#  Post Office

[**6.1 Background 6-2**](#background)

[6.2 Planned Maintenance System 6-2](#planned-maintenance-system)

[6.3 Establishing the Post Office as a Navy Cash Merchant
6-2](#establishing-the-post-office-as-a-navy-cash-merchant)

[6.4 Sales 6-2](#sales)

[6.5 Sale of USPS Stamps to Ship's Store
6-3](#sale-of-usps-stamps-to-ships-store)

[6.6 Refunds 6-3](#refunds)

[6.7 End-of-Business-Day Procedures
6-3](#end-of-business-day-procedures)

[6.8 End of Quarter Procedures 6-5](#end-of-quarter-procedures)

[6.9 Contingency Operations 6-5](#contingency-operations)

[6.10 Official Mail Service 6-6](#official-mail-service)

[6.11 Post Office Forms and Reports (Examples)
6-7](#post-office-forms-and-reports-examples)

[6.11.1 PS Form 1412 6-7](#ps-form-1412)

[6.11.2 Daily Report 6-9](#daily-report)

[6.11.3 Monthly Report 6-10](#monthly-report)

[6.11.4 Merchant Settlement Report 6-11](#merchant-settlement-report)

##  Background

This chapter of the SOP describes Navy Cash procedures for selected
operations in the ship's post office.

NOTES:

1\. Navy Cash does not affect non-monetary postal procedures, which will
continue to have their full force and effect. Neither does Navy Cash
eliminate the need for maintaining existing money-handling procedures
for contingency operations in the unlikely event that Navy Cash
experiences a catastrophic failure and ceases to function.

2\. The term Postal Officer used throughout this SOP refers to the
Postal Officer and individuals that have been properly authorized and
appointed as his/her agents.

3\. In Navy Cash, all dates and times are recorded and reported in
Greenwich Mean Time (GMT) (Coordinated Universal Time (UTC)).

##  Planned Maintenance System

Preventive maintenance for the Navy Cash Financial System is covered
through the Planned Maintenance System (PMS). PMS information for Navy
Cash is available from the ship's Maintenance and Material Management
(3-M) Coordinator. Maintenance Index Page (MIP) number 6541/080-14
applies to Navy Cash. In particular, proper cleaning of the card readers
can significantly reduce the incidence of card readers failing to read
the Navy Cash card.

##  Establishing the Post Office as a Navy Cash Merchant

a.  The ship's post office is established as a Navy Cash merchant as a
    part of the process of implementing Navy Cash on board the ship. The
    post office is actually set up with three merchants in order to
    track and report on stamps, money orders, and metered mail
    separately.

b.  The Treasury Financial Agent, JPMorgan Chase Bank, N.A., and the
    NAVSUP Postal Policy Division will work with the United States
    Postal Service (USPS) Postal Financial Officer to set up the
    appropriate bank account number for the settlement account for
    postal transactions.

##  Sales

a.  The K22 Point-Of-Sale (POS) device is the card reader and keypad
    device used to register sales transactions in Navy Cash. Depending
    on the size of the ship, one or more K22s are permanently installed
    in the post office and operate in an online mode. If necessary, the
    Disbursing Officer can configure and issue a K22 to the Postal
    Officer to operate in an offline, portable mode.

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c.  The three function keys on K22 POS devices in the post office are
    configured with the three separate Navy Cash merchant accounts in
    order to report specifically on Postage Sales (F1), Money Order
    Sales (F2), and Meter Sales (F3). See Chapter 2 for instructions on
    operating the K22.

d.  The sales procedure is performed in accordance with paragraph
    2.3.1.b of the K22 operation section of this SOP.

e.  All USPS Postal Money Orders will be cashed at the disbursing
    office.

##  Sale of USPS Stamps to Ship's Store

Navy post offices are authorized to sell USPS stamp booklets to the
Sales Officer, or designated representative, for sale in the ship's
store. Sale of single stamps is not authorized. The Sales Officer will
purchase the stamps using the ship's store Navy Cash merchant card.
Procedures for the purchase and sale of stamps by the ship's store
operation are included in NAVSUP P487, paragraph 3400 and in Appendix M.

