ASTM E2132-17

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it may not be technically possible to adequately depict all changes accurately, ASTM recommends that users consult prior editions as appropriate. In all cases only the current version
of the standard as published by ASTM is to be considered the official document.
Designation: E2132 − 11 E2132 − 17
Standard Practice for
Inventory Verification: Electronic and Physical Inventory of
Assets
This standard is issued under the fixed designation E2132; 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.
1. Scope
1.1 This practice addresses inventory verification which includes either physically or electronically confirming the existence,
location, and quantity of assets.
1.2 Inventory verification is a key element in the asset management process.
1.3 The appropriate level to track assets is best expressed in Practices E2499 and E2608. Different types of assets may be
managed or tracked at different levels of control, as noted in Practice E2608. The location specificity required for an inventory
verification should match the location specificity required by the entity’s asset management procedures or other controlling
command media.
1.4 Inventory verification requires proper planning and execution. Depending on the type and scope, the inventory verification
can involve significant dedication of resources. Entities should ensure that the value earned from an inventory verification is equal
to or greater than the costs of the dedication of resources.
2. Referenced Documents
2.1 ASTM Standards:
E2131 Practice for Addressing and Reporting Losses of Tangible Property
E2135 Terminology for Property and Asset Management
E2499 Practice for Classification of Asset Physical Location Information
E2604 Practice for Data Characteristics of Equipment Asset Record
E2608 Practice for Equipment Control Matrix (ECM)
E2674 Practice for Assessment of Impact of Mobile Data Storage Device (MDSD) Loss (Withdrawn 2015)
3. Terminology
3.1 Definitions—For definitions relating to property and asset management, refer to Terminology E2135.
3.1.1 independence, n—free from conflict of interest.
3.1.2 independent data source, n—information that is autonomous from the official record.
3.1.3 inventory verification, n—physically or electronically confirming the existence and location of an asset or group of assets.
3.1.4 overage, n—assets that are located during the inventory verification that were not previously recorded.
3.1.5 reconciliation, n—the process of comparing the assets and associated data collected during the inventory verification
against the entity’s assets record information.
This practice is under the jurisdiction of ASTM Committee E53 on Asset Management and is the direct responsibility of E53.01 on Process Management.
Current edition approved Dec. 1, 2011Jan. 1, 2017. Published January 2012February 2017. Originally approved in 2001. Last previous edition approved in 20072011 as
E2132 – 01 (2007).E2132 – 11. DOI: 10.1520/E2132-11. 10.1520/E2132-17.
3.1.5.1 Discussion—
The reconciliation serves to verify existence of assets contained in the official records and the accuracy of the data maintained on
the records, with corrective action taken as necessary.
3.1.6 shortage, n—assets that are not located during the inventory verification that were previously recorded.
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E2132 − 17
4. Significance and Use
4.1 Inventory verification is conducted to accomplish one or more of the following:
4.1.1 Assess the accuracy of asset records,
4.1.2 Update Validate or update asset records, or both,
4.1.3 Assess asset loss experience,
4.1.4 Identify process inconsistencies, and
4.1.5 Provide the status of the verified assets for reporting purposes.
4.2 A properly conducted inventory verification provides data that may be used to report, at a minimum, that quantity on record
equal quantities on hand.
4.2.1 Identifying shortages is critical for assessing the entity’sentity’s asset management system.
4.3 During the inventory verification, record deficiencies, such as incorrect locations or other descriptive information that may
be identified. These records should be corrected as part of the reconciliation phase.
4.4 Assets may be located during the inventory verification process for which a record does not exist. Records should be created
upon identification of these assets to ensure asset accountability.
4.5 Inventory verification serves as a deterrent to loss, theft, damage, and misuse so those responsible for assets perceive that
they will be held accountable for such assets, and will be required to produce proof of existence of those assets on a periodic basis.
4.6 An inventory verification may include identification or verification of additional information, such as use, condition, status,
serial number confirmation, model confirmation, manufacturer confirmation, assigned user, year of manufacture, etc.
5. Physical Inventory Planning:Planning
5.1 General:
5.1.1 Detailed planning, coordination, and adequate supervision are necessary to ensure success of the inventory verification.
Written procedures for planning, conducting, and reconciling are requisite to conducting a successful inventory verification.
Inventory verifications should be completed by consistently applying these written procedures. Inventory verifications generally
measure performance over a period of months or years and results are often compared to identify trends or problem areas. Entities
that repeat past inventory verification, unless found to have been previously deficient or ineffective, will be able to make the results
comparable from year to year.inventory verification to inventory verification.
5.1.2 As inventory verifications generally involve significant time and, resources appropriate project management techniques
should be employed. Written procedures for planning the inventory verification should address the elements in 5.2 through 5.13
when planning.
5.1.3 There are several factors an entity must consider prior to determining the appropriate inventory verification method. These
factors include:
5.1.3.1 The type of asset(s),
5.1.3.2 The number of assets,
5.1.3.3 The number of locations,
5.1.3.4 The required data elements to be collected,
5.1.3.5 Cost restrictions, and
5.1.3.6 Resources.
5.2 Management and Accountability—Assign responsibility, authority, and accountability for the conduct of the inventory
verification and the results.
5.3 Key Results Required—When planning, an entity should determine the questions or actions, or both, that will be addressed
based on the results of the inventory verification. For example, common questions include:
• How effective are the processes associated with asset management systems?
• What is the percentage of located assets by value and physical count? Value may include original acquisition cost, net book
value, or market value. Once a value is selected, it shall be used consistently. This is an indicator of an entity’s success, or lack
thereof, in managing its assets.
• What is the number or percentage of overages? This is an indicator of an entity’s success at achieving control of or data
management over inbound or newly fabricated assets.
• What is the percentage of undocumented or unrecorded location changes? This is an indicator of an entity’s location record
accuracy and process of asset control and record updates supporting moves and transfers.
All subsequent elements of inventory verification planning must accommodate measurement of key results with sufficient
accuracy and precision for decision-making.
5.4 Population:
5.4.1 Determine the population to be verified. A population may be defined by asset type, value, location, age, controlling entity
or program, use status, or other categories. A population may also be defined using the criteria in Practice E2608.
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5.4.2 The population to be verified shall be set at the beginning of the inventory verification period and “frozen.” New receipts
after the beginning of the period should be excluded from the count and assets transferred or disposed prior to the beginning of
the period “frozen” (that is, no additions or deletions should be allowed to the population). Records should be updated prior to
“freezing” the population to reflect status of open transfers and disposals. New items received after the inventory verification has
started should be excluded from the inventory verification reconciliation and statistics. Establish clear asset management
procedures for removal of assets from the population due to other circumstances (for example, if it is determined during the course
of the inventory verification that an asset was previously sold or cannibalized).count and the inventory verification statistics.
5.5 Independence—Internal controls are established to determine how an inventory verification is conducted, verified,
reconciled, recorded and reported. Independence is established by removing conflicts of interest through defining roles.
5.6 Data Requirements—Beyond the key results, results determined in a
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