, with an on hand quantity, to the NSNs residing in that same
storeroom location. Validity is determined by adding the number of matching NSNs to the
number of unmatched NSNs (NSNs on the SIT but not in location) then dividing the number of
matching NSNs by the total matched and unmatched.
c. Location Audits for Repairables. Unless materiel is in a manufacturer’s sealed
container, review the nameplate data to ensure items are identified by the correct National Stock
Number (NSN) and have required Ready-For-Issue (RFI) Tags, Equipment History Records
(EHR) and/or the Scheduled Removal Component (SRC) cards. Do not open repairables packed
in the contractor’s hermetically sealed package to inspect nameplate data. If a sealed package is
opened or wrapping is broken or torn and without RFI Tags (Manufacture, Depot, IMA tags), it
is required to be inducted for “test and check” for RFI certification.
300.3 Inventory Preparations for Scheduled Inventories.
a. Preparation. Because inventory flags prevent posting of transactions and ordering of
materiel, offline management is required for items being inventoried. Implement procedures to
ensure all pending RSupply actions including storeroom issues, receipts, suspended transactions,
change notice storeroom actions and location change updates are completed prior to commencing
an inventory. Transactions must be controlled and minimized during inventory. Use caution
when scheduling bulkhead-to-bulkhead inventories during deployments or during periods the
CVW is embarked. It is best to set inventory flags on small segments and expeditiously
download inventory results to the stock records. Several small inventories are more efficient
than one large inventory when underway and deployed with a large number of customers to
support.
b. Planning Requirements. Thorough planning for inventories should include the
following:
(1) Audit/Inventory Parameters. Inventory required line items dictated in the annual
inventory schedule.
(2) Inventory Time Frame. Set start and completion dates to conduct the inventory,
research discrepancies, and post adjustments to RSupply. Because inventory flags prevent any
transactions from posting to RSupply and the CVN S-6 and S-8 divisions are extremely dynamic,
it is recommended that the entire inventory process take no longer than seven days.
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(3) Assign Responsibility. Place a Division Officer in charge of the inventory
evolution. Assign Division LCPO as QA team lead to review the work. This is accomplished by
using the IBS option to verify each scanner data before the counts are accepted for processing.
(4) Clear Processing Pipeline. Clear the processing pipeline of items that affect the
SIT prior to setting inventory flags. Process RSUPPLY suspended transactions from carcass,
MRE, MRI (OFC-20 & 50), receipts, and sub-custody suspense reports. This includes materiel
stowed, issues completed, and offload materiel pulled but source documents not posted.
(5) Setting the Inventory Flag. Inventory flags prevent transactions from posting to
RSupply. Establish emergency issue procedures. Transactions that affect the stock under
inventory must be held in a pending file and clearly labeled before or after the line item count
was taken. Don’t clear flags until results are ready to be posted to RSupply.
301
Inventory Amplification for Special Categories of Materiel.
a. Repairables. In addition to CNAP’s quarterly inventory requirements for repairables,
ships perform a 100% LAP and inventory of Field Level and Depot Level Repairables with
CNAP/CNAL N412 staff’s assistance upon return from deployment. The purpose of TYCOM
assisted Repairable Reconciliation (RECON) is to reconcile inventory discrepancies, train ship’s
force on causative research, and ensure corrective actions are taken. CNAP/CNAL assisted
Repairable RECON procedure is detailed in Appendix C of this instruction.
(1) Assets in the Repair Cycle. When inventorying Aviation DLRs
(AVDLRs)/DLRs, count all stock assets, including Due-in-from-Maintenance (DIFM) items in
the repair cycle, Repair and Return, Awaiting Maintenance (AWM), Awaiting Parts (AWP), etc.,
to reflect the correct quantity of stock assets held as on-hand by the SIT. Consider which NIIN
was issued against the part being repaired. Retrograde received may be a substitute. If so,
update NIIN integrity on the SIT upon final RFI or Beyond Capability of Maintenance (BCM) of
the asset. Utilize NALCOMIS DIFM Inventory ADHOC Report detailed in appendix R when
performing inventories of all DIFM assets in AWP locker and Gear-in-Shop (GIS) weekly.
Exercise care to correctly inventory “matched sets” which may be “built up” and contain several
repairable components. Upon completion of joint DIFM inventory, the AWP manager and work
center custodian must sign the printed ADHOC report and file in AWP binder. The report
retention is 10 years per NAVSUP P-723, chapter 6, para 6.1.5.
(2) Temporary Loan/Pack-up Materiel. Count assets on “temp loan” or in authorized
ship-owned pack-ups as on-hand stock.
(3) Subcustody Items. Charge materiel losses in custody of other departments to the
department’s Operating Target (OPTAR). Maintain custody cards NAVSUP Form 306 with the
on-hand quantity of the items in custody of other divisions or squadrons. Ensure that each item
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in subcustody is placed in NALCOMIS subcustody and reflected in RSUPPLY subcustody Stock
Item Table (SIT) within 5 days from the subcustody transfer.
a. Subcustody shall be signed and released to an E-5 or above.
b. Subcustody listing must be legibly signed, printed, individually initialed, and
dated by both parties on the first page and legibly initialed and dated on succeeding pages.
c. Subcustody listing retention is from DLR RECON to DLR RECON.
d. Subcustody inventory must be conducted monthly and if the subcustody is for
ashore squadron (i.e. VRC-30), the CVN supply beach detachment personnel will conduct the
monthly inventory.
b. Q-in-Use. Q-in-Use items are a type of “Ready Spare" located in Reactor Spaces.
They have ATC 1 stock records built in RSupply with Reactor space locations and have a
quarterly inventory requirement. The Commanding Officer designates in writing “Q” COSAL
NWCF stock items to be considered as Q-In-Use. Q-in-Use items are under the subcustody of
the Reactor Officer with the Supply Officer responsible for the inventory management. Supply
Department will assign LMC in RSupply for QCOSAL items as detailed in paragraph 204.3.f (9)
of this instruction. The Reactor Officer is responsible to ensure the quarterly inventory is
conducted. The inventory will be conducted “Jointly” by Supply Department personnel and
departmental custodian IAW NAVSUP P-485 para 6062-2, 4 and 5 utilizing Inventory Batch Job
JSI235 worksheet. Supply Department personnel will coordinate with Reactor Department on
required inventory requirement. Subcustody cards are the tools used for maintaining inventory.
The Work center RPPO maintains a copy of the NAVSUP 306 and the Master copy is signed by
responsible REACTOR custodian and maintained by the S-8 Q-COSAL Custodian. For “in
use”, items discovered missing or unserviceable during the inventory, Reactor Officer must
ensure that an issue request document is submitted to the Supply Officer for the replacement of
the item. CVNs are required to maintain a copy of the NAVSEA S9213-45-MAN-000(N), Naval
Nuclear Materiel Management Manual.
c. On Hand Quantities in Bogus Locations: The “O/H QTY in Bogus Location”
ADHOC as detailed in Appendix R must be run monthly by S-1/S-8, S-6 and S-10 that lists
NIINs with on hand quantities in locations that don’t exist. S-6 must also run an ADHOC of
repairables stowed in S-8 locations. Research and correct discovered discrepancies. If materiel
is not found, process a LBI/survey.
302
Inventory Count vs Recount. Options are available in IBS, RSupply for Count/Recount
or Count Only procedures for inventory aids. The Count Only option considers the initial
quantity entered as the final count. The Count/Recount option allows the user to recount items
inventoried that did not match the SIT on hand quantity on the first count. It is required to use
the Count/Recount option.
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a. Inventory First Counts. First counts should be completed by the storeroom
custodians. They are required to use IBS to perform these counts. When counts are completed,
the IBS Coordinator downloads the first count results and uploads the required second counts on
an IBS scanner(s).
b. Inventory Second Counts. Second counts should be completed by the storeroom
supervisors. They are required to utilize IBS scanners to perform these counts. When counts are
completed, the IBS Coordinator downloads the results and produces a report that shows the
required third counts.
c. Inventory Third Counts. E-7 or above are required to complete the third counts. The
E-7 or above annotates the quantity counted on the IBS report and uses the same annotated report
to record the reconciliation process performed to correct the inventory (i.e., inventory
adjustment, receipts posted, etc.) IBS reports showing first, second and third counts are required
to be maintained per paragraph 303.1 below. See exhibit 3-2 for annotated samples inventory
sheets.