##  Refunds

When a customer is eligible for a refund, PS Form 3533 is filled out in
accordance with Domestic Mail Manual (DMM) section 604.10.0 and sent to
Postmaster New York or Postmaster San Francisco, as appropriate, who
actually issues the refund to the member.

##  End-of-Business-Day Procedures

Flexible Credit Operations

a.  The post office business is secured at the end of the business day.

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f.  All military postal clerks log-off the system.

g.  The Disbursing Officer initiates Navy Cash end of day processing.

h.  The military postal clerk prepares PS Form 1412 by completing AICs
    090, 096, 100, 101, 109, 353, 400, 553, 680, 800, 840, 841, 845,
    848, 851, 852, and 853, as applicable. Money orders issued will be
    recorded on the reverse of PS Form 1412 (see paragraph 6.11.1 for an
    example of PS Form 1412). PS Form 1412s will be filed onboard for
    four years.

i.  After all clerk disks have been consolidated on the supervisor disk,
    the COPE must select option #4, Adjust Unit AIC, on the consolidate
    menu. The COPE must then check AIC 751, or 752 if this AIC is being
    used, and enter the dollar amount shown under AIC 751 (or 752) in
    AIC 680, Cash Remitted--EFT. The amount must be exact. By entering
    the amount in AIC 680, the amount in AIC 751 (or 752) will be
    brought to zero.

j.  The Postal Officer compares the totals for stamp, Postage Validation
    Imprinter (PVI), and money order sales reported on PS Form 1412 to
    the total amounts collected and reported for the Post Office on the
    Merchant Sales Summary Report to determine if they match (see
    paragraph 6.11.2 for an example of a Merchant Sales Summary Report).
    If both reports match, there is no discrepancy. The Merchant Sales
    Summary Report can be generated at any time by selecting the "View
    Reports" link in the Navy Cash application, clicking on "Merchant
    Sales Summary" in the "Application Reports" window, filling in the
    start and end dates for the inclusive period, and clicking on the
    "Generate" button. The Disbursing Officer will provide copies of
    these reports to the post office for filing. A copy of the Merchant
    Sales Summary Report must be attached to and filed with the
    corresponding unit PS Form 1412.

k.  The post office may contact the disbursing office at any time during
    the business day to generate a Merchant Sales Summary Report. The
    post office can use this report to verify that the total
    transactions for the current business day are correct by comparing
    the report against the clerk or unit preliminary tape (printed PS
    Form 1412).

l.  If the reports do not match, an error has occurred that must be
    investigated and resolved. At this point, the investigation would be
    conducted with the same procedures used prior to the implementation
    of Navy Cash. Records must be reviewed to determine if a sale was
    not properly receipted or an incorrect sales amount was deducted
    from a Navy Cash card. The more detailed Merchant Sales by Operator
    (MSO) Detail Report for the day in question can be requested from
    the disbursing office to research discrepancies and facilitate the
    investigation. All discrepancies must be corrected before the PS
    Form 1412 is submitted to USPS. Two possible scenarios for account
    shortages with procedures for corrective action follow:

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(1) [Scenario 1 --- Window Clerk Is Short]{.underline}. In this case,
    "short" means that the stamps close (AIC 853) is greater than the
    actual amount of clerk stamp stock audited on a
    quarterly/monthly/daily audit. [Corrective Action]{.underline}: The
    responsible window clerk can correct this account shortage by
    inserting his/her personal Navy Cash card in the K22 and entering
    the amount of the shortage as a sales transaction. The clerk will
    then log on to his/her IRT disk, press the \"postage sales\" key,
    and enter the same amount (the shortage amount) he/she entered on
    the K22. This amount will show as a postage sale on the PS 1412;
    however, since the clerk did not take that stamp stock out of
    his/her account, this sale would then bring him/her back in balance.
    A separate report to the Military Postal Service Agency (MPSA) or
    USPS is not required, but a note should be made in the \"Notes,
    etc.\" section of the OPNAV Form 5112/2 to document the transaction.

