Asset Disposition Report Template | INV103-2

Asset Disposition Report Template

The Asset Disposition Report Template deals with capital assets that may be sold or traded-in on new equipment. An INV103-2 ASSET DISPOSITION form is to be completed and approved by the department manager. Any assets with an original value greater than $1,000 will also require the Chief Financial Officer’s approval.

Upon approval, the department may advertise the property for sale or submit a list to purchasing for sale and disposition. After completion of the sale, an Bill of Sale form will be issued and the ASSET DISPOSITION form will be submitted to the Accounting Manager. The Accounting Manager will delete the item from the asset records and record any gain or loss on the disposition.

Worn-out or obsolete property with no cash value will be reported to the accounting manager on the Asset Disposition form with the description, serial number and condition. The Accounting Manager will inspect all worn-out of obsolete property before it is removed from the department and discarded. The asset will then be removed from the asset records.

Asset Disposition Report Template Details

Pages: 01
Words: 34
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Accounting Manuals Template
Category: Inventory & Assets
Procedure: Fixed Asset Control Procedure INV103
Type: Form

Related Documents

 

Bill of Sale Template | INV103-3

Bill of Sale Template

The Bill of Sale Template will be issued after completion of the sale of assets. Once the department manager approves the Asset Disposition form, the department may advertise the property for sale or submit a list to purchasing for sale and disposition. The Accounting Manager will delete the item from the asset records and record any gain or loss on the disposition.

Any asset that is missing or has been stolen will be reported in writing to the Department manager and the accounting manager as soon as possible. The description, serial number, and other information about the lost item should be included in the report.

The accounting manager will determine the proper course of action and will notify the company’s insurance carrier and any outside authorities if deemed appropriate. If un-recovered, the asset will then be removed from the asset records.

Bill of Sale Template Details

Pages: 01
Words: 169
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Accounting Manuals Template
Category: Inventory & Assets
Procedure: Fixed Asset Control Procedure INV103
Type: Form

Related Documents

Capital Asset Requisition Template | INV103-1

Capital Asset Requisition Template

The Capital Asset Requisition Template helps with authorization of capital expenditure. All purchases of assets costing more than $500 and less than $5,000 should be approved by the department manager and the Chief Financial Officer. Assets with a cost greater than $5,000 will also require the approval of the President.

An INV103-1 CAPITAL ASSET REQUISITION form should be completed and approved for all purchases. This form is to be attached to all Purchase Orders or check requests submitted to the Accounting Manager. Department managers may source the vendor for purchase of the capital assets or can submit the request to Purchasing for procurement.

Any internally constructed or donated equipment will be reported to the Accounting Manager if the item cost has a value of $500 or more. A complete description of the property, date manufactured or received, number of items, cost or estimated value and a statement that it was internally constructed or donated will be included in the report.

Capital Asset Requisition Template Details

Pages: 01
Words: 65
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Accounting Manuals Template
Category: Inventory & Assets
Procedure: Fixed Asset Control Procedure INV103
Type: Form

Related Documents

Inventory Count Accounting Worksheet Template | INV102-1

Inventory Count Accounting Worksheet Template

The Inventory Count Accounting Worksheet Template helps keep track of information related to inventory counts. The Inventory Control Manager will provide to every count team prenumbered counts sheets with preprinted inventory items and will be responsible for keeping track of all count sheets to maintain an accurate count.

INV102-1 INVENTORY COUNT SHEET is an example count sheet, consider using one with the following attributes: a Heading with the name of the company, Date of Physical count, Sequential Page number, and Description of Page (i.e., Physical Inventory Count Sheet). Individual Column Headings would be: SKU#, Description, Location, Quantity, and Initials of person recording the count.

Count sheets should be organized by location number. Generally, the computer quantities should not be shown on the count sheets, however, in small environments, it may be more efficient to include the on-hand quantities, as long as the counting is performed by teams, and the person counting is not able to know the current quantities.

Each count team should be started by the Inventory Control Manger and should be periodically observed by the Inventory Control Manager to assure that instructions are being complied with in the counting and listing process.

Inventory Count Acccounting Worksheet Template Details

Pages: 01
Words: 51
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Accounting Manuals Template
Category: Inventory & Assets
Procedure: Inventory Counting Procedure INV102
Type: Sheet

Related Documents

Inventory Requisition Template | INV101-1

Inventory Requisition Template

The Inventory Requisition Template relates to inventory usage and disposal. Be sure to review inventory requests to ensure completeness, validity, and that the form has the proper approvals. Inventory requests consist of either a completed Sales Order form or a completed INV101-1 INVENTORY REQUISITION form which is required for all internal requests.

Complete the Inventory Requisition form prior to disposal of any inventory item. The purchasing agent is the most logical person to be held responsible for reclamation and salvage disposal, because of the knowledge of materials and how the company uses them. The purchasing agent is familiar with the companies that manufacture or distribute various materials and knowledgeable about the items the company buys and at what cost.

The four main destinations for such material for disposal are:

  • reuse by some other segment of the company,
  • return to original supplier for restocking,
  • sale to used-material dealers or to other users, and
  • storage of material yard for usage on another job at a later date.

