Inventory
Inventory at ONCF group is includes three types of inventories:
1.1. Purchases inventory:
Materials and supplies are included in inventory at their total acquisition cost, which
includes, if applicable, in addition to the purchase price, customs duties, and other related
fees. After each entry, inventory is valued at the weighted average cost.
1.2. Obsolete inventory:
Obsolete materials (rails, track equipment, catenary pylons, etc.) are physically inventoried
by ONCF Production Units and recorded in inventory, awaiting either their disposal to third
parties or their use, after regeneration, in the ONCF production process (routine maintenance,
infrastructure renewal, and capitalized production). This inventory is valued using the
historical unit price. This price was calculated in 2012 based on the international scrap price
on 12/31/2012.
1.3. Work in progress inventory:
This inventory is valued at its production cost, which is formed by the cost of purchased or
recovered materials and supplies as well as other direct production costs and indirect costs
related to the completion of the work.
Translation:
II.11 INVENTORY
Inventory Management
- Maintaining a permanent inventory and rotating stock
- Assisting with physical inventories using RFID or barcode scanning
Locking/Unlocking Items
- Locking/unlocking items for inventory and freezing inventory during the inventory process
Inventory Corrections
- Adjusting inventory levels based on the results of the physical inventory
Accounting
- Automatically generating accounting entries.