POL-U5346.05 Inventorying Consumable or Retail Assets
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Dates and Approval
Effective Date:
March 6, 2007
Approved by:
WWU President's Council
Who does this policy apply to?
This policy applies to all financial managers who manage consumable or retail assets owned by the university.
Overview
There is no overview for this policy.Definitions
Consumable Assets
Inventory of consumable supplies, such as paper, files, toner, electrical parts, plumbing supplies, lumber, office supplies, etc., which are estimated to exceed $25,000 in aggregate value. The inventory reflects the value of unused supplies on the date of the inventory and does not consider the value of supplies consumed over the course of time.
Retail Assets
Merchandise (books, clothing, etc.) held by a university department for resale to students, employees or the public.
Periodic Inventory Method
An inventory system whereby asset purchases are recorded in the Financial System as an expense at the time of purchase, and are adjusted annually when a physical inventory count is performed to reflect the assets remaining in inventory.
Perpetual Inventory Method
An inventory system whereby purchases are recorded as they occur as assets in an inventory system, and are adjusted annually if necessary when a physical inventory count of the assets remaining in inventory is performed.
Financial Repository
The university’s primary system for recording, processing, and maintaining financial data.
Policy Statements
1. Financial Manager Conducts Annual Physical Inventory Count of Consumable and Retail Assets
No additional description for this statement.
2. Physical Inventory Should Be Conducted At Or Close To The End Of The Fiscal Year. Financial Manager May Choose Periodic or Perpetual Inventory Method
The inventory method chosen must be used consistently from year to year.
3. Financial Manager Documents Physical Inventory Count And Required Adjustments To Financial Repository
No additional description for this statement.
4. Accounting Services Monitors Inventory Adjustments
Financial Reporting will regularly monitor adjustments to account for consumable and retail assets.
5. Accounting Services Trains Campus on Inventory Process
No additional description for this statement.