Reports of Inventories on Merchandise Due Today

Date:                   August 09, 2019

To:                       University Faculty and Staff

From:                  Sarah Baker, Director of Accounting & Financial Reporting

Subject:               Reporting of Inventories on Merchandise for Resale and            Consumable Supplies


Deadline:            August 23, 2019


To assure proper accounting treatment of inventories in the university’s Annual Financial Report, inventories of consumable supplies and merchandise for resale as of August 31, 2019, are to be determined and reported to Financial Services on the attached form.


Special care should be taken when preparing the inventory detail lists.  All mathematical extensions should be checked for accuracy.


The original form should be certified by the departmental head or designated representative and submitted, together with the copies of the inventory detail, to Financial Services on or before August 23, 2019.  A certified copy of the original inventory listing and the detail should be maintained in the department.


Below are guidelines for what is considered inventories, and the threshold amount for reporting:




Consumable supplies are items that are consumed, or otherwise utilized, in the normal course of operations. These supplies generally may be purchased in sizeable quantities and stored in campus departments for use as needed. A significant amount of these items, in any department, must be inventoried annually and reported as inventory on the year-end financial statements.  For financial reporting for FY19, consumable inventories totaling $10,000 or more should be reported.  Also, if you have reported consumable supply inventory in prior years, you should report again this year even if your total is less than $10,000.

Reporting of Inventory FY19:


  • Physical counts are to be made of all merchandise in storerooms or other places of storage, or taken from perpetual inventory records if these records have been compared with physical counts made on a cyclical basis during the year.  However, only materials paid for or reported as accounts payable as of August 31 are to be included.


  • Detailed listings of physical quantities, unit prices and extensions for each classification of inventory should be attached to the Inventory Form.


  • Unit prices should be those on the most recent vendor’s invoice or average cost detailed and complete records of cost are maintained.


  • Insert totals of detail listings (see above) in appropriate spaces on the Inventory Form.





Merchandise for resale pertains to items specifically obtained by a department with the intent to distribute these items through resale, generating revenue and, possibly, a profit for the department.


Departments holding merchandise for resale should report the inventories at cost where a retail system is used.  The total is to be entered in the appropriate space on the Inventory Form with supporting documentation attached.

For financial reporting for FY19, all inventories for merchandise held for resale must be reported, regardless of the amount.

If you have any questions please feel free to contact Erin Neill at x6019, or

Friday, August 23, 2019

Financial Services

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