Inventory Requisition Template Details

Pages: 01
Words: 45
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Accounting Manuals Template
Category: Inventory & Assets
Procedure: Inventory Control Procedure INV101
Type: Form

Inventory Tag Template | INV102-2

Inventory Tag Template

The Inventory Tag Template helps with the management of the company’s inventory. Teams should count items in their assigned area in a logical, sequential (non-random) fashion to avoid any chance of missing or duplicating counting of items. General rules of procession should be followed (i.e., Left to Right, Top to Bottom, and Front to Back)

After counting a distinguishable area (e.g., shelf unit, wall, box, etc.) attach INV102-2 INVENTORY TAG to both the beginning and the end of the area to indicate that the area has been counted.

Inventory comprised of small, numerous components that would involve tedious counting and also have a very low dollar value (i.e., screws, nuts, fasteners, etc.) will be reviewed with the Inventory Control Manager and if deemed appropriate will be estimated as to volume in round numbers (i.e., 250, 500, etc.).

A final review walk-through by the Inventory Control Manager is a critical control element to ensure the accuracy and completeness of the physical count. After all counting is finished, and after all count sheets have been turned in, the Inventory Control Manager should walk through the entire area, both retail and warehouse areas, with all team members and review the area for completeness. Only after this review may the colored inventory tickets be removed.

Inventory Tag Template Details

Pages: 01
Words: 47
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Accounting Manuals Template
Category: Inventory & Assets
Procedure: Inventory Counting Procedure INV102
Type: Form

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Material Return Notice Template | INV104-1

Material Return Notice Template

The Material Return Notice Template helps to protect and safeguard customer property while it is in possession of the company.

In the event of any damage, deterioration, or unsuitability of customer supplied items, the procedure for Receiving and Inspection will be followed and an INV104-1 MATERIAL RETURN NOTICE form will be prepared with the applicable information and returned to the customer.

If for any reason there is a shortage or loss of items that is discovered after the original receiving report was prepared, the inventory control manager will issue a written report and forward to Customer service representatives for follow-up with the customer.

Material Return Notice Template Details

Pages: 01
Words: 77
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Accounting Manuals Template
Category: Inventory & Assets
Procedure: Customer Property Procedure INV104
Type: Form

 

 

Inventory Control Procedure | INV101

Inventory Control Procedure

The Inventory Control Procedure outlines guidelines for controlling inventory stock for ultimate salability, usability and traceability, and ensuring efficient selection and delivery of products.

This Inventory Control Procedure should be utilized by purchasing, shipping, receiving, warehouse and accounting personnel. (8 pages, 1990 words)

Be sure to rotate inventory on a first-in, first-out (FIFO) basis, particularly food products and other perishables, when stocking shelves. It’s common to put newly purchased items on the shelf in front of the older items. Instead, remove the older items from the shelf first, and then place the new items on the shelf followed by replacing the old items to the shelf but now in front of the new items. This will help keep the inventory fresh.

Inventory Control Responsibilities:

The Purchasing Manager is responsible for maintaining the investment in inventory at the lowest level, consistent with operating requirements, economy of procurement, financial plan requirements and sound business practices.

The Shipping Manager, the Receiving Manager, and Warehouse Personnel are responsible for the custody and safekeeping of inventory. This includes ensuring that all items in inventory are properly accounted for, that proper procedures are followed for the movement of all inventory, and that all paperwork is forwarded to the Accounting Manager in a timely manner for the proper recording of all inventory transactions.

The Accounting Manager is responsible for processing all paperwork received in a timely manner in order to maintain an accurate inventory status.

The Controller is responsible for revaluing certain inventory items to their Net Realizable Value and for ensuring proper inventory control.

Inventory Control Procedure Activities

  • Inventory Stocking and Storage Control
  • Inventory Usage Control
  • Inventory Protection
  • Inventory Obsolescence
  • Inventory Disposal

Inventory Control Procedure References

  • Food and Drug Administration (FDA) Food Code

Inventory Control Procedure Forms

 

Fixed Asset Capitalization Depreciation Procedure | INV105

Fixed Asset Capitalization Depreciation Procedure

The Fixed Asset Capitalization Depreciation Procedure describes how to delineate capitalization and depreciation methods for various asset groups.

This Fixed Asset Capitalization Depreciation Procedure applies to all acquisitions with more than a one-year useful life expectancy and a minimum threshold amount as specified by the controller. (4 pages, 1232 words)

Fixed Asset Capitalization Depreciation Definitions:

Capitalization – Capitalization is the method chosen to record the purchase of a fixed asset on the company’s accounting books. If an asset is capitalized then it is not expensed in the same year the asset is purchased. Instead the asset is generally recorded on the balance sheet and individually on an asset schedule. Examples of capital expenditures are purchases of land, buildings, machinery, office equipment, leasehold improvements, and vehicles. The asset is expensed each year as depreciation.

Depreciation – is an annual income tax deduction that allows the write-down or write-off of the cost of the asset over its estimated useful life to recover the cost or other basis of certain property over the time the property is used. It is an allowance expense for the wear and tear, age, deterioration, or obsolescence of the property.

