Fiscal Year-End Inventory

Purpose

As part of the year end closing procedures, the College is required to get an accurate count and valuation of all inventory.


Procedures

  1. Departments with identified inventory must perform a physical count of their inventory as of June 30 unless other arrangements are cleared through the Controller’s office.
  2. Inventory should be valued using its historical cost (the cost at which it was purchased).
  3. If the inventory has decreased in value for the fiscal year, the difference will be charged to the department.
  4. If the inventory has increased in value for the fiscal year, the difference will be credited to the department.
  5. A memo is sent early in May to inventory managers. This memo will include reporting deadlines as well as things to consider when planning the count.
  6. Contact Eileen Gerenz with questions about valuing inventory or inventory procedures.