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Attachment, ADC 489

ATTACHMENT TO ADC 489

Administrative Change to Maintain Inventory Control Effectiveness (ICE) Report 

Ammunition Procedures

(Supply/PICP)

1. ORIGINATOR:

a. Service/Agency: DLA Logistics Management Standards, J627

b. Originators: DLA Logistics Management Standards, 703-767-2011, DSN 427-2011

2. FUNCTIONAL AREA: Supply/Physical Inventory Control Program

3. REFERENCES:

a. DOD 4000.25-M, DLMS, Volume 2, Chapter 6, as revised by Approved DLMS Changes (ADC) 307

and 415 (reference 3d), www.dla.mil/j-6/dlmso/elibrary/manuals/dlms/v2.asp

b. DOD 4000.25-2-M, Military Standard Transaction Reporting and Accounting Procedures 

(MILSTRAP), as revised by Approved DLMS Change (ADC) 415, www.dla.mil/j6/dlmso/elibrary/Manuals/MILSTRAP/default.asp

c. DLMSO memorandum, November 10, 2008, subject: ADC 307, Administrative Update to DLMS, 

Volume 2, Chapter 6, Physical Inventory Control, and DLMS Supplements (DS) 846P, 846R, and 888I , 

www.dla.mil/j-6/dlmso/eLibrary/Changes/approved4.asp

d. DLA Logistics Management Standards memorandum, November 29, 2011, subject: ADC 415, 

Revise the DOD Inventory Control Effectiveness (ICE) Report (General Supplies) and Revise Type 

Physical Inventory/Transaction History Code C and Add Code Z, www.dla.mil/j6/dlmso/eLibrary/Changes/approved5.asp

e. DOD Instruction (DODI) 4140.01, December 14, 2011, DoD Supply Chain Materiel Management 

Policy, available at www.dtic.mil/whs/directives/corres/pdf/414001p.pdf

4. REQUESTED CHANGE:

a. Brief Overview of Change: This ADC changes the procedures for ICE Report 

Ammunition from using references to the ICE Report General Supply procedures to explicit 

procedures specific to the ICE Report Ammunition.

b. Background: Prior to ADC 415 (reference 3.d.), the ICE report procedures for general 

supplies and ammunition were similar. Since the procedures for general supplies precede those 

for ammunition, the section for ammunition largely used reference pointers to the procedures for 

general supplies. ADC 415 significantly changed the ICE report procedures for general supply 

and explicitly excluded any changes to the ICE report procedures for ammunition. However, 
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Attachment, ADC 489

ADC 415 did not include an explicit line by line instructions for the ammunition ICE Report to 

replace the prior references to the General Supplies ICE Report which after ADC 415 are no 

longer applicable. Accordingly, this administrative ADC provides the explicit line by line 

procedures for the ICE Report Ammunition. The basis for the ICE Report Ammunition 

procedures applied in this ADC’s enclosures are the pre-ADC 415 procedures for ICE Report 

General Supply (See references 3.a., 3.b., and 3.c.). There have been no ADCs since ADC 415 

that impacted the procedures for ICE Report Ammunition.

c. Description of Change: For MILSTRAP Chapter 7 and DLMS Volume 2, Chapter 6, 

ICE Report Ammunition procedures replace all reference pointers with the applicable language of 

the pre-ADC 415 ICE Report General Supply procedures.

5. REASON FOR CHANGE: Ensure proper documentation of procedures for ICE Report 

Ammunition.

6. REVISIONS TO DOD 4000.25 SERIES OF MANUALS: The changes of this ADC to 

MILSTRAP Chapter 7 and DLMS Volume 2, Chapter 6, are reflected in enclosures 1 and 2, 

respectively. Note that the DOD 4000.25 series of manuals will be reissued as Defense Logistics 

Manuals in June 2012, as required by DODI 4140.01 (reference 3.e.).

7. ADVANTAGES AND DISADVANTAGES:

a. Advantages. Properly reflects in detail the existing procedures for ICE Report Ammunition, 

and avoids eliminates any potential confusion from using the references to ICE General Supplies 

procedures.

b. Disadvantages. None identified.

8. IMPLEMENTATION: These procedures are already the existing procedures for ICE Report 

Ammunition.

