Services · Foundational

Inventory Accounting Manual Module

FMP09b

Documents accounting and control procedures for inventory, recognizing that different accounting standards govern each, covering NRV, warehousing, counts, movement and write-offs.

What changes

Better inventory accounting under the appropriate standards, more reliable registers and stronger reconciliation between physical inventory and financial records.

What you get

Approved Inventory Accounting manual module FMP044
Inventory recognition and NRV decision form FMP045
Inventory and stock register FMP046
Stock count and reconciliation worksheet FMP047
Inventory movement, issue and write-off log FMP048

What has to come first

NAHNeeds Assessment Report - National Head Quarters or NABNeeds Assessment Report - Branch/District Recommended

Grounds the inventory control gaps in needs assessment findings
FMP02Accounting Policies, Chart of Accounts and Books of Account Manual Module Recommended

The chart of accounts and accounting policies provide the inventory and expense accounts this module posts to
FMP01Finance Governance, Roles and Delegations Manual Module Recommended

The governance module sets the approval authority and segregation of duties this module applies to inventory
FMP06Expenditure, Accounts Payable and Payment Controls Manual Module Recommended

The expenditure and payment controls module sets how inventory purchases are authorized and paid

Who is involved

From the National Society's side. This is what the engagement asks of your people.

Your own staff work alongside the adviser throughout, so this is a commitment of their time as well as the Centre's. Ask in the request and you are given the day estimate per role before anything is signed.

Role	What they do
HNS Finance Director	Owns the module and is the primary counterpart
HNS finance and accounting staff	Apply inventory accounting controls and reconciliations
HNS logistics and warehouse staff	Provide stock receipt, storage and count data
HNS programme and budget holders	Confirm inventory funding source and grant-funded stock conditions
HNS Secretary General	Approves the inventory accounting policy and write-off authority
HNS internal audit	Assurance over inventory controls
GFDC delivery team	Drafts and advises

How it is measured

Indicator	Target	Evidence
Inventory accounting module approved by HNS leadership	Within 10 weeks of kick-off	Approval minutes or signed module
Stock register reconciled to the general ledger and to the physical stock	100% of stock categories reconciled each count	Inventory and stock register (FMP046)
Inventory measured at the lower of cost and net realizable value or current replacement cost each period	No category carried above its recoverable amount	Stock count and reconciliation worksheet (FMP047)
Inventory issues, movements and write-offs authorized and logged	100% of write-offs authorized	Inventory movement, issue and write-off log (FMP048)

Tools

5 of 5 ready to download.

FMP044 Inventory Accounting manual module Template DOCX
FMP045 Inventory recognition and NRV decision form Template XLSX
FMP046 Inventory and stock register Template XLSX
FMP047 Stock count and reconciliation worksheet Template XLSX
FMP048 Inventory movement, issue and write-off log Template XLSX

Standards

COSO Internal Control - Integrated Framework
The Sphere Handbook - Humanitarian Standards
HNS finance manual, accounting policies and close procedures
HNS inventory and warehouse management policies and SOPs
HNS Delegation of Authority (DoA) and governance ToRs
HNS chart of accounts and cost centre structure
IFRC financial reporting and accountability framework for National Societies
IAS 2 - Inventories (IPSAS 12 equivalent under IPSAS reporting)

Describe the problem, not the service

You do not need to know which of the 124 to ask for.

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