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8/11/2019 6.Inventory & PPE - Latest
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ACCOUNTING FOR
SUPPLIES and PPE
under the
NG S
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Receipt of Deliveries of Inventory Items
Delivery
Receipt
Inspectionand
Acceptance
Report
Stock
Card
DV
Report of
Checks
Issued
JEVChkDJ
General
Ledger
Supplies
Ledger
Card
JEV
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Requisition and Issuance of Supplies
and Materials
RIS
SC
RSMI SLC
GENERAL
JOURNAL
L
JEV
Yes
No
PR
StocksAvailable?
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Receipt of Deliveries of PPE
Delivery
Receipt
Inspectionand
Acceptance
Report
PPE
Card
DV
Report of
Checks
Issued
JEVChkDJ
General
Ledger
PPE
Ledger
Card
JEV
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Issuance of the PPE
Requisition
Issue
Slip
Property
Card
Property Div.)
PropertyAcknow-
legement
Receipt
Property
Ledger Card
Accounting Div.)
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Preparation of Purchase Request
Request for the purchase of
supplies, materials and propertyneeded for the quarter based on the
approved annual procurement
program is prepared.
Procedures in Procurement
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Preparationof PR (cont.)
The PR shall be prepared in 2 copies:
Original - Supply and Property Unit
for appropriate action
Duplicate CopyRequisitioning Unit
Note: This form is also prepared when thegoods/supplies/properties are not carried instock.
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Department: PR. No. Date:
Section: SAI No. Date:
Purpose:
Signature:
Printed Name:
Designation:
Unit Total CostStock
No.Item Description Quantity
Unit
Cost
PURCHASE REQUEST
Agency
Requested by: Approved by:
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Preparation of the Obligation Request(ObR), for the goods requisitioned covered
by an approved PR.
The ObR prepared to obligate funds
purposely for the purchase request. This
must be certified by the Budget Officer as to
the availability of allotment and the ChiefAccountant or Head of the Accounting Unit
as to the correctness and validity of
obligation.
Preparationof PR (cont.)
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Preparation and Approval ofPurchase Order/Letter or Contract
The Purchase Order (PO)/contract is the documentevidencing a transaction for the
purchase of supplies and otherinventories. It is usuallyprepared by the Supply Officer orhis equivalent.
Procedures in Procurement
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Supplier P.O. No. _____________________________
Address Date _____________________________
Gentlemen:
Please furnish this office the following articles subject to the terms and conditions contained herein:
Place of Delivery: Delivery Term:
Date of Delivery: Payment Term:
Stock No. Quantity Unit Cost
P P
(Total Amount in Words) P
In case of failure to make the full delivery within the time specified above, a penalty of one-tenth (1/10)
of one percent for every day of delay shall be imposed.
Very truly yours,
_________________________________
(Authorized Official)
Conforme:
(Signature over printed name)
___________________________
(Date)
Amount
PURCHASE ORDER
Agency
Unit
Amount : _____________
Quantity Description
OS No. : ______________
Mode of Procurement __________________
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Receipt of the Delivery of theGoods/Property/ Supplies and
Materials procured
Receipt of the goods prior to
inspection shall be understood that
these are received as to the quantityonly subject to final inspection and
acceptance of the items.
Procedures in Procurement
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Acceptance of deliveries maybemade only if the goods / property /
supplies and materials delivered
conform with the standards and
specifications stated in the contract.
Inspection and Acceptance of theDeliveries
Procedures in Procurement
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The report shall be signed by the
authorized Inspection Officer who
conducted the inspection and
verification of the items to certify that
the delivery conform with the
specifications indicated in the PR. Thedate of inspection shall be indicated in
the report.
Preparation of Inspection &
Acceptance Report (IAR)
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The Inspection and Acceptance Report
shall be prepared in three copies
distributed as follows:
Original - Supplier (to be attached tothe claim voucher)
Duplicate - Inspection Committee
Triplicate - Supply Unit
Preparation of IAR (cont.)
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Supplier
PO No.
Requisitioning Office/Dept.
Stock No. Description Quantity
Date Inspected :
Complete
Partial(pls. Specify quantity)
Inspection Officer/Inspection Committee
For P r o p e r t y Office Use
INSPECTION & ACCEPTANCE REPORT
Agency
Date Date
IAR No.
