Process: SBS-P-DRTR-03-001 Inventory Valuation

Responsibility area: SBS-P-DRTR-02-004 Internal Control  

Risk

Slow turn inventory reserve do not comply with group rules

Objective

FRA updates every year slow turn inventory reserve calculation procedure for his/her plant(s)

Process description

Program ZWFA12A is run at the end of every quarter to provide a slow turn inventory reserve proposal. Strategic parts are parts whose unavailability would lead to a significant loss in OEE (Overall Equipment Effectiveness).
Strategic parts are not depreciated.

Control description

FRA fills in check list

Former Controls

IAC 03.08.08

Scope
Frequency

June closing D4

Control owner

Finance Responsible Assigned (FRA)

References

 

Control evidences

 

 

  Guideline  

Download the file IAC 02.06 Slow turn inventory reserve.xls

There are 4 sheets in the file


2 sheets must be filled:

1. "Reserve FRA check-list" in english or in french

2. Procedure


Start to fill :

  1. the site
  2. the controller's name
  3. the date
  4. the period

Then answer "Yes" "No" or "N/A" to confirm that each control is performed .

If the answer is "No" or "N/A", it is compulsory to add a comment in column H

It is possible to add a control evidence (attachment or a link)


1. Attach your validated procedure describing how items excluded from slow turn reserve are identified

  1. Choose "insert"
  2. Click on the "Object" button
  3. This window will open
  4. Select "Create from File"
  5. Add you file by clicking in "Browse"
  6. Select "Display as icon"
  7. Select OK

 


2. Enter the sales force ticket that was used to submit the calculation to the service center.

  

1. Key points

 

Every month, the controller creates a monthly form for his site, with all the controls that have to be made.


 

Content of the form

The objective
The description
The frequency (yearly, quaterly or monthly)
The control evidence to be posted
The procedures

The cost cost analyst processes only what is compulsory. For instance in May, there is no need to make the quaterly controls.

  • For each control, a three-colored road sign is available. The cost analyst chooses the color according to the progress of his work

  • At the bottom of the form, there is a zone to attach files. In order to simplify the control, create one folder per control as below, and use the control refrence number to name it.

  • When the control is completed and the files attached to the form, the cost analyst validates the control by changing the color of the road sign in green.

 

  • When all the compulsory controls are in green, the cost analyst approves the form. It means that the work is done and validated. the validation status of the form changes to

 

2. Create a new form

My eRooms ==> IAC ==> Controls report