RiskWrong fixed cost absorption in inventory, plant costing model do not comply with group rules ObjectiveFRA updates plant costing model Process description Costing is necessary in financial reporting to determine cost of sales and inventory valuation. Control descriptionFRA fills in template for standard rate calculations and assessment cycles and asks validation from GCCO and plant manager. Former ControlsIAC 03.09.04.01 |
Control ownerFRA Due dateNovember D10 Frequency
Control evidencevalidated by GCCO and plant manager |
Guideline |
Prerequisite
IAC Control |
Area: Controller (requester)
previous Operation(s): 
| Rules & Glossary: Costing - Rules Costing - Glossary Costing - SAP Operations |
Risk : All materials aren't counted
Objective : FRA ensures that plant physical inventory procedure is updated every year, that physicak count coverage comply with group rules and that auditors can supervise physical inventory organized during Q4.
Process description : Physical inventory objective is to check the existence and ownership of inventories.
Control description : FRA :
- updates plant inventory procedure and cotrol compliance with group rules
- coordinates with Physical Inventory Manager (PIM) execution to reach defined targets at end of September and of December
- publishes last quarter physical inventory planning and require GCCO validation for exceptions to the rules defining the physicak coverage rate for year end.
Guideline
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