The first step taken to resolve the difference
is an attempt to take care of the shortage or
overage at a divisional level. This is done by
verifying all mathematical computations on the
records and using the checkoff list in the
NAVSUP P-487, par. 9102, that indicates the
most common discrepancies that occur. If this
does not resolve the problem, then the commanding
officer must be notified. The commanding officer
initiates an informal examination of the loss that
includes rechecking the most common errors
shown in the NAVSUP P-487 and determining the
total dollar value of the difference based on
inventory and financial control records closeout.
If this informal investigation determines there is
no excessive loss, no further action is required.
If the excessive difference is not resolved, the
following actions are taken:
Assistance is requested from the TYCOM
or local NAVRESSO fleet assistance team.
Accountability is reestablished and spaces
are reopened for business.
Disciplinary action is taken according to
the UCMJ, if required.
If theft or fraud is discovered, the
instructions in the NAVSUP P-487, par. 1206 (2)
and (3), are followed.
When the informal investigation indicates an
excessive difference, a letter is sent to the TYCOM
with a copy to the fleet commander, to NAVSUP,
to the Navy Accounting and Finance Center, to
NAVRESSO, and to the Naval Supply Corps
School at Athens. A copy of the NAVSUP Form
235 and the discrepancy list must be enclosed with
the letter explaining possible causes and corrective
action taken to prevent the difference from
When directed by NAVRESSO and with the
type commander concurrence, special inventory
requirements may be implemented. The entire
ships store operation must be inventoried and
balanced monthly for a minimum of 4 months to
make sure there are no problems. Duplicates of
the NAVSUP Forms 235 and 236 must be sent
to NAVRESSO and the TYCOM each month
during this period.
A disproportionate difference is an existing
excessive difference that cannot be resolved and
that exceeds $2,250 or 3 percent of sales,
whichever is greater. The procedures for reviewing
a disproportionate difference are the same as for
If, after the informal investigation is done, the
difference is not resolved, a request for assistance
is submitted to the local TYCOM or the NAV-
RESSO fleet assistance team. If they do not resolve
the difference or it cannot be done in a reasonable
time period, the following steps are taken:
Set up a formal fact-finding body
according to the JAG Manual, par. 0909.
Relieve the responsible custodian if
indications show him or her to be responsible.
Reopen the records; in the event the ships
store officer is relieved, the records are closed and
the relieved officer submits returns.
Reopen spaces for business.
The requirements we discussed earlier under
reporting differences apply to disproportionate
ACCOUNTING FOR GAINS OR LOSSES
A gain or loss by inventory that cannot be
resolved must be accounted for in order to bring
the ships store records into agreement. In this
section we discuss how to account for gains or
losses of ships store or standard Navy clothing
Ships Store Stock
All gains or losses of ships store stock are
absorbed in the cost of sales retail on the Journal
of Expenditures, NAVSUP Form 978, at the end
of the accounting period. This includes standard
Navy clothing stock sold with ships store stock
through the same cash register with nondepart-
mental keys. If the descriptions of items missing
from the sales outlet are known, a survey charging
the individual ships store profits is prepared.
Standard Navy Clothing Stock
Gains or losses of standard Navy clothing
stock are credited or charged to the Navy Stock
Fund. This includes gains or losses found as a
result of inventories in the bulk storeroom, or
gains or losses in a sales outlet when standard
Navy clothing items are sold in a separate store
or through a cash register with departmental keys.
The actual gain or loss by inventory is
documented on a Requisition and Invoice/
Shipping Document, DD Form 1149, for money
value only. The DD Form 1149 covering gains or
losses by inventory is shown in figure 6-14. If it