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Institute For Oil & Gas Training
OGI-1137 New

Inventory & Materials Accounting: Drilling Consumables & Stock Training Course

Duration
5 days
CPD hours
15
Language
English
Next date
05 Oct 2026
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Overview

The Inventory & Materials Accounting: Drilling Consumables & Stock Training Course from Institute For Oil & Gas Training develops practical capability in controlling, valuing, recording, and reporting drilling consumables and stock across oil and gas operations. Inventory & Materials Accounting is a critical finance and operational discipline because drilling materials directly affect well costs, working capital, procurement decisions, warehouse efficiency, and the reliability of financial information.

Oil and gas organisations manage substantial volumes of drilling consumables, spare materials, maintenance items, chemicals, tubular-related materials, equipment components, personal protective equipment, and other operational stock. These materials move through procurement, receiving, storage, issue, transfer, consumption, return, adjustment, and disposal processes. Weak controls at any stage create inaccurate inventory records, unexplained variances, excess stock, stockouts, obsolete materials, and unreliable well cost information.

This course addresses the practical skills gap between financial accounting requirements and the operational realities of drilling materials management. It examines how finance, procurement, warehouse, drilling, logistics, and operations teams work together to establish accurate stock records and reliable cost information. Participants develop an integrated understanding of inventory transactions, stock valuation methods, physical stock count procedures, cycle counting, warehouse controls, material transfers between wells, and the financial treatment of surplus and scrap materials.

The course focuses on the accounting implications of drilling consumables from receipt through final consumption. Participants examine purchase costs, inventory movements, issues to operations, returns, transfers, adjustments, write-downs, and provisions. Particular attention is given to weighted average cost and the relationship between inventory valuation and operational cost reporting.

Effective materials management requires more than maintaining quantities in an inventory system. Organisations need clear ownership, accurate master data, disciplined transaction processing, appropriate approval controls, reliable warehouse records, and effective reconciliation between physical stock and accounting records. The course therefore connects accounting principles with practical warehouse and field processes.

Participants also explore how inventory records support drilling cost analysis and management reporting. Correct allocation of materials to wells, projects, cost centres, work orders, and operational activities provides stronger visibility over expenditure and improves the quality of financial analysis. Material transfers between wells require particular attention because inaccurate transfer records can distort both inventory balances and individual well cost information.

Stock valuation is another central area of the course. Participants examine the application of weighted average cost, the treatment of purchase-related costs, inventory adjustments, and the identification of items requiring an obsolescence provision. They also examine the financial and operational implications of surplus and scrap materials and the controls required before disposal or write-off.

The programme is designed around realistic oil and gas scenarios rather than theoretical accounting exercises. Case studies reflect drilling-related inventory transactions, warehouse discrepancies, emergency material movements, excess stock, damaged items, obsolete consumables, and differences identified during physical stock count activities.

Institute For Oil & Gas Training delivers the course for professionals who need stronger coordination between accounting, materials management, procurement, warehouse operations, drilling operations, and supply chain functions. The result is a practical capability for maintaining more reliable inventory information and supporting stronger financial control across drilling activities.

Objectives

  • Develop practical knowledge of Inventory & Materials Accounting for drilling consumables and operational stock

  • Understand the complete inventory transaction cycle from purchasing and receiving through issue, transfer, return, adjustment, and disposal

  • Apply appropriate stock valuation methods to oil and gas inventory transactions

  • Understand weighted average cost and its application to changing purchase prices

  • Strengthen materials management practices across warehouses, drilling locations, and operational sites

  • Improve the accuracy and consistency of inventory records

  • Establish stronger procedures for physical stock count and inventory reconciliation

  • Apply effective cycle counting techniques to high-value and operationally critical materials

  • Strengthen warehouse controls over receipts, storage, issues, returns, transfers, and adjustments

  • Identify slow-moving, obsolete, surplus, damaged, and scrap materials

  • Understand the accounting implications of an obsolescence provision

  • Improve the financial treatment and control of surplus and scrap materials

  • Strengthen controls over material transfers between wells and operational locations

