FIN 402: Inventory
To describe requirements for recording inventory on the university’s accounting system
All university departments with inventories equal to/or in excess of $100,000 on an average cost basis over a 12-month period.
All departments that have inventory of $100,000 or more are responsible for notifying Financial Services so that the inventory can be recorded in the university’s financial system. Additionally, an annual physical inventory count as of June 30 is required. The procedures for the proper counting and recording of inventory can be obtained from Financial Services. The annual physical inventory may be observed by Financial Services and/or the Auditor General’s office.
Departments with inventories less than $100,000 are also encouraged to maintain records regarding cost and quantity of goods on hand. An annual physical inventory count is also recommended for these units but does not need to be observed by Financial Services or recorded as inventory in the university’s financial system.
Financial Services is available for consultations on the internal controls appropriate for the inventory and sales levels of the operation.
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