Order on inventory

An entrepreneur running a business that requires an inventory must prepare an entire, multi-page document, which is referred to as an inventory procedure or instruction. It regulates the principles and technique of conducting an inventory. What is an inventory? It is a very detailed set of activities aimed at establishing the facts as far as the company's assets are concerned. When preparing to conduct an inventory, the head of the entity each time, based on the internal regulations contained in the manual, issues a so-called inventory order. Without it, in the eyes of the law, the entire inventory may be ineffective. Companies providing inventory services most often take into account the need for such a document.

What is an inventory ordinance and when is it needed?

This is a document that could be described as an "executive act" for any inventory. Based on the instruction, the head of the entity issuing such an act determines the composition of the inventory committee, appoints the inventory teams, and precisely specifies the activities and scope of work that goes into the entire inventory. Importantly - the person responsible for carrying out the inventory must issue an inventory order each time. This is the beginning of the entire process. Without it, no activities can be carried out under the provisions of the Accounting Law, which can then be the basis for tax calculations.

Who issues the inventory order?

The order to carry out the inventory is always issued by the head of the entity in question or another person appointed by the entrepreneur to be responsible for carrying out the entire process. Equally, it can also be the entrepreneur himself, if he takes it upon himself to supervise the activities. This is most often the case with smaller companies. Large entities with a clear organizational structure cede the responsibility for issuing the order to conduct the inventory by physical inventory to managers.

How to draft an inventory ordinance?

This document is an integral part of the instructions for carrying out the inventory, but you can find appropriate templates on the Internet. When preparing such a document, it is worth remembering some basic information that must be included in it. In addition to the data itself and the signature of the head of the entity in question, this act defines the scope of activities, as well as the composition of the team appointed to carry out the entire physical inventory. It is worth remembering to specify precisely the sheets and sectors to which the inventory applies. With  accurately drafted inventory order manages to effectively plan and start the work. This is the basis of the activities and it is worth the effort. Templates of the annual inventory order will certainly help to properly prepare for these activities