(2) [Scenario 2 --- Window Clerk Is Short]{.underline}. In this case,
    "short" means that the cash remitted (AIC 752) on the daily 1412
    does not equal the amount reported on the daily Navy Cash
    transaction report for the daily remittance. [Corrective Action
    1]{.underline}: If the shortage is found before unit consolidation,
    the responsible clerk can correct this account shortage by inserting
    his/her personal Navy Cash card in the K22 and entering the amount
    of the shortage as a sales transaction. This sale will bring both
    reports in balance. [Corrective Action 2]{.underline}: If the
    shortage is found after submission of the unit 1412, the responsible
    clerk will log on to his/her IRT disk on the next business day and
    enter the shortage amount in financial differences overage (AIC
    247). The clerk will then insert his/her personal Navy Cash card in
    the K22 and enter the shortage amount as a sales transaction.
    Entering the shortage amount in AIC 247 informs the USPS that there
    is an overage being submitted, and it does not affect the unit 1412
    balances. The USPS will then credit this overage to the previous
    business day's shortage remittance.

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m.  The Custodian of Postal Effects (COPE) uploads the unit 1412 data
    using the RCU disk via the Automated Military Postal System (AMPS)
    website in accordance with existing procedures. To set up the
    computer to upload the RCU data:

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(1) Ensure RCU disk is consolidated for the normal end-of-day
    transmission.

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(3) Log onto the AMPS website.

(4) Insert the IRT RCU disk into the floppy disk drive.

(5) Click on the Finance Tab, and then click on "RCU Disk Upload" on the
    left side of the screen.

(6) Click on ZIPRCU. Note: If Windows NT or 98 is used, click the "Open"
    button on the "File Download" box. If Windows 2000 is used, click on
    "Run This Program from Its Present Location" and then click the "OK"
    button.

(7) Wait for the process to finish, and then click the "Browse" button.

(8) Select "3½ Floppy (A)" from drop-down in "Look in:" on "Choose File"
    box.

(9) Select file "IRT_RCU.zip".

(10) Click "Open" button on "Choose File" box.

(11) Click "Submit" button.

(12) A screen should appear indicating successful transmission. Print
     this page, stamp it with the All Purpose Date Stamp (APDS), and
     file it with your daily business records.

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n.  A copy of the Merchant Sales Summary Report will be attached to a
    copy of the corresponding PS Form 1412. The PS 1412 and the Merchant
    Sales Summary Report must be kept on file for four years.

o.  During monthly audits, the Monies Audits Board must account for the
    copies of the PS Form 1412s and the Merchant Sales Summary Reports.
    Audits will be conducted in accordance with Chapter 3 of NAVSUP INST
    5119.1.

p.  Auditing Officers should, in conjunction with accounting for the
    amounts in AIC 853 and 840, check AIC 680, Cash Remitted--EFT, to
    ensure the total matches the amount of money sent electronically to
    the Treasury Financial Agent, JPMorgan Chase, as delineated on the
    Navy Cash Merchant Sales Summary Report for the post office. The
    Merchant Sales Summary Report, which reflects post office sales (the
    total of Postage Sales (090), Money Order Sales (100), Money Order
    Fees (101), and Postage Validation Imprinter Sales (109)), must
    equal the total amount in AIC 400 (Cash Required) on the Custodian
    of Postal Effects' (COPE's) Unit PS 1412 Report. If a discrepancy is
    found, check to see if the military postal clerk entered daily
    business information correctly in the K-22 card reader. Postage
    Sales (F1), Money Order Sales (F2), and Meter Sales (F3) should be
    listed separately on the K-22.

q.  Merchant Settlement Reports. Merchant settlement reports list all
    Navy Cash deposits made to the bank account specified by USPS and
    can be used to assist in reconciling the account. These shore
    reports are generated automatically at the completion of each
    end-of-day round trip and placed into a shore reports directory by
    date (see paragraph 8.4.23.n). A sample report is contained in
    paragraph 6.11.4. In Navy Cash, all dates and times are recorded and
    reported in Greenwich Mean Time (GMT) (Coordinated Universal Time
    (UTC)).