Invoice No.
Unit
INS PE CTIO N A CCE PTA NCE
Property Officer
Date Received:
Inspected, verified and found OK
as to quantity and specifications
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After the inspection and
acceptance of delivery, the DV
shall be prepared.
Preparation of Disbursement
Voucher
Procedures in Procurement
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Requisition, Issuance
and Reporting ofSupplies and Other
Inventories Issued
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Preparation of Requisitionand Issue Slip (RIS)
Original Accounting Unit (to beattached to the RSMI)
Duplicate - Requisitioning Unit
Triplicate - Supply and Property Unit
Requ isit io n and Issue Slip (RIS)shall
be prepared if goods/supplies are
available in stock. This form shall beprepared in three copies distributed as
follows:
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Division Responsibility Center RIS No.
Office Code SAI No.
Stock No. Unit Quantity
Purpose: ___________________________________________________________________
___________________________________________________________________________
Requested by: Approved by: Received by:SignaturePrinted Name
DesignationDate
REQUISITION AND ISSUE SLIP
Agency
RemarksDescription
R e q u i s i t i o n I s s u a n c e
Quantity
Issued by:
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If stocks are not
available, thePurchase Requestshall be prepared.
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Preparation of Report of Supplies
and Materials Issued (RSMI)
This report shall be prepared by the
Supply and Property Unit (SPU) showing all
supplies issued for the day
Upon receipt of this report, the
designated accounting personnel shall fill
up the following columns:
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2. Amount - amount (Qty. Issued x Unit Cost) of
supplies and materials issued
within the day
1. Unit Cost - moving average cost of supplies
and materials issued by the
agency
3. Posted by/date - name and signature of the
accounting personnel who posted to SLC
based on recapitulation
Report of Supplies and Materials
Issued (RSMI)
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The moving average method ofcosting shall be used for costing
inventories. The Accounting Unit shall
be responsible in computing the costof inventory on a regular basis.
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Date
2002
Jan. 1 200 @ 10 2,000Jan 12 400 @ 12 4,800 600 @ 11 6,800
Jan. 16 500 @ 11 5,667 100 @ 11 1,133
Jan 26 300 @ 11 3,300 400 @ 11 4,433Jan 29 200 @ 11 2,216 200 @ 11 2,217
Jan. 30 100 @ 12 1,200 300 @ 11 3,417
Received IssuedBall pen
Balance
Illustrative Calculation
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Original - Accounting Unit for thepreparation of JEV
Duplicate - SPU File
The RSMI shall be prepared in two copies
to be distributed as follows:
At the end of the month, all issuances in the RSM I
shal l be consolidated for the preparation of the JEV.
Report of Supplies and MaterialsIssued (RSMI) (cont.)
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Date: No.
Responsibility
Center
Recapitulation:
Stock No. Quantity Unit Cost Total Cost Account Code
Posted by/date:
Supply Officer Accounting Clerk
I hereby certify to the correctness of the above information.
Recapitulation:
Item Unit Cost
Agency
AmountUnit
REPORT OF SUPPLIES AND MATERIALS ISSUED
To be f i lled up in the Supply and Prop erty Uni tRIS No. Stock No. Qty. Issued
To be f i lled up in the Ac ctg. Unit
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This form shall be used to report
on the physical count of inventoryitems by type such as Office Supplies,Accountable Forms, Medical, Dentaland Laboratory Supplies, Food/Non-food Inventory, Military and PoliceSupplies Inventory, etc. which areowned by the agency.
PreparationReport of
Physical Count of Inventories(RPCI)
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OriginalAccounting Unit
Duplicate CopySupply and Property Unit
Triplicate CopyInventory Committee
This shall be prepared every six months in
three (3) copies and shall be certified correct by
the Inventory Committee and approved by theHead of the Agency or Authorized
Representative. This shall be distributed as
follows:
PreparationReport of PhysicalCount of Inventories (Cont.)
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For which ___________, ____________, ____________ is accountable, having ass umed such accountability on ____________.
