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Maintaining Your Physical Inventory
By Craig Borysowich
Expert Author
Article Date: 2008-07-23
Confirm deliveries by comparing the packing slip against the Purchase Order.
Conduct physical inspections to ensure that all items in the packing slip have been delivered correctly, and that no product is damaged. Check for parts, connectors/cables, computer media, and documents.
Perform installation and operational tests to ensure that all products work as expected.
Follow-up with the supplier to correct all shipping mistakes or product failures.
Retain and store all packaging and shipping materials that will be required for final shipment of the physical items to the customer.
Maintain Inventory Records
Apply an inventory sticker to all physical items that belong to the delivery organization.
Record receipt of all received items in an automated physical inventory tracking system (at minimum a spreadsheet). Include: - Name of item,
- Make/manufacturer,
- Model Number,
- Serial Number,
- Date of purchase,
- Purchase Order number,
- Physical location,
- Inventory Number (if appropriate),
- Person assigned responsibility for item,
- Name of person who conducted physical inspection and confirmed receipt,
- Unique Name/Number for configuration control and traceability.
Update the automated physical inventory at the time any of the information (listed above) changes.
Provide to Accounting, on a monthly basis and at project completion, a listing from the automated physical inventory, if the inventory has changed. Identify changes from previous month.
Add to Inventory
Ensure that all computer media used on the project are stored in a secure location. Prohibit non-project use of project software and prohibit duplication of purchased software, except for permitted back-ups.
Record installations in the automated physical inventory tracking system.
Provide a list from the automated physical inventory tracking system of all physical items delivered and installed, by location, to the customer. Sign-off and date the list for each location indicating that all the correct physical items have been delivered and installed. Retain a copy in the Project Book. Record acceptance in the automated physical inventory system.
Produce back-up information for the creation of an invoice from the automated physical inventory system for all accepted items. Submit the back-up information to Accounting for billing.
Approve Vendor Invoices for Payment
Approve vendor invoices for payment by verifying in the automated physical inventory system that each line item on the vendor invoice has been received, installed and accepted, and has not been previously paid.
Record the following information in the automated physical inventory system for each line item from each vendor invoice: - our Purchase Order number,
- the vendor invoice number,
- the vendor invoice date,
- the price from the vendor invoice.
Notify Accounting if there is any discrepancy between the Purchase Order price and the vendor invoice price.
Record on the vendor invoice the amount previously accrued, if any, and the month in which the cost was accrued. Sign and date the invoice, and return to Accounting.
Comments
About the Author:
Craig Borysowich has over 18 years of Technology Consulting experience with both public and private sector clients, including ten years in Project Leadership roles. His extensive background in working with large scale, high-profile systems integration and development projects that span throughout a customer’s organization allows him to help consulting organizations world-wide to deliver better quality projects more consistently.
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