##  End of Quarter Procedures

All financial data from the PS Form 1412 must be reported on the
quarterly Postal Accounting Report System (PARS) in accordance with
existing procedures and sent to the appropriate Fleet Postal Officer as
an attachment to an e-mail.

##  Contingency Operations

a.  [Short-Term Outage]{.underline}.

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(1) The K22 POS terminal in post office normally operates in the normal
    mode and is connected online to the Navy Cash server through the
    ship's LAN. If connectivity to the server is expected to be a
    problem, an operator should remain logged on to the K22 at the end
    of the day so that Navy Cash payments can be processed offline the
    next day even if connectivity is not available. A K22 in normal mode
    operating offline can store about 741 transactions before it is full
    and can no longer process transactions (see Chapter 2 for offline
    K22 operation instructions).

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(13) When connectivity to the Navy Cash server is restored, sales
     receipts stored on the K22 are forwarded automatically to the Navy
     Cash server. This download starts when the LAN connection to the
     server is made and the asterisk symbol on the K22 screen
     disappears, usually within a minute. The "!" symbol on the K22
     screen remains displayed until all transactions have been
     downloaded to the server.

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r.  [Localized Network Outage]{.underline}.

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(1) The K22 must be online to the Navy Cash server through the ship's
    LAN for an operator to log on. If the network is down at the
    beginning of the day, the operator will not be able to log on to the
    system to conduct business. However, if the outage is localized to
    the area of MWR, the Postal Officer or Custodian of Postal Effects
    (COPE) can go to the disbursing office and sign out a spare K22 to
    use in the offline portable mode.

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(14) [Operator Log-On]{.underline}. The operator can log on to the
     portable K22 (and the merchants can be set to post office stamps,
     money orders, and metered mail) at any operating K22 network
     connection point or download box (in the disbursing office, general
     mess, or other locations set up during the Navy Cash installation).
     The operator disconnects the K22 device currently in operation (if
     any) and connects the portable K22. Once connected, the offline
     log-on procedure is the same as the online procedure. After log-on
     is complete, the operator can disconnect the data cable and proceed
     to operate the K22 in the offline mode. If a K22 was disconnected
     to permit the log-on, it should be reconnected at this time. The
     operator should make sure that the portable K22 has fresh batteries
     and that additional batteries are readily available.

(15) [Download Sales Transactions]{.underline}. If the network outage is
     localized, the sales receipts stored on the portable K22 can be
     downloaded at the end of each day at one of the K22 connection
     points or download boxes as described in paragraph (2) above.

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s.  [Long-Term Outage]{.underline}. In the unlikely event that
    connectivity to the Navy Cash server is down for a lengthy period of
    time (days, weeks), the post office can, with the authorization of
    the Commanding Officer, revert to accepting cash, following the same
    procedures used prior to implementing Navy Cash.

##  Official Mail Service

a.  In accordance with the DoD Official Mail Manual 4525.8-M, C2.7.1.2,
    use of a credit card is authorized to pay for postal services. On
    Navy Cash ships, the ship's Official Mail Manager (OMM) is
    authorized to use a Navy Cash visitor card to pay for postage and
    postal services when processing official mail.

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t.  After each transaction, a receipt shall be provided to the OMM for
    the total amount of postage and postal services purchased.
    Procedures for the use of a Navy Cash visitor card in processing
    official mail are included in Appendix N.