(Name of Accountable Officer) (Official Designation)(Agency/Office) (Date of Assumption)
BALANCE PER ON HAND
ARTICLE DESCRIPTION STOCK UN IT OF UN IT CARD PER COUNT REMARKS
N UM BER MEASU RE VALU E (Quantity ) (Quantity ) Quantity Value
SHORTAGE/OVERAGE
REPORT ON THE PHYSICAL COUNT OF INVENTORIES
As of ________________________________
(Type of Inventory Item)
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Records to be kept by theAccounting Unit -
Supplies Ledger Card - for each
inventory item/stock
Records to be kept by the Supply Unit
Stock Card - to be maintained foreach type of supplies to record
all receipts and issuances
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With the implementation of the
NGAS, the ten thousand pesos
benchmark for acquisition of
inventories/non consumable
items is revoked.
On Inventories
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Inventories which are non-
consumables such as: staplers,
staple removers, punchers,scissors, rulers, and other small
items shall be recorded under
appropriate supplies
inventory/expense, as the case
may be.
On Inventories
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Suspension of the Use of Supplies
Availability Inquiry (SAI) under theManual version of NGAS, and the
Provision of Additional Guidelines
per COA GAFMIS Circular Letter No.2003-006 dated November 24, 2003.
On Inventory Form
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All non-consumable items
shall be covered by an
Inventory Custodian Slip to
be issued by the Supply
Officer and acknowledged
by the end-user.
Non-Consumable Items
of Inventories
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Inventory Custodian Slip
ICS No.: _______
Received by: Received from:
For Use of Property Unit
Quantity Unit Description
Signature Over Printed Name
__________________________________
Position/Office
__________________________________
Date
__________________________________
Signature Over Printed Name
__________________________________
Position/Office
__________________________________
Date
__________________________________
INVENTORY CUSTODIAN SLIP
DEPARTMENT/AGENCY
Inventory
Item No.Unit Cost
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No replacement shall be madefor damaged or unserviceable
items unless the item is returned
and accepted by the SupplyOfficer or authorized unit in the
agency.
On
Non- Consumable Items
of Inventories
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1. Receipt of Allotment for the purchase of theOffice Supplies P 300T and Military Supplies P500T
Journal Entries
CreditDebit
AccountCode
Account Title
Entry in the RAOMO
based on the
Obligation Request
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2. Receipt of Notice of Cash Allocation (NCA)/Notice of Transfer of Allocation (NTA)
Journal Entries
500T651Subsidy Income fromNational Government
CreditDebit
AccountCode
Account Title
Cash-National Treasury,
MDS108 500T
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3. Obligation upon approval of the PurchaseOrder
Journal Entries
Entry in the RAOMO
CreditDebit
AccountCode
Account Title
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4. Receipt of delivered inventories
Journal Entries
500T401Accounts Payable
CreditDebit
AccountCode
Account Title
Office Supplies Inventory
Military and Police Supplies
Inventory
155
164
300T
200T
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5. Payment for the delivered inventories
Journal Entries
470T
30T
106
412
Cash-NationalTreasury, MDS
Due to NGAs
CreditDebit
AccountCodeAccount Title
401 500TAccounts Payable
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6. Issuance of Inventories
Journal Entries
No Journal Entry
CreditDebit
AccountCode
Account Title
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7. Receipt of the Report of Supplies andMaterials Issued
Journal Entries
100T
200T
151
153
Office Supplies Inventory
Military and Police
Supplies Inventory
CreditDebit
AccountCodeAccount Title
751
753
100T
200
Office Supplies Expenses
Military and Police
Supplies Expenses
Journal Entries
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8. Set up of liability of supply Officer for lostinventory in his responsibility/accountability
Journal Entries
40T455Other Deferred Credits
CreditDebit
AccountCodeAccount Title
123 40T
Due from Officers and
Employees
Journal Entries
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9. Collection from Supply Officer for lost
inventories and Adjustment of DeferredCredits
Journal Entries
40T
40T459
411
Other Deferred Credits
Due to NationalTreasury
40T
CreditDebit
AccountCodeAccount Title
102
135
40T
CashCollecting
Officers
Due from Officers and
Employees
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Journal Entries
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11. If Request for Relief from Accountability isissued
Journal Entries
40T135Due from Officers andEmployees
CreditDebit
AccountCodeAccount Title
459 40TOther Deferred Credits
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PROCUREMENT,
REQUISITIONand ISSUANCE of
PROPERTY, PLANT and
EQUIPMENT
(Under the NGAS)
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Accounting Policies
For Property, Plant and Equipment
1. Construction of Assets
For assets under construction, theConstruction Period Theory shall beapplied for costing purposes.
