Hubbell Policies

In-bound shipments from other Hubbell plants/warehouses are recorded in the ledgers of the receiving location as in-transit at the physical inventory date unless the shipment terms are FOB destination.

2. Shipment during Inventory

No Inventory Shipments are allowed during Physical Inventory.

ACCOUNTING FOR INVENTORY TAGS The Business Unit Controller or their designee is accountable for all inventory tags. A control is established for the issue and return of inventory tags. A register of the inventory tags is maintained indicating the number issued, the inventory area to which assigned, and the tag recipient. All copies of voided or removed tags for each inventory area must be returned; no tags are destroyed. Inventory tags assigned to an area or section must be used in that location, and no loans of tags are permitted between areas or sections. All tags must be accounted for immediately following completion of the physical inventory. Action will be taken at once to locate any missing tags. If missing tags cannot be located, the Business Unit Controller must initiate appropriate steps.

TAKING THE PHYSICAL INVENTORY

Written instructions should clearly describe all phases of the actual physical inventory including the items to be inventoried and the methods to be used in counting, tag writing and inventory verification.

A. Items to be inventoried

All Company owned productive material located in the plant and at outside locations must be inventoried. This productive material includes:

• Raw materials on which no labor has been applied • Purchased parts • Parts and sub-assemblies on which all labor operations have been completed and finished products and devices • Finished parts and devices located at owned or leased warehouses or on consignment with others, such as agents • Obsolete and excess material • Defective material on which scrap tickets have not been processed • Material at vendors for processing is included in the inventory. Written confirmation from the vendor is obtained verifying quantities on hand at inventory date

The physical inventory should not include:

•

Customer consigned stock

• Supplies not included in bills of material for cost purposes

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