Overview of Inventory Management and Categorization Process
The document discusses the inventory management process undertaken by the SCOA Technical Committee under the National Treasury in March 2013. It outlines the reclassification of consumables and inventory, identification of specific department categories, and the removal of certain items from operating payments. The comparison between old and new inventory categories is also highlighted, along with examples of detailed reporting for clothing materials, accessories, and other supplies.
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INVENTORY Presenter: SCOA Technical Committee | National Treasury | March 2013
BACKGROUND Pre 1 April 2013 SCOA consumables were a sub-category of inventory; Post 1 April 2013: INVENTORY Goods that are essential for satisfying the service delivery obligation of a department. CONSUMABLE Goods that are not essential for satisfying the service delivery obligation of a department. Key Principle Reporting Expense in Statement of Financial Performance Annexure 6 Expense in Statement of Financial Performance Management and Control Required Required 2 2
APPROACH a) Searched the entire SCOA for items that meet the definition of inventory and consumables (e.g. items prev. in operating payments); b) Split the old Inventory category into Consumables and Inventory category at the same level, and added relevant sub-categories; c) Renamed duplicates items that were inventory & consumables (Medicine and first aid kits); 3 3
APPROACH d) Identified categories that would be made available only to specific departments; e) Operating Payments category caters for services that are related to the operations of the department The following items are goods thus removed from Operating Payments : - Gifts - Library Material - Achievements and Awards 4 4
OLD VS NEW Inventory categories on level 4 reporting High level items (old version level 4) 1 INV:FOOD & FOOD SUPPLIES 2 INV:FUEL, OIL AND GAS 3 INV:LEARN&TEACH SUPP MATE 4 INV:MATERIALS & SUPPLIES 5 INV:MEDICAL SUPPLIES 6 INV: MEDICINE 7 MEDSAS INV INTERFACE 8 INV:MILITARY STORES High level items (new version level 4) 1 INV:FOOD & FOOD SUPPLIES 2 INV:FUEL, OIL AND GAS 3 INV:LEARN&TEACH SUPP MATE 4 INV:MATERIALS & SUPPLIES 5 INV:MEDICAL SUPPLIES 6 INV: MEDICINE 7 MEDSAS INV INTERFACE 8 INV:FARMING SUPLIES 9 INV:CLOTH MAT&ACCESSORIES 10 INV:OTHER SUPPLIES INV:LABORATORY CHEM & SUPPLIES INV:MILITARY STORES INV:AMMUNITN & SECURITY SUPLIES INV:ASSTS FOR DSTR (new) 11 CONS SUPPLIES (new) 12 CONS:STA,PRINT&OFF SUP 9 INVENTORY:OTH CONSUMBLES 10 INVENTORY:STATIONERY & PRINTING 5 5
EXAMPLE DETAIL Reporting level four (4) categories INV: CLOTHING MATERIAL & ACCESSORIES Corporate Gear Uniform and Protective Clothing Needlework Accessories INV: OTHER SUPPLIES Laboratory Chemicals and Supplies Military Stores Ammunition and Security Supplies Assets held for distribution Printing Supplies - ID Books and Passports CONS SUPPLIES Gifts and Awards Household Supplies First Aid Kit Bags and Accessories CONS: STATIONERY, PRINT &OFFICE SUPPLIES 6 6
SPECIFIC ITEMS FOR NOTING Ammunition and security supplies = inventory; LTSM = inventory; Wheelchairs = inventory if bought for distribution or sale, else asset if used in hospital / clinic; Assets bought for distribution = inventory e.g. school furniture, municipal dustbins, library materials; Medicine = inventory for some sectors, e.g. Health sector, and consumables for rest 7 7
INVENTORY THANK YOU 8 8