9. IMPACT:

a. DOD Components Automated Information System (AIS): None.

b. DLMS Data: None.

c. DLA Transaction Services. None

Enclosures

As stated
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ADC 489

Enclosure 1

ENCLOSURE 1 TO ADC 489

Administrative Change to Maintain Inventory Control Effectiveness (ICE) Report 

Ammunition Procedures

Revise DOD 4000.25-2-M, MILSTRAP, Chapter 7, Physical Inventory Control, Section 

C7.9.3 , as follows (changes are identified by bold, red italic and strikethroughs):

C7.9.3. Ammunition Performance Standards and Data

C7.9.3.1. Performance - Part I

C7.9.3.1.1. Materiel Denials. Complete as described in paragraphs 

C7.9.2.1.1.1., C7.9.2.1.1.2., and C7.9.2.1.1.3. For ammunition, include denial 

transactions classified by denial Management Codes 1, 2, 5, 6, and 7 (see 

appendix AP2.6) in the total. Components shall identify denials separately for low-risk 

and high-risk items.

C7.9.3.1.1.1. (Line 1.A.) Lines Directed for Shipment. The 

total number of line items directed for shipment (DIC A5_ MRO, DIC A5J Disposal 

Release Order (DRO), DIC A4_ referral order, DIC A2_ redistribution order).

C7.9.3.1.1.2. (Line 1.B.) Total Materiel Release Denials. The 

total materiel denials represented by the sum of total and partial denials, and 

warehouse refusals). Include denial transactions classified by denial 

Management Codes 1, 2, 5, 6, and 7 (see appendix AP2.6) in the total. 

Components shall identify denials separately for low-risk and high-risk items.

C7.9.3.1.1.3. (Line 1.C.) Materiel Denial Rate. Compute this 

figure by dividing the total denials by the line items directed for shipment and 

multiplying by 100. ((1B / 1A) x 100) The DoD performance goal for the materiel 

release denial rate is not greater than 1 percent.

C7.9.3.1.2. Receipt Processing Performance. Complete as described 

in paragraphs C7.9.2.1.2.1., C7.9.2.1.2.2., and C7.9.2.1.2.3. The DoD goal for 

posting and storing ammunition receipts on time is 90 percent.

C7.9.3.1.2.1. (Line 2.A.) Receipts Posted and Stored. The total 

number of line-item receipts posted and stored to the total item property record.

C7.9.3.1.2.2. (Line 2.B.) Receipts Posted and Stored on Time. 

The total number of line item receipts that were effectively posted and stored 

within the MILSTRAP timeframes. Both storing and posting actions are 

considered complete when the item is in the storage location, or available for 

issue, and the quantity is posted to the total item property record.

C7.9.3.1.2.3. (Line 2.C.) On Time Receipt Rate. Compute this 

figure by dividing the total number of receipts posted and stored on time by the 

total number of receipts and multiplying by 100. ((2B / 2A) x 100) The DoD 

performance goal for posting and storing receipts on time is 90 percent.
2 of 6

ADC 489, 

Enclosure 1

C7.9.3.1.3. Location Audit Program. Complete as described in 

paragraphs C7.9.2.1.3.1., C7.9.2.1.3.2., C7.9.2.1.3.3., C7.9.2.1.3.4., and C7.9.2.1.3.6. 

The DoD goals for location survey accuracy and location reconciliation accuracy 

for ammunition are 98 percent.14

C7.9.3.1.3.1. (Line 3.A.) Locations Surveyed. The number of 

storage activity locations surveyed.

C7.9.3.1.3.2. (Line 3.B.) Survey Errors. The total number of 

location discrepancies as defined in paragraph C7.6.1.8. of this chapter (report 

only one error per stock number per location).

C7.9.3.1.3.3. (Line 3.C.) Survey Accuracy. Compute this 

figure by dividing the locations with discrepancies by the total locations surveyed 

multiplying by 100, and subtracting the result from 100 percent. (100 - ((3B / 3A) x 

100)) The DoD goal for location survey accuracy is 98 percent.

C7.9.3.1.3.4. (Line 3.D.) Locations Reconciled15. The total 

number of location records reconciled (i.e., the sum of line items on the Inventory 

Manager's record and line items which were not on the Inventory Manager's 

record but were on the storage activities' records).

C7.9.3.1.3.5. (Line 3.E.) Reconciliation Errors. The total

number of discrepant location records as defined in paragraph C7.6.2.2. (count 

one error per location reconciliation request (line item) or unmatched Inventory 

Manager's record).

