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Receipt and Disposition of Inventories

The carrying amount of inventory is recognized as an expense when it is sold, distributed, exchanged, consumed, or written down to its net realizable value. The document then describes the receipt and disposition process for inventories which involves a purchase request form, purchase order, inspection and acceptance report, recording in a stock card and supplies ledger card by the property/supply and accounting divisions. Payment is processed through a disbursement voucher.

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Wawex Davis
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356 views

Receipt and Disposition of Inventories

The carrying amount of inventory is recognized as an expense when it is sold, distributed, exchanged, consumed, or written down to its net realizable value. The document then describes the receipt and disposition process for inventories which involves a purchase request form, purchase order, inspection and acceptance report, recording in a stock card and supplies ledger card by the property/supply and accounting divisions. Payment is processed through a disbursement voucher.

Uploaded by

Wawex Davis
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Recognition as an Expense

The carrying amount of an inventory is


recognized as expense in the period it is:
a. Sold;
b. Distributed;
c. Exchanged;
d. Consumed; or
e. Written down to its NRV or Current
replacement cost (only the portion of the
carrying amount in excess of the NRV or CRC
is recognized as expense).

GOVT ACCTG & ACCTG FOR NPOs by: Z.B.Millan


Receipt and Disposition of Inventories
• Requisition
1. End users prepare the Purchase Request (PR)
form.

2. Purchasing Unit prepares the Purchase Order


(PO).

(Note: A canvass from at least 3 suppliers is


required for purchases amounting to ₱1,000 and
above.)

GOVT ACCTG & ACCTG FOR NPOs by: Z.B.Millan


Receipt and Disposition of Inventories
• Receipt
3. Property/Supply Division prepares the
Inspection and Acceptance Report (IAR)
and forwards it to the Property Inspector.
4. Property Inspector inspects the delivered
items and fills up the IAR.

GOVT ACCTG & ACCTG FOR NPOs by: Z.B.Millan


Receipt and Disposition of Inventories
• Receipt
3. Property/Supply Division prepares the
Inspection and Acceptance Report (IAR)
and forwards it to the Property Inspector.
4. Property Inspector inspects the delivered
items and fills up the IAR.
5. The Property/Supply Division records
accepted deliveries in the Stock Card (SC).
6. The Accounting Division records accepted
deliveries in the books of accounts and in
the Supplies Ledger Card (SLC).
GOVT ACCTG & ACCTG FOR NPOs by: Z.B.Millan
Receipt and Disposition of Inventories
• Receipt
4. The Property/Supply Division
prepares the Disbursement
Voucher (DV) then forwards
it, together with the
supporting documents, to the
Accounting Division for
processing of payment.
GOVT ACCTG & ACCTG FOR NPOs by: Z.B.Millan

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