  • Improve reconciliation between inventory systems, warehouse records, and accounting ledgers

  • Identify the causes of stock variances and establish appropriate corrective actions

  • Improve the quality of drilling cost information through accurate material allocation

  • Strengthen collaboration between finance, procurement, warehouse, logistics, drilling, and operations teams

  • Support stronger working capital management through improved inventory visibility and control

  • Improve management reporting through reliable inventory and consumption data

  • Establish a more disciplined approach to inventory adjustments, write-offs, and approvals

Training methodology

Institute For Oil & Gas Training uses a practical corporate delivery approach that connects accounting requirements with real operational situations. The training is structured around case studies, guided analysis, group exercises, transaction scenarios, inventory reconciliation activities, and decision-making exercises.

Participants work through realistic drilling consumables scenarios covering material receipts, stock issues, returns, transfers, adjustments, valuation, and disposal. These exercises demonstrate how individual transactions affect inventory balances, operating costs, well costs, and management reporting.

Case studies focus on common control challenges such as differences between system quantities and physical quantities, incorrect material classifications, duplicated transactions, unrecorded transfers, damaged stock, slow-moving materials, obsolete items, and unexplained inventory variances.

Practical exercises address weighted average cost calculations and stock valuation decisions. Participants analyse how successive purchases at different prices affect inventory values and understand how reliable transaction data supports consistent financial reporting.

Group exercises examine physical stock count planning and cycle counting programmes. Participants consider count preparation, segregation of duties, count documentation, discrepancy investigation, approval of adjustments, and reconciliation between warehouse records and accounting systems.

Real-world scenarios also address material transfers between wells. Participants assess the documentation and accounting implications of transferring materials between locations, cost centres, projects, and operational activities.

The methodology encourages collaboration between finance and operational functions. Participants analyse situations from both accounting and materials management perspectives, helping them understand how warehouse decisions influence financial reporting and how accounting requirements influence operational controls.

Exercises are designed around practical judgement and control discipline. Participants identify the appropriate transaction treatment, determine the required supporting documentation, assess the impact on inventory records, and establish the reconciliation steps required to maintain accurate information.

Organisational impact

Effective Inventory & Materials Accounting provides organisations with stronger control over one of the most operationally important areas of drilling expenditure. Accurate inventory information enables finance and operations teams to understand what materials are held, where they are located, how much they cost, and how they are being consumed.

Improved stock records reduce the risk of unexplained inventory variances and strengthen the reliability of financial reporting. Better transaction discipline also provides clearer audit trails for receipts, issues, returns, transfers, adjustments, and disposals.

Stronger warehouse controls support better availability of operational materials while reducing unnecessary accumulation of excess stock. Clearer visibility of stock levels supports procurement decisions and helps organisations distinguish genuine operational requirements from surplus holdings.

Improved stock valuation methods provide more consistent information for financial reporting and cost analysis. Understanding weighted average cost helps finance teams maintain appropriate inventory values when materials are purchased at different prices.

Effective obsolescence assessment supports more accurate recognition of inventory that has lost operational or economic value. Early identification of obsolete and slow-moving items also supports management decisions concerning reuse, redeployment, disposal, or replacement.

Physical stock count and cycle counting disciplines improve confidence in inventory records. When physical quantities are reconciled systematically with system records, organisations gain stronger visibility over discrepancies and their underlying causes.

Improved controls over material transfers between wells help preserve the accuracy of well-level cost reporting. Transfers that are properly documented and recorded ensure that inventory balances and operational expenditure remain aligned with the actual movement of materials.

Better treatment of surplus and scrap materials supports stronger working capital management and reduces the risk of carrying inappropriate stock balances. Clear procedures also provide stronger governance around write-offs, disposal, and management approval.