C7.9.3.1.3.6. (Line 3.F.) Reconciliation Accuracy. Compute 

this figure by dividing the number of discrepancies by the number of records 

reconciled, multiplying by 100, and subtracting the result from 100 percent. (100 -

((3E / 3D) x 100)) The DoD goal for location reconciliation accuracy is 98 percent.

C7.9.3.2. Physical Inventory and Adjustments – Part II

C7.9.3.2.1. Physical Inventories

C7.9.3.2.1.1. (Line 1.A.) Number of Scheduled and Unscheduled 

Inventories Completed. The total number of line items inventoried (scheduled and 

unscheduled). Each supply condition code for a stock number at each storage activity 

is a line item.

C7.9.3.2.1.2. (Line 1.B.) Number of Inventories with Variances. 

The total number of line items inventoried (scheduled and unscheduled) that had an 

inventory variance.

 14 The location reconciliation process will not be required with the establishment of single shared asset 

balances (see paragraphs C7.2.2. and C7.2.4.).

15 Performance data maintained by Owner/Manager regardless where materiel is stored.
3 of 6

ADC 489, 

Enclosure 1

C7.9.3.2.1.3. (Line 1.C.) Inventory Record Accuracy. Reflects the 

percent of lines inventoried without an inventory variance. Compute this figure by 

dividing the lines with an inventory variance by the total lines inventoried and multiplying 

by 100, and subtracting the result from 100 percent. {100 - ((1)(b) / (1)(a)) x 100} The 

DoD inventory record accuracy goal for ammunition is 95 percent.

C7.9.3.2.2. Number of Inventory Adjustments from Other Than Physical 

Inventories. 16 Complete same as paragraph C7.9.2.2.2.

C7.9.3.2.2.1. (Line 2.A.) Number of Location Reconciliation 

Adjustments. The number of location reconciliation adjustments (DIC D8/9B).

C7.9.3.2.2.2. (Line 2.B.) Number of End of the Day Processing 

Adjustments. The number of end of the day processing adjustments (DIC D8/9B).

C7.9.3.2.2.3. (Line 2.C.) Total. Absolute total of adjustments 

from other than physical inventories. (2A + 2B)

C7.9.3.2.3. (Line 3.) Total Inventory Adjustments. Complete same as 

paragraph C7.9.2.2.3. The sum of number of inventories with variances and the 

number of adjustments from other than physical inventories. (1B + 2C).

C7.9.3.2.4. Number of Reversals of Inventory Adjustments. Complete 

same as paragraph C7.9.2.2.4.

C7.9.3.2.4.1. (Line 4.A.) Number of Gain Reversals. The 

number of gain reversals of inventory adjustments.

C7.9.3.2.4.2. (Line 4.B.) Number of Loss Reversals. The 

number of loss reversals of inventory adjustments.

C7.9.3.2.4.3. (Line 4.C.) Total. Absolute total of inventory 

reversals (gains and losses).

C7.9.3.2.5. Monetary Value. Complete same as paragraphs 

C7.9.2.2.5.1. through C7.9.2.2.5.3.5.

C7.9.3.2.5.1. (Line 5.A.) Average Value of Inventory. The 

average value of on-hand assets as reflected on financial records for the 12 

months prior to the report cutoff date (i.e., current quarter plus last three 

quarters).

C7.9.3.2.5.2. (Line 5.B.) Record Value of Items Inventoried. 

The extended value prior to actual inventory of line items inventoried (scheduled 

and unscheduled) during the reporting period.

C7.9.3.2.5.3. Value of Inventory Adjustments

 16 The end of day process and location reconciliation process will not be required with the 

establishment of single shared asset balances (see paragraphs C7.2.2 and C7.2.4.).
4 of 6

ADC 489, 

Enclosure 1

C7.9.3.2.5.3.1. Physical Inventory Adjustments

C7.9.3.2.5.3.1.1. (Line 5.C.(1)(A)) Gains. Monetary 

value of gains resulting from inventory less the monetary value of gain reversals 

(from current and prior quarters) processed during the report period.

C7.9.3.2.5.3.1.2. (Line 5.C.(1)(B)) Losses. Monetary 

value of losses resulting from inventory less the monetary value of loss reversals 

(from current and prior quarters) processed during the report period.

