Research On Internal Inventory Control Of T County Electric Power Company

Authorized by the state council in 2002,the State Grid Corporation of China(SGCC)became state share-holding company.Covering 26 provinces,it shares its responsibility of power supply and is committed to construction and management of power grid.State Grid Henan Electric Power Company is a very important part of it.As subordinate unit of State Grid,County power companies are also responsible for the power grid management in its administrative area as well as power transmission and distribution,construction of transformer substation and the maintenance of power grid.Taking T County as an example,its electric power company has some problems remain to be solved.As a terminal end of State Grid,its poor execution of internal control policies from superior department and the comprehensive quality of basic staff cause a lot of issues in terms of internal inventory control.Inventory is an important part of current assets,sharing about 40% of it.It reflects the capital turnover of power companies and is a very important reference of its producing and operating status.We should not neglect its importance in internal control.To build a scientific and practical regulatory system under the theoretical guidance of internal control based on features of different company has significant meaning in optimizing overall circumstance and reducing management risk.This paper,based on the theory of internal control,divides the internal inventory control of T company into six circulation links.They are procurement,warehouse acceptance,storage,inventory outgoing,inventory check and waste treatment.Combined with the production characteristics of the power supply units,this paper give a full analyze on status of internal inventory control and pointes out existing issues.From the overall analyze of T county power company,we conclude that the main reason of these issues is lack of practice.After pointing out the issues existing in inventory atmosphere,control activities,risk management,information communication and regulatory,this paper brings up suggestions of optimizations of these issues and offers a safeguard mechanism for the execution of internal control.