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Accounting Policies
For Property, Plant and Equipment
Liquidated damages charged and paid bythe contractor shall be deducted from the
total cost of the project.
Any related expenses incurred during the
construction of the project, such astaxes, license fees, permit fees, clearancefees, etc. shall be capitalized, and thoseincurred after the construction shall form
part of operating cost.
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Accounting Policies
For Property, Plant and Equipment
2. Depreciation
The Straight Line Method of
depreciation shall be used.Depreciation shall start on themonth following the month of
purchase of the PPE and a residualvalue equivalent to ten percent ofthe purchase cost shall be set-up.
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Accounting Policies
For Property, Plant and Equipment
3. Reclassification of Assets
Serviceable assets no longer
being used in operation due totechnical innovations, as well asobsolete and unserviceable ones(pending disposal) shall bereclassified to account OtherAssetsand shall not be subject todepreciation.
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Cost of Typewriter - 10,000
Accumulated Depreciation - 7,200
Net Book Value - 2,800
Debit Credit
Other Assets 2,800
Accum. Depreciation-Office
Equipment 7,200Office Equipment 10,000
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Accounting Policies
For Property, Plant and Equipment
4. Assets without recorded cost and
acquisition date
For proper recording and costing of PPE
owned by the government, all property listed in the
inventory report without value and date of
acquisition shall be appraised as to its present
value and remaining useful life. The appraisal shall
be used as the basis in computing the appropriate
depreciation after setting aside a residual value
equivalent to 10% of the appraised cost.
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Accounting Policies
For Property, Plant and Equipment
5. Discounts on Purchases of PPE
Discounts given by suppliers upon purchase
of item shall be recorded in the books of
accounts.These may be categorized as :
cash discount
same item given as discounts different item as discounts
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Accounting Policies
For Property, Plant and Equipment
6. Transfer of PPE
a. To other government agencies shall be
recorded as donation
b. To regional office/operating unit shall berecorded as subsidy to regional office/
operating unit
A i P li i
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Accounting Policies
For Property, Plant and Equipment
7. Repairs and Maintenance
a. Repairs and maintenance of PPE including fully
depreciated ones shall be charged against the
appropriate Repair and Maintenance Expenseaccount
b. Repairs and maintenance of property owned by
another agency which are used by other agencyshall be shouldered by the using agency and
shall be treated as Other Maintenance and
Operating Expensesaccount (code 969).
P d i P
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Procedures in Procurement
Preparation of the AnnualProcurement Plan/Program
Preparation of PurchaseRequest/Agency ProcurementRequest
Preparation of Obligation Request
(ObR) for the goods requisitioned
covered by an approved PR.
P d i P t
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Procedures in Procurement
Preparation and Approval of Purchase
Order/Letter or Contract
Receipt of the Delivery of the
Goods/Property/ Supplies and Materials
procured
Inspection and Acceptance ofthe Deliveries
Preparation of Inspection & Acceptance
Report (IAR)
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After the inspection and acceptance of
delivery, the DV shall be processed
Preparation of Disbursement Voucher
Procedures in Procurement
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Requisition, Issuanceand Reporting ofProperty Issued
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The ARE shall be signed and dated by thedesignated Property Officer under Received from
portion and the recipient or user of the property
shall acknowledge receipt by signing under
Receivedbyportion.
Acknowledgment Receipt
for Equipment
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The ARE/PAR shall be prepared in two copies
distributed as follows:
Acknowledgment Receipt for
Equipment
Original - Supply and Property Unit
Duplicate - Recipient or user of the
property
A k l d t R i t f
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The ARE shall be renewed every three years or
every time there is a change in accountability.
At the end of each month, the Property Unit shall
furnish the Accounting Unit a List of AREs Issuedcontaining the No., Property No., and type of Receipt(original,renewal, transfer, etc.)
