Do you have to do a component inventory using the USAMMA handbook before doing a lateral transfer?

IAW AR 735-5 a component inventory OR a shortage annex must be delivered with the equipment. Technically, the shortage annex is all that is required, but it is just good practice to have both. It doesn't matter if equipment not on hand is expendable or never been issued. If you don't have and adjustment document it is considered lost and a FLPL should be initiated. That FLIPL is then the justification document the new sub-hand receipt holder needs to justify their shortages. The shortage annex is not enough to justify it. A component hand receipt is definitely not enough, as that is used as an inventory method and not an accountability method. Prior to 2003, the shortage annex with commander's initials was enough, but frankly...anyone can hand-jam a shortage annex without justification (field loss statement signed by the commander, FLIPL, statement of charges, damage statement WITH the broken item). Currently, justification documents MUST be kept until the tool is replaced. Once the tool comes in, the justification document can be destroyed. Without the justification document, the shortage annex is not valid.