Inventory management
Inventory management is a quantity-based inventory accounting . The stored raw materials , semi- finished and finished products are provided with unique article numbers , separated by type . Article numbers together with any other attributes define the article master . The relevant unit of measure such as pieces, kilograms or cubic meters is stored here for each article .
Inventory management usually requires a closed warehouse. The delivery and removal of articles takes place exclusively against the drawing of so-called material certificates with details of the exact material quantity and article number. Due to the continuous, real-time booking of all incoming and outgoing goods, the correct stocks are always shown in the IT warehouse system.
Inventory differences
Inventory differences indicate a deviation from the stock amount according to inventory accounting and the effectively available at the storage quantity of articles. The frequency and extent of stand differences determine the quality and reliability of stand management. Existing inventory differences cannot be easily recognized and must be determined by means of an inventory . They arise through
- Withdrawals without postings of goods issue (e.g. theft or negligence )
- Shrinkage (e.g. due to evaporation or temperature-dependent volume changes)
- Booking errors and a.
Correct balance sheet reporting
Inventory can be very valuable, depending on the size and intrinsic value of the item. The valued inventories are therefore essential asset items on the balance sheet, especially in production and trading companies . Traditionally, especially when preparing the annual financial statements, the inventory valuation and thus correctly identified and valued inventories are relevant. The management is responsible for the correct identification of the stocks. The regularity of the designated storage assets necessary as part of the audit by the auditors checked. For this purpose, random inventories can again be carried out.
Shortage costs and delivery difficulties
Correct inventory management at all times is also of great importance for modern concepts such as lean production , just in time and other optimization processes. These concepts aim, among other things. a. a reduction in the average inventory and thus the tied-up capital. Ultimately, this reduces the cost of capital or creates free liquidity that can be invested in meaningful projects. Such a reduction in stocks is fatal if unexpected stock differences occur. Due to the lack of a reserve buffer , delivery problems quickly arise , which cause corresponding incorrect costs.