ASTM E3298-21

This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the
Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.
Designation: E3298 − 21
Standard Practice for
Inventory by Exception (IBE)
This standard is issued under the fixed designation E3298; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
INTRODUCTION
Physical inventory verification is the process of comparing an entity’s official list of assets to the
actual assets.This requires planning and execution that can incur a significant dedication of resources.
Inventory verification is used to verify or assess if controls are working. Controls are used to verify
the existence, condition, and location of an asset. Traditional inventory verification is conducted by
directly touching assets by means of a sight-touch method during a scheduled inventory period.
The verification that assets exist can also be performed indirectly using IBE. IBE counts assets that
have been touched physically or electronically during the inventory cycle as already inventoried. IBE
includes actions or transactions where assets are touched by independent systems or disinterested
parties throughout the inventory cycle. Documentation supporting the transaction should be included
as part of the accountable record.
When implementing this type of inventory, it is extremely important to define what constitutes a
touch. A touch in this context verifies asset existence.
1. Scope 2. Referenced Documents
1.1 This practice describes the method used to verify the 2.1 ASTM Standards:
existence of items on record using IBE. It does not provide a E2132 Practice for Inventory Verification: Electronic and
method for verification of completeness of records. Physical Inventory of Assets
E2135 Terminology for Property and Asset Management
1.2 In accordance with the provisions of Practice E2132,
E2495 Practice for Prioritizing Asset Resources in
this practice clarifies the implementation of IBE as an effective
Acquisition, Utilization, and Disposition
and efficient inventory practice.
E2608 Practice for Equipment Control Matrix (ECM)
1.3 This practice does not override or increase requirements
specific to governmental authorities. To the greatest extent
3. Terminology
practicable, the guidance in this practice should be considered
3.1 Definitions—Fordefinitionsrelatedtopropertyandasset
by these entities where efficiencies can be gained.
management, refer to Terminology E2135.
1.4 This standard does not purport to address all of the
3.2 Definitions of Terms Specific to This Standard:
safety concerns, if any, associated with its use. It is the
3.2.1 disinterested parties—persons without stewardship,
responsibility of the user of this standard to establish appro-
pecuniary, fiduciary, or other responsibilities or interest.
priate safety, health, and environmental practices and deter-
3.2.1.1 Discussion—Disinterested parties in the context of
mine the applicability of regulatory limitations prior to use.
this practice are those entity and contracted personnel who are
1.5 This international standard was developed in accor-
required to perform activities outlined in 6.2 who do not have
dance with internationally recognized principles on standard-
asset ownership or custodial responsibility outside of the
ization established in the Decision on Principles for the
specific action being performed in relation to those outlined in
Development of International Standards, Guides and Recom-
6.2.Any party who has a segregated duty in the asset addition,
mendations issued by the World Trade Organization Technical
deletion, or edit process is inherently NOT a disinterested
Barriers to Trade (TBT) Committee.
party.
This practice is under the jurisdiction of ASTM Committee E53 on Asset
Management and is the direct responsibility of Subcommittee E53.01 on Process For referenced ASTM standards, visit the ASTM website, www.astm.org, or
Management. contact ASTM Customer Service at service@astm.org. For Annual Book of ASTM
Current edition approved July 1, 2021. Published July 2021. DOI: 10.1520/ Standards volume information, refer to the standard’s Document Summary page on
E3298-21. the ASTM website.
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E3298 − 21
3.2.2 electronic asset verification (EAV)—electronically 5.3 IBEdecreasesthetimerequiredtoconductaninventory,
confirming the existence, location, and status of an asset or especially as operational and asset management systems
group of assets. achieve a greater level of integration.
3.2.3 existence—a tangible asset exists and is properly
5.4 The procedures and plans for an IBE must be docu-
accounted for at a certain time. mented and approved in accordance with Practice E2132.
3.2.4 inventory by exception (IBE)—actions or transactions
5.5 IBE allows the physical inventory process to only focus
where assets are touched by independent systems or disinter-
on locating assets that were not touched or physically inven-
ested parties throughout the inventory cycle with supporting
toried.
documentation directly associated with an accountable asset.
5.6 IBE decreases the number of assets requiring an inven-
3.2.4.1 Discussion—Touch includes verification by transac-
tory reconciliation during a specific cycle. This can greatly
tions or records, that is, receiving documents, calibration or
increase the productivity of staff who are tasked with perform-
maintenance logs, intra-entity transfers, location changes, net-
ing a physical inventory.
work log-in, shipping documents, network pings, etc.
3.2.5 inventory cycle—the inventory cycle is determined by
6. Inventory Touch Points
the frequency of the inventory.
6.1 IBE can be performed when a person touches an asset,
3.2.5.1 Discussion—The ideal go
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