The course also supports cross-functional efficiency. When finance, warehouse, procurement, logistics, and drilling teams use consistent processes and understand the accounting consequences of operational transactions, fewer reconciliation issues arise and management receives more reliable information.

The organisational outcome is stronger inventory governance, improved cost visibility, more reliable financial records, better warehouse discipline, and improved decision support for drilling operations.

Personal impact

Participants develop practical skills that directly support finance, accounting, supply chain, procurement, warehouse, drilling, and operations responsibilities.

They gain a stronger understanding of how drilling materials move through operational and accounting systems and how individual transactions affect inventory balances and costs.

Participants improve their ability to assess inventory records, investigate discrepancies, interpret stock movements, and identify weaknesses in transaction controls.

They develop practical competence in stock valuation methods, including weighted average cost, and gain a clearer understanding of the relationship between material prices, inventory values, and operational expenditure.

The course strengthens participants' ability to plan and review physical stock count activities and apply cycle counting techniques to improve inventory accuracy.

Professionals also develop stronger capabilities in identifying obsolete, surplus, damaged, and scrap materials and understanding the accounting consequences of these classifications.

Participants responsible for well accounting and cost reporting gain stronger skills in controlling material transfers between wells and ensuring that operational consumption is allocated accurately.

Finance professionals improve their understanding of warehouse and materials management processes, while warehouse and supply chain professionals gain stronger awareness of accounting requirements.

The course supports stronger cross-functional communication because participants learn to interpret inventory issues from both financial and operational perspectives.

For managers and supervisors, the programme provides a structured basis for reviewing inventory controls, assigning accountability, monitoring stock performance, and strengthening reconciliation processes.

Who should attend

Petroleum Accountants

Designed for accountants responsible for inventory records, drilling costs, material consumption, reconciliations, and financial reporting.

Management Accountants

Supports professionals who analyse operational expenditure, inventory values, well costs, and cost variances.

Inventory Accountants

Provides practical methods for controlling inventory transactions, valuation, adjustments, provisions, and reconciliations.

Materials Management Professionals

Strengthens understanding of the accounting consequences of material receipts, issues, transfers, returns, and stock adjustments.

Warehouse Managers and Supervisors

Helps warehouse leaders improve stock accuracy, physical controls, counting procedures, and transaction discipline.

Supply Chain Professionals

Supports professionals involved in procurement, inventory planning, materials movement, logistics, and stock optimisation.

Drilling Operations Professionals

Provides stronger understanding of how drilling consumables are recorded, allocated, transferred, consumed, and reconciled.

Procurement Professionals

Helps procurement teams understand how purchasing transactions, material costs, and stock levels affect inventory accounting.

Finance Managers

Supports managers responsible for inventory governance, financial control, cost reporting, and management information.

Internal Auditors

Provides practical understanding of inventory control points, stock reconciliation, valuation, and discrepancy investigation.

Cost Controllers

Strengthens capability in monitoring material expenditure, well costs, inventory movements, and operational cost allocation.

Senior Accounting and Finance Professionals

Provides an integrated perspective on inventory governance and the relationship between operational materials management and financial reporting.

Course outline

This module establishes the accounting and operational foundations required to control drilling consumables and stock. It examines the inventory lifecycle and explains how procurement, warehouse, drilling, logistics, and finance activities connect within an integrated materials management process.

  1. IAS 2 Inventories

    • Establishes accounting principles for recognising and measuring inventories

    • Provides requirements for determining inventory cost

    • Addresses measurement of inventories and recognition of inventory write-downs

    • Supports consistent treatment of inventory values in financial reporting

    Learning Outcomes

    • Explain the role of Inventory & Materials Accounting in drilling operations

    • Distinguish major categories of drilling consumables and stock

    • Trace inventory transactions from receipt through consumption

    • Identify key accounting and operational control points

    • Connect material movements with financial records

    • Recognise the importance of accurate inventory master data and transaction documentation

This module focuses on inventory valuation and the treatment of material costs. Participants examine stock valuation methods and apply weighted average cost to practical drilling inventory scenarios involving repeated purchases at different prices.