C7.9.3.2.5.3.1.3. (Line 5.C.(1)(C)) Gross Adjustments 

Computed as lines (5C(1)(A) + 5C(1)(B))

C7.9.3.2.5.3.2. Reversals -- Current Quarter

C7.9.3.2.5.3.2.1. (Line 5.C.(2)(A)) Gains. The total 

monetary value of decreases to the record balances as a result of reversing gain 

adjustments processed during the reporting period. Compute the Fiscal Year 

(FY) to Date value for reversal of current quarter gains by adding the Quarter 

Ending value for reversal of current quarter gains to the prior quarter FY to Date 

value of reversal of current quarter gains.

C7.9.3.2.5.3.2.2. (Line 5.C.(2)(B)) Losses. The total 

monetary value of increases to the record balances as a result of reversing loss 

adjustments processed during the reporting period. Compute the FY to Date 

value for reversal of current quarter losses by adding the quarter ending value for 

reversal of current quarter losses to the prior quarter FY to Date value for reversal 

of current quarter losses.

C7.9.3.2.5.3.2.3. (Line 5.C.(2)(C)) Total. Absolute 

total of reversals of current quarter gains and losses. Computed as lines

(5C(2)(A) + 5C(2)(B))

C7.9.3.2.5.3.3. Reversals -- Prior Quarters

C7.9.3.2.5.3.3.1. (Line 5.C.(3)(A)) Gains. The total 

monetary value of decreases to record balances as a result of reversing gain 

adjustments reported in prior quarters. Compute the FY to Date value for reversal 

of prior quarters gains by adding the quarter ending value for reversal of current 

quarter gains to the prior quarter gains.

C7.9.3.2.5.3.3.2. (Line 5.C.(3)(B)) Losses. The total 

monetary value of increases to record balances as a result of reversing loss 

adjustments reported in prior quarters. Compute the FY to Date value for reversal 

of prior quarters' losses to the prior quarter FY to Date value for reversal of prior 

quarters' losses.

C7.9.3.2.5.3.3.3. (Line 5.C.(3)(C)) Total. Absolute 

total of reversals of prior quarter gains and losses. Computed as lines (5C(3)(A) 

+ 5C(3)(B))
5 of 6

ADC 489, 

Enclosure 1

C7.9.3.2.5.3.4. (Line 5.C.(4)) Total Reversals. The 

total of reversals of current quarter and prior quarter gains and losses. 

Computed as lines (5C(2)(C) + 5C(3)(C))

C7.9.3.2.5.3.5. (Line 5.C.(5)) Total Record 

Imbalances. The total of gross adjustments and total reversals. Computed as 

lines (5C(1)(C) + 5C(4))

C7.9.3.2.6. Gross Adjustments As a Percent of: Complete same as 

paragraphs C7.9.2.2.6.1. and C7.9.2.2.6.2.

C7.9.3.2.6.1. (Line 6.A.) Average Value of Inventory. Divide 

the total value of gross adjustments by the average value of inventory and 

multiply by 100. ((5C)(1)(C) / 5A) x 100)

C7.9.3.2.6.2. (Line 6.B.) Value of Items Inventoried. Divide the 

total value of gross adjustments by the record value of items inventoried and 

multiply by 100. ((5C)(1)(C) / 5B) x 100)

C7.9.3.2.7. Total Record Imbalances As a Percent of: Complete same 

as paragraphs C7.9.2.2.7.1. and C7.9.2.2.7.2.

C7.9.3.2.7.1. (Line 7.A.) Average Value of Inventory. Divide 

the value of the total record imbalances by the average value of inventory. 

((5C)(5) / 5A) x 100)

C7.9.3.2.7.2. (Line 7.B.) Value of Items Inventoried. Divide the 

value of the total record imbalances by the record value of items inventoried. 

((5C)(5) / 5B) x 100)

C7.9.3.2.8. Monetary Value of Location Reconciliation:

17 Complete 

same as paragraphs C7.9.2.2.8.1. through C7.9.2.2.8.4.

C7.9.3.2.8.1. (Line 8.A.) Value of Line Items Reconciled. The 

extended value of line items reconciled during the reporting period.

C7.9.3.2.8.2. (Line 8.B.) Gains. The monetary value of gains 

resulting from reconciliation during the period.

C7.9.3.2.8.3. (Line 8.C.) Losses. The monetary value of losses 

resulting from reconciliation during the period.

C7.9.3.2.8.4. (Line 8.D.) Total. Absolute total of location 

reconciliation gains and losses. (8B + 8C)

C7.9.3.2.9. Monetary Value of End of the Day Processing. Complete 

same as paragraphs C7.9.2.2.9.1. through C7.9.2.2.9.3.

