While everyone prepares for the New Year’s holidays, accountants have a period of intense and rather responsible work - annual inventory. It should be recalled key rules for inventorying.
General rules
After the completing of the inventory commission and determination by the order of the head of the period of the inventory of individual objects, which fit in with the general terms, begin the inventory itself.
Starting the check of the actual availability of certain types of assets (fixed assets, intangible assets, stocks, etc.), the inventory commission before its beginning:
- verifies the serviceability of all weighing instruments that will be used during inspection;
- requires completion of processing of all documents on the movement of assets and forms the last registers of income and expense documents or reports on the movement of assets at the time of inventory;
- requires the determination of balances at the date of inventory;
- asks that materially responsible persons be grouped, sorted out according to names, grades, sizes in order convenient for counting assets, which are being checked.
In addition, starting the verification of any assets, the inventory commission requires the materially responsible person to provide a receipt stating that before the inventory all the income and expense assets are transferred to the accounting department, all the values received under their responsibility are earned, and those which left, were written off. Such receipts are included in the inventory descriptions, which make up the results of the inspection.
After preparing for the inventory, start to inspect individual inventory objects. During the inventory of each individual object, attention should be paid to the various nuances. It should be recalled briefly features for the most commonly used assets.
Fixed assets
Starting an inventory of fixed assets, that is, own assets recorded in the account 10 “Fixed assets” and 11 “Other non-current tangible assets”, as well as leased (accounted for in the off balance sheet 01 “Rented non-current assets”) or are in custody ( are recorded on the off-balance sheet of sub-account 023 “Material Values for Responsible Storage”) first should be checked:
- availability and condition of technical passports and other technical documentation for these assets;
- availability of documents for assets that are rendered or accepted by the enterprise in the lease, storage, for temporary use.
Then it is determined whether the existing list of the main means of information specified in the registers is in accordance with the existing list. For this purpose, the inventory commission verifies the actual presence of objects and conducts their actual review.
In addition, regarding all fixed assets, the correctness of the assignment of inventory numbers to them should be verified.
Intangible assets
Assets that are accounted for on the account 12 “Intangible assets” are subject to inspections. During the inventory of intangible assets, the actual availability of intangible assets is checked against the documents that were the basis for their posting, or by the documents by which property rights are issued.
At the same time, based on these documents, the validity of their recognition is checked.
Stocks
Inventory of assets registered on accounts 20, 22, 26, 27 and 28, are carried out at the places of their storage and separately for financially responsible persons. In the inventory of stocks, a commission in the presence of materially responsible persons checks the actual availability of stocks through their recalculation, overvaluation or measurement. Such transactions are conducted in the order of placement of assets in the premises where they are stored.
When checking stocks, it should be verified their actual established availability on the date of inventory with the accounting data. When it is about checking the low-value and worn-out items that are accounted for on an operational basis (that is, issued for use), then the actual availability of these items is checked in materially responsible persons through comparison with the account of the operational account.
Working clothes and items for personal use, sent for washing and repair, are checked on the basis of documents of the service provider.
The quantity of stocks stored in the supplier’s undamaged packaging may be determined on the basis of documents with mandatory verification of the presence in kind of parts of the specified values.
If the inventory of assets in the premises where they are stored is not completed within one day, it must be completed within the next days. After the inventory commission left the room in which the inventory is not completed, the head of the inventory commission sealed it with a sealer. If the same types of assets are stored in different premises, after checking the values, entrance to the room is also sealed with the sealer. This should be done in order to avoid substitutions of values.
During the inventory of stocks on the road, goods shipped and stocks that are not paid by buyers, stocks held in warehouses of other enterprises (in responsible storage, at commission, in processing), check the validity of the amounts that reflected in the accounts of the accounting. Such amounts can be recognized, if they are confirmed by properly executed documents, in particular suppliers’ bills, copies of payment claims (invoices) presented to buyers, security bills, which are reissued on or close to the date of the inventory.
Monetary assets
It is carried out the inventory of monetary assets (cash, money, securities, money documents (paid sanatorium and tourist vouchers, post stamps, etc.) and forms of documents of strict reporting), that is, assets registered in accounts 30, 31, 33 in accordance with the procedure established in the Regulation on cash transactions in the national currency in Ukraine, approved by the decision of the Board of the National Bank dated 29.12.2017, No. 148. It should be done to reconcile existing funds with the data specified in the accounting ledgers.
The procedure for cash register inventory is in the following sequence:
1. Before the audit, the cashier must provide a receipt stating that all documents have been deposited with the accounting department, and the money received has been fully paid out, and those issued have been debited. The form of receipt is shown on the title page of the Act on the results of the inventory of available funds.
2. The Commission checks the actual amount of funds in the cashier through the currency note recount of all cash and checks the correctness of the receipt and cancellation of cash funds, as well as the execution of cash documents.
3. The actual availability of cash is compared with the accounting data. If the company applies the cash register, then the amount of cash from the cash register box is verified via the amount indicated in the fiscal reporting checks and the accounting book of settlement transactions (if it is kept).
If everything is correct, then the actual amount of cash on the spot of settlements should coincide with the amount indicated in cash documents. If there is a discrepancy, then determine the size of the scum or lack.
During the inventory of funds on the road, it should be checked the amounts specified in the account, with the data of receipts of the institution of the bank, post office, copies of the accompanying information on the surrender of proceeds to the bank’s collectors.
During the inventory of securities in the documentary form, it is established:
- availability of securities;
- correctness of their registration, the reality of the value of securities reflected in the balance sheet of the company;
- completeness and timeliness of reflection of accounting in the income from financial investments.
Payables - receivables
Inventory of accounts receivable and payables consists of the clearance of documents and records in the registers of accounting and verification of the validity of the amounts reflected on the corresponding accounts, namely on accounts 36, 37, 63, 64, 65, 66, etc.
Accounts receivable and payables are verified for observance of the limitation period, validity of the amounts recorded in the accounts of settlements with buyers, customers, suppliers, contractors, received and issued promissory notes, borrowed funds received, loans granted (loans), with accountable persons, depositors, other debtors and creditors.
During the inventory of calculations through documentary verification, the following are established:
- correctness of settlements with banks, controlling bodies, other enterprises, as well as with structural divisions of the company, allocated to separate balance sheets;
- debts of accountable persons, as well as the correctness and validity of debts due to shortages and thefts. The inventory of debts due to deficiencies and losses from property damage is to check the reasons for delaying the consideration of the materials regarding the identified shortage and attribution to the perpetrators or the cancellation in accordance with the established procedure;
- correctness and reasonableness of amounts receivable, payable and depositary debts, including the amounts of payables and depositary debts, for which the limitation period has expired;
- reality of arrears of wages and salaries of employees (directly or through employers) on social benefits defined by law, as well as on cashless settlements for these payments.
Other inventory objects are also checked in the same way.
