Inventory is: understanding and how to maintain a company inventory

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Inventory is: understanding and how to maintain a company inventory

Inventory is understanding and how to maintain a company inventory

The general understanding of inventory is an institutionalized company that can be used for the productivity or operational company. Understanding Office Inventory is the easiest and enjoyable way to learn accounting.

Why? Because the company’s inventory is related to profit or company profit. Well, so that it is more clear to understand the inventory, here we provide a full explanation for you.

Definition of inventory is

To be easier to understand the notion of inventory, here we provide some opinions from trusted experts and speakers.

1. Wikipedia

Reporting from Wikipedia.org, inventory is a word that comes from English which means the goods or materials belonging to the company to be reprocessed to be a product of sales or repairs.

2. Indonesian big dictionary

Whereas according to the big Indonesian dictionary, inventory is a list containing all institutions belonging to institutions, both companies, schools, government, which are useful for carrying out their operations.

3. According to Soemarso S.R

Soemarsono explained that inventory was all goods used by companies or cartons that included the amount, price, type, and also the situation.

4. Muhammad Ali.

He explained that inventory was a list containing all the company’s goods used to carry out the company’s duties. The list in question is a record of all tools and also the material provided so that it can be utilized in the management of the business that is run or as a company’s operational tool.

5. Science and technology

If you compensate for science and technology, office inventory in accounting is all activities and also an effort to get the required data regarding the availability of goods owned and also managed, both obtained through purchases using the budget, or donations or grants to be registered as it should be.

Based on the five sense of the above inventory, we can conclude that inventory is a list of important resources for the sustainability of the company, the neatness in managing inventory and the flow of goods in the company will be the key to the company’s important.

Neat and appropriate inventory management will make it easier for you to analyze the company’s financial statements. Because in financial statements it is very necessary to accurate and valid data.

The mistake made in terms of managing the company’s inventory will result in financial statements to be very chaotic. So if left, it will cause the balance of the balance to become unbalanced and check the check from the beginning.

The importance of managing inventory

1. Reducing depreciation of inventory

Depreciation in accounting is the reduction in the value of acquisition on an item or more, or more precisely the reduced selling value at an item when you want to be sold again.

In general, this depreciation will be more attached to a company’s asset, especially fixed assets such as vehicles will be reduced because the selling value is owned by the vehicle after being used in several years.

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Well, while depreciation of inventory is a reduced amount of inventory of goods that generally occur because of human mistakes in certain periods. The form of reduction is like the for theft, incorrect inventory management, and also a mistake in recording goods.

Depreciation of the inventory will be added and recorded in financial statements in the asset account.

Examples of office inventory list formats are generally in the form of tables of office tools such as office or ATK stationery, and supporting tools for office activities. In this case, the list of office inventories is made into two duplets in order to avoid losing data on the other day.

2. Facilitate the layout access

Managing inventory in a very large warehouse will require more time and more energy, especially with the existence of the inventory of your thousands.

By managing inventory, you will be easier to monitor thousands of types of goods using the layout of goods and also different products. The rapid development in the digital era as it has now been supported by the use of a barcode system at each layout of inventory goods.

In addition, the function of the layout in the goods will also make it easier for the Stock of the Stock at the end of the month, so that the layout placement will be based on each of their respective categories, and reduce the risk of damaged goods, expiration or not worth selling / use, etc..

3. Improve consumer service

With good inventory management, consumer services will also increase with the availability of products. The satisfaction of each consumer will affect the availability of goods because consumers will first choose to buy goods from other companies whose stock of inventory is maintained and is ready to be sent.

In addition, consumers will become more loyal and willing to pay more if you are able to meet their needs faster. In addition, later they will also recommend your business to relatives, their themes or partners to establish cooperation with you.

4. Measuring inventory management performance

Inventory management performance can be measured using KPI or Key Performance Indicator for the sake of work ethos and a more conducive working atmosphere. Increasing the spirit of work on each employee will make you easier to monitor and control the company’s inventory.

The number on the KPI will show how well your company is managing inventory and can facilitate the application of accounting functions.

The best way to keep inventory and manage inventory levels

1. Select the right responsible inventory

Choose one of your staff to be used as inventory managers. Those who have responsibility for inventories must really know the ins and outs of inventory.

The person you choose must also be able to provide a complete inventory report, such as the number of stocks, incoming stock and exit, depreciation, stock valuation, etc. In addition, he will also be responsible for the inventory audit, return of goods, refilling, etc.

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2. Optimize security in warehouses and stores

Increasing security in warehouses and also stores is one of the most effective ways in maintaining inventory. This will be very much needed, especially if you have a large size store and a large amount.

Install CCTV cameras on your warehouse and corridor, then install a certain password on your warehouse door. Give access rights to employees who are indeed given responsibility in managing stock only.

3. Give a SKU code and barcode for each item

Giving a SKU code and also barcodes on goods are very important to make it easier for you in terms of tracking stock. It is also done as one of the efforts to ensure the entire stock so that it can be well recorded and avoid losing stock.

To make it easier for you in terms of tracking stock and also making barcodes, choose a barcode system that has been integrated with a barcode scanner and inventory management

4. Monitor stock inventory level

Monitoring the inventory rate of a periodically will minimize the depreciation of inventory. For this reason, determine the minimum limit on your stock in a timely manner.

If your inventory level is close to the minimum limit, then that means you have to immediately re-order or re-production. Avoid ordering or producing too much, because excess stock will make your stock become not taken care of.

For this reason, you must make an estimate to be able to determine the right number of stocks.

5. Perform an inventory audit regularly

You must also always conduct an inventory audit regularly. Try to compare the number of stocks that you have in the warehouse or in stores with a number that has been listed on your computer. Usually, this method is also called stocktaking.

Make sure that there is no difference in the number of stocks actually with the number of stock on the system. You can do this inventory audit whenever you want.

6. Automate your inventory management

It feels, there is no more effective and safe way of managing warehouse inventory levels other than using automation on your inventory management. Checking manually checking will certainly need a lot of time and it becomes no longer efficient.

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