 17 The end of day process and location reconciliation process will not be required with the establishment 

of single shared asset balances (see paragraphs C7.2.2. and C7.2.4.).
6 of 6

ADC 489, 

Enclosure 1

C7.9.3.2.9.1. (Line 9.A.) Gains. The value of gains resulting 

from end of the day processing.

C7.9.3.2.9.2. (Line 9.B.) Losses. The value of losses resulting 

from end of the day processing.

C7.9.3.2.9.3. (Line 9.C.) Total. Absolute total of end of the day 

processing gains and losses. (9A + 9B)
1 of 6

ADC 489

Enclosure 2

ENCLOSURE 2 TO ADC 489

Administrative Change to Maintain Inventory Control Effectiveness (ICE) Report 

Ammunition Procedures

Revise DOD 4000.25-M, DLMS Volume 2, Chapter 6, Physical Inventory Control, Section 

C6.9.2 , as follows (changes are identified by bold, red italic and strikethroughs):

C6.9.2. Ammunition Performance Standards and Data. (The information in this 

section corresponds to information shown on DD Form 2338-1.)

C6.9.2.1. Performance - Part I

C6.9.2.1.1. Material Denials. Complete as described in 

subparagraph C6.9.1.1.1. For ammunition, include denial transactions classified 

by denial Management Codes 1, 2, 5, 6, and 7 in the total. DoD Components shall 

identify denials separately for high-risk and low-risk items.

C6.9.2.1.1.1. (Line 1.A.) Lines Directed for shipment. The total 

number of line items directed for shipment (MROs, referral orders, redistribution 

orders (DLMS 940R Material Release)).

C6.9.2.1.1.2. (Line 1.B.) Total Material Denials. The total 

material denials (sum of total and partial denials, and warehouse refusals DLMS 

945A, Material Release Advice). Include denial transactions classified by denial 

Management Codes 1, 2, 5, 6, and 7 in the total.

C6.9.2.1.1.3. (Line 1.C.) Material Denial Rate. Compute this 

figure by dividing total denials by the line items directed for shipment and 

multiplying by 100. The DoD performance goal for the material release denial rate 

is not greater than 1 percent.

C6.9.2.1.2. Receipt Processing Performance. Complete as described 

in subparagraph C6.9.1.1.2. DoD goal for posting and storing ammunition receipt 

on-time is 90 percent.

C6.9.2.1.2.1. (Line 2.A.) Receipts Posted and Stored. The total 

number of line item receipts posted and stored to the total item property record.

C6.9.2.1.2.2. (Line 2.B.) Receipts Posted and Stored on Time. 

The total number of line-item receipts which where effectively posted and stored 

within the timeframes. Both storing and posting actions are considered complete 

when the item is in the storage location or available for issue, and the quantity is 

posted to the total item property record.

C6.9.2.1.2.3. (Line 2.C.) On-Time Receipt Rate. Compute this 

figure by dividing the total number of receipts posted and stored on time by the 

total number of receipts and multiplying by 100. The DoD performance goal for 

posting and storing receipts on time is 90 percent.
2 of 6

ADC 489, 

Enclosure 2

C6.9.2.1.3. Record Reconciliation Program. Complete as described 

in subparagraph C6.9.1.1.3. DoD goals for location survey and location 

reconciliation for ammunition are 98 percent Shows the results of the location 

survey (ratio of accurate storage activity locator records to storage activity 

locations surveyed) and the location reconciliation12.

C6.9.2.1.3.1. (Line 3.A.) Locations Surveyed. The number of 

storage activity locations surveyed.

C6.9.2.1.3.2. (Line 3.B.) Survey Errors. The total number of 

location discrepancies as defined in subparagraph C6.6.1.2. Report only one 

error per stock number per location.

C6.9.2.1.3.3. (Line 3.C.) Survey Accuracy. Compute this 

figure by dividing the locations with discrepancies by the total locations surveyed 

multiplying by 100, and subtracting the result from 100 percent. DoD goal for 

location survey accuracy is 98 percent.

C6.9.2.1.3.4. (Line 3.D.) Locations Reconciled13. The total 

number of location records reconciled (i.e., the sum of line items on the 

owner's/IMM's record and line items not on the IMM's record but were on the 

storage activities' records).

