SyteLine Excess and Obsolete Inventory Review Template
An excess and obsolete review is only defensible if each decision is documented. This form captures the item, the evidence that demand is gone, the proposed disposition and the sign off finance and operations need.
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SyteLine Excess and Obsolete Inventory Review Template
Excess and Obsolete Inventory Review
Company: Acme Precision Ltd Site: Main plant, MAIN Review date: 2026-10-20
Item details
| Field | Value |
|---|---|
| Item number | BRK-1001 |
| Description | Bracket, mounting, 2mm steel |
| Quantity on hand | 1,850 EA |
| Unit cost | $4.15 |
| Last activity | 2025-03-14 |
Classification
Reason: Engineering change Proposed disposition: Rework to current revision
Demand check
| Check | Result | Checked by |
|---|---|---|
| Open sales orders or forecast | ||
| Open jobs or BOM usage (where used) | ||
| Alternate customer or product use | ||
| Vendor return or resale option |
Comments
Superseded by revision C. Rework feasible for about 600 units; remainder has no open demand.
Financial impact
| Item | Amount | Note |
|---|---|---|
| Inventory value | Quantity x unit cost | |
| Reserve required | ||
| Expected recovery | ||
| Net write down |
Approvals
A starting point for your own policy, not accounting or tax advice. Confirm reserve methods and write off treatment with your finance team and auditors.
Excess candidate list from your data
Optional: we can produce a list of likely excess items from your SyteLine data to start your review.
Optional. The tool and every export work without this. No spam.
How to use the form
Start from a list of items with large stock value and no recent activity, for example from your SyteLine inventory and transaction reports. Fill one form per item or per group of related items. Enter the item data, choose a reason and a proposed disposition, and record the demand checks you did. Export to PDF or Word, attach it to your reserve calculation and route it for signatures.
- Check where used before declaring a component obsolete
- Record the date and reviewer for every demand check
- Keep forms with your period end working papers
What a sound review covers
A good review looks forward as well as backward. Last activity date shows past usage, but open sales orders, forecasts, engineering changes, service part needs and warranty obligations determine whether stock has a future. Check alternates and rework options before scrapping, and vendor return terms before the window closes. For aerospace and defense parts, also check contract retention and traceability requirements before disposal.
Common mistakes
Teams often reserve on age alone, which writes down slow but needed spares and misses new items that are already dead. Others scrap parts without recording disposition evidence, which causes audit questions. Delays are costly too, since each quarter of carrying cost adds to the loss. Finally, fixing the cause matters: if overbuying drove the excess, review lot size and safety stock settings so it does not recur.
- Do not rely on age buckets alone
- Document the authority for each write off
- Feed lessons back into planning parameters
Frequently Asked Questions
How long without activity makes an item obsolete?
There is no universal rule. Many policies flag 12 to 24 months without use as a trigger for review, adjusted for service parts and long cycle products. The review decides, not the age alone.
Who should approve write offs?
Typically the materials manager and controller, with operations or general manager sign off above a value threshold. Follow your own authority matrix.
Can I use this for audit evidence?
It can support your documentation, but the reserve method and policy must come from your finance team and auditors. This form is not accounting advice.
What about items with customer owned stock?
Customer owned or consigned stock should be excluded from your reserve and handled under the customer agreement.
If you want candidate excess items identified automatically from your SyteLine data with the supporting evidence prepared for these forms, we can set that up.
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