Inventory Management: How Do You Know You Have The Right Solution?
The perpetual inventory stocks
The inventory management software is an on-going accounting of inventory accounts which, by recording the movements, are able to understand, consistently during the year, the existing numerical quantity and value. These figures are theoretical, however, because in realistic, there are differences due to al breaks, flights.
We differentiate stocks of products purchased (goods, raw materials, consumables) stocks of manufactured products.
Stocks for the first type, there will definitely be a document (invoice) that will certainly boost their value. For others, it is an inner calculation to the business enables.
There will be two things to assess: the 1st entries and exits on the further.
The evaluation of stocks of inputs
For products bought, the entrance is in-stock at fee, ie the net purchase cost excluding tax increased direct fees of acquiring and indirect costs such as charge center supply analysis.
For manufactured products, the entry of products in stock is the cost of creation, ie the rate of materials consumed increased direct expenses of creation and overhead prices
In practice, it is needed to fit on a stock card for each group of "products". This form is in fact an account that will definitely appear in its movement, volume and value, the preliminary stock of the study period and the different entries.
Assessment of withdrawals
All items saved from the warehouse price at which it entered.
This is the rule enacted by the General Accounting Plan, but it assumes that each product is identifiable and perfectly individualized by the company.
In the situation of items acquired or produced in multitudes and not individualized (referred to as fungible) the rule is inapplicable.
In practice, we will certainly maintain the stock card, which will definitely tape to his credit, in quantity and value, the outputs of the study period, the account balance is then the final stock.
The balance still debtor is a theoretical balance.
Thus, we acquire the following formula:
Starting Inventory + Amount = Sum of inputs + outputs final stock
The inventory management software is an on-going accounting of inventory accounts which, by recording the movements, are able to understand, consistently during the year, the existing numerical quantity and value. These figures are theoretical, however, because in realistic, there are differences due to al breaks, flights.
We differentiate stocks of products purchased (goods, raw materials, consumables) stocks of manufactured products.
Stocks for the first type, there will definitely be a document (invoice) that will certainly boost their value. For others, it is an inner calculation to the business enables.
There will be two things to assess: the 1st entries and exits on the further.
The evaluation of stocks of inputs
For products bought, the entrance is in-stock at fee, ie the net purchase cost excluding tax increased direct fees of acquiring and indirect costs such as charge center supply analysis.
For manufactured products, the entry of products in stock is the cost of creation, ie the rate of materials consumed increased direct expenses of creation and overhead prices
In practice, it is needed to fit on a stock card for each group of "products". This form is in fact an account that will definitely appear in its movement, volume and value, the preliminary stock of the study period and the different entries.
Assessment of withdrawals
All items saved from the warehouse price at which it entered.
This is the rule enacted by the General Accounting Plan, but it assumes that each product is identifiable and perfectly individualized by the company.
In the situation of items acquired or produced in multitudes and not individualized (referred to as fungible) the rule is inapplicable.
In practice, we will certainly maintain the stock card, which will definitely tape to his credit, in quantity and value, the outputs of the study period, the account balance is then the final stock.
The balance still debtor is a theoretical balance.
Thus, we acquire the following formula:
Starting Inventory + Amount = Sum of inputs + outputs final stock
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