NAVY INVENTORY INTEGRITY PROCEDURES

1 NAVSUP P-723 - navy INVENTORY INTEGRITY PROCEDURES COG OI STOCK NO. 0530-LP-011-3480 NAVSUP Publication 723 navy INVENTORY INTEGRITY PROCEDURES NAVAL SUPPLY SYSTEMS COMMAND 0530-LP-011-3480 NAVSUP P-723 - navy INVENTORY INTEGRITY PROCEDURES navy DEPARTMENT NAVAL SUPPLY SYSTEMS COMMAND 5450 Carlisle Pike PO Box 2050 Mechanicsburg, PA 17055-0791 These instructions are for the information and guidance of the navy Shore Activities that own/manage and store navy material. Chapter 9 of this manual and the NAVSEA Shipyard Material Policies document provide special requirements for Naval Shipyards.

2 This publication supersedes NAVSUPINST , NAVSUPINST , NAVSUPINST , NAVSUPINST , NAVSUPINST , NAVSUPINST and NAVSEAINST and all changes thereto. W. J. MAGUIRE CAPT, SC, USN Deputy Commander Fleet Logistics Operations Naval Supply Systems Command i NAVSUP P-723 - navy INVENTORY INTEGRITY PROCEDURES RECORD OF CHANGE INFORMATION SHEET This sheet is provided to ensure your issue of NAVSUP P-723 is current.

3 After inserting the change, enter the required information in the appropriate columns. Change Date Change Signature Number Date Received Made Initial Issue 19 April 2000 ii NAVSUP P-723 - navy INVENTORY INTEGRITY PROCEDURES INTRODUCTION to navy INVENTORY INTEGRITY PROCEDURES PURPOSE navy INVENTORY INTEGRITY PROCEDURES provide policy, procedure, and performance objectives for maintaining controls over material inventories at navy shore activities and the accuracy of associated INVENTORY item and financial records.

4 The impact of INVENTORY accuracy covers a broad spectrum ranging from readiness to DOD budget credibility. Whenever material on an accountable record cannot be found, readiness is impacted. If the accountable record is overstated, nonexistent assets are applied to requirements. The opportunity for undetected theft is also increased when accountable records do not agree with material in storage. This publication reflects recommendations and changes to streamline and simplify the physical INVENTORY process to better employ physical INVENTORY resources in maintaining higher levels of INVENTORY accuracy.

5 The policies and PROCEDURES spelled out in this publication have been updated to encompass the most current business practices in operation within the navy . This publication takes into consideration the partnering concept between the Fleet and Industrial Supply Centers (FISCs) and other navy shore activities; the impacts of implementing the Distribution Standard System (DSS) at Distribution Depots (DDs) collocated at the FISCs as well as some partner sites; changes to DOD INVENTORY policies and PROCEDURES ; and changes in navy policy and PROCEDURES for tracking stock in transit.

6 This publication cancels the following instructions: a. NAVSUPINST , Physical INVENTORY Program b. NAVSUPINST , INVENTORY Accuracy Officer Program c. NAVSUPINST , INVENTORY Accuracy Officer INVENTORY Control Points d. NAVSUPINST , Reports of Discrepancy e. NAVSUPINST , Process Quality Control Program for Stock Point Operations f. NAVSUPINST , Unreconciled Balance (URB) Resolution, Adjustment and Reporting Policy g. NAVSEAINST , Physical INVENTORY Program for Industrially Funded Assets and Sponsor-Owned Material at Naval Shipyards Significant changes to policies and PROCEDURES as spelled out in this Publication include: a.

7 Revised reporting requirements for missing, lost, stolen, and recoverable items. b. Replacement of STATLOC with RTIC for performing location surveys. c. Unreconciled balance (URB) research and resolution between DSS and UADPS. iii NAVSUP P-723 - navy INVENTORY INTEGRITY PROCEDURES d. Regional INVENTORY Accuracy Officer responsibilities. e. Incorporation of revised DOD policy on MILSTRAP. f. Incorporation of partner site concept and impacts from DSS implementations. g. Physical INVENTORY policies and PROCEDURES for shipyards.

8 NAVSUP is currently re-engineering systems and PROCEDURES to provide better visibility and accountability of in-transit material. The re-engineered system and process will include automated checks and alerts to reduce file disconnects, enabling the navy to focus on true INVENTORY losses. Discussions pertaining to other future systems designs and processes such as; Single National INVENTORY concept, R Supply, UADPS, and UICP, are in process and will be reflected in subsequent updates to this publication. SCOPE The scope of this publication encompasses all navy shore activities within the NAVSUP claimancy, as well as the Naval Shipyards under the cognizance of NAVSEA.

9 This publication provides policies and PROCEDURES for physical INVENTORY requirements, location audits, URB requirements, INVENTORY Accuracy Officer responsibilities, Supply Discrepancy Reports (to include SIT SDRs), quality control checks, special reporting requirements and NAVSEA special requirements. All these areas have a significant impact on INVENTORY INTEGRITY . This publication is designed to provide sufficient guidance in maintaining a high level of INVENTORY accuracy at the storage activities as well as NAVICP. AUTHORIZATION The Commanders of the Naval Supply Systems Command (NAVSUP) and Naval Sea Systems Command (NAVSEA) may authorize, in writing, deviations from the instructions contained in this publication, provided the matter concerned is entirely under the cognizance of NAVSUP or NAVSEA.

10 PARAGRAPH NUMBERING SYSTEM The five digit paragraph number and its subparagraph designations may be broken down as follows: Paragraph 05 1 1 1 Chapter 5 Part Section Paragraph iv NAVSUP P-723 - navy INVENTORY INTEGRITY PROCEDURES PAGE IDENTIFICATION PAGE NUMBERS The pages of this publication are numbered in a separate series for each chapter and appendix. The pages of a chapter are numbered in sequence with Arabic numerals from 1.