Acknowledgment Receipt forEquipment
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For Property Unit Use
AO 6/15/02
ACKNOWLEDGMENT RECEIPT FOR EQUIPMENT
_______________________________________________
AgencyNo.:_______
Received by: Received from:
Signature Over Printed Name
Position/Office
Date
Signature Over Printed Name
Position/Office
Date
Property No. DescriptionUnitQuantity
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Inventory Reports ofProperty andEquipment
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Preparation of Waste
Material Report (WMR)
OriginalChief AccountantDuplicate CopyProperty Officers file
This shall be used to report allunserviceable assets so that they may be
properly disposed of and dropped from the
accounts.
This report shall be prepared in two (2)
copies distributed as follows:
WASTE MATERIALS REPORT
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ITEM QTY. UNIT
O.R. No. Amount
1
2
3
4
5
6
TOTAL
I hereby certify that the property enumerated above was disposed of as follows:
Item ________ Destroyed
Item ________ Sold at private sale
Item ________ Sold at public auctio
Item ________ Transferred without cost to _______
Property Inspector: (Name & Signature) Witness to disposition:
CERTIFICATE OF INSPECTION
ITEMS FOR DISPOSAL
WASTE MATERIALS REPORT
DESCRIPTION RECORD OF SALES
Agency
Place of Storage Date
Certified Correct:
Property Officer
Disposal Approved:
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The IIRUP shall be prepared in two (2) copies andsubmitted by the Accountable Officer to the
following:
Preparation of Inventory and
Inspection Report of Unserviceable
Property (IIRUP)
OriginalAccounting UnitDuplicate CopyProperty Officer
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In cases where technical knowledge is
needed for the determination of the true
condition or actual current value of theproperty to be inspected, a Technical
Inspector with the required knowledge and
training shall inspect the same.
Preparation of Inventory and Inspection
Report of Unserviceable Property(cont.)
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When the property is sold, the record ofsales shall be accomplished. The IIRUP shall
be held until the sale is completed.
The original copy of the report shall bethe basis for adjusting the accounts affectedby means of a journal entry voucher.
Preparation of Inventory and Inspection
Report of Unserviceable Property(cont.)
INVENTORY AND INSPECTION REPORT OF UNSERVICEABLE PROPERTY
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________________________________ ______________________________ ________________________ _________________
(Agency) (Name of Accountable Officer) (Designation) (Station)
D I S P O S I T I O N Apprais Official
Acticles Quantity Unit Cost Total Cost Property No. Date No. of years Accumulated Receipt Amount
Acquired in service Depreciation Number
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16)
Requested by: Request for Inspection Approved by:
________________________________
________________________________
I CERTIFY that I havewitnessed the disposition of
the articles enumerated on
As of _________________________________
I N V E N T O R Y I N S P E C T I O N R E P O R T
(Name and Signature) ___________________________
I CERTIFY that I have
inspected each and every articleenumerated in this report and that
the disposition made thereof was,
I HEREBY request inspection, and disposition
pursuant to Section 79 of PD 1445, of the propertyenumerated above.
Desi nation of Accountable Officer Desi nation
_____________________________
(Signature of Accountable Officer) ______________________
(Name and Signature of Inspector (Name and Signature of Witness)
_____________________________
Preparation of Report on the Physical Count
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Preparation of Report on the Physical Count
of Property, Plant and Equipment (RPCPPE)
The RPCPPE shall be used to report on the
physical count of property, plant and equipment by
type such as Heavy Equipment, Technical and
Scientific Equipment, Motor Vehicles, Office
Equipment, Furniture and Fixtures, etc. which are
owned by the agency. It shall be prepared in threecopies, distributed as follows:
OriginalAccounting Unit
Duplicate CopySupply and Property Unit
Triplicate CopyInventory Committee file
It shall be submitted to the Auditor
concerned not later than January 31 of each year.