303
Inventory Reports. It is required to submit a formal report of LAP and inventory results
to the Supply Officer with a copy to the QA Officer. If validity does not meet CNAP goals,
include an analysis of the problem with a corrective plan of action and timeline.
303.1 Retention of Inventory Reports. Hardcopies of location audits and inventories, (including
IBS summary reports of first and second counts), are required to be maintained on file for
eighteen months. To comply with FIAR requirements, maintain electronic copies of IBS LAPs
and inventories saved as PDF files for ten years. In addition, since the Supply Officer’s
signature on the End of Month Cover Letter (see exhibit 9-6) meets the FIAR requirement that
the Supply Officer is informed of LAP and inventory results, ensure line items 6.a and 6.b of the
cover letter are correct and that electronic copies are maintained for ten years.
Note: S-6 and S-8 Chain of Command, up to the DIVOs, must print their full name, sign and
date the cover pages of each LAP and Inventory Summary Report.
303.2 Submission of Inventory Results. The results of each monthly scheduled LAP and
inventory is reported to CNAP Code N412 by the Supply Officer on the Monthly Inventory and
Financial Reporting Requirements in accordance with paragraph 905.1 and exhibit 9-6 of this
instruction. Ensure that the cover letter accurately reports the inventory and LAP storerooms and
results for that month. This is the proof that the Supply Officer has received and acknowledged
the monthly LAP and inventory results as required by FIAR.
304
Integrated Barcode System (IBS) Mandate. IBS is required to be used for receipt in
process (RIP), stowage, and inventories and location audits. It is an automated tool that
interfaces with RSupply. It provides several methods and has parameters to select location
audits and inventory samples. IBS options and information can be found in the Naval
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Information Warfare Center (NIWC) IBS Operations Manual. If the latest copy that
accompanied the IBS software is not onboard, contact CNAP/CNAL N412.
304.1 IBS Program Management. The following describes Supply Department’s IBS
organization and responsibilities:
a. Supply Department IBS Coordinator. The primary Supply Department IBS
Coordinator is assigned at S-8. The secondary IBS Coordinator is assigned at S-6. An E4 or
above will fill these positions for a minimum of one year duration. The primary IBS
Coordinators is the ship's POC on all IBS One/FACET issues - hardware, software, MPC liaison,
etc., IBS Coordinator PQS sign-off and training is available through CNAP/CNAL N412 NFL
team.
b. IBS Coordinator Responsibilities:
(1) Establish an IBS configuration plan for the Supply Department as detailed below.
(a) Manage the primary IBS workstation, known as normal site personal
computer (PC), in S-8.
(b) Manage the primary IBS-One workstation in S-8 and secondary workstation
in S-6.
(c) Oversee all FACET workstation operations.
(2) Maintain accountability of the ship’s IBS scanners and barcode label printers.
Subcustody IBS scanners to divisional coordinators as set forth in the configuration plan.
Inventory onboard equipment and submit a monthly report of RFI/NRFI status and serial
numbers to the applicable CNAP/CNAL POC.
(3) Ensure IBS scanners operate properly. Coordinate technical assistance,
replacement, and repair issues with CNAP/CNAL N412. Coordinate IBS software upgrade on
all PCs loaded with the IBS program.
(4) Ensure on-ship IBS training is conducted in S-6 and S-8 using IBS PQS Check
List. See exhibit 3-3.
(5) Review, annotate recommended actions, and distribute below IBS management
reports to storeroom personnel to correct discrepancies.
c. IBS-One LAP and Inventory Reports. S-6 and S-8 IBS Coordinators must generate,
process, report, and retain e-copy of all IBS-One LAP and INV reports as in Appendix N as
storeroom LAPs and inventories are conducted throughout the month. Specified LAP and INV
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reports below are a part of EOM submission requirement to CNAP/CNAL N412 POCs, and may
also require additional shipboard actions and review. For sample of below cited LAP and INV
reports, refer to Exhibit 3-2. Inventory Pre-Adjustments, Adjustments Posting, Forms, Approval
and Reporting Policy for CVNs.
The following are statements of policy for inventory adjustments, processing, documentation and
reporting in compliance to NAVSUP Publication 723, Revision 5:
(1) After the Final INV Count, prior to posting inventory adjustments, PreAdjustment research must be conducted if EMV of adjustment is >$1,000. Pre-adjustment form
for each NSN must be filled out and approved when EMV is >$1,000 but <$5,000. No Causative
research required unless material category require it as per Table 3-2 below. CNAP modified
fillable Pre-adjustment Form for CVNs is in Exhibit 3-4.
(2) All DLR/FLR, CIIC table specific items, suspected Fraud/Waste/Abuse, and
Gains/Losses EMV >$5,000 adjustments require both Pre-adjustment and Causative researches.
Both forms must be processed, approved, signed, and dated. At least (90) days of transaction
history will be reviewed to determine the possible cause of a discrepancy. Upon completion of
research and forms approval, inventory adjustments or reconciliation transactions must be
posted/process to R-Supply same day for Audit purposes and to clear the INV flag. Any required
Survey documentation must be generated and approval-signature obtained within 45 days of
transactions posting. Fillable Causative Research Form for individual NSN in Exhibit 3-5. for all
material categories.
Note: If inventory adjustment is for DLR/FLR, CVNs are use CVN DLR/FLR Causative
Research form as in Exhibit 3-6 in addition to Exhibit 3-5.
(3) CVN S6/S8 Division Officer must have letter of authority to approve-sign Preadjustment Forms, and to approve-sign Causative Research for LBI/GBI NTE EMV $50,000.
S6/S8 DIVO don’t have survey approval authority, thus any required DD Form 200 must be
approved-signed by the Supply Officer for EMV NTE $100,000 or Commanding Officer for
EMV NTE $500,000 within 45 days of transaction posting. Sample of S6/S8 Division Officer
IAPO LOA is in Exhibit 3-7.
(4) CVN Supply Officer must have letter of authority to approve-sign Pre-adjustment
Forms, Causative Research Forms and DD Form 200 for LBI/GBI/LIS with EMV NTE
$100,000 when there is no evidence of negligence or abuse. Sample Supply Officer LOA is in
Exhibit 3-8
(5) CVN Commanding Officer has the authority to approve-sign Pre-Adjustment,
Causative Research, and DD Form 200 for LBI/GBI/LIS EMV of $100,000 through $500,000.
Note: Plant Code is 4 digit = “C+RIC”
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(6) CVN CO is authorized to sign all Pre-Adjustment and Causative Research Form
for GBI/GBS/LBI/LBS >$500,000 to Unlimited EMV. If GBI/GBS/LBI/LBS for >$500,000
EMV, CVN must submit associated DD Form 200 for NAVSUP WSS IOC approval-signature
via CNAP N412 POC.
(7) Pre-Adjustment and Causative Research criteria and RSupply posting.
-For LBI/GBI candidates with EMV < $1,000, Pre-Adjustment research must be conducted
and Pre-adjustment Form must be approved-signed and dated prior to posting INV adjustments
to R-Supply. No Causative research required.
-For LBI/GBI candidates with EMV >$1,000, but <=$5,000, Pre-Adjustment research must
be conducted and Pre-adjustment Form must be approved-signed and dated prior to posting INV
adjustments to R-Supply. Additionally Causative research must be completed within 45 days of
INV Adjustment posting.
-For LBI/GBI/SURVEY candidates for DLR/FLR, CIIC table specific items, suspected
Fraud/Waste/Abuse, and items >$5,000 EMVrequire both Pre-Adjustment and Causative
Research. Pre-adjustment Form must be approved-signed and dated prior to posting INV
adjustment to R-Supply. Additionally Causative research must be completed within 45 days of
INV Adjustment posting.
