center.   The   subsystem   requires   branch   com- missary encoding of stock requirements by use of portable   electronic   order   entry   devices   and transmission of the data to the NAVRESSO com- puter. The information picked up by the portable scanner  is  located  on  a  “bar  coded”  shelf  label. The computer processes the requirements against its master files and provides transfer documents (T-973s)  and  packing  labels  for  each  warehouse or  distribution  center. Standard price change (SPC) subsystem— The ACS standard price change (SPC) subsystem is a computerized method of processing standard price   changes   for   S-1   items   in   commissaries. Through   this   system,   the   computer   generates documents identifying the old and new standard price for S-1 items and the standard price change effective   date   (SPCED).   In   preparing   these documents,  the  system  automatically  calculates a new standard price based on the last standard price, the new cost price, and a three-tier markup percent.  The  three-tier  markup  percent  includes a minimum, an assigned, and a maximum markup percent. Purchase order subsystem (includes inven- tory control)—The purchase order subsystem in- cludes mechanized inventory control functions of calculating  sales  and  adjusted  sales  (using  NIS [“not   in   stock”]   percent),   identifying   unusual sales, updating average sales and variation in sales (for  14-day  sales  cycles),  determining  replenish- ment   order   quantities,   and   creating   purchase orders  for  warehouse  items. Direct   store   delivery   subsystem—The direct  store  delivery  (DSD)  subsystem  is  concerned with those items delivered by vendors to branch commissaries in the region rather than to a cen- tral  distribution  point  or  warehouse.  Purchase orders  for  DSD  items  are  not  generated  by  the computer.  DSD  items  are  ordered  by  region  or commissary  personnel.  The  computer  generates the  Daily  Delivery  Order  and  Inspection  Report (T-53)  form,  which  is  a  list  of  items  authorized to  be  ordered  from  data  in  the  master  files. Accounting  subsystem—The  accounting subsystem is a computerized method of process- ing receipts and adjustment actions to create the Journal   of   Receipts   (JOR)   and   Journal   of Adjustments  (JOA).  The  JOR  and  JOA  transac- tions  then  become  part  of  the  reconciliation  of receipt  files  for  matching  by  the  computer  to abstracted  public  voucher  and  summarized  invoice transactions. These  various  subsystems  are  supported  by two basic master files in the ACS. These files are the Item Master File and the Vendor Master File. Both   files   are   used   in   the   control   of   various inventory control and procurement actions. They also provide data for the accounting and manage- ment  functions  that  support  the  operations  of Navy  commissaries.  The  master  files  include  all items except direct store delivery items. As men- tioned  earlier,  direct  store  delivery  (DSD)  items are  delivered  to  each  store.  They  are  known  as short  cycle  or  nonwarehouse  (NWH)  items  and are  generally  of  a  perishable  nature,  such  as  milk, ice   cream,   and   other   similar   products.   The Vendor   Master   File   (VMF)   contains   records identifying  the  various  vendors  who  are  doing business with the region. We are now at the point in  this  chapter  where  control  of  actual  stock  is put  into  one  word—inventory. INVENTORY Inventories are taken for four basic reasons. 1.  To  verify  balances  of  stock  on  hand  and stock  record  balances  of  inventories 2.   To   determine   the   differences   between actual  physical  count  and  stock  balances  shown on  records 3. To provide data for planning against recur- rence  of  the  differences 4. To establish a correct money value balance for   accountability As  a  supervisor  or  manager  in  a  Navy  com- missary, you must always stress the importance of  an  accurate  inventory.  You  should  take  part in   the   preparation   and   distribution   of   the internal   inventory   procedures   for   your   com- missary, including the time, method, and person- nel involved. In fact, inventory procedures should be prepared in writing as an internal store instruc- tion and should be distributed to all commissary personnel  concerned.  As  a  supervisor  or  manager, you should conduct training for commissary per- sonnel  before  each  inventory  is  scheduled.  Most inventories are taken by contracted services. This fact,   of   course,   does   not   relieve   you   of   your responsibility   as   a   supervisor   to   ensure   that everything is accounted for. A good training pro- gram   will   help   you   to   assist   the   contracting inventory  team  in  doing  a  thorough  job.  You  must 8-16