Manufacturing Inventory Process is an integral part of every business firm and is surrounded by dynamic infrastructure, innovative technology, and complex supply chain. To minimize these complexities and reduce costs, handling accounting and finance appropriately should be the main concern in these industries. Let read about these points to streamline the process.

1. Different Ways To
Streamline Manufacturing
I N V E N T O R Y P R O C E S S

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Manufacturing
Inventory
Raw material required for
performing the manufacturing
process.
Updated or available list should
match current and projected
production.
Include goods in various stages of
production.
?

3. 3 Inventory Categories
Inputs for the
productions
Represents
required work
Awaiting
for sale
Raw
Material
Work in
Progress
Ready
Goods

4. Inventory
Optimization
Process
Inventory
Accounts
Process
Assess business functions
and processes
Plan a cultivated
inventory model
Implement according to
the plan
Measure Work Progress of
different process levels
Continuous improvements
Effective Data
Management
Individual goals for overall
objectives
Collaboration with supply
chain

5. Assess
business
functions and
processes
Understand the current
order to delivery
process.
Identified gaps to
accelerate changes.
Include commercial
operations and sources.
Brainstorming sessions
that involve key
stakeholders from each
function.
#1

6. Plan a
cultivated
inventory
model
Determine data
availability for effective
control.
Operational definitions
for standardizing the
process.
Categorize each
segment into stock and
non-stock categories.
Calculate safety stock
and minimum order
quantities.
#2

7. Implement
according to
the plan
Set plan needs to be
approved by
management.
Develop a process
control to ensure about
consistency.
Schedule the product
level for material plans.
Digitize the process
globally.
#3

8. Measure Work
Progress of
different
process levels
Supplier scorecards
with delivery, costs,
quality, and flexibility.
It helps to minimize
the rework and
associated wastes.
It consumes the
quality time of
workforce.
It measures overall
production variations.
#4

9. Continuous
improvements
By checking periodic
reviews to discuss
impact areas.
Establish the schedule
to facilitate the
resolution and assign
ownership.
Create data-driven
decision-making
process.
Regularly analyze the
quantities ordered and
safety stocks.
#5

10. Effective
Data
Management
Collects the facts and
resource past details
for market demand.
Review the material
used annually to
check the marketing
trends.
Research in data
analysis, data
formulation to
evaluate production
fluctuation.
#6

11. Individual goals
for overall
objectives
Think strategically to
consider multiple
channels.
Determine the importance
of supply chain.
Evaluate which phase
need critical resources to
balance the investments.
Facilitates infrastructure,
assets, and technology to
streamline the work
process.
#7

12. Collaboration
with supply
chain
Ensures supply chain
margins and
profitability.
Identifies the quality
and increasing the
production.
Enhances product
availability at point of
purchase.
Opportunities to know
about advances in
production.
#8

13. Inventory Accounts
Process
M A N A G E M E N T O F A C C O U N T I N G

14. Accounting Process
Three basic accounts – Raw
material inventory account, WIP
inventory account, finished goods
inventory account
Accounting is an essential part,
especially in manufacturing and retail
business. These industries need to
capitalize maximum growth and
attend the quality controls, continuous
technological developments, nd
regulatory factors.

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Accounting Procedure
in Manufacturing
Whenever the raw material entered into
the production, its cost value first adds to
raw material inventory account.
After calculation or valuation of raw
material, it is transferred to the production
house. In this way, a cost of material adds
to work in progress inventory account.
When the production of goods completed,
cost value transferred to finished goods
inventory and then it further move to cost
of goods sold the account.

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with us
E-mail - INFO@COGNEESOL.COM
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References
https://en.wikipedia.org/wiki/Manufacturing_cost
https://en.wikipedia.org/wiki/Inventory_valuation
https://www.cogneesol.com/manufacturing-
accounting-services

18. Thanks
F O R W A T C H I N G