6.1.5 he cost of inventories shall comprise all costs of purchase, costs of conversion, and other costs incurred in bringing the inventories to their present location and condition.

6.1.6 The moving average method of costing shall be used for costing similar inventories. This is a method of calculating cost of inventory on the basis of weighted average on the date of issue.

6.1.7 Inventories whose cost may not be recoverable are written down to their net realizable value (NRV). The cost of inventories may not be recoverable if those inventories are damaged, if they have become wholly or partially obsolete, if their selling prices have declined, or if the estimated costs of completion or the estimated costs to be incurred to make the sale, exchange, or distribution have increased.

6.1.8 All procurement shall be governed by RA 9184 and supported with an Approved Procurement Program (APP). Total estimated cost of the APP shall not exceed the total appropriation authorized for the acquisition of supplies and property.

6.1.9 Requisition and purchase of supplies and materials shall be covered or supported by an approved Purchase Request (PR) as shown in Annex 23 and Purchase Order (PO) in Annex 24.

6.1.10 Receipt of donated supplies and materials shall be acknowledged using the Supplies and Materials Acknowledgement Receipt (SMAR) form - Annex 19. With the exception of supplies and materials or welfare goods for distribution in times of calamities, all donations in kind shall be recorded in the books of accounts using the declared value by the donee or in its absence, the fair market value.

6.1.11 Issuance of supplies shall be supported by an approved Requisition and Issue Slip (RIS) as shown in Annex 20. At the end of the month, the BT shall submit a Summary of Supplies and Materials Issued (SSMI) - Annex 32 supported by the RIS to the C/M Accountant as basis for recording the expense account.

6.1.12 For proper accountability, the supplies with serviceable life of more than one year shall be covered by an Inventory Custodian Slip (ICS) as shown in Annex 21.

6.1.13 The ICS for supplies with more than 1 year life span shall be maintained until disposal due to wear and tear, and obsolescence. The BT shall cancel such ICS upon receipt of the defective or worn out supplies from the user which shall be disposed in accordance with existing rules and regulations on disposal of unserviceable property.

6.1.14 Stock Card (SC) shown in Annex 22 shall be maintained to monitor and control procurement and issuance of supplies and materials.

Back | Next

| Table of Contents | Home |