This memorandum addresses inventory limitations and requirements that USDA Foods processors must follow when manufacturing processed end products for use in child nutrition programs.
This memorandum provides instructions on how to reconcile the physical inventory conducted at a distributing agency- or subdistributing agency-level storage facility with the book inventory required to be maintained for that facility.
The purpose of this memorandum is to clarify the required frequency of physical inventories, per the recently revised program regulations at 7 CFR Part 247.
This memorandum provides guidance on how to reconcile physical and book inventories as part of the required annual physical inventory of distributing agency and sub-distributing agency storage facilities, and provides guidance on offsetting inventory shortages and overages that are identified during the reconciliation process.