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Merchandise for Sale (Inventory)

Merchandise for sale (inventory) is recorded at year end at the lower of its cost (what Brown paid for it) or market value (what Brown can sell it for). The Controller's office distributes instructions for counting and recording inventory to all known inventory managers in late May. The instructions were updated this year to provide clearer guidance on sales cutoff procedures, counting inventory, and reconciling counts to recorded general ledger account balances. Even with clear instructions, accounting for inventory can be complicated.

If your department does not have an inventory account but normally sells some sort of merchandise (publications, T-shirts, etc.) to individuals or other departments during the year, contact the Director of Accounting to determine if it would be advisable to set up an account to record the value of unsold merchandise as of June 30.

If your department doesn't normally sell merchandise but is planning to buy some from another Brown department (e.g., Stores Operations or the Bookstore) before June 30, try to do so before the last week in June. This will help simplify everyone's year-end budget and inventory account reconciliations.