Physical Inventory Guidelines
Physical Inventory Guidelines
Purpose
This document provides guidelines for conducting annual physical inventories, and is applicable to all units that hold inventory for resale to external or internal customers. Annual physical inventories not only help ensure the accuracy of inventory balances reported in the University's financial records but also help you manage the activity in your area. While these guidelines address annual physical inventories, similar concepts apply to cycle counting, but the specific steps are different. Cycle counting is a process that uses regularly scheduled counts but does not count the entire inventory in a single event. Please contact the Controller's Office Business Operations Department at 3-0781 for guidance. The document consists of the following sections and supplemental information in the appendices.
Table of Contents
Purpose ...........................................................................................................1 Responsibilities ................................................................................................2 Planning for a Physical Inventory .....................................................................2 Conducting the Physical Count ........................................................................5 Reconciling the Physical Inventory ..................................................................6 Appendix ..........................................................................................................8 A: Sample Inventory Tag ..........................................................................8 B: Sample Instructions for a Physical Inventory ........................................9 C: Sample Inventory Reconciliation ........................................................11 D: Sample Report 161 Posted Journals ..................................................12 E: Sample Report 138 Invoice Detail
Purpose
This document provides guidelines for conducting annual physical inventories, and is applicable to all units that hold inventory for resale to external or internal customers. Annual physical inventories not only help ensure the accuracy of inventory balances reported in the University's financial records but also help you manage the activity in your area. While these guidelines address annual physical inventories, similar concepts apply to cycle counting, but the specific steps are different. Cycle counting is a process that uses regularly scheduled counts but does not count the entire inventory in a single event. Please contact the Controller's Office Business Operations Department at 3-0781 for guidance. The document consists of the following sections and supplemental information in the appendices.
Table of Contents
Purpose ...........................................................................................................1 Responsibilities ................................................................................................2 Planning for a Physical Inventory .....................................................................2 Conducting the Physical Count ........................................................................5 Reconciling the Physical Inventory ..................................................................6 Appendix ..........................................................................................................8 A: Sample Inventory Tag ..........................................................................8 B: Sample Instructions for a Physical Inventory ........................................9 C: Sample Inventory Reconciliation ........................................................11 D: Sample Report 161 Posted Journals ..................................................12 E: Sample Report 138 Invoice Detail