Hubbell Policies

Material for which little or no activity is anticipated prior to the inventory date may be "pre- inventoried" on tags provided for that purpose.

F. Cost of Inventory Taking

Purchase Orders issued for items associated with the cost of conducting the inventory count (fork lifts, scales, meals for count teams) should be logged and tracked to accumulate the cost of inventory taking.

G. Notification of Public Accountants

The Corporate Controllers Group notifies the Company's public accountants, in advance, of the dates that the inventory will be taken. The Business Unit Controller furnishes a copy of the inventory instructions to the public accountants for their use.

ESTABLISHMENT OF CUT-OFF DATES

To insure that all shipping and receiving activities and completed production is recorded in the proper period, inventory instructions must include defined cut-off dates/times. These dates/times should permit clear separation of all transactions occurring before the inventory from those occurring after the inventory. The final cut-off is the beginning of the first day of the inventory counting. All production and movement of materials is stopped from this time until the completion of the inventory and its release by a designated authority. Dependent upon the operations of each plant, resumption of activity may be on a departmental basis. At the completion of the Inventory Count the last 10 receipts/shipments before the Physical Count and the first 10 receipts/shipments after the completion of the Inventory Count should be pulled to insure everything was properly recorded from a cut-off standpoint.

A. Receiving Department

1. Before Inventory Transactions

Incoming material received prior to the cut-off should be recorded as having been received prior to the cut-off and should be delivered to the proper location to be inventoried.

2. Material Received During Inventory

No Inventory Movements are allowed during Physical Inventory.

3. After Inventory Transactions

After the inventory has been completed and the plant released, all material accepted during the inventory is recorded.

B. Shipping Department

1. Before Inventory Transactions

All shipments should be completed and cleared from the shipping area prior to the cut-off date.

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