Thursday, March 1, 2012

Effective Stock Management And Exactly What It Implies For Your Business

By Hector Weber


The perpetual inventory stocks

The inventory management software is an ongoing accounting of inventory accounts which, by tape-recording the movements, can easily recognize, constantly during the year, the existing numerical volume and value. These figures are theoretical, however, because in realistic, there are differences due to al breaks, flights.

We distinguish stocks of products acquired (goods, raw materials, consumables) stocks of manufactured items.

Stocks for the first type, there will definitely be a paper (invoice) that will improve their value. For others, it is an internal calculation to the company enables.

There will certainly be two things to assess: the 1st entries and exits on the further.

The assessment of stocks of inputs

For products purchased, the entrance is in-stock at charge, ie the net purchase rate excluding tax increased direct expenses of purchasing and indirect prices such as fee center supply analysis.

For manufactured items, the entrance of products in stock is the price of production, ie the rate of materials taken increased direct charges of creation and overhead costs

In practice, it is necessary to fit on a stock card for each classification of "products". This form is in fact an account that will appear in its flow, volume and value, the preliminary stock of the study duration and the different accesses.

Assessment of withdrawals

All products stored from the warehouse price at which it got in.

This is the regulation enacted by the General Accounting Deal, but it assumes that each product is identifiable and flawlessly individualized by the company.

In the case of items purchased or manufactured in large numbers and not individualized (referred to as fungible) the rule is inapplicable.

In practice, we will certainly preserve the stock card, which will definitely tape to his credit, in quantity and value, the outputs of the research period, the account balance is then the final stock.

The balance still debtor is a theoretical balance.

Thus, we obtain the following formula:

Starting Inventory + Amount = Amount of inputs + outputs final stock




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