Goto Section: 32.1191 | 32.1280 | Table of Contents
Revised as of September 1, 2021
Goto Year:2020 |
§ 32.1220 Inventories.
(a) This account shall include the cost of materials and supplies held
in stock and inventories of goods held for resale or lease. The
investment in inventories shall be maintained in the following
1220.1 Material and supplies
1220.2 Property held for sale or lease
(b) These subaccounts shall not include items which are related to a
nonregulated activity unless that activity involves joint or common use
of assets and resources in the provision of regulated and nonregulated
products and services.
(c) 1220.1 Material and supplies. This subaccount shall include cost of
material and supplies held in stock including plant supplies, motor
vehicles supplies, tools, fuel, other supplies and material and
articles of the company in process of manufacture for supply stock.
(Note also § 32.2000(c)(2)(iii) of this subpart.)
(d) Transportation charges and sales and use taxes, so far as
practicable, shall be included as a part of the cost of the particular
material to which they relate. Transportation and sales and use taxes
which are not included as part of the cost of particular material shall
be equitably apportioned among the detail accounts to which material is
(e) So far as practicable, cash and other discount on material shall be
deducted in determining cost of the particular material to which they
relate or credited to the account to which the material is charged.
When such deduction is not practicable, discounts shall be equitably
apportioned among the detail accounts to which material is charged.
(f) Material recovered in connection with construction, maintenance or
retirement of property shall be charged to this account as follows:
(1) Reusable items that, when installed or in service, were retirement
units shall be included in this account at the original cost, estimated
if not known. (Note also § 32.2000(d)(3) of this subpart.)
(2) Reusable minor items that, when installed or in service, were not
retirement units shall be included in this account at current prices
(3) The cost of repairing reusable material shall be charged to the
appropriate account in the Plant Specific Operations Expense accounts.
(4) Scrap and nonusable material included in this account shall be
carried at the estimated amount which will be received therefor. The
difference between the amounts realized for scrap and nonusable
material sold and the amounts at which it is carried in this account,
so far as practicable, shall be adjusted in the accounts credited when
the material was taken up in this account.
(g) Interest paid on material bills, the payments of which are delayed,
shall be charged to Account 7500, Interest and related items.
(h) Inventories of material and supplies shall be taken periodically or
frequently enough for reporting purposes, as appropriate, in accordance
with generally accepted accounting principles. The adjustments to this
account shall be charged or credited to Account 6512, Provisioning
(i) 1220.2 Property held for sale or lease. This subaccount shall
include the cost of all items purchased for resale or lease. The cost
shall include applicable transportation charges, sales and use taxes,
and cash and other purchase discounts. Inventory shortage and overage
shall be charged and credited, respectively, to Account 5280,
Nonregulated operating revenue.
[ 52 FR 39534 , Oct. 22, 1987, as amended at 53 FR 49322 , Dec. 7, 1988;
67 FR 5682 , Feb. 6, 2002]
Goto Section: 32.1191 | 32.1280
Goto Year: 2020 |
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