REPORT ON THE PHYSICAL COUNT OF PROPERTY PLANT AND EQUIPMENT
(Type of Property, Plant and Equipment)
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For which ______________, ______________, _______________ is accountable, having ass umed such accountability on ________________.( ame of Accountable Officer) (Official Designation) (Agency/Office) (Date of Assumption)
BALANCE PER ON HAND
ARTICLE DESCRIPTION PROPERTY UNIT OF UNIT C AR D PER COUN T REMARKS
NUMBER MEASURE VALUE (Quantity) (Quantity) Quantity Value
SHORTAGE/OVERAGE
As of ________________________________
( yp p y, q p )
Records to be kept by the Account ing
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Records to be kept by the Account ing
Un it -
PPE Ledger Cards - for
each property/equipment
Reco rds to be kept by the Supply Uni t -
Property Card - to be maintained foreach Property to record date of
purchase and accountability
Monitoring of Repairs and
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g pMaintenance of PPE
Maintenance
Expenses
Amount
Accumulated
Amount
Transfers/
Date Ref. Particulars Costs Adjustments Book Value
PROPERTY, PLANT AND EQUIPMENT LEDGER CARD - SPECIFIC_______________________________________________
Depreciation
Agency
Description:
Propery, Plant and Equipment:
No.
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DEPRECIATION
ACCOUNTING
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Depreciation ccounting
Straight-line Method of depreciation shall
be used;
Depreciation shall start on the followingmonth after purchase of the property;
A residual value of 10% of the purchasecost shall be set up;
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Serviceable assets that are no longerused shall not be charged anydepreciation; and
The useful life of the property, plant andequipment are revised pursuant to COACircular 2003-007 dated December 11,2003.
TABLE OF ESTIMATED USEFUL LIFE OF PROPERTY, PLANT
AND EQUIPMENT
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AND EQUIPMENT
10
20
30
oWood
oMixed
oConcrete
Buildings those that are predominantly
10
20
40
10
oLand Improvements
oRunways/taxiways
oRailways
oElectrification, Power and Energy
Structures
Land Improvements
EstimatedUseful Life(in years)
Property, Plant and Equipment
EstimatedU f l LifP t Pl t d E i t
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10
10
20
30
oLand
oBuilding
oWood
oMixed
oConcrete
Leasehold Improvements (Note 1)
Useful Life(in years)
Property, Plant and Equipment
oOffice EquipmentoFurniture and Fixtures
oIT Equipment
oLibrary Books
Office Equipment, Furniture and Fixtures
510
5
5
EstimatedUseful Life
( )
Property, Plant and Equipment
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10
10
10
1010
7
10
1010
10
10
10
o Machineries
o Agricultural, Fishery and Forestry
o Airport Equipment
o Communication Equipment
o Construction and Heavy Equipment
o Firefighting Equipment and Accessories
o Hospital Equipment
o Medical, Dental and Laboratory
Equipmento Military and Police Equipment
o Sports Equipment
o Technical and Scientific Equipment
o Other Machineries and Equipment
Machineries and Equipment
(in years)
Estimated
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Transportation Equipment
o Motor Vehicles
o Trains
o Aircraft and Aircraft Ground
Equipmento Watercrafts
o Other Transportation Equipment
7
10
1010
10
Note 1 The estimated useful life shall depend on thelength of the lease. It shall be the period of thelease or the estimated useful life of the assets, asgiven, whichever is shorter.
Property, Plant and Equipment Useful Life
(in years)
Other Property, Plant and Equipment 5
Adjustment in 2004 for understated
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Adjustment in 2004 for understateddepreciation of Motor Vehicles -
Previous economic life - 10 yrs.Revised economic life - 7 yrs.
7,710
7,710
Journal Entry:
Prior Years Adjustments
Accumulated Depreciation Motor Vehicles
Recorded depreciation for 2 yrs - P18,000
Adjusted depreciation - 25,710Understatement P 7,710
Adjustment in 2004 for understated
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Adjustment in 2004 for understateddepreciation of Mixed Concrete Buildings -
Previous economic life - 30 yrs.Revised economic life - 20 yrs.
750,000
750,000
Journal Entry:
Prior Years AdjustmentsAccumulated Depreciation Buildings
Recorded depreciation for 10 yrs - P1,500,000
Adjusted depreciation - 2,250,000Understatement P 750,000
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TRANSFER OF
PROPERTY AND
EQUIPMENT
Transfer of Property and
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Transfer of Property andEquipment
a. To Other Agencies
Close the Property, Plant andEquipment account and thecorresponding accumulateddepreciation in the transferors book
and
record the same at net book valuein the recipient agency book.