As an asset ages and is used by the company, its’ value declines. It, in effect, becomes worth less and less over time. The declining value or usefulness of the asset over time is represented as a discount that is applied to the original purchase price. At the end of the asset’s depreciation period, (and/or useful life), its value on the balance sheet will be zero, or fully-depreciated. At the same time, the individual depreciation expenses will have all been recorded on the income statement.

Cost basis – The total amount paid for the asset, in cash or kind, is considered the “cost-basis.” This should include all charges relating to the purchase, such as the purchase price, freight charges, and installation, if applicable. The cost basis is not the market value or list price of the asset. It is the total amount invested in the purchase or the total amount paid.

Fixed Asset Capitalization Depreciation Procedure Activities

  • Assets Capitalization
  • Assets Depreciation

Fixed Asset Capitalization Depreciation Procedure References

  • IRS Publication 964 “How to Depreciate Property”

 

Fixed Asset Control Procedure | INV103

Fixed Asset Control Procedure

The Fixed Asset Control Procedure outlines methods for acquiring, disposing and maintaining control of fixed assets to provide reporting assistance and ensure proper internal controls.

This Fixed Asset Control Procedure applies to all capital equipment with a value of $500 or more and with a useful life greater than one year. It includes the responsibilities of department managers and accounting personnel. (10 pages, 1280 words)

Fixed Asset Control Responsibilities:

Department Managers are responsible and accountable for furniture, equipment, machinery, and any other capital assets in their departments and will maintain some type of control over capital assets.

The Accounting Manager will assist and evaluate any department’s capital asset control procedures.

Fixed Asset Control Procedure Activities

  • Asset Acquisition
  • Asset Disposition
  • Asset Records

Fixed Asset Control Procedure Forms

 

 

Inventory Counting Procedure | INV102

Inventory Counting Procedure

The Inventory Counting Procedure offers guidelines to ensure your physical inventory count and inventory ledger is consistent.

This Inventory Counting Procedure applies to all inventory stock from back room, warehouse storage, off-site usage, demonstration or customer loaner purposes. It should be utilized by the inventory control manager and purchasing, sales and marketing, accounting, accounts payable and receivable and warehouse personnel. (12 pages, 2866 words)

It is most important for the Inventory Control Manager to fully understand the POS and accounting system as it relates to inventory, before a physical inventory is taken. This includes an understanding of how the inventory is updated by customer returns, returns to vendors, transfers from inventory to internal use, adjustments for damaged or defective product, and backorders.

The inventory General Ledger balance is affected by every purchase and sale transaction that is processed through the REV102 POINT-OF-SALE (POS) procedure and the Accounting System. To maintain accuracy, one should periodically count the actual inventory on hand and then reconcile that count to the inventory General Ledger balance. Taking a complete physical count of all inventory items is one way to ensure that the balance is accurate.

Inventory Counting Responsibilities:

The Purchasing Manager is responsible for forwarding all paperwork to the accounting manager to ensure that inventory is documented and accounted for properly.

The Sales Manager and the Marketing Manager are responsible for forwarding all paperwork to the accounting manager to ensure that inventory is documented and accounted for properly.

Inventory Counting Procedure Activities

  • Inventory Types
  • Preparation for Inventory Counting
  • Period End Cut-off
  • Complete Physical Count-Cost Method or “SKU” Method
  • Complete Physical Count-Retail Method
  • Cycle Count method

Inventory Counting Procedure Forms

Customer Property Procedure | INV104

Customer Property Procedure

The Customer Property Procedure defines methods used to identify, verify, protect and safeguard customer property while in possession of the company.

The customer property policy applies to all property the customers supply, including intellectual property, all product parts and tooling or fixtures used in manufacturing and inspection. This procedure includes the responsibilities for customer service, purchasing, production and engineering personnel. It applies to any items supplied by customers including: components and materials supplied for inclusion in product, tooling and fixtures used in manufacturing and inspection processes, and intellectual property for use and testing with software systems. (4 pages, 616 words)

When dealing with customer inventory, potential damage to their property is always going to be an issue. In the event of any damage, deterioration or unsuitability of customer supplied items, the procedure for Receiving and Inspection will be followed and an INV104 Ex1 MATERIAL RETURN NOTICE form will be prepared with the applicable information and returned to the customer. If for any reason there is a shortage or loss of items that is discovered after the original receiving report was prepared, the inventory control manager will issue a written report and forward to Customer service representatives for follow-up with the customer.

Customer Property Responsibilities:

Customer Service Representatives are responsible for notifying the production manager and the purchasing manager of the customer’s intent to supply materials during the quotation and contract review processes.

The Purchasing Manager is responsible for coordinating delivery of customer supplied materials.

The Production Manager is responsible for managing customer supplied tooling and fixtures.

The Engineering Manager is responsible for managing and safeguarding customer’s intellectual property.

Customer Property Procedure Activities

  • Receipt, Inspection and Stocking
  • Unsuitable or Missing Items
  • Customer Supplied Tooling and Fixtures
  • Intellectual Property

Customer Property Procedure Forms