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Kd reference a the count is reconciled b all adjusting

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Unformatted text preview: through cycle counting or other inventory management techniques if the agency maintains perpetual inventory records? 35. Does the system allow the cost of an item to include all appropriate purchase and transportation costs incurred? 36. Does the system provide for reconciliation using beginning of period inventory balances, receipts, and dispositions up to the cut-off point for the physical inventory if the agency does not maintain perpetual inventory records? 37. Does the system ensure the retention of records of physical inventory counts until 38. KD Reference (a) the count is reconciled, (b) all adjusting entries for the physical count are resolved and entered into the financial records, and (c) the next physical count is accomplished, reconciled, and entered into the records? Does the system provide for identification of all errors arising from reconciliation processes that apply to a time period prior to the last inventory adjustment? All such errors must be corrected to include appropriate adjustments to prior gains and losses. 39. Does the system record the value and quantities of items in transit from one location to another? 40. Does the system record losses from the recognition of destroyed, lost, or pilfered items? 41. Does the system send the appropriate information to the core financial system and cost accounting system to ensure that they stay in balance with the inventory system if financial adjustments are required as a result of a physical verification? 42. Does the system adjust inventory item costs for significant differences between the amount recorded for the items upon receipt and the invoiced amounts paid for the goods? 43. Does the system value excess, obsolete, and unserviceable inventory at expected net realizable value? The difference between the carrying amount of the inventory before identification as excess, obsolete, or unserviceable and its expected net realizable value shall be recognized as a loss (or gain) and either separately reported or disclosed. Any subsequent adjustmen...
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