Does your unit manage inventory for resale as part of a self-supporting operation? If so, please keep the following important points in mind:
- Definition: Inventory for resale is recorded as an asset in the general ledger. It includes goods purchased or produced for resale to customers (internal or external), rather than for internal operational use. Common examples include merchandise, food items held for resale purposes, storeroom supplies held for resale purposes, or any other products held for resale purposes
- Year-End Reporting: To ensure accurate financial reporting, the value of any inventory for resale on hand as of June 30 must be recorded in Banner at the lower of cost or fair market value as a part of the fiscal year-end close process.
- Policy Guidance: To ensure compliance with the applicable policies, procedures, and good business practices, please review Section 22.4, Inventory for Resale of the Business and Finance Policies and Procedures.
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