Inventory Requisitions (Alberta Council)

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THIS IS A DRAFT DOCUMENT

Contents 1 The Need 2 Policy 2.1 Purpose 2.2 Scope 2.3 Responsibility 2.4 Definitions 2.5 References and Related Statements of Policy and Procedure 3 Procedures 3.1 Inventory Requisitions (stock transfers) 3.1.1 Inventory Requisition Form 3.1.2 Withdrawal from Inventory Process 3.2 Weekly Inventory Order Requisitions 3.2.1 Weekly Inventory Order Requisition Form 3.2.2 Weekly Inventory Order Process 3.3 Daily Inventory Summary 3.3.1 Daily Inventory Summary Report 4 Attachments

The Need

Control of inventory requires both physical security ("existence"), as well as the maintenance of adequate accounting records ("valuation").

Inventory items are only to be removed by a Stores Customer Service Representative or Administrative Coordinator in the respective training centres. The Provincial Stores Coordinator or Finance Manager are authorized to remove inventory from Provincial Stores. Any individual requiring inventory item(s) must complete and inventory requisition form.

Policy

The following Inventory Requisition forms are required to be used in order to control withdrawals from and additions to finished goods inventory.

• Weekly Inventory Order Requisition: This form is to be completed by the Stores Customer Service Represenative (or designate) and Provincial Stores Coordinator for weekly inventory orders. The completed form is to be forwarded to the Provincial Stores Coordinator for processing.
• Inventory Requisitions: This form is to be completed by anyone requesting inventory items be removed from the stores departments or ordered from the product price list for purposes other than weekly orders. Purposes include tradeshows, promotional items, display cases, building supplies, etc. The form will be completed and forwarded to the Provincial Stores Coordinator for processing.
• Daily Inventory Summary: This form is the be completed at the end of each day by the Stores Customer Service Representative detailing items removed or returned to stores. Items will include books used for in-house classes, write-offs, and items removed with authorization of the Inventory Requisition form. The completed forms are to be forwarded to the Provincial Stores Coordinator for processing.

Purpose

The purpose of this Statement of Policy and Procedure is to establish internal controls over inventory items.

Scope

This policy applies to all employees.

Responsibility

The Stores Departments are responsible for:

• Completing the Weekly Inventory Order Requisition form submitting the the Provincial Stores Coordinator for completion
• Prior to removing inventory from the stores room ensuree a completed and approved Inventory Requisition form has been received
• Processing approved Inventory Requisitions and completing the removal portion of the requisition
• Submitting an Daily Inventory Summary to the Provincial Stores Coordinator at the end of each day to record additions to and withdrawals from inventory

The Provincial Finance Department is responsible for:

• Approving and Posting the Daily Inventory Summaries on a daily basis
• Reviewing Inventory Requisitions for completeness and appropriate authorization
• Retaining back up documents for audit purposes

Definitions

• "Perpetual inventory" means a way of maintaining records that track, in real time, the movement of materials into and out of inventory so that at any time, accurate quantities of inventory on hand may be obtained from the records.

• "First-In, First-Out (FIFO)" means additions to inventory can happen at different times and with different costs. The FIFO approach to inventory assumes that withdrawals from inventory come from the oldest stock on hand.

References and Related Statements of Policy and Procedure

• Finished Goods Inventory
• Inventory Count
• Authorizations

Procedures

Inventory Requisitions are required to be completed in order to accurately record withdrawals from and additions to inventory for purposes other than resale. Resale items are recorded in the Unity point of sale system at the time the product is sold.

Inventory items that may be removed or returned include purposes such as books for in-house classes, tradeshows, promotional expenses, transfer to another location, donations, office supplies, building supplies, etc. These items must only be removed from inventory once the appropriate Inventory Requisition has been completed as per the process below.

Inventory Requisition forms include: 1) Inventory Requisition, 2) Weekly Inventory Order Requisitions, and 3) Daily Inventory Summary.

Inventory Requisitions (stock transfers)

When an individual requests an inventory item be removed or ordered from the product price list for purposes such as tradeshows, promotional expenses, donations, building supplies, transfer to another location, etc. the Inventory Requisition form must be completed. This form must be approved by the appropriate manager prior to the order being processed by the stores department.

Inventory Requisition Form

This form is to be completed when an individual is ordering items directly from inventory. This form must be completed whether the items are in stock or need to be ordered. Do not use this form for weekly inventory orders, see below.