Note: S6/S8 DIVO is authorized to approve-sign inventory research forms for EMV NTE
$50,000, SUPPO is authorized to approve-sign inventory research forms for EMV NTE
$100,000 and CO is authorized to approve-sign inventory research forms with unlimited EMV
for causative research and pre-adjustment purposes.
(8) Survey documentation for IBS Survey Candidates must have approval signature
as per 302.d (2) through (5) above.
Accountability Framework Thresholds
Billet
Commander,
NAVSUP WSS
Echelon III / IV Commander,
OPFOR CO or Civilian
Equivalent
Accountable Positions
DCPO / NWCF-SM
Accountable Officer /
Approving Authority
Accountable Officer /
Approving Authority /
Appointing Authority
DD Form 200
Pre-Adjustment /
Inventory Adjustments /
Causative Research
Unlimited
Unlimited
< $500,000
< $500,000
- Commanders have authority to
approve all inventory adjustment
gains regardless of dollar value
- OPFOR Commanders retain
unlimited inventory adjustment
authority for gains and losses
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Command XO / ED / Ship
Supply Officer* or other
designated person of
appropriate authority
Appointing Authority
When the loss, damage,
destruction or theft
< $100,000 and there is no
evidence of negligence or abuse
< $100,000
Dept. Head / Detachment
Officer-In-Charge (OIC)
Regional Plant Oversight
N/A
≤ $75,000
Plant / Supply Officer* /
Afloat Stores Officer**
Inventory Accountable
Property Officer (IAPO) /
Supply Officer / Reviewing
Authority
N/A
≤ $50,000
(1) IBS Location Audit Reports. Following are four (4) IBS LAP reports that
require EOM external submission. Three (3) out of four (4) LAP reports require printout with
annotated corrective action and/or reviewed initial/signature. For EOM submission to TYCOM,
all four LAP reports should be scanned into one continuous PDF file, and saved with file name
convention, XX_MMMYYYY_LAP.pdf (1st two position Storeroom
location_MMMYYYY_LAP.pdf, e.g. QC_JUN2020_LAP.pdf). This consolidated EOM
*.LAP.pdf must be retained to support FIAR requirement and SMI audit as in Appendix N:




LAP Summary Report,
LAP NIINs-Not-On-Host,
LAP Locations-Not-On-Host
LAP Matched Locations
(a) LAP Summary Report. Save and print after corrective actions have been
conducted. The print out must be signed by Storeroom Custodian who conducted the 1 st LOC to
NIIN audit, Storeroom Supervisor who conducted the 2 nd LOC to NIIN audit, IBS coordinator,
and LPO, LCPO/DIVO to certify that the scheduled location range was executed, reviewed and
corrections were made.
(b) LAP NIINs-not-on-Host. Save and print. Print out must have annotations
on corrections on each NIIN (e.g. line out wrong NIIN, write the correct NIIN on top and
annotate Fat Finger -“FF”) initialed by Storeroom Supervisor.
(c) LAP Locations-Not-on-Host. Save and print. Print out must have
annotation of actions taken by Storeroom SUPV (e.g. LOC change -X09, move the material back
to original LOC, or consolidated LOCs), and initialed by Storeroom SUPV at the bottom part of
the report.
(d) LAP Matched Locations. Save in *.pdf file as is. Print out annotation and
signature not required since no discrepant conditions exist, but this is a part of the continuously
scanned LAP.pdf to TYCOM.
(2) IBS INV Reports. Following are seven (7) IBS INV reports that require EOM
external submission. Select INV reports require hardcopy printout with corrective action
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annotation and review initial/signature. For EOM submission to TYCOM, all seven (if
applicable) INV reports should be scanned into one continuous PDF file, and saved with file
name convention, XX_MMYYYY_INV.pdf (1st two position Storeroom
location_MMYYYY_INV.pdf, e.g. QC_JUN2020_INV.pdf) This consolidated EOM *.INV.pdf
must be retained to support FIAR requirement and SMI audit as in Appendix N.







INV Summary Report,
INV Count Discrepancies,
INV Third Count Candidates (if any),
INV Loss by Inventory Candidates (if any),
INV Gain by Inventory Candidates (if any),
INV Survey by Inventory Candidates (if any),
INV Count Equal Report
(a) INV Summary Report. Save and print after 2nd and or 3rd count (if any)
was conducted. The printed hardcopy must be signed by the Storeroom Custodian who
conducted the 1st Counts, Storeroom Supervisor who conducted the 2nd Counts, IBS coordinator,
LPO, and LCPO/DIVO at the bottom of the report to certify that the schedule inventory LOC
range was executed, reviewed and corrections were made.
(b) INV Count Discrepancies. Save and print this report after conducting the
2 Counts. Storeroom Supervisor must circle the 2 nd count quantity and initial for the NIINs
listed in the report.
nd
(c) INV Third Count Candidates (if any). Save and print this report if 3 rd
Count was conducted. E-7 or above must conduct the third count. On the print out, annotate the
3rd count quantity and initial for each of the NIINs in the report, and the bottom section must be
annotated with “3rd Count conducted by Name of E-7 of above”, signature and date. This action
required to support FIAR KSD audit.
Note: The E-7 or above who conducted the 3 rd Count must ensure that inventory adjustments
base on the result of the 3rd count are posted in R-Supply within 72 hours.
(d) INV Loss by Inventory Candidates (if any). Save in *.pdf file as is after
final counts. Annotation and signature are not required, but it will be part of the continuous
scanned INV.pdf to TYCOM.
(e) INV Gains by Inventory Candidates (if any). Save in *.pdf file as is after
final counts. Annotation and signature are not required, but it will be part of the continuous
scanned INV.pdf to TYCOM.
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(f) INV Survey by Inventory Candidates (if any). Save in *.pdf file as is after
final counts. Annotation and signature are not required, but it will be part of the continuous
scanned INV.pdf to TYCOM.
Note: S6 and S8 Leadership (LPO, LCPO, and DIVO) must resolve all INV adjustment,
generate the Survey documentation (DD Form 200) as applicable, and route it along with the
causative research documentation to PAL to secure SUPPO approval signature.
(g) INV Count Equal Report. Save in *.pdf file as is. Printing and annotation
not required since no discrepant condition exists. Shall be separated from the above report and
submitted electronically to the TYCOM POC due to the volume of its contents for scanning with
the above reports.
d. Divisional IBS Coordinators Responsibilities:
(1) Maintain IBS hardware in good operating condition. This includes daily
recharging of scanner batteries as appropriate. Request scanner and printer repairs and submit
IBS Trouble Reports through the IBS coordinator.
(2) Ensure IBS scanners are used to process receipts, inventories and LAPs. For RIP
and STOW procedures refer to paragraph 501.4.
(3) Ensure proper barcode labels are applied to all storeroom locations.
(4) Ensure an Assistant IBS Site Coordinator is properly trained. Conduct on-going
IBS training for division personnel.
(5) Review and distribute IBS reports for review and corrective action. Provide
training to users on proper procedures to work the reports.
(6) Serve as receipt and stow processing coordinator for the division. Review
outstanding MPC RIPs daily and determine reason stows haven’t been completed.
(7) Serve as the divisional inventory and location audit coordinator. Ensure LAPs
and inventories are completed in accordance with the annual schedule, completed properly, i.e.,
with the third count completed by an E7 or above, and required copies are retained. See exhibit
3-2 for sample of annotated IBS LAP and inventory documentation.
305
Performing Preliminary/Pre-Adjustment and Causative Research. One of the main
objectives of LAPs and inventories is to correct inventory discrepancies. Therefore, conduct
research on pre-adjustment inventory discrepancies to determine the correct O/H quantity in the
storeroom locations and whether causative research is required.
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a. Pre-Adjustment and Causative Research Forms Prior to Uploading IBS LBI/GBI
Candidates. In compliance to Revision 5 of NAVSUP Publication 723, chain of command
approval-signature are mandatory prior to posting LBI/GBI as follows:
(1) For IBS LBI/GBI less DLR/FLR, CIIC table specific items candidates with EMV
>$1,000 through $5,000, Pre-Adjustment research must be conducted and Pre-adjustment Form
must be approved-signed and dated prior to uploading IBS INV Data.
