FIACCT 08-02_00 Inventory – Direct Charge Method Overview

Effective: March 16, 1998
Revised: June 1, 2009
Reviewed: June 1, 2009

Purpose

This policy outlines the Inventory control policies and procedures for completing direct charge issues from the warehouse to the consumer.

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Policy

A. This method is used when an item will be immediately expensed. Either the Over the Counter (OC)
Process or the Stock Requisition (SRQ) Process can be used for obtaining material in this method.

1. OC Process – This process is used most effectively when materials are needed immediately and no other transactions are required to occur. No back orders are created with this transaction.

2. SRQ Process – Used most effectively when material is ordered in advance, and back order servicing can be applied to the request. Works in conjunction with the Pick and Issue (PI) Process and the Issue Confirmation (CI) Process.