What does "physical inventory" entail?

"Physical inventory" specifically involves the process of comparing the actual items on hand with the recorded inventory. This method is critical for ensuring accuracy in inventory management and property accountability, helping organizations identify discrepancies, ensure that all items are accounted for, and maintain proper records. It serves as a verification system that confirms the physical presence of items and ensures that what is recorded in the inventory aligns with what is physically available.

By conducting a physical inventory, organizations can mitigate risks of loss, theft, or mismanagement of assets. This proactive approach not only safeguards property but also supports efficient resource management and compliance with military regulations regarding property accountability.