(2) For IBS LBI/GBI candidates for DLR/FLR, CIIC table specific items, and other
items with EMV of >$5,000 must be researched. Both Causative Research Form and Preadjustment Form must be approved-signed and dated prior to uploading IBS INV Data to RSupply. Only deferred inventory form is the DD Form 200 which must be completed within 45
days of transaction posting.
(3) S6/S8 Division officer with inventory adjustment authority LOA is authorized to
approve-sign pre-adjustment and causative research forms if all LBI/GBI candidates in the batch
are less than or equal to $50,000 per document EMV.
(4) The Supply Officer with inventory adjustment authority LOA is authorized to
approve-sign pre-adjustment and causative research forms if all LBI/GBI candidates in the batch
are <$100,000 per document EMV.
(5) The Commanding Officer is authorized to approve-sign Pre-adjustment and
Causative Research Form if all LBI/GBI candidates in the batch are >$100,000 per document
EMV for inventory posting purposes. The only limitation for CVN CO is DD Form 200
approval-signature which is limited to $500,000, but for pre-adjustment, causative research, and
inventory adjustment posting approval is unlimited for CVN CO.
b Any required Inventory Adjustment Survey (DD Form 200) must be completed with
45 Days of transaction posting.
c Table 3-1 below outlines the requirements for Pre-Adjustment, Causative Research,
and forms approval-signature prior to posting inventory adjustments.
Required Research
Condition of Discrepancy
Pre-Adjustment
Research
Causative
Research
≤ $5,000
Yes
No
> $5,000
Yes
Yes
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Suspected Fraud, Waste, or
Abuse
Yes
Yes
Controlled Inventory Item
See CIIC Table
See CIIC Table
*All DLRs regardless of dollar
value
Yes
Yes
Table 3-1
Note: Spot inventories conducted for individual items because of suspected inventory
discrepancies or to verify on-hand quantities, i.e., to reconcile warehouse refusals, overaged
stock dues, overaged Stock in Transit, suspended transactions, RIP but not Stow report, etc.,
require preliminary research prior to processing an adjustment. The required FIAR compliant
spot inventory/preliminary research form is found in Exhibit 3-9. S-8 must process and complete
the spot inventories within 24 hours of the request, with S-8 workload expectation that’s no more
than 25 spot inventories per day. S-8 must also conduct preliminary research and annotate spot
cards of research results. When inventory adjustment is required or posted resulting from spot
inventories, FIAR policy requires that an S-8 and S-6 E7 or above complete the spot inventory
third counts before an inventory adjustment is processed. In addition, the E7 or above is required
to print their full name, sign and date the spot inventory/preliminary research card within 72
hours of spot inventory completion date. The annotated-signed spot cards must be returned to
the division who requested for the spot inventories for retention. Spot Inventory card to
document processing of LBI/GBI/LIS must have approvals-signature as per inventory adjustment
LOA or per document EMV limit for CVN S6/S8 Division Officer, Supply Officer, and CVN
Commanding Officer.
305.1 Preliminary/Pre-Adjustment Research. See 305a above and see Table 3-1 above.
Additionally, annotate research and inventory adjustments/corrective action take on the JSI235
print outs.
305.2 Causative Research. Causative research is a complete review of all transactions that
affect the on hand quantity. This includes all manual source documents and files to determine
the cause of an inventory discrepancy. Samples of causative research forms in exhibit 3 and
exhibit 3-6 must be prepared, approved-signed prior to posting inventory adjustments as
described in 305a(2) through 305a(5) above and must be reflected in the inventory survey
document (DD Form 200).
a. Unresolved Discrepancies. Conduct causative research on all discrepancies between
inventory O/H and stock records. Transactions that require reversal and/or re-processing to
resolve inventory discrepancy, reflect such findings and action taken into the written
documentation (see exhibit 3-5 thru 3-6) for the following categories of items:
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(1) Sensitive or Controlled Items which include Security Type Medical Supplies
(CIIC 1, 2, 3, 4, 5, 6, 7, 8, or 9). Inventory discrepancies for this type of stock materiel,
regardless of dollar value, require causative research and documentation.
(2) Classified Items (CIIC A, B, C, D, E, F, G, H, K, L, O, P, Q, R, S, or T).
Inventory adjustments for classified items regardless of dollar value, require causative research
documentation.
(3) Pilferable and Valuable Items (CIIC J) and CIIC M, V, W, or X. When the
extended dollar value of the line item discrepancy is $750 or more, causative research
documentation is required.
(4) CIIC Codes 7, I, N, Y, or Z Items with EMV of $2500 or higher. Causative
research documentation is required when adjustment EMV is equal to or greater than $2500.
This Extended Money Value (EMV) threshold applies to only non-DLRs since all CNAF CVN
stock DLRs/FLRs adjustments require documentation.
(5) CIIC Code U Items with EMV of $5,000 or higher. Inventory adjustment
documentation is required when adjustment EMV is equal to or greater than $5000. This
Extended Money Value (EMV) threshold applies to only non-DLRs since all CNAF CVN stock
DLRs/FLRs adjustments require documentation.
Note: For Repetitive Losses, conduct causative research for stock materiel losses when
there’s an indication or suspicion of fraud, theft, or negligence.
(6) Controlled Flight Gear. Items such as flight jackets, aviator’s sunglasses, and
flyer’s coveralls regardless of the dollar value.
(7) Depot Level Repairables (DLR). All materiel with “7” COG or MCC E, H, G, Q,
and X regardless of end money value.
b. Spot Inventory of Stock O/H. Count the stock on hand, including a search of
adjacent, new and deleted locations, and the back of the bottom bin because parts may have
fallen. For adjustments generated from requisition file maintenance or suspense processing, a
spot inventory is required. Spot inventory option is available in RSupply (INV> Inventory
Control> Inventory Posting> Spot type of inventory) or (INV> Management> Inventory Action>
Inventory Processing> Spot type of inventory).
Note: AVDLRs are managed under the Family Group and may have a number of different
National Stock Numbers (NSNs) under the same Family Group Code (FGC). This requires a
spot inventory of the Head as well as all member NIINs prior to processing any loss or gain
inventory adjustment transactions. Surface parts, also, require a spot inventory of the prime as
well as substitute NIINs. If practical, store all NIINs with the same FGC in adjacent location.
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c. Verify Count. If first count reveals an inventory discrepancy, conduct a second
count, and if the second count still shows a discrepancy, an E-7 or above must complete a third
count prior to processing an inventory adjustment.
d. Verify Data. Verify SIT data or materiel markings, such as stock number and
superseded changes. Review scenarios, such as stock number changes on the SIT but not on the
materiel. Also, refer to stock receipt documents to see if a new location was printed on the
receipt but not posted in RSupply and look in the CTL for deleted locations and locations posted
with X71s. If a depot level repairable, determine whether materiel is in the repair cycle, AWM,
AWP, subcustody, suspense, was a CNAL directed crossdeck, or in a pack-up.
e. Posting Errors. Research improperly posted documents such as wrong quantity,
duplicate receipts, issues and offloads. Additionally, verify all substitutes being issued or
received in the storeroom, but transaction was processed against primary NIIN. For all DLRs
and items exceeding threshold outlined in CIIC Table (exhibit 3-11), all source documents are to
be pulled and reviewed.
f. DLR Causative Research. Rigorous causative research is required for DLRs, to
include TYCOM and Carcass Manager assistance, before posting Loss or Gain by survey.
g. Adjustments. Do not offset a LBI by posting a GBI and vice versa. If a LBI or GBI
was posted in error, process a reversal of the original LBI or GBI.
h. Reversal Adjustments. A Loss by Inventory (LBI) can also be corrected by
processing a reversal of a previously processed Gain by Inventory or Survey. Likewise, a Gain
by Inventory (GBI) can be corrected by processing a reversal of a previously processed Lost by
Inventory or Survey.
