Before you make a simple stock report, you should know things related to stock or inventory so you don’t get dizzy. If in a manufacturing company, the inventory is interpreted as a deposit of raw materials and goods whose assets will be processed into finished goods so that they have greater economic value added which will later be sold to consumers. However, in trading companies, goods inventory is defined as deposits of a number of goods that usually being stored in the ??? that are ready to be sold to consumers. If viewed from the point of view, merchandise inventories are interpreted as goods belonging to the company to be resold in operational activities. The supply of goods in the manufacturing company consists of supplies of raw materials and finished goods heated storage near me.

The Basics Of Goods & Inventory Management

In the inventory there are also inventory basics as follows:

The balance sheet in the inventory of manufacturing and trading companies informs inventories that are quite large current assets.

The income statement, inventory is a matter that can determine profits or results of a business.

Gross income is overseen by company management, owners and other parties.

Characteristics of Merchandise Inventory:

The inventory is owned by the company.
The inventory is in the form of goods that are ready for sale.

The Mistakes In Inventory Management

But managing inventory can be dizzying, especially when reporting simple stock items. Actually what makes you confused about inventory management?

There is no plan for inventory control. Planning and projections are important to estimate the right time to order goods and also what items are needed. So, the existing stock will never be empty.

Lack of understanding of the inventory system and the cost method. This lack of understanding often occurs in items that have been damaged, expired and even disappear. Then the result is the burden will increase and end with a loss.

When aware of mistakes in recording the stock, human resources are less capable of improvement.

There is no inventory control system.

Not using an accounting application to increase inventory.