N.Y. Comp. Codes R. & Regs. Tit. 9 §§ 1642-7.5

Current through Register Vol. 46, No. 45, November 2, 2024

Section 1642-7.5 - Reconciliation of inventory accounts

(a) Where commodities, supplies and materials are charged in the first instance to an inventory account, the perpetual inventory will currently reflect the value of the inventory (on the first- in, first-out basis) as well as the physical quantities. The value of the inventory will be furnished to the accounting section each month. This figure shall agree with the net difference between the debits and credits to the general ledger inventory account during the month. Any difference between the balances should be reconciled.

(b) A physical inventory of commodity materials and supplies shall be taken at the end of each six-month period (September 30th and March 31st) and checked against the perpetual inventory card balances. After the inventory card balances have been reconciled with the actual inventory, the accounting section will be furnished with a listing of the reconciled card balances. The total of the listings shall be compared with the general ledger inventory control accounts and every attempt shall be made to reconcile any differences which exist. When such reconciliation has been effected, the adjustment necessary to bring the general ledger inventory account into agreement with the actual inventory balance shall be made.