Note: As per NAVSUP P-723, all reversal transactions must be made within one (1)
calendar year of the processing date of the original transaction. After one (1) calendar year, a
gain or loss transaction must be posted to offset the original transaction.
i. Documents Not Posted. Verify that all crossdecks, offloads, issues, inventory
adjustments, and incoming receipts have posted in RSupply. Check the Suspense Report File for
conditions that prohibit transaction processing. Look for evidence of duplicate shipment status,
such as shipping status received from more than one activity or from the same activity but with a
different ship date. If additional SIT on hand quantity is required, search for receipts that were
previously processed as LIS. Research IPF or in process files for documents that have not
posted: IPF for issues or transfers that may have been moved from the location, but not yet
warehouse processed; RIP listing for materiel that may have been put in location, but the stow
has not yet been processed; or offline documents, such as issues, that have not yet been
backfitted or posted.
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j. Suspense Report. Research the Suspense Report for possible causes of the inventory
discrepancy, for example, duplicate X71s, X71s with no ART or SIT record, issues with
insufficient quantity on hand, etc. Look for gains and losses that may be reversed.
k. Receipts and Offload Documents. Erroneously posted receipts and offload
documents may also be reversed to correct an inventory discrepancy. However, it is not
permitted to reverse a receipt or offload transaction from a previous quarter or previous fiscal
year.
l. Retention. Refer to exhibit 9-2 for preliminary and causative research document
retention period.
m. Flow Chart. See exhibit 3-10 for Causative Research and SDR Flow Chart to assist
with research decision process.
305.3 Gross Inventory Adjustment (GIA). CVN Gross Inventory Adjustment (GIA) includes
all NWCF inventory adjustments less Fuel (9X COG) and QCOSAL. It measures DLR
(Repairable) and Consumable plus FLR (Non-repairable & FLR) GIA categories separately.
EOM CVN GIA is computed by dividing (sum total of gains and losses) by the (sum of select BP
SALs) found on the SAMMA/SAL. The GIA goal of <= +/- 0.1% represents inventory
adjustment tolerance range between -0.1% to + 0.1%.
a. GIA Calculation Logic DLR GIA %: (Total Repairable Gain EMV + Total
Repairable Loss EMV) divided by (sum of APA, BP81 and BP85 SAL) multiplied by 100.
Consumable GIA %: (Total Non-Repairable Gain EMV + Total FLR EMV) + (Total NonRepairable Loss EMV + Total FLR EMV) divided by (Sum of BP 14, 15, 28, 34 SAL)
multiplied by 100.
Note: Gain and Loss EMVs do not offset each other and are treated as absolute (positive)
figures during sum calculation. Gain and Loss reversals are credit figures and offset gain and loss
postings for the reporting month. However, excessive gain and loss reversal postings can result
in GIA % outside -0.1% range.
b. GIA Calculation Examples. The following is a sample of “goal met”/”goal not met”
calculations based on fictitious SAL EMV =$1.5M, thus GIA % formula = {(Gain) +
(Loss)}/$1,500,000 X 100 rounded to first decimal point:
(1) “GIA goal met” scenarios:
GIA = {($500) + ($900)}/$1,500,000 X 100 = +0.1% [Total Gain and Loss posting.]
GIA = {(-$2,000) + ($1,000)}/$1,500,000 X 100 = -0.1% [Gain reversal exceeded gain posting
for the month and lowered GIA %.]
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(2) “GIA goal not met” scenarios:
GIA = {($2,500) + ($1,000)}/$1,500,000 X 100 = +0.2% [Excessive gain and loss posting for
the month. Exceeded <= +0.1%]
GIA = {(-$1,500) + (-$1,000)}/$1,500,000 X 100 = -0.2% [Excessive gain and loss reversal
posting. Exceeded <= -0.1%]
306
Inventory Survey. Pending surveys are automatically generated in RSupply when the
gain or loss meets the following criteria:
a. Materiel Control Code (MCC) = E, G, H, Q, or X
b. Special Materiel Content Code (SMCC) = A, D, E, H, K, L, N, P, Q, R, T, or X
c. Precious Metal Indicator Code (PMIC) not equal 3 or A
d. Security Code = A, B, C, D, E, F, G, H, K, L, O, S, T, 7, or 9
e. Security Code = J, M, N, P, Q, R, V, W, X, Y, Z, 1, 2, 3, 4, 5, 6, 8 and Gain/Loss
EMV is> $749.00
f. Gain/Loss EMV is > $2,499
Gains and losses meeting above criteria remain in the Stock Survey Update file until worked.
Note: RSupply often overrides survey criteria on MCC, SMCC and PMIC with >$2,500
money value criteria which is programmed in RSupply, but not aligned with the most current
NAVSUP P-485 or NAVSUP P-723. Hence, review the transactions carefully and utilize the
CIIC Table (exhibit 3-11) for the updated inventory survey criteria and determine if a survey is
required. When the CIIC Table indicates that survey is not required, cancel the Pending Stock
Survey.
306.1 Pending Stock Survey. Limit the access to the Stock Survey Update in RSupply to LSs
who maintain the survey file. After the DD Form 200 has been approved, update the stock
Survey by going to RSupply menu: Inventory>Inventory Control>Stock Survey Update. Select
“Survey Created” for the applicable document number.
a. Pending Stock Survey Listing. Pending Surveys are gain or loss survey transactions
that have not yet been processed through “Stock Survey Update.” Do not update the survey as
survey created if an approved DD Form 200 is not on file.
b. Completed Stock Survey Listing. Immediately after choosing "Survey Created" in
the Stock Survey Update screen, the survey transaction records on the completed stock survey
list. These transactions must have supporting DD Form 200s. Items indicated with remarks
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“Precious Metal” and EMV is below the threshold outlined in CIIC Table (exhibit 3-11) may be
completed without DD Form 200 as long as documentation of preliminary research or spot
inventory has been completed-approved by a Supply Readiness E-7 or above. Observe the
guidelines on DD form 200 preparation under paragraph 307 of this instruction.
c. Survey Master Worksheets. When audit of DD Form 200 cannot be accomplished
with the use of the Pending and Completed Survey Listings, (i.e., surveys are completed but no
DD Form 200 on file or monthly documentation is not organized), prepare a master list by
running a Gains and Losses Report separately with desired date range in RSupply. Use the File
Transfer Protocol (FTP) function to transfer the Gains or Loss Report (JSI221) from RSupply to
the desktop PC hard drive and save the JSI221 report in text format. Open Microsoft Excel
program and convert the data from text to Excel file. Open the saved text file that contains the
Gains/Losses/JSI221 Report. Choose “Fixed Width”, move or create break lines to separate each
field and set data format for each column as text or general. Create a separate field for FSC,
NIIN, SMIC, COG, Nomenclature, UIC, Julian Date, Serial Number, UI, MCC, Location and
Qty, UP, EMV, Transaction Date and Remarks. Save the Excel file, sort and organize the data as
follows:
(1) Sort spreadsheet (sheet 1) by COG.
(2) Delete unnecessary rows such as page headers.
(3) Insert 4 additional Worksheets on the EXCEL spreadsheet. Rename the inserted
worksheets as "DLR", "JP-5 Fuels/9X Cog", "DLR LIS", " Consumables LIS"
(4) From sheet 1, highlight and cut all even (APA) COGs and 7_ COG transactions.
Then paste the highlighted APA COGs and 7_ COGs to the inserted worksheet named "DLR"
(5) From sheet 1, highlight and cut JP-5 Fuels/9X COG transactions. Then paste the
highlighted JP-5 Fuels/9X COG transactions to the inserted worksheet named "JP-5 Fuels/9X
COG"
(6) Ensure that 7_ COG items along with APA items are moved to the "DLR" and that
9X COG items are moved to the "JP-5 Fuels/9X COG" worksheets respectively. Then rename
sheet 1 to "Consumables"
(7) Sort the "DLR" and the "Consumables" worksheets in sequence by serial number to
identify Loss in shipment (LIS) items. To do this, determine serial numbers that are used for
stock reorders/automatic reorders.