1. The requestor is required to complete the following fields on the Inventory Order Requisition form:
   1. Order Request Information: Complete the Date Requested, Name, Extension, and Department fields
   2. Part #: Select the part number from the drop down list. If unsure of the part number refer to the Provincial Stores Catalogue which is located on the S: Drive/Finance/Forms and Resources/...
   3. Product Description: This field will automatically populate when a part number is selected
   4. Quantity: Enter the quantity
   5. Debit Code: This is the "Indirect Expense" account the product is to be coded. For expense codes see the 'Chart of Accounts' located on the S: Drive/Finance/...
   6. Purpose/Description: Brief description as to why the product is needed.
2. Once the Inventory Order Requisition form is complete, email it to the Provincial Stores Coordinator. The Provincial Stores Coordinator will forward for authorization by the appropriate manager.
3. Once the manager reviews the order they will complete the following fields:
   1. Manager Approval: Name of individual approving order
   2. Approval Date: Date order is approved
4. The manager will email the approved order back to the Provincial Stores Coordinator who forward the order to the appropriate stores department.
5. The Stores Customer Service Representative will pack the order and complete the following fields:
   1. Ship From: Select the stores location the inventory is being removed
   2. Removed By: Name of individual who packed the order
   3. Date Removed: Date order packed
   4. Credit Code: Enter the inventory code the item is being shipped from (ex. Lethbridge Stores 1300-66-06-80)
6. Once the order is packed, contact the requestor and advise them the order is ready for pick up. When the requestor picks up the order have them verify the product and quantity is correct and complete the following fields:
   1. Received By: Name of individual picking up order
   2. Date Received: Date order picked up
   3. Initials: Have the receiver initial
7. Send the completed forms to the Finance Manager in the weekly courier pack. The forms will be retained in the Provincial Office for audit purposes.

Withdrawal from Inventory Process

1. Complete the 'Inventory Requisition' form. (see above for detailed description)
2. Email the completed form to the Proivncial Stores Coordinator.
3. The Provincial Stores Coordinator will forward the completed and approved Inventory Order Requisition form to the appropriate Stores Customer Service Representative for processing.
4. The Stores Customer Service Representative is responsible for verifying the order has been approved, completing the required fields.
5. Once the order is packed contact the requestor to pick up the order. Have the receiver complete the following fields: Received by, Date Received, Initials.
6. The Stores Customer Service Representative is responsible for forwarding the completed Inventory Requisition forms to the Finance Manager in the weekly courier pack.

Weekly Inventory Order Requisitions

Training Centre inventory orders are due to be submitted by 10:00 a.m. every Tuesday. On occasion inventory orders will be requested to be completed on a different date due to inventory counts or statutory holidays. When the date is changed an email will be sent out advising of the change in dates.

Weekly Inventory Order Requisition Form

The 'Weekly Inventory Order Requisition' can be found on the S: Drive/Finance/Forms & Resources/Inventory Forms. The Stores Customer Service Representative, or Administrative Coordinator in their absence, is required to complete the 'Weekly Inventory Order Requisition' form on a weekly basis to replenish stock in accordance to the minimum and maximum inventory levels set.

1. Complete the following fields on the 'Weekly Inventory Order Requisition' form:
   1. Ship From: For weekly inventory orders select 'Provincial Office' from the drop down list
   2. Ship To: From the drop down list select the location the order is to be shipped to
   3. Order Request Information: Complete the Date Requested, Requestor's Name, Extension, and Department fields
   4. Part #: Select the part number from the drop down list. If unsure of the part number refer to the Stores Catalogue which is located on the S: Drive/Finance/Price Lists/Catalogue.
   5. Product Description: This field will automatically populate when a part number is selected
   6. Quantity: Enter the quantity (Note: This field may be adjusted by the Provincial Stores Coordinator to reflect the quantity in a package)
   7. Debit Code: The account code the inventory is to be recorded in the training centre (ex. Edmonton order 1300-61-06-80 for items to be resold and if for items not being resold such as OH&S Packages debit the expense 5150-61-02-80).
   8. Credit Code: This is to be completed by the Provincial Stores Coordinator.
2. Once the Weekly Inventory Order Requisition form is completed email it to the Provincial Stores Coordinator by 10:00 a.m. on Tuesday unless directed otherwise. The Provincial Stores Coordinator will review the quantities requested making any necessary changes and will then save the forms on the S: Drive/Finance/Forms and Resources/Inventory Forms. The Provincial Stores Coordinator will forward a request for authorization by the Finance Manager or designate.
3. The Finance Manager will approve the order completing the following fields.
   1. Manager Approval: Name of individual approving order
   2. Approval Date: Date order is approved
4. The Finance Manager will advise the Provincial Stores Coordinator when the orders are approved for packing.
5. Once an order is packed the Provincial Stores Coordinator will complete:
   1. Shipper's Name: Name of individual who packed the order
   2. Date Shipped: Date order shipped
   3. Credit Code: Enter the inventory code the item is being shipped from (ex. Provincial Stores 1300-68-06-80)
   4. Shipped By: From the drop down list will select where the product is being shipped from. If provincial stores does not have the quantity requested in stock it will be shipped directly to the location by the supplier. If the order is on backorder 'Backorder' will be selected.
6. The Provincial Stores Coordinator will move the electronic copies of the orders to the S: Drive/Finance/Forms and Resources/Inventory Forms/Receiving and ship a copy of the completed 'Weekly Inventory Order Requisition' form with the inventory order.
7. The Provincial Stores Coordinator will data entry the orders into the Microsoft Great Plains accounting system.
8. Once the Stores Customer Service Representative receives the inventory order, they are required to verify the products and quantities shipped against the copy sent with the order. Once verified, the Stores Customer Service Representative will immediately complete the Receiving section on the S: Drive/Finance/Forms and Resources/Inventory Forms/Receiving:
   1. Part #: This will automatically populate
   2. Product Description: This will automatically populate
   3. Quantity Received: Enter the quantity received
   4. Date Received: Enter the date received
   5. Received By: Enter the name of the individual that verified the order
   6. Initials: The individual in the Received By column needs to initial this column
9. Once all the items are received forward the completed form to the Finance Manager in the weekly courier pack.

