Decree-Law No. 98/2015 transposes into Portuguese legislation Directive No. 2013/34/EU of the European Parliament and of the Council of 26 June 2013, introducing a fundamental change in terms of the mandatory adoption of the permanent inventory system.
This obligation, already in force in most EU countries, comes into force in Portugal as early as January/2016.
This is what Article 12(1) provides.
Entities … are obliged to adopt the perpetual inventory system in the accounting of inventories, in the following terms.
a) Carry out physical counts of inventories with reference to the end of the period, or, throughout the period, on a rotating basis, so that each asset is counted at least once in each period
b) Identify the goods in terms of their nature, quantity and unit and global costs, in order to allow verification, at all times, of the correspondence between the physical counts and the respective accounting records.”
Combining paragraphs 2, 4 and 5 of the same article 12, the following are exempt from this obligation:
1. Micro-entities, that is, entities that at the balance sheet date of the previous year do not exceed two of the following three limits:
a) Balance sheet total: (euro) 350,000;
b) Net turnover: (euro) 700,000;
c) Average number of employees during the period: 10
2. Retail sales outlets that, as a whole, do not have sales in excess of (euro) 300,000 or 10% of the total sales of the respective entity in the period of a financial year.
3. Entities whose main activity is the provision of services, considered as such, for the purposes of this article, those that present, in the period of one year, a cost of goods sold and materials consumed that does not exceed (euro) 300,000 nor 20% of the respective operating costs.
As a result, the obligation to carry out physical counts of inventories, normally carried out annually and referring to the date of December 31, for the above entities is now permanent, that is, monthly.
Companies that have computerized inventory management systems naturally deal with the issue, but those who do not have this tool must carry out physical counts every month.
It remains to be remembered that this obligation comes into force in January/2016, so esteemed customers must attach this information to the documents of each month to be sent to the accounting department.
Reading this circular does not exempt you from reading the entire diploma.
As always, Granconta is at your entire disposal to provide any clarifications.