N.J. Admin. Code § 8:31B-4.19

Current through Register Vol. 56, No. 24, December 18, 2024

Section 8:31B-4.19 - Inventories

(a) Inventories reflect the cost of unused hospital supplies. Any generally accepted cost method (e.g., FIFO, LIFO, Average, etc.) may be used as long as it is consistent with that of the preceding accounting period. Cost of inventories based on the last invoice price is not an acceptable method for determining such costs.

(b) Inventory accounting record systems are required, consistent with the method of the inventory valuation employed. Physical valuations must be made at least once a year and the accounting records adjusted to such valuation when appropriate.

(c) Inventory activity records must be maintained for all inventories that are distributed and used by more than one cost center in the hospital. It is recommended that a formal requisition system be used for this purpose. In all cases, the cost of non-billable supplies used during the period must be distributed to the user cost center, preferably on a monthly basis.

N.J. Admin. Code § 8:31B-4.19