FIACCT 08-04_00 Inventory – Inventory Control – Inventory Adjustments

Effective: March 16, 1998
Revised:
Reviewed:

Purpose

This policy outlines the procedures for adjusting inventory quantities when FINET Inventory Control quantities differ from actual shelf quantities.

Policy

Inventory Adjustment (IA) transactions will be used to adjust inventory quantities when adjustments are deemed necessary and other transactions may not be adjusted and/or modified to accommodate the change. For information on the detailed accounting entries that are associated with the IA transaction, refer to the General Ledger policies and procedures section of this manual.

Procedures

Responsibility

Action

Warehouse Supervisor

Determine that FINET inventory quantity is different from the actual count of items on the shelf. Fill out an Inventory Adjustment Form with the appropriate information, including any explanation why the counts are different. FAX, mail, or hand-carry the form to the agency representative responsible for authorizing IA transactions.

Agency Inventory Control

Management or Designee

Determine the inventory adjustment that must be made. Enter an IA transaction (refer to the IA Transaction section of this manual for detailed instructions on how to complete the entry), including the appropriate adjustment code (refer to the Adjustment Code Table (ADJC) for a list of available codes).