Weekly Inventory Order Process

1. Complete the 'Weekly Inventory Order Requisition' form. (See above for detailed explanation)
2. Email the form to the Provincial Stores Coordinator by 10:00 a.m. on Tuesday unless directed otherwise.
3. The order will be approved by the Finance Manager and forwarded to the Provincial Stores Coordinator for packing.
4. Orders will be packed and shipped by Tuesday afternoon with a copy of the Weekly Inventory Order Requisition. If an order will not be shipped by this date the Stores Customer Service Representative in the location will be contacted and advised of a later shipping date.
5. The Provincial Stores Coordinator will input the orders into the Microsoft Great Plains Accounting system.
6. Once the order is received in the training centre stores review the requisition and count the items received to verify the correct product and quantity has been shipped. Immediately complete the receiving section on the S:Drive/Finance/Forms and Resources/Inventory Forms/Receiving. If there are any discrepancies contact the Shipper.
7. If there are products that were not received but are being shipped directly from the supplier, as indicated in the 'Shipped By' field, file the incomplete order requisition form into an 'Outstanding Inventory Order' folder. If the order is not received within 10 business days contact the Provincial Stores Coordinator for follow up with the supplier.
8. Once all the items on an order have been received forward the complete form to the Finance Manager in the weekly courier packs. Provincial Office will retain the documents for audit purposes. At the end of the year this folder is to be forwarded to the Finance Manager.

Daily Inventory Summary

The Daily Inventory Summary is to be completed by the end of each day. Items to record on the Daily Inventory Summary include book withdrawn from and returned to inventory for in-house classes, inventory items removed with authorization from inventory requisition forms, and write offs.

Once the report is completed at the end of the day email it to the Provincial Stores Coordinator. By completing these reports daily will allow accuracy of inventory quantities in the finacial system.

Daily Inventory Summary Report

1. The Daily Inventory Summary form can be located on the S: Drive/Finance/Forms and Resources/Inventory Forms.
2. Select the location from the drop down menu in the top right hand corner
3. Complete the following fields:
   1. Date In/Out: Enter today's date
   2. Part Number: Select the part number from the drop down list
   3. Product Name: This will automatically populate when the part number is selected
   4. Qty In/(Out): Enter the quantity of the product withdrawn or added (*Note: When books are removed for an in-house class record the quanties withdrawn and the quantities returned on separate lines.)
   5. Debit Code: Enter the account code from the Direct Costs section of the Chart of Accounts which can be located on the S: Drive/Finance/Forms and Resources/... (ex. Cost of Text Books for Edmonton 5100-61-02-80)
   6. Credit Code: Enter the inventory code for the training centre the inventory is being removed from (ex. Edmonton 1300-61-06-80)
   7. Purpose/Description: Reason inventory item is being removed (ex. In-house)
4. At the end of the day email the Daily Inventory Summary to the Provincial Stores Coordinator. If there is nothing to report send an email advising there were no transfers.
5. The Provincial Stores Coordinator will data entry the Daily Inventory Summaries into the Microsoft Great Plains financial system and forward the batch to the Finance Manager daily for approval and posting.

Attachments

• Attachment A - Inventory Requisition

• Attachment B - Weekly Inventory Order Requisition

• Attachment C - Daily Inventory Summary