Line and Caption
Instructions for Entries
beginning inventory for the
accounting period equals
stock turn. The following
formula must be used:
Add the amounts on line G
for each month divided by
the beginning inventory for
the accounting period
equals stock turn.
In summary, the inventory control records can
provide only a calculated approximation. The
records can, however, help you to keep your ships
store inventory values within the prescribed,
authorized 90-day limits.
STOCK RECORD REVIEW
Stock record review is the second stock con-
trol tool that is available to you as a ships store
manager. While you will use the inventory con-
trol records to ascertain the amount of working
capital that is available to you at any one time,
you will also use the Stock Record (NAVSUP
Form 464) to acquire the sales history and order-
ing information you will need for procuring in-
dividual stock items. You must review your stock
record cards at least once a month to determine
what specific merchandise items you should pro-
cure. For most items, your maximum stock posi-
tion should be 90 days stock. You should stock
enough deployed load items so that they will be
available for the duration of your ships deploy-
ment. If you discover that excesses exist in
certain areas, you should dispose of the excess
stock as soon as you can. The various methods
you can use to dispose of excess stock will be
discussed later in chapter 5.
By properly maintaining a Stock Record
(NAVSUP 464) for every item of ships store
stock, you, as the ships store manager, should
be able to answer the following questions about
any particular stock item.
. What are the average 4 months sales?
. What quantities were ordered previously?
. What is the usual source of supply?
. What are the current cost and retail prices?
l Is there any trend in the sales pattern?
l Assuming normal sales, what is the
approximate stock situation?
Since the stock record cards are so important,
you must maintain them accurately and neatly.
The proper maintenance of stock record cards is
discussed in Ships Serviceman 3 & 2, module 2.
There are two types of errors for which you, as
a supervisor (or auditor), should be on the alert:
mechanical and procedural. As you read about
these errors, you should refer to figure 4-3.
A mechanical error results when facts and
values have not been properly recorded. In your
continual review of your stock record cards, you
may be able to correct most mechanical errors by
asking yourself these questions.
. The low limit: Is it recorded? Is it realistic?
l The cost price and the selling price: Do
they exist where applicable? (There are no sell-
ing prices for cost items.) Is the cost price
rounded to the nearest cent?
. Unit of issue: Is it recorded? Do cost and
selling prices agree with the unit of issue?
. Functional account and department: Is the
correct information recorded?
Is it complete? Does it
include the stock number (when required), the
size, and the noun name? (For example, tax-free
cigarettes; large, economy, or giant toothpaste.)
l Arithmetic: Have computations been made
accurately? Have retail sales been properly
l Format: Have lines been skipped un-
necessarily? Are the correct columns being used?
Procedural errors are usually the result of bad
planning and faulty judgment. You can avoid
many procedural errors by carefully analyzing the
information on your stock record cards. You