You are viewing an old version of this page. View the current version.

Compare with Current View Page History

« Previous Version 24 Next »

This document provides a step-by-step guide for physical inventories that allows us to verify the existence and ownership of inventories

This procedure applies to all companies included in the consolidation under full integration. It is recommendation for "joint operation", joint venture and where Solvay is considered as "associate" and to all warehouses within and out of production sites.

For each new acquisitions the integration management office will determine when that procedure becomes compulsory.

The procedure deals with the inventory count of all materials from a site where the inventory is taking place.

The procedure deals with the inventory count associated with BFC heading STOT-A300 inventories.

The procedure is effective from the publication date

A physical inventory count of inventories and work-in-progress is performed on an at least once by reference period in accordance with the Solvay Group's accounting standards. Reference period starts on December 1st and ends on November 30th of the following year.

  • The Solvay Group admits the use of cycle count until the end of November and "full Spot" physical inventory until the end of December.
  • Off-site locations are eligible for confirmation method, in case costs for conducting inventory counts are not reasonable.
  • All types of stock items are counted at least once a year.
  • Any adjustment of the inventory valuation related to an inventory count is communicated to a Controller (plant, function or business). A controller must validate and ensure proper accounting record.
  • A count of items representing 100% of the value of prior end inventory should be done as of November 30th. Note: The period can be extended/ modified if requested by Audit team.

Any inventory location is under the responsibility of a Physical Inventory Manager (role) and supervised by Finance Responsible Assigned (role)

Physical Inventory Manager (PIM)

GBU supply chain director is accountable for designation of PIM

  • Plans physical inventory counts following Group rules
  • Prepares a locale inventory procedure in respect of segregation of duties
  • Organizes the physical inventory counts including consigned inventory at customers location
  • Justifies any significant discrepancies and report to Finance Responsible Assigned (FRA)
  • Prepares inventory memorandum, records differences in accounting and sends it to the Finance Responsible Assigned (FRA)

Finance Responsible Assigned (FRA)

GCCO is accountable for designation of FRA

  • Role assigned to a controller accountable for internal control
  • Validates the annual planning in accordance with group rules regarding inventory coverage
  • Validates a local inventory procedure, in particular regarding respect of segregation of duties
  • Validates the inventory discrepancies analyzed by the inventory manager and ensures proper accounting
  • Upload memorandum into AODOCS and submit for approval
Inventory count teamPerfoms an accurate count in accordance with the safety rules and must be familiar with the specific counting procedures

GBU costing control owner (GCCO)

Is appointed by Finance Director

Role assigned to a Business or Industrial Controller or a Finance Director who validates :

  • Adjustment above threshold
  • Exceptions to 100% count role


==> Responsibilities can be adapted for each plant according to the segregation of duties, but any modification should be written in a procedure



  • No labels