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Illustrative Computation:
Transfer of Motor Vehicle by AFP-GHQ
to DPWH in February 14, 2004
Acquisition Cost - 500,000
Accumulated Depreciation
(4 yrs.) - 180,000
Net Book Value - 320,000
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ParticularsAcctCode
Debit Credit
Transferors Books (AFP-GHQ)
1) Donations
With SL In Kind
Accumulated DepreciationMotor
Vehicles
Motor VehiclesTo record transfer of motor vehicle
to DPWH
878
341
241
320,000
180,000
500,000
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ParticularsAcctCode
Debit Credit
Transferees Books (DPWH)
Motor Vehicles
Income from Grants & Donations
SL In Kind
To record receipt of motor vehiclefrom AFP-GHQ
241
662
320,000
320,000
On Transfer of Property and
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b. By Central Office to RegionalOffices (RO) or by RO toOperating Unit/Provincial Office of
the Department/ Agency
Transfer the Property, Plant andEquipment and the correspondingAccumulated Depreciation to the recipientoffice (RO/OU/PO).
On Transfer of Property andEquipment
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ParticularsAcct
CodeDebit Credit
Transferors Books
(Central Office)
Subsidy to ROs/Staff Bureaus
Accumulated Depreciation Motor
Vehicles
Motor Vehicles
To record transfer of motor vehicle toRO
872
341
241
320,000
180,000
500,000
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ParticularsAcctCode
Debit Credit
Transferees Books
(Regional Office)
Motor Vehicles
Subsidy from Central Office
Accumulated DepreciationMotor
Vehicles
To record receipt of mo tor
vehic le from CO
241
653
341
500,000
320,000
180,000
Property Loss
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Property Loss
Immediately after theoccurrence of the loss, aninvestigation shall be conductedand result shall be furnished the
Accounting Unit and PropertyUnit.
Property Loss
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Property Loss
In case of loss of property as a result of
accident or fortuitous event, a Report of
Losses shall be prepared by PropertyOfficer noted by the Head of Agency.
Information such as description of
property, quantity, property no., book value,
fair market value and age of assets shall be
included in the report.
Property Loss
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Property Loss
Losses detected during the conduct of the
physical count and reconciliation of
records of the Property and AccountingUnits shall be reflected in the Report of
Physical Count of PPE, a copy of which
shall be furnished the Accounting Unit for
recording in the books of account.
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Property Loss
Account Loss of Assets (code 961)
shall be recorded based on the Net Book
Value, and account Due from Officersand Employees (code 123) shall be
recorded based on sound value
(Replacement Cost less EstimatedDepreciation)
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Property Loss
The amount collected from the
accountable officer or the proceeds from
insurance shall be receipted by theagency and shall be remitted to the
National Treasury, unless the agency is
authorized by law to deposit the samewith authorized government depository
bank.
Case A Replacement Cost is
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higher than Acquisition Cost
Acquisition Cost (Motor Vehicle) - 400,000
Accumulated Depreciation (6 years) - 216,000
Net Book Value - 184,000
Replacement Cost - 600,000
Estimated Depreciation (6 years) - 324,000Sound Value - 276,000
Loss of Assets
Accumulated Depreciation-
Motor Vehicles
Motor Vehicles
184,000
216,000
400,000
1. Upon loss of assets
a. Record the loss of assets
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Case A Replacement Cost is higherthan Acquisition Cost (cont )
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Cash - Collecting Officers
Due from Officers and
Employees
276,000
276,000
3. Collection from Accountable Officer
than Acquisition Cost (cont)
4. Adjustment of Deferred Account
Other Deferred Credits
Due to National Treasury
276,000
276,000
Case A Replacement Cost is higherthan Acquisition Cost (cont )
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than Acquisition Cost (cont)
Due to National Treasury
Cash - Collecting Officers
276,000
276,000
5. Remittance of collection to National Treasury
- for NGAs
Case A Replacement Cost is higherthan Acquisition Cost (cont )
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than Acquisition Cost (cont)
Other Deferred CreditsDue from Officers and
Employees
276,000 276,000
6. Upon receipt of certified copy of the grant of
Relief of Accountability
Case B Replacement Cost isl th A i iti C t
