Questionaire:Receiving and Storing Raw Materials How are raw materials received? Is there a separate receiving room? How does it move from this room?Received ny the purchasingEndorse to invty clerk, Sam AnianoHe kept it in a small stock room. Apprrove requestIssue a stock transfrer form

How are raw materials documented in the system? What is the source of the info?PO. DR SIGoods Received notes; before you go to GRN may PO na. Tapos Purchase invoice na.Accounting will validate the GRN based on DR and SI. If conflicting, for reconciliation and the payment process will be put on hold.

Who receives raw materials?If outside suppliers purchasingIf Chemworld Sam wii received

What are the procedures upon receiving? Sam Aniano, Inventory ClerkCheck the documents, the Stock transfer from the main warehouse. Actual Checking of Stocks. Quantity based on documents vs actual. If complete he will sign the stock transfer as a proof that the stocks were actually received and checked. If there is shortage the inventory clerk will call the warehouse head and will note the actual quantity received. Sign and date when received? The item was signed and they will generate a monthly report based on actual amount received. Is it checked to the purchase order? If the month already ended close na yung PO.

Is it recounted? Yes

Is it checked for defective material? Yes

What happens if short shipped or receive defective goods?The defective goods were returned to supplier or in the warehouse. Transmittal to the warehouse and then will be the one to dpo a report on defective items. Partially delivered goods. Who enters info into system?Not applicable since it is manually done by

What is the source of the information? PO and Stock Transfer

How is info recorded accurately? Purchase orders matched to packing slips? PO Vs Stock Transfer Vs, actual Is a purchase order edit report run and how often? How is raw material inventory tracked (i.e. stamps/tags/electronically)? Excel and hard copy of Stock transfer. How are returns of raw materials dealt with? Goods returned are added to inventory and when the others are bad they are segregated.

Cut-off - how do they ensure timely recording and in the appropriate period?Upon delivery ang ownershipRequisitioning Raw Materials What is the flow in the general ledger and the system - if a separate system from the general ledger, how does it get to the general ledger?Requisition slip and then PO if new item they engaged price quote Requisitions Forms are they pre-numbered? How are they controlled? Who can request? By the department, Assistant to Managers and Directors. In Branches the DM will request. Sa HO who needs it. Who approves? CEO, Geric Reyes(GGR)FCR( President) Frederick Reyes

Any limits?Branch- No limit once approvedHO as long as approved.

Who relieves from raw material inventory? Warehouse will release the inventory Direct from the suppliers What is the source i.e. signed requisition form or other documentation? Requisition slip And pO once the request was approved. Physically? Move to WIP? What is the journal entry?No Entry was made.

Managing InventorySafeguarding of Assets What physical access controls are there to assets and sub-ledger / general ledger (i.e. fire systems, locks)?

Who has access to assets and the sub-ledger?

What reports are generated / are they based on inventory levels? How often are they generated? Who do they go to? What do they do with them? Are they reviewed and if so do they sign off on their review? How long are the reports kept for?

What level of insurance is maintained?Inventory Counts (some of the info contained below may be covered off in the count memo) Are counts performed / how / what are the procedures?pag tapos na ang count pwede na ulit mag received at mag out. Who performs the counts? Mr Sam and the ASIM How often are counts performed? Month end inventory count

Book to physical adjustments - what are the procedures? Do they investigate the reasons for the adjustments and document this? How is WIP counted and valued? How is inventory organized - is obsolete inventory kept separated? How is cut-off handled during the count e.g. receipt of goods during the count? Do they have consignment inventory? How is this handled? How is it accounted for?Obsolescence How is obsolete inventory managed / what reports are run e.g. movement/shipping reports? Who determines obsolescence? Is it part of the inventory count? What is the policy on obsolescence e.g. specific ID of goods or a % allocation? Who reviews the obsolescence? Is authorization required to label the goods obsolete?

Producing/Costing Inventory

How are labour and overhead expenses allocated to WIP? What is the journal entry? How is labour tracked/costed i.e. timecards? How is it determined what should be allocated? Is the allocation reviewed and approved? By who? When is labour and overhead charged? Standard costing How are labour standards developed? How are overhead standards developed? How are they updated in the system / by whom / how often? When is it recorded in the system? How and when is it updated? Is it reviewed? By whom? Does it represent actual costs? Are variances tracked? Are the reasons investigated? Can standards be adjusted during the year? By whom? Is authorization needed? What is the journal entry? Are suspense accounts used? If so, are they reconciled / cleared on a regular basis? What is the costing system used i.e. FIFO, LIFO? What do they do with scrap - physically and for accounting?

Handling Finished Goods

Movement from WIP to Finished Goods Physically Who What is the journal entry? Is this done electronically/manually? What basis is it posted i.e. batch? What reports are generated? Who reviews them? Do they sign off? What are they looking for? How long are they kept for? Returns of finished goods How are they handled? What is the journal entry? Cut-off? Who decides what can be returned?

Shipping

How do you make sure all shipments are recorded shipping log, packing slip? Transmittal, Shippers Copy. one week. How are finished goods relieved from inventory? Transmittal was given to accounting for their copy Physically and logically? What is the journal entry? Recorded in the excel file for the in and out. How is accurate and timely recording ensured? Pag nilabas sa stock room minus na kagad siya. Accountability na ni Delivery. Who approves goods for shipment/ is approval needed?Prepared by Mr. Sam checked by the warehouse and will be received by the branch.

What reconciliations are performed i.e. shipping log to invoice register?Yes

Maintaining Inventory Masterfile (list of standard costs or list of the parts in the product)

Who has access to file? Maricel Magsombol, Accounting Specialist Inventory Management Dianne Mariano, Accounting Specialist Inventory Management How is the access restricted? The branch has online account. Only the two individual has access to the account. The access was restricted using a password.

Are changes authorized? Yes because there are some adjustments that were not yet counted during the count that needs some adjustment.

By whom? By the two individual through the information sent by the branch

Are changes valid? Through pictures and transmittals make it valid. What initiates the changes i.e. what is the source? Pull out and uncounted stocks during the count. Is an edit file produced when changes are made? Who reviews it? Do they sign off?A monthly report was created, all discrepancy noted was adjusted accordingly by the ASIM. Is the file up to date? How often is it updated? By whom? Not updated only the retail were updated. The clinic supplies were not updated since the Aestheticians update the inventory. Usual update should be daily. But they are only updating when they are not busy.

Segregation of Duties

In an inventory management system, different individuals should be responsible for:

initiating or requesting a purchase- Branches and Various Department placing and inputting purchase orders- Purchasing Department headed by Virginia Hernandez, Purchasing Manager receiving goods- custody of inventories- maintaining inventory records and/or authorizing adjustments to costs or quantities including authorizing disposal making changes to inventory master files performing independent inventory counts following up on inventory count discrepancies authorizing production requests and/or materials transfers receiving/transferring goods into/from manufacturing shipping goods