AR 740-26 — Physical Inventory Control
AR 740-26 governs physical inventory control of Army assets managed by national-level activities, including inventories and reconciliations.
- Publication number: AR 740-26
- Title: PHYSICAL INVENTORY CONTROL
- Date: 03/23/2017
- Proponent: G-4
- Status: ACTIVE
View AR 740-26 on armypubs.army.mil
Related publications
AR 740-26 covers inventory procedures, location surveys, location reconciliations, discrepancy research, adjustments, and quality control. It requires accountable activities to schedule inventories, reconcile records with physical counts, maintain training programs, and perform specified quality controls.
Applies to: This regulation provides Headquarters, Department of the Army (HQDA) policy, procedures, performance objectives, and reporting requirements concerning physical inventory control of Army assets managed by national-level activities.
Topics covered
- Physical inventory control
- Inventory procedures
- Location surveys
- Location record audits and matches
- Inventory adjustments
- Sensitive items
- Physical inventory quality control
Questions and answers
When must an inventory be rescheduled?
When the SA cannot meet the set inventory timeframe (for example, when a request has been received and the schedule cannot be met or sufficient time does not remain to notify other affected owners/managers), the SA will reschedule the inventory. (paragraph 2-5)
What is the automatic adjustment threshold for non-controlled items during inventory counts?
If the difference is equal to or less than $5,000 for noncontrolled items (CIICs J or U), adjust the accountable record to the count. (paragraph 2-6)
When is a recount not required?
A recount will not be required when the value of the variance for the NSN is $5,000 or less and the item is not classified, sensitive, pilferable, or CIIC other than J or U. (paragraph 2-9)
How often must active record on-hand balances be matched?
The LCMC and SA will match all active record on-hand balances (such as, stock numbers that had any transactions affecting record balances) daily. (paragraph 4-1)
What happens when a quality control lot is rejected?
Rejection of a lot will result in a 100 percent check of the lot, analysis of error causes, and correction of errors. (paragraph 5-1)