(8) From the “DLR” worksheet, highlight and cut loss in shipments. Then paste DLR
LIS transactions to the "DLR LIS" worksheet.
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(9) From the “Consumables” worksheet, highlight and cut LIS transactions. Then, paste
these to the "Consumables LIS."
(10) Sort worksheets by EMV in descending sequence.
(11) Color-fill transactions with EMV greater than $2,499 and -$2,499.
(12) Highlight, select, and cut non-survey transactions (for example, EMV of $0.01
through $2,499 and EMV of -$.01 through -$2,499).
(13) Sort worksheets in ascending sequence by transaction date, Julian date, and serial
number.
307
FLIPL, DD Form 200 Preparation. Individual DD Form 200 is required for each NWCF
DLR (regardless of dollar value) and Non-DLR GBI and LBI adjustments when Extended
Money Value (EMV) meets the criteria outlined in CIIC Table (exhibit 3-11) as amplified below:
a. Sensitive or Controlled Items (CIIC 1, 2, 3, 4, 5, 6, 7, 8, or 9). All discrepancies,
regardless of dollar value.
b. Classified Materiel (CIIC A, B, C, D, E, F, G, H, K, L, O, P, Q, R, S, or T). All
discrepancies, regardless of dollar value.
c. Pilferable Items (CIIC J) and CIIC M, V, W, or X. Individual DD Form 200 is
required when adjustment Extended Money Value is equal to or greater than $750.00
d. CIIC Codes 7, I, N, Y, or Z Items with EMV of $2500 or higher. Inventory
adjustment documentation is required when adjustment EMV is equal to or greater than $2500.
e. CIIC Code U Items with EMV of $5,000 or higher. Inventory adjustment
documentation is required when adjustment EMV is equal to or greater than $5000.
f. Fuel. End-Use bulk petroleum products when EMV of the loss exceeds $500 (with
the exception of JP-5). DD 200 is required for JP-5 only for conditions of culpability
involvement, major loss, or losses resulting from enemy action. Otherwise, document JP-5
losses per Chapter 11.
g. Controlled Flight Gear. Items such as flight jackets, aviator’s sunglasses and flyer’s
coveralls regardless of the dollar value.
h. Repetitive Losses. Discrepancies of repetitive loss with an indication or suspicion of
fraud, theft, negligence, or other personal involvement when a law was broken; i.e., Uniform
Code of Military Justice (UCMJ), federal, state, or local).
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Loss In Shipment (LIS). Summarize all consumable materiel processed as LIS on one DD 200
form monthly regardless of extended dollar value. Repairable stock processed as LIS require
individual DD 200 forms and are permitted to be posted in RSupply prior to receiving the Supply
Officer/CO’s approval signature on the Pre-Adjustment and Causative Research Form. The PAL
will review S-1 and S-6 prepared LIS DD 200 forms depending of dollar value obtain the
CO’s/Supply Officer’s or forward to NAVSUP WSS IOC for signature at the end of each month.
i. The sample “by-direction” letter is provided in exhibits 3-7 and 3-8.
(1) For gain and loss adjustments less than the CIIC Table (exhibit 3-11) threshold,
the Supply Officer and PAL are required to review the Loss and Gain Report (JSI221) monthly
to assess the LIS receipt impact. Supply Officer must sign and date the bottom of this report.
This report must be retained for review during CNAP TAV, SMA and SMI visits.
Note: Use first and last date of the month for date range for the Gains and Losses Report.
(2) The DD Form 200 remarks section (block 15a) is required to provide a detailed
description of actions taken to locate the DLR/FLR that is processed as LIS. The description
should include, but is not limited to the following:
(a) Shipment data (FedEx, DHL, way bill number, etc.).
(b) Correspondence (e-mail, messages, etc.).
(c) Was the SDR sent to the Issuing activity and/or local DLA Distribution? How
the SDR was closed.
(d) Process/procedural changes to correct future discrepancies.
(e) Actions taken to locate materiel, POCs contacted, and results of search.
j. CIIC Table and Dollar Value Threshold. As per NAVSUP P-723, individual
causative research is required for a gain/loss transaction and DD Form 200 is required for
unresolved inventory adjustments as outlined in CIIC Table (exhibit 3-11).
307.1 Unresolved Discrepancies Indicating Evidence of Personal Responsibility. When
research indicates evidence of negligence or abuse, see NAVSUP policy and procedures for
physical inventory management, including detailed guidance for processing the FLIPL, in
NAVSUP P-485, VOL I, Para 5125 through 5134.
307.2 Assignment of Responsibility for FLIPL Reports.
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In compliance to Revision 5 of NAVSUP Publication 723, assignment of FLIPL responsibilities
are as follows:
FLIPL Official
Responsible Officer
Accountable Officer
Causative Research
Validation
Appointing Official
Approving Authority
CVNs
S6/S8 Division Officer
Supply Officer per LOA
S6/S8 DIVO per LOA/NTE
$50,000
SUPPO per LOA/NTE $100,000
Commanding Officer/all Causative
Research
SUPPO/CO
SUPPO per LOA/NTE $100,000
CO NTE $500,000
NAVSUP WSS IOC
>$500,000 per survey
document
307.3 FLIPL Approval Levels. As per Revision 5 of NAVSUP Publication 723, the CVN
Commanding Officer has approval authority for per document survey NTE $500,000 and the
CVN Supply Officer through LOA has survey approval authority for per document survey NTE
$100,000. CVN CO is authorized to sign Pre-Adjustment and Causative Research Form for
LBI/GBI/LIS >$500,000 EMV, but the required DD Form 200 can only be approved-signed by
NAVSUP WSS IOC. Submit DD Form 200 for NAVSUP WSS IOC approval-signature via
TYCOM POC. Approved DD Form 200s are valid supply documents to support inventory
discrepancy adjustments and must be generated-approved-signed by proper authority within 45
days of transaction posting.
Note: CVN Supply Department must notify CNAP N412 before posting LBI/GBI/LIS when
per document EMV is >$500,000.
307.4 Adjustment of Stock Records. All adjustments for DLR and non-DLR items outlined in
paragraph 307 must have a signed DD 200 within 45 days of transaction posting.
307.5 Causative Research Documentation. S-1 Stock Control and S-6 RMB must maintain
approved causative research documentation attached to corresponding FLIPL, DD 200 forms.
a. Responsibility. S-1, S-6 or S-8 division personnel initiate preparation of DD Form
200. Stock Control and RMB are responsible for reviewing Gains and Losses Report and
ensuring a proper DD Form 200 is prepared. Surveys, Causative Research, and Gains and
Losses Reports are reviewed during SMA and SMI.
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COMNAVAIRFORINST 4440.2E
01 FEB 2022
b. File Maintenance. S-1F maintains the original DD 200 forms for all approved
surveys. S-6 will forward all original Non-QCOSAL DLR/FLR surveys to S-1F, and maintain
copies of DD 200 forms in the RMB. For the purpose of filing, S-1F will assign a multi-tab
folder for each month. File original DD 200 forms with supporting documentation such as Gains
and Losses Report and Causative Research forms together. FIAR requires survey
documentations to be retained for ten years.
307.6 Inventory Adjustment Posting. The IBS Program creates an IBS Inventory Count
Transfer File (JSI235.CNT). Once this file is batch processed, the appropriate gains, losses and
surveys are posted in RSupply. See 305 above for the mandatory chain of command approvalsignature and forms prior to uploading final IBS INV data to R-Supply, and comply with the
survey documentation requirements after posting the approved inventory adjustments.
307.7 NWCF-SM Materiel CIIC Codes and Survey Criteria. For inventory losses above the
CIIC dollar threshold in exhibit 3-11, CIIC Codes and survey criteria, or for Missing/ Lost/Stolen
inventory, forward a copy of completed DD Form 200 (approved and signed) to CNAP/CNAL
POCs.
