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Home :: Policies :: Inventories-Stores and Merchandise for Resale

Inventories-Stores and Merchandise for Resale

Responsible Department
Effective Date
  1. .


    The purpose of this policy is to clearly state the procedures for inventories for stores and merchandise for resale.

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    Please see the University System of Georgia Business Procedures Manual at:

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    1. This policy applies to stores inventories and merchandise held for resale in Educational Units and Auxiliary Units. This policy does not apply to departmental equipment or real property such as land or buildings.

    2. Purchases of items for resale are charged to an inventory account of the responsible unit. Each month-end, the inventorying unit shall adjust the inventory account for the cost of goods sold during the month. This is done by forwarding a completed Request for Journal Voucher to the Accounting Department each month.

    3. The value of the cost of goods sold for any month may be estimated. The method used for valuing the cost of goods sold is left to the unit. However, a physical inventory count and evaluation must be conducted at least once a year, preferably near the end of a month.

    4. After the dollar value of the physical inventory on hand is determined, that value will be compared to the inventory dollar value displayed on the account status report for that month. A Request for Journal Voucher shall be submitted to the Accounting Department to bring the value on the account status report to the value of the physical inventory, subject of course, to appropriate reconciling items such as merchandise on hand for which payment has not been made. The unit should also adjust its departmental records to the value of the physical inventory.

    5. A copy of the reconciliation of the physical inventory to the University’s financial records (account status statement) must be attached to the annual request for adjustment of physical inventory.
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    Support Info

    1. For any additional clarification, please contact the Comptroller’s Office.

    2. This document replaces North Georgia College & State University/University of North Georgia Policy and Procedure 709.22 which was in effect from July 1, 2004 through the effective date of this policy.
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    Any related operating procedures must comply with and reference this policy.

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