Raw material inventory physicals done monthly at IFT plant, but not on yarn at 3rd party warehouses; semi-annual physicals on all raw material inventory at plant and 3rd party warehouses. 3rd party warehouses take physicals monthly and provide inventory listing to Logistics. Logistics compares physicals at plant and 3rd party warehouses to their perpetual inventory. Cost accounting also maintains a theoretical inventory and compares to Logistics monthly. Adjustments to perpetual have to be approved by Finance Manager, as well as the journal entries to book the month ending material inventories.