307.8 Report of Survey With EMV > $100,000.00.
a. Forward a copy of completed DD Form 200 (signed and approved) to CNAP/CNAL
N4121, along with copy of applicable LOA(s).
b. Forward a copy of DD Form 200 for LBI/GBI/LIS survey (per document EMV
>$500,00) awaiting NAVSUP WSS IOC approval to CNAP/CNAL N4121 for tracking
purposes.
3-25
COMNAVAIRFORINST 4440.2E
01 FEB 2022
NWCF INVENTORY ACCURACY REPORTING STRUCTURE
Exhibit 3-1
3-26
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01 FEB 2022
LAP Sample
Exhibit 3-2
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01 FEB 2022
Exhibit 3-2 (Continued)
3-28
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01 FEB 2022
Exhibit 3-2 (Continued)
3-29
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01 FEB 2022
Exhibit 3-2 (Continued)
3-30
COMNAVAIRFORINST 4440.2E
01 FEB 2022
INV Sample
Exhibit 3-2 (Continued)
3-31
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01 FEB 2022
INV Sample
Exhibit 3-2 (Continued)
3-32
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01 FEB 2022
INV Sample
Exhibit 3-2 (Continued)
3-33
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01 FEB 2022
INV Sample
Exhibit 3-2 (Continued)
3-34
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01 FEB 2022
INV Sample
Exhibit 3-2 (Continued)
3-35
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01 FEB 2022
INV Sample
Exhibit 3-2 (Continued)
3-36
COMNAVAIRFORINST 4440.2E
01 FEB 2022
1X1 CT Equal
Exhibit 3-2 (Continued)
3-37
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01 FEB 2022
1X1 CT Equal
Exhibit 3-2 (Continued)
3-38
COMNAVAIRFORINST 4440.2E
01 FEB 2022
1X1 CT Equal
Exhibit 3-2 (Concluded)
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COMNAVAIRFORINST 4440.2E
01 FEB 2022
INTEGRATED BARCODE SYSTEM (IBS) PQS CHECK-LIST
Functions
Certified by /Date
IBS Overview:
Explain the IBS system set up in detail.
________________
Explain how to manage scanners properly.
________________
Demonstrate how to create barcode labels for location.
________________
Demonstrate how to create barcode labels for materiel.
________________
System Administration:
Demonstrate how to establish or change system
configuration.
________________
Demonstrate how to establish or change system
password.
________________
Demonstrate how to establish or change control data.
________________
Demonstrate how and when to use the database
function.
________________
Location Audit Processing (JSI247):
Demonstrate how to schedule and process location audits.
________________
Including how to download scanners, edit and post
results to RSupply.
________________
Demonstrate how to edit or delete erroneous data
noted by personnel conducting the LAP if they were
unable to make correction on the scanner.
________________
Exhibit 3-3
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COMNAVAIRFORINST 4440.2E
01 FEB 2022
INTEGRATED BARCODE SYSTEM (IBS) PQS CHECK-LIST
Demonstrate how to cancel and remove location
audit in process, and completed location audit in IBS.
________________
Inventory Processing (JSI243):
Demonstrate how to schedule and process first
count and second count inventories, also how
to edit and post inventory result to RSupply.
________________
Demonstrate how to edit or delete erroneous data
noted personnel conducting the inventory if they
were unable to make correction on the scanner.
________________
Demonstrate how to cancel existing inventory
in RSupply.
________________
Demonstrate how to cancel and remove inventory
in process, and completed inventories in IBS.
________________
Receipt Processing (JSS205/JSS220):
Demonstrate how to process RIP and stow transactions
and how to download results to RSupply.
________________
Demonstrate how to edit or delete erroneous
data in IBS PC prior to download results to
RSupply.
________________
Demonstrate how to produce the following reports:
________________
a.
b.
c.
d.
e.
Shipping Difference Reports.
Stowage Difference Reports.
Stow to RIP NSN Difference Reports.
Stow with no matching RIP Reports.
RIP Management Reports.
Demonstrate how to delete outstanding RIP with
matching receipt posted in RSupply.
Exhibit 3-3 (Concluded)
3-41
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COMNAVAIRFORINST 4440.2E
01 FEB 2022
Exhibit 3-4
3-42
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01 FEB 2022
Exhibit 3-5
3-43
COMNAVAIRFORINST 4440.2E
01 FEB 2022
CVN SUPPLEMENTAL CAUSATIVE RESEARCH FORM
CVN SUPPLEMENTAL CAUSATIVE RESEARCH FORM (DLR & FLR) PG 1 of 2
NSN:
MATERIEL IDENTIFICATION
MCC:
COG:
U/P (STD):
U/I: DLP:
U/P (NET):
SUBSTITUTES AND LOCATION CHECKS
Check all current and historical locations for each NIIN assigned to the FGC.
Attach a separate sheet, if necessary.
LOC
QTY
NIIN
LOC
NIIN
SIT TTL O/H QTY:
LOC TTL O/H QTY:
INVENTORY
DIFFERENCE:
EMV:
DIFM VALIDATION
TOTAL DIFM:
MCN
TOTAL SUSP:
MCN
MCN
W/C
STATUS
REMARKS
SUSPENSE, SUBCUSTODY and IOU VALIDATION
SUB:
IOU:
W/C
STATUS
REMARKS
NALCOMIS INTERFACE (INTERNAL FILE) VALIDATION
W/C
STATUS
REMARKS
DOC NUMBER
eRMS OFFLOADS
MATCHED IN T/L (Y/N)
REMARKS
UNMATCHED SIT (REPLN, XDECK, OFF) and UNMATCHED D6A (eRMS)
3-44
QTY
COMNAVAIRFORINST 4440.2E
01 FEB 2022
DOC NUMBER
QTY
(G/L)
REMARKS
MANUAL LOGBOOK (CARCASS TURN-IN, BCM LOG, RFI LOG, STOW LOG, X09 LOG, BACKFIT,
CROSSDECK and OFFLINE)
DOC NUMBER
QTY
REMARKS
CVN SUPPLEMENTAL CAUSATIVE RESEARCH FORM (DLR & FLR) PG 2 of 2
SERIAL NUMBER TRACKING
SERIAL
NUMBERS ON
HAND
ON HAND
Y
N
Y
N
Y
N
Y
N
Y
N
Y
N
Y
N
LAST TRANSACTION
TRANSLEDGER AUDIT
Annotate discrepancies between CTL, manual receipts and NALCOMIS transledger (if applicable)
Attach CTL and NALCOMIS transledger print outs as supporting documentation
TRANS DATE
DOC
NUMBER
TRANS TYPE/REMARKS
Exhibit 3-6
3-45
COMNAVAIRFORINST 4440.2E
01 FEB 2022
CVN S6/S8 Division Officer Letter of Authority
From: Commanding Officer, (applicable Command)
To:
S-6 DIVO or S-8 DIVO, (applicable Command)
Subj:
APPOINTMENT AS INVENTORY ACCOUNTABLE PROPERTY OFFICER AND
REVIEWING AUTHORITY FOR NAVY WORKING CAPITAL FUND – SUPPLY
MANAGEMENT INVENTORY FOR (APPLICABLE COMMAND)
Ref:
(a) SECNAVINST 5200.42
(b) DoD 7000.14-R, Financial Management Regulation, Volume 12
(c) DLM 4000.25-2-M, Defense Logistics Management System Manual, Volume 2,
Supply Standards and Procedures
(d) DoD 4140.01, DoD Supply Chain Materiel Management Policy
(e) DoD 5000.64, Accountability and Management of DoD Equipment and Other
Accountable Property
1. Per references (a) through (e), you are hereby appointed as the Inventory Accountable
Property Officer (IAPO) and Reviewing Authority for Navy Working Capital Fund – Supply
Management (NWCF-SM) inventory for which you are responsible at plant CXXX. As an
IAPO, you are responsible for proper stewardship of NWCF-SM Inventory for your plant and for
establishing and maintaining accurate accountable property records, systems and/or financial
reports, including procedures and recommend changes or other corrective actions to maintain
inventory accuracy and irrespective of whether the property is in your possession. This IAPO
responsibility is not further delegable.
