EP Controlling Document Restricted

Procedure / Activity Description Stock Check - Cyclic Counting Process

Procedure / Activity Description: Stock Check - Cyclic

Counting Process (Ref EPBM EP.14.04)

Revision information Description

1st EPE Issue

Objective To ensure controls are in place for the effective management of EPE
inventories through the effective auditing of inventory items.

To ensure compliance with legal obligations to provide accurate

figures for the Company Balance Sheet and HM Customs & Excise
reporting requirements.

To ensure stock adjustments compliance with segregation of duties

responsibilities and Manual of Authorities

Scope Responsibility of the nominated Stock Check personnel within the

Inventory Management teams in the UK, Netherlands and Norway.

Risk domain and risk Risk Domain Risk(s):

Legal /Financial Incorrect inventory reporting/quantity/value
Inaccurate inventory value being stated on
Balance Sheet and reported to HM Customs
(UK)
Commercial/Financial Stock checking not carried out
Commercial/Financial Inventories not managed / controlled at 3rd
parties

Input to activity Input From Activity name / Doc No. IT system

Stockcheck plan SAP
Physical Inventory SAP
Count documents
3rd Party Inventory
records

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Procedure / Activity Description Stock Check - Cyclic Counting Process

Activity Responsibility
Matrix

Inventory Stock Head of Transport and

Task definition Finance FPL Location MOA References
M'ment Analyst Custodian Supply

Create Stock
1 MI31 [2]
Check Document

Print Stock
2 MI21 [2]
Check Document

Procedure - Outbound
3 Physical Count Warehouse , Yard and
Quayside Ops [3]

Input Count
4 MI04 [2]
Results

Clear Zero
5 MI07 [2]
Differences

Create Recount
6 MI11 [2]
Document

Procedure - Outbound
Recount Physical
7 Warehouse , Yard and
Count
Quayside Ops [3]

Input Recount
8 MI04 [2]
Results

Clear Zero
9 MI07 [2]
Differences

10 Authorise Stock In accordance with

Adjustment Manual of Authorities [4]

Post and
11 Approve Stock MI07 [2]
Differences

Output of activity Output To Activity / Doc No. IT system

Physical Inventory SAP
Count results
Physical inventory SAP
adjustments
Physical inventory SAP
adjustments
document

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Procedure / Activity Description Stock Check - Cyclic Counting Process

Additional requirements Financial Authorisation of Stock Adjustments

On a monthly basis all EPE stock adjustments must be authorised

by the Head of Transport and Supply. The authorisation will be
evidenced in writing on lists provided by the Inventory Analysts.
Individual line items in excess of $250k will be referred to the
Business Finance Manager for authorisation.

On a quarterly basis a summary of all stock adjustments will be

provided to the Logistics FPL for review and authorisation. The
summary will be supported by detailed back up data together with
copies of the monthly summaries authorised by Head of Transport
and Supply

Refer to Work Instruction Work Instruction Stock Check [1].

Where the use of the SAP system is involved in the above procedure
then it is necessary to refer to the How to Guides Work Instruction
[2]

Related controlling Ref. Title Document No.

documents [1] Work Instruction Stock Check EP.14.WI.05.01
[2] Work Instruction – How To Guides EP.14.WI.01.02
[3] Procedure – Outbound Warehouse, Yard EP.14.PR.06
and Quayside Ops
[4] Manual of Authorities

Other references Ref. Title Document No.

[5] Sarbane Oxley Regulations

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