Excess and Obsolete (E&O) inventory is most frequently discussed issue that affects distributors, manufacturers, and retailers. The inventory signifies massive investment for any business, and if it is not traded for some reason, it consumes warehouse space and increases liability.
This guide explains guidelines for adjustments, disposition, inventory valuation, identify the E&O root cause, responsibilities and reserves.
This Excess and Obsolete Inventory Policy Guide help you proactively identifying, accounting for and resolving the disposition of excess and obsolete inventory. Also to assign the proper accountability for continuous improvement activities focused on reducing the occurrence of excess and obsolete inventory by identifying and addressing the related root causes
This policy when implemented offer:
#) Inventory reserves evaluation to identify and review all inventory to proper estimations on a quarterly basis.
#) Proper planning to ensure accuracy on all levels.This EXCESS AND OBSOLETE INVENTORY POLICY guide are comprised of 12 pages with the 2696 wordcounts. Included as Microsoft Word and PDF format, so you can customize it for your own business.
Table of Content
EXCESS AND OBSOLETE INVENTORY POLICY – ALLOWANCE FOR EXCESS, OBSOLESCENCE, AND SHRINKAGE INVENTORY
- POLICY & SCOPE
- WHEN INVENTORY IS CONSIDERED EXCESS AND OBSOLETE
- UNDERSTANDING CONTRIBUTORS FOR EXCESS & OBSOLETE INVENTORY
- INVENTORY ROOT CAUSE & DISPOSITION CODING
- GUIDELINES – SHRINKAGE
- GUIDELINES – OBSOLESCENCE
- GUIDELINES – EXCESS INVENTORY
- QUARTERLY MODIFICATIONS TO INVENTORY RESERVE
- ANNUAL MAINTENANCE OF RESERVE
- DEBIT BALANCES IN RESERVE ACCOUNTS
I hope you and your financial controller find it useful!
You will also find my blog "Excess and Obsolete Inventory Is Killing Your Business – 9 Ways You Can Survive" - https://www.scmdojo.com/excess-and-obsolete-inventory/ useful.
If you choose to download these materials, you'll be added to my mailing list. You can unsubscribe at any time, but I hope you'll stick around.
You've purchased this product
See it in your libraryView in Library
We charged your card and sent you a receipt
You'll need an account to access this in our app. Please create a password to continue.
Download from the App Store or text yourself a link to the app
Good news! Since you already have a Gumroad account, it's also been added to your library.