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lower than Acquisition Cost
Acquisition Cost (Office Equipment) - 100,000
Accumulated Depreciation (3 years) - 45,000
Net Book Value - 55,000
Replacement Cost - 50,000
Estimated Depreciation (3 years) - 22,500
Sound Value - 27,500
Loss of Assets
Accumulated Depreciation -
Office Equipment
55,000
45,000
100,000
1. Upon loss of assets
a. Record the loss of assets
Case B Replacement Cost is lower thanAcquisition Cost (cont)
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Due from Officers and
Employees
Other Deferred Credits
27,500
27,500
b. Set up the accountabil i ty of the concerned
officer/employee
2. Upon receipt of the certified copy of the denial of
request for Relief from Accountability
No entry
Acquisition Cost (cont)
Case B Replacement Cost is lower thanC ( )
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Cash - Collecting Officers
Due from Officers andEmployees
27,500
27,500
3. Collection from Accountable Officer
Acquisition Cost (cont)
4. Adjustment of Deferred Account
Other Deferred Credits
Due to National Treasury
27,500
27,500
Case C The amount is paid byi
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insurance
Acquisition Cost (Office Equipment) - 100,000
Accumulated Depreciation (3 years) - 45,000
Net Book Value - 55,000
Replacement Cost - 50,000
Estimated Depreciation (3 years) - 22,500
Sound Value - 27,500
Loss of Assets
Accumulated Depreciation -
Office Equipment
55,000
45,000
100,000
1. Upon loss of assets
a. Record the loss of assets
Case C To be paid by insurance
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Due from Officers and
Employees
Other Deferred Credits
27,500
27,500
b. Set up the accountabil i ty of the concerned
officer/employee
2. Relief is granted and loss is paid by insurance
Other Deferred Credits
Due from Officers and
Employees
27,500
27,500
Case B Replacement Cost is lower thanA i iti C t ( t )
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Cash - Collecting Officers
Due to National Treasury
27,500
27,500
3. Collection from Insurance Company
Acquisition Cost (cont)
Case B Replacement Cost is higherthan Acquisition Cost (cont )
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than Acquisition Cost (cont)
Due to National Treasury
Cash - Collecting Officers
27,500
27,500
5. Remittance of collection to National Treasury -
for NGAs
Case B Replacement Cost is higherthan Acquisition Cost (cont)
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than Acquisition Cost (cont)
Due to National Treasury
Cash - Collecting Officers
27,500
27,500
5. Remittance of collection to National Treasury -
for NGAs
Allocation of Cost of Promotional Items given
as Discounts for Equipment Purchased in Bulk
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as Discounts for Equipment Purchased in Bulk
llocation of cost for promotional items
If the promotional items are the same type of
equipment purchased, the total purchased cost shall beallocated to the total quantity ordered plus thepromotional item.
Example: Purchased - 10 units of motor vehicle
@P330,000 = P3,300,000
Promo item 1 unit of motor vehicle
Computation of the Cost per unit =
P3,300,000
11 units
= P300,000
Allocation of Cost of Promotional Items
given for Equipment Purchased
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given for Equipment Purchased
llocation of cost for promotional items
If the promotional items are different from the type of
the items purchased, the cost of the promo item shall bebased on the fair market value and it shall be considered
as Income from Grants and Donation (Code 662).
Example: Purchased - 10 units of motor vehicles @330,000 = P3,300,000
Promo item 1 air conditioning unit
Computation of the Cost per unit of the motorvehicles =P3,300,000
10 units = P330,000
COA Resolution No 2003-002
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COA Resolution No. 2003 002dated January 30, 2003
Subject: Delegating the authority to approvewrite-off of unliquidated cash advances andoutstanding/dormant/uncollectible accountsreceivables
AmountP1 million
Adjudication and Settlement Board composed
of the following officers:
Chairperson - Asst. Comm., Legal and
Adjudication OfficeMembers - Asst. Comm., National,
Corporate, and Local
Government Sectors, and
GAFMIS
Upon Receipt of Authority from COA fordropping of other dormant accounts:
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dropping of other dormant accounts:
Note:This shall be recorded in the General Journal
thru a JEV and in the Registry of AccountsWritten-Off.
xx
xx
xx
xx
xx
xx
Journal Entry:
Loss of Assets
Office Supplies Inventory
Military and Police Supplies
InventoryOther Office Supplies
xx
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