2. You are appointed to take the following actions:
a, You are to familiarize yourself with references (a) through (e), ensuring strict compliance
with all facets of materiel accountability functions.
b. To serve as a senior subject matter expert providing principal management, guidance and
controls for the accurate accounting as related to the NWCF-SM Inventory within plant CXXX.
c. Serve as Reviewing Authority for the Financial Liability Investigation of Property Loss
(FLIPL) DD Form 200 process in accordance with reference (b). This appointment does not
include approval authority for the DD Form 200.
d. You have the authority to approve inventory loss or gain adjustments not to exceed
$50,000 per transaction when negligence or abuse is not evident or suspected.
Exhibit 3-7
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COMNAVAIRFORINST 4440.2E
01 FEB 2022
Inventory adjustments must be documented in accordance with applicable guidance and
references (b) and (c), including any causative research, results of any inquiry or investigation,
and DD Form 200, when required.
Subj: APPOINTMENT AS ACCOUNTABLE OFFICER AND REVIEWING AUTHORITY
FOR NAVY WORKING CAPITAL FUND – SUPPLY MANAGEMENT FOR (APPLICABLE
COMMAND)
e. Ensure annual inventory and monthly reporting is completed as directed.
3. As the steward for the NAVSUP NWCF-SM Inventory, your responsibilities include
compliance with applicable guidance, directives and policy for managing this inventory.
Establishing and sustaining inventory accountability is essential, as there may be ramifications
for misuse or loss of this Government property, including financial liability.
4. You will acknowledge acceptance of this appointment in writing. This delegation is effective
immediately and remain in effect as long as I remain Commanding Officer, (applicable
Command) or until you leave your current position as XXX.
5. This appointment letter supersedes all previous letters.
6. All documentation related to your authorizations and authorities must be retained for a period
of 10 years.
7. The point of contact for this matter is XXXXXXX at (xxx) xxx-xxxx or xxxxxxx@navy.mil.
Ser
DD Mmm YYYY
ACKNOWLEDGEMENT
From: S-6 DIVO or S-8 DIVO, (applicable Command)
To:
Commanding Officer, (applicable Command)
I acknowledge appointment as the Inventory Accountable Property Officer and Reviewing
Authority for NAVSUP Navy Working Capital Fund – Supply Management inventory held at
plant CXXX managed by (applicable Command).
XXXXXXXXXX
Exhibit 3-7 (Concluded)
3-47
COMNAVAIRFORINST 4440.2E
01 FEB 2022
CVN SUPPO Letter of Authority
From: Commanding Officer, (applicable Command)
To:
Supply Officer, (applicable Command)
Subj: APPOINTMENT AS APPOINTING AUTHORITY FOR NAVY WORKING CAPITAL
FUND – SUPPLY MANAGEMENT INVENTORY FOR (applicable Command)
Ref:
(a) SECNAVINST 5200.42
(b) DoD 7000.14-R, Financial Management Regulation, Volume 12
(c) DLMS 4000.25-M, Defense Logistics Management System Manual, Volume 2,
Supply Standards and Procedures
(d) DoD 4140.01, DoD Supply Chain Materiel Management Policy
(e) DoD I 5000.64, Accountability and Management of DoD Equipment and Other
Accountable Property
(f) NAVSUP P-723, Inventory Integrity Standards
Encl: (1) List of (applicable Command) managed NWCF-SM Plants
1. Per references (b) and (f), you are hereby appointed as the Appointing Authority for Navy
Working Capital Fund – Supply Management (NWCF-SM) inventory for the (applicable
Command) managed plants listed in enclosure (1). Changes to enclosure (1) will be
promulgated as needed. These responsibilities are not further delegable. As Appointing
Authority, you are responsible for the following tasks:
a. Appoint a financial liability officer, if needed, to conduct an investigation to determine
responsibility for loss, damage or destruction of Government property.
b. Appoint a board in lieu of a financial liability officer to conduct the investigation, if
warranted. Reasons for considering appointment of a board include complexity, size, or unique
type of loss due to negligence or abuse.
c. Provide administrative guidance to the financial liability officer or the board.
d. Review DD Forms 200 for accuracy and compliance with reference (b).
e. Approve or disapprove the recommendations of the financial liability officer or the board,
and forward personal recommendations to the approving authority.
Exhibit 3-8
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COMNAVAIRFORINST 4440.2E
01 FEB 2022
Subj: APPOINTMENT AS APPOINTING AUTHORITY FOR NAVY WORKING CAPITAL
FUND – SUPPLY MANAGEMENT INVENTORY FOR (APPLICABLE COMMAND)
1. Approve or disapprove DD Forms 200 when the loss, damage, destruction or theft is less
than $100,000 and there is no evidence of negligence or abuse.
2. As the steward for the NAVSUP NWCF-SM Inventory, your responsibilities include
compliance with applicable guidance, directives and policy for managing this inventory.
Establishing and sustaining inventory accountability is essential, as there may be ramifications
for misuse or loss of this Government property, including financial liability.
3. You will acknowledge acceptance of this appointment in writing below. This delegation is
effective immediately and will remain in place as long as I am Commanding Officer, (applicable
Command) or until you leave your current position as XXXXX.
4. This appointment letter supersedes all previous letters.
5. All documentation related to your authorizations and authorities must be retained for a period
of 10 years.
6. The point of contact for this matter is XXXXXXX at (xxx) xxx-xxxx or xxxxxxx@navy.mil.
XXXXXXXXXXXX
Ser
DD Mmm YYYY
ACKNOWLEDGEMENT
From: Supply Officer, (applicable Command)
To:
Commanding Officer, (Applicable Command)
I acknowledge appointment as the Appointing Authority for NAVSUP Navy Working
Capital Fund – Supply Management inventory for (applicable Command) managed plants listed
in enclosure (1) as may be updated.
XXXXXXXXXXXX
Exhibit 3-8 (Concluded)
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COMNAVAIRFORINST 4440.2E
01 FEB 2022
SPOT INVENTORY CARD
DATE OF INVENTORY: ______________ RETURN TO: ___________________
Reason: _____________________________________________________________
NSN: ______________________________ SUB NIIN: ______________________
U/P: ___________________ NOMEN: __________________ COG: ___________
SIT ON HAND: _____________
STOREROOM CUSTODIAN/1ST COUNT
LOCATION: (1) ___________ (2) ___________ (3) __________ (4) __________
QUANTITY: (1) ___________ (2) ___________ (3) __________ (4) ___________
LPO/2ND COUNT
LOCATION: (1) ___________ (2) ___________ (3) __________ (4) ___________
QUANTITY: (1) ___________ (2) ___________ (3) __________ (4) ___________
LCPO/3RD COUNT (E-7 OR ABOVE) Initial: __________
LOCATION: (1) ___________ (2) ___________ (3) __________ (4) ___________
QUANTITY: (1) ___________ (2) ___________ (3) __________ (4) ___________
*****SUSPENSE LISTING*****
TRANSACTIONS------DOC-NUMBER--------QTY----------SUSPENSE CODE
*********************STOCK DUE DOCUMENTS *********************
--DOC-NUMBER---------QTY---------STATUS/REMARKS--------------***** ISSUE PENDING FILE (IPF) *****
--DOC-NUMBER--------QTY-----------REMARKS---------------------
Exhibit 3-9
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COMNAVAIRFORINST 4440.2E
01 FEB 2022
***** RECOMMENDED ACTION (S) *****
Researched by: _________________________________Date:_________
LCPO Review: _________________________________Date:_________
Approved by: __________________________________Date:_________
Per LOA Approval Authority:
EMV <= $50,000 for S6/S8 DIVO
EMV < $100,000 for SUPPO
EMV < $500,000 for CO
Exhibit 3-9 (Concluded)
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01 FEB 2022
CAUSATIVE RESEARCH – SDR FLOW CHART
Exhibit 3-10
3-52
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01 FEB 2022
NWCF-SM MATERIEL CIIC CODES AND SURVEY CRITERIA
Exhibit 3-11
3-53