  1. IFRS 13 Fair Value Measurement

    • Provides a framework for determining fair value when fair value measurement is required

    • Establishes principles for fair value measurement and related disclosures

    • Supports clear distinction between inventory cost measurement and fair value concepts

    • Provides relevant measurement principles for circumstances where valuation assessments require fair value consideration

    Learning Outcomes

    • Apply appropriate stock valuation methods to drilling materials

    • Calculate weighted average cost using practical inventory transactions

    • Understand how purchase price changes affect inventory values

    • Assess the impact of inventory adjustments on financial records

    • Connect inventory valuation with drilling cost reporting

    • Improve the consistency of inventory costing and reconciliation procedures

This module develops practical control capabilities for maintaining accurate physical and system inventory records. It focuses on physical stock count planning, cycle counting, discrepancy investigation, and warehouse controls across drilling materials locations.

  1. ISO 9001 Quality Management Systems

    • Establishes principles for controlled processes and documented information

    • Supports consistent operational procedures and process monitoring

    • Promotes evidence-based evaluation and corrective action

    • Provides a recognised framework for maintaining controlled and repeatable processes

    Learning Outcomes

    • Plan and support effective physical stock count activities

    • Apply practical cycle counting techniques

    • Identify common causes of stock discrepancies

    • Strengthen warehouse controls over inventory transactions

    • Reconcile physical quantities with system records

    • Establish appropriate corrective actions for inventory variances

    • Improve inventory accuracy through disciplined counting and control procedures

This module addresses the management and accounting treatment of inventory that is no longer required, has reduced usability, or requires financial adjustment. Participants examine obsolescence provision, surplus and scrap materials, damaged stock, and controlled disposal processes.

  1. ISO 31000 Risk Management Guidelines

    • Provides principles and guidance for identifying and managing organisational risks

    • Supports structured assessment of operational and financial risks

    • Encourages risk-based decision-making and monitoring

    • Provides a recognised framework for strengthening risk controls around inventory exposures

    Learning Outcomes

    • Identify obsolete, slow-moving, surplus, damaged, and scrap materials

    • Understand the purpose of an obsolescence provision

    • Assess inventory risks associated with excess and obsolete stock

    • Establish appropriate controls for inventory write-offs

    • Improve documentation for surplus and scrap material decisions

    • Support stronger financial reporting through timely inventory review

    • Improve coordination between warehouse, finance, procurement, and operations teams

Certificate

Attendees receive a Certificate of Completion from Institute For Oil & Gas Training upon successfully finishing the course. Certificate issuance is subject to meeting the Institute's attendance requirement for the programme.

Course dates

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,500

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,500

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,500

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,500

Fees include tuition, course materials and refreshments. Need different dates or a different city? Ask about your preferred date.

Frequently asked questions

What does the Inventory & Materials Accounting course cover?

The course covers drilling consumables, materials management, stock valuation methods, weighted average cost, physical stock count, cycle counting, warehouse controls, inventory reconciliation, obsolescence provision, surplus and scrap materials, and material transfers between wells.

Who is this course designed for?

The course is designed for petroleum accountants, management accountants, inventory accountants, materials management professionals, warehouse managers, supply chain professionals, drilling personnel, procurement professionals, cost controllers, finance managers, and internal auditors.

How is the course delivered?

Institute For Oil & Gas Training uses corporate-focused delivery methods including case studies, practical exercises, group activities, inventory scenarios, stock reconciliation exercises, and realistic drilling materials situations.

Will the course cover weighted average cost?

Yes. Participants examine weighted average cost as a stock valuation method and apply the approach to practical inventory transactions involving changing purchase prices, material receipts, issues, returns, and adjustments.

What certificate is provided after the course?

Attendees receive a Certificate of Completion from Institute For Oil & Gas Training upon finishing the course, subject to meeting the Institute's attendance requirement.

Next: 05 Oct 2026

4 dates available

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