##  Post Office Forms and Reports (Examples)

###  PS Form 1412

![](media/image1.wmf){width="6.497222222222222in"
height="5.404861111111111in"}

*Front of PS Form 1412*

**DAILY MONEY ORDERS**

![](media/image2.wmf){width="6.499305555555556in"
height="2.904861111111111in"}

*Back of PS Form 1412*

###  Daily Report

*In Navy Cash, all dates and times are recorded and reported in
Greenwich Mean Time (GMT) (Coordinated Universal Time (UTC)).*

Run Date: 05/17/2005 Run Time: 17:08:16

Report Name: NC_133

Start Date: 05/16/2005 End Date:: 05/17/2005

Merchant Sales

Merchant Name Merchant ID Total Amount Transaction Count

WARDROOM MESS -- FOOD 800000003675 102.75 3

WARDROOM MESS -- DUES 800000003677 28.50 2

NAVY DISBURSING 800000003693 150.50 6

POST OFFICE -- STAMPS 800000003695 11.10 6

POST OFFICE -- MONEY ORDERS 800000003697 611.22 5

POST OFFICE -- METERED MAIL 800000003699 150.00 10

SHIP STORE #1 800000003701 1120.35 110

NAVY MWR 800000003705 90.00 6

VENDING STORE ITEMS VMCAND0000000001 10.60 20

VENDING STORE ITEMS VMCAND0000000001 40.00 80

VENDING SODA VMCAND0000000001 45.50 91

VENDING SODA VMCAND0000000001 26.50 53

VENDING SODA VMCAND0000000001 85.00 170

VENDING SODA VMCAND0000000001 24.00 48

###  Monthly Report

Run Date: 05/31/2005 Run Time: 19:07:33

Report Name: NC_133

Start Date: 05/01/2005 End Date:: 05/31/2005

Merchant Sales

Merchant Name Merchant ID Total Amount Transaction Count

WARDROOM MESS -- FOOD 800000003675 3082.37 92

WARDROOM MESS -- DUES 800000003677 915.00 40

VENDING SODA 800000003691 240.00 1

NAVY DISBURSING 800000003693 -19922.57 183

POST OFFICE -- STAMPS 800000003695 35.49 13

POST OFFICE -- MONEY ORDERS 800000003697 4200.00 36

POST OFFICE -- METERED MAIL 800000003699 2250.00 150

SHIP STORE #1 800000003701 36610.47 3242

NAVY MWR 800000003705 2773.00 178

VENDING STORE ITEMS VMCAND0000000001 202.20 530

VENDING STORE ITEMS VMCAND0000000001 932.10 2300

VENDING SODA VMCAND0000000001 1340.00 2690

VENDING SODA VMCAND0000000001 793.50 1587

VENDING SODA VMCAND0000000001 2475.50 4951

VENDING SODA VMCAND0000000001 725.50 1451

###  Merchant Settlement Report

Run Date: 05/18/2005

Run Time: 00:08:42

Report name: TRAN_Ship_Merchant_Settle_D

Page: 1

Navy Cash

Daily Transaction Detail Report - Merchant Settlement

Location: USS NEVERSAIL

Date: 05/16/2005 00:12:52 To 05/17/2005 03:43:22

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

Merchant: POST OFFICE 800000026283

> Settlement Date: 17-MAY-05
>
> Settlement Type: NAVY CASH
>
> Batch Date Amount C
>
> \-\-\-\-\-\-\-\-\-\-\-\-\-\-\-- \-\-\-\-\-\-\-\-\-\-\-\-\-\-\--
> \-\-\-\-\-\-\-\-\-\-\-\-\-\-\-- -
>
> R21452_1022 05/17/05 03:20 \$772.32
>
> \-\-\-\-\-\-\-\-\-\-\-\-\-\-\-- \-\-\-\-\-\-\-\-\-\-\-\-\-\-\--
> \-\-\-\-\-\-\-\-\-\-\-\-\-\-\-- -
>
> Settlement Total \$772.32

Merchant POST OFFICE 800000026283 Total: \$772.32

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

> \* C = Correction Transactions.

\*\*\*\*\*\* End of the Report \*\*\*\*\*