C6.9.2.1.3.5. (Line 3.E.) Reconciliation Errors. The total 

number of discrepant location records as defined in subparagraph C6.6.2.2. 

Count one error per location reconciliation request (line item) or unmatched 

IMM's record.

C6.9.2.1.3.6. (Line 3.F.) Reconciliation Accuracy. Compute 

this figure by dividing the number of discrepancies by the number of records 

reconciled, multiplying by 100, and subtracting the result from 100 percent. DoD 

goal for location reconciliation is 98 percent.

C6.9.2.2. Physical Inventory Adjustments – Part II

C6.9.2.2.1. Physical Inventories

C6.9.2.2.1.1. (Line 1.A.) Number of Scheduled and Unscheduled 

Inventories Completed. The total number of line-items inventoried (scheduled and 

unscheduled). Each SCC for a stock number at each storage activity is a line item.

C6.9.2.2.1.2. (Line 1.B.) Number of Inventories with Variances. 

The total number of line items inventoried (scheduled and unscheduled) that had an 

inventory variance.

 12 The location reconciliation process will not be required with the establishment of a single shared asset 

balances (see paragraphs C6.2.2. and C6.2.4.).

13 Performance data maintained by owner/IMM regardless where material is stored.
3 of 6

ADC 489, 

Enclosure 2

C6.9.2.2.1.3. (Line 1.C.) Inventory Record Accuracy. Shows the 

percent of lines inventoried without an inventory variance. Compute this figure by 

dividing the lines with an inventory variance by the total lines inventoried and multiply by 

100, and subtracting the result from 100 percent. The DoD inventory record accuracy 

goal for ammunition is 95 percent.

C6.9.2.2.2. Number of Inventory Adjustments from other than Physical 

Inventories14. Complete same as subparagraph C6.9.1.2.2.

C6.9.2.2.2.1. (Line 2.A.) Number of Location Reconciliation 

Adjustments. The number of location reconciliation adjustments (DLMS 947I with 

Quantity or Status Adjustment Reason Code ‘AB’ ; MILSTRAP legacy DIC 

D8B/D9B).

C6.9.2.2.2.2. (Line 2.B.) Number of End of the Day Processing 

Adjustments. The number of end of the day processing adjustments (DLMS 947I 

with Quantity or Status Adjustment Reason Code ‘AB’ ; MILSTRAP legacy DIC 

D8B/D9B).

C6.9.2.2.2.3. (Line 2.C.) Total. Absolute total of adjustments 

from other than physical inventories.

C6.9.2.2.3. (Line 3.) Total Inventory Adjustments. Complete same as 

subparagraph C6.9.1.2.3. The sum of number of inventories with variances and 

the number of adjustments from other than physical inventories.

C6.9.2.2.4. Number of Reversals of Inventory Adjustments. Complete 

same as subparagraph C6.9.1.2.4.

C6.9.2.2.4.1. (Line 4.A.) Number of Gain Reversals. The 

number of gain reversals of inventory adjustments.

C6.9.2.2.4.2. (Line 4.B.) Number of Loss Reversals. The 

number of loss reversals of inventory adjustments.

C6.9.2.2.4.3. (Line 4.C.) Total. Absolute total of inventory 

reversals (gains and losses).

C6.9.2.2.5. Monetary Value. Complete same as subparagraph 

C6.9.1.2.5.

C6.9.2.2.5.1. (Line 5.A.) Average Value of Inventory. The 

average value of on-hand assets as shown on financial records for the 12 months 

prior to the report cutoff date (i.e., current quarter plus last three quarters).

 14 The end of day process and location reconciliation process will not be required with the establishment of 

single shared asset balances (see paragraphs C6.2.2 and C6.2.4).
4 of 6

ADC 489, 

Enclosure 2

C6.9.2.2.5.2. (Line 5.B.) Record Value of Items Inventoried. 

The extended value prior to actual inventory of line-items inventoried (scheduled 

and unscheduled) during the reporting period.

C6.9.2.2.5.3. Value of Inventory Adjustments

C6.9.2.2.5.3.1. Physical Inventory Adjustments:

C6.9.2.2.5.3.1.1. (Line 5.C.(1)(A)) Gains. Monetary 

value of gains resulting from inventory less the monetary value of gain reversals 

(from current and prior quarters) processed during the report period.

C6.9.2.2.5.3.1.2. (Line 5.C.(1)(B)) Losses. Monetary 

value of losses resulting from inventory less the monetary value of loss reversals 

(from current and prior quarters) processed during the report period.

