| Tip |
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Responsible: Finance responsible assigned |
| Expand |
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1. After each warehouse count, the Finance responsible assigned prepares an inventory report that includes:
- A physical inventory summary description (inventory type, scope, coverage rate, list of adjustment…)
- A list of the people who participated to the count
- An explanation of the most significant variances in quantity/ value (above the fixed threshold)
- A signature (hand written or by mail) of the report by all the people having responsibilities in the count (supervisors of counting team and of key-punching team, inventory manager)
- Validation by the Finance Manager or the Business Controller, the plant manager and the Enterprise Supply Chain Director when the sum of the adjustment is above a threshold defined in the procedure
2. Every month, the Finance responsible assigned prepares a “cycle counts monthly recapitulative report” that includes:
- An explanation of the most significant variances in quantity/ value (above the fixed threshold)
- Validation by the Finance Manager or the Business Controller, the plant manager and the Enterprise Supply Chain Director when the sum of the adjustment is above a threshold defined in the procedure
3. Every quarter, the Finance responsible assigned updates a progress report on physical inventories.
| Warning |
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Any adjustment of the inventory valuation related to an inventory count is communicated to a controller (plant, function or business) who must validate based on memorandum of inventory and ensure proper accounting record. When systems are set up in a way that links automatically counting and postings, compensating a posteriori control is implemented. |
Accounting of physical inventory adjustment so that is will be reported in BFC in the relevant balance sheet account(s) under subtotal A300 Inventories against R27900 Miscellaneous production cost
