JOB AID ON HOW TO

ACCOMPLISH BIR YEAR

END INVENTORY REPORT
FOR RETAIL INDUSTRY
BACKGROUND
1. Who are required to submit the inventory list?
• Taxpayers who maintain saleable inventories or inventories intended for sale
• Taxpayers with zero balance saleable inventories or inventories intended for sale, at the end of
the fiscal year or calendar year, is still required to submit the enhanced inventory list with no
details.
• Taxpayers in actual possession of goods, whether taxpayer has title thereto or not, provided
these goods are actually situated in the head office, branch or facilities of the taxpayer.
2. What should be included in the inventory list?
Only saleable inventories or inventories intended for sale. Office supplies, manufacturing supplies,
parts and materials not forming part of the saleable inventories shall not be included.
BACKGROUND
3. What is the mode of submission?
The soft copies of the enhanced inventory list shall be stored in Digital Versatile
Disk-Recordable (DVD-R) properly labeled (name, address and TIN of the
taxpayer, period covered and the statement pursuant to RMC No. 57-2015)
should be submitted together with the hard copy of the enhanced inventory list
and notarized certification, as shown in Annex “D” of the RMC, duly signed by
the authorized representative of the taxpayer.

4. What is the deadline of the submission of the inventory list?

on or before the 30th day following the close of the taxable year.
Steps on how to prepare:
1. Request for the client’s year end Inventory report. Make sure that
the following details are present on the report:
• Inventory or product code, if available;
• Product name/ or item description;
• Location of the inventory, the branch the inventory was located;
• Cost or unit price;
• Quantity or no. of stocks; and the
• Unit of measure of the quantity.
E.G.
PRODUC LOCATION (Note 1) UNIT OF
T/ UNIT QUANTITY MEASURE
ITEM DESCRIPTION (In weight
INVENTO ADDRESS PRICE IN STOCKS e.g., kilos,
RY CODE
grams,
F0001 0-0-60 ATLAS Surallah Main Warehouse 1,146.00 622 Bag/s
F0001 0-0-60 ATLAS Gensan Branch 38.00 2,252 Bag/s
F0002 1-2-3 50g Surallah Main Warehouse 6.00 17 Case/s
 Note that the mentioned details are necessary for the Inventory Report.
2. Locate the Inventory Report package soft copy files of your clients. Please
refer to previous year’s soft copy files. Rename the files as “(Client
abbreviation) INVENTORY LIST 2017” e.g AFSI Inventory List 2017.
3. The inventory report package contains: (1) Inventory list and (2) Sworn
Declaration. Update the sworn declaration (see Annex A) in 7 copies have
it signed by the proprietor or the Corporate President. The document
must be transmitted back to our office before January 20, 2018, already
notarized.
4. Update your client working paper file as of December 31, 2017. Have it
review by KDO or JDA.
5. After discussions with KDO and JDA, present the proposed working paper
files to MGM or PTM for approval.
6. Accomplish the Inventory List (see sample on ANNEX B);
ABIGAIL FARM SUPPLY, INC
MERCHANDISE INVENTORY
As of December 31, 2016

LOCATION (Note 1) INVENTORY UNIT OF TOTAL

PRODUC
T/ C REM VALUATION UNIT QUANTITY MEASURE WEIGH
ITEM DESCRIPTION METHOD (In weight T/ TOTAL COST
INVENTO ADDRESS O ARK PRICE IN STOCKS e.g., kilos, VOLUM
RY CODE DE S (Note 2)
grams, E
F0001 0-0-60 ATLAS Surallah Main Warehouse O Weighted average 1,146.00 622 Bag/s 712,812.00
F0001 0-0-60 ATLAS Gensan Branch O Weighted average 38.00 2,252 Bag/s 85,576.00
F0002 1-2-3 50g Surallah Main Warehouse O Weighted average 6.00 17 Case/s 102.00

• Product/ Inventory code- refer to the internal product coding of the client, if there is;
• Item description- refers to the name and description of the product
• Address- refers to the branch or warehouse location of the product
• Code- “CH” for goods on consignment
• “P” parked good or goods owned by related parties
• “O” Goods owned by the taxpayer
• “Co” Goods out on consignment held in the hands of entity other than the taxpayer
• Inventory valuation- the costing method
• Unit price is the cost of the item
• Quantity in stocks- no. of items in the location
• Unit measure
6. Present the Inventory report package to KDO and JDA for final
review;
7. Once approved, transmit 3 sets of inventory list to client for
proprietor or Corporate President signature;
8. Secure again the signed inventory list from the client and collate it
with the sworn declaration file. Prepare it in 3 sets.
9. Burn the inventory package CD and must properly labeled (name,
address and TIN of the taxpayer, period covered and the statement
pursuant to RMC No. 57-2015)
10. Endorse the files to the BIR filing in-charge on or before January 26,
2018.