C6.9.2.2.5.3.1.3. (Line 5.C.(1)(C)) Gross Adjustments

C6.9.2.2.5.3.2. Reversals--Current Quarter

C6.9.2.2.5.3.2.1. (Line 5.C.(1)(A)) Gains. The total 

monetary value of decreases to the record balances as a result of reversing gain 

adjustments processed during the reporting period. Compute the Fiscal Year 

(FY) to Date value for reversals of current quarter gains by adding the quarter 

ending value for reversal of current quarter gains to the prior quarter FY to Date 

value of reversal of current quarter gains.

C6.9.2.2.5.3.2.2. (Line 5.C.(1)(B)) Losses. The total 

monetary value of increases to the record balances as a result of reversing loss 

adjustments processed during the reporting period. Compute the FY to Date 

value for reversal of current quarter losses by adding the quarter ending value for 

reversal of current quarter losses to the prior quarter FY to Date value for reversal 

of current quarter losses.

C6.9.2.2.5.3.2.3. (Line 5.C.(1)(C)) Total. The absolute 

total of reversals of current quarter gains and losses.

C6.9.2.2.5.3.3. Reversal--Prior Quarters

C6.9.2.2.5.3.3.1. (Line 5.C.(2)(A)) Gains. The total 

monetary value of decreases to record balances as a result of reversing gain 

adjustments reported in prior quarters. Compute the FY to Date value for reversal 

of prior quarters gains by adding the quarter ending value of reversal of current 

quarter gains to the prior quarter gains.

C6.9.2.2.5.3.3.2. (Line 5.C.(2)(B)) Losses. The total 

monetary value of increases to record balances as a result of reversing loss 

adjustments reported in prior quarters. Compute the FY to Date value for reversal 
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Enclosure 2

of prior quarter losses to the prior quarter FY to Date value for reversal of prior 

quarter losses.

C6.9.2.2.5.3.3.3. (Line 5.C.(3)(C)) Total. The absolute 

total of reversals of prior quarter gains and losses. 

C6.9.2.2.5.3.4. (Line 5.C.(4)) Total Reversals. The total of 

reversals of current quarter and prior quarter gains and losses.

C6.9.2.2.5.3.5. (Line 5.C.(5)) Total Record Imbalances. 

The total of gross adjustments and total reversals. 

C6.9.2.2.6. Gross Adjustments as a Percent of. Complete same as 

subparagraph C6.9.1.2.6.

C6.9.2.2.6.1. (Line 6.A.) Average Value of Inventory. Divide 

the total value of gross adjustments by the average value of inventory and 

multiply by 100.

C6.9.2.2.6.2. (Line 6.B.) Value of Items Inventoried. Divide the 

total value of gross adjustments by the record value of items inventoried and 

multiply by 100.

C6.9.2.2.7. Total Record Imbalances as a Percent of. Complete same 

as subparagraph C6.9.1.2.7.

C6.9.2.2.7.1. (Line 7.A.) Average Value of Inventory. Divide 

the value of the total record imbalances by the average value of inventory.

C6.9.2.2.7.2. (Line 7.B.) Value of Items Inventoried. Divide the 

total value of gross adjustments by the record value of items inventoried and 

multiply by 100.

C6.9.2.2.8. Monetary Value of Location Reconciliation. Complete 

same as subparagraph C6.9.1.2.8.1.

C6.9.2.2.8.1. (Line 8.A.) Value of Line Items Reconciled. The 

extended value of line-items reconciled during the reporting period.

C6.9.2.2.8.2. (Line 8.B.) Gains. The monetary value of gains 

resulting from reconciliation during the period.

C6.9.2.2.8.3. (Line 8.C.) Losses. The monetary value of losses 

resulting from reconciliation during the period.

C6.9.2.2.8.4. (Line 8.D.) Total. The absolute total of location 

reconciliation gains and losses.

C6.9.2.2.9. Monetary Value of End of the Day Processing. Complete 

same as subparagraph C6.9.1.2.8.2.
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Enclosure 2

C6.9.2.2.9.1. (Line 9.A.) Gains. Enter the value of gains 

resulting from end of the day processing.

C6.9.2.2.9.2. (Line 9.B.) Losses. Enter the value of losses 

resulting from end of the day processing.

C6.9.2.2.9.3. (Line 9.C.) Total. The absolute total of end of the 

day processing gains and losses.