FIACCT 08-03_01 Inventory – Inventory Control – Stock Return – Internally Manufactured Items

Effective: March 16, 1998
Revised:

Purpose

This policy outlines the procedures for purchasing into inventory items that are internally manufactured by the agency.

Policy

Purchases to inventory of internally manufactured items will be made using the Stock Return (SN) transaction. These inventory items and the accounting entries associated with the production of them will be accounted for at the agency level under the supervision of the authorized agent for the agency. For information on the detailed accounting entries that are associated with the manufacture of these items, refer to the General Ledger policies and procedures section of this manual.

Procedures

Responsibility

Action

Authorized Agent, or Other Designee

Collect costs of internally manufactured items, following General Ledger policies and procedures. Some of the items required to
complete the manufacturing process may be residing on FINET. These items should be charged out to the cost accounting center set up for this process on a Stock Requisition (SR) transaction, an Over the Counter (OC) transaction, and a Confirmation Issue (CI) transaction.
When items are completed, purchase into FINET Inventory by entering a SN transaction. The SN transaction contains the number of items purchased, the unit cost, and the unit price. Both the purchase and the accompanying accounting entry to reverse the expenditure created in the manufacture of the items is entered on the same transaction.