This document provides guidelines for conducting annual physical inventories for all units that hold inventory. It outlines responsibilities, planning procedures, and steps for conducting the physical count and reconciliation. The finance or business manager is responsible for ensuring the annual physical inventory is properly performed and inventory records are accurate. Advanced planning including defining roles, notifying parties, and preparing the storage area is important. Physical inventories should involve separate teams to count items twice and reconcile counts with inventory records.
This document provides lecture notes on stores management and stock control. It covers various topics related to stores management including the importance of stores management, identification and coding of materials, records and related systems, stock taking and checking, stock control, economic order quantity, stock levels, and warehousing location and security.
The key points covered are: the importance of efficient stores management for business success; classification and codification of materials to facilitate management; the relationships between the stores department and other departments like production and sales; common classification categories for materials; advantages of codification systems; and characteristics of effective codification systems. Common codification methods like alphabetical, numerical, and alphanumeric systems are also discussed.
The counting job is the activity that helps count items that have already been made. An inventory count is a snapshot of the current inventory levels.
As soon as you have taken inventory and specified the quantity on hand, the difference between the quantity counted and the snapshot of on-hand inventory is posted as a loss or gain for the item.
The journal of inventory counts shows the on-hand quantity counted compared to the inventory levels. Each count is given a journal number and date. This lets you view data from earlier counts, specifically which counting journal and voucher the count was posted to, and the date of the count.
Effective store keeping and successful inventory control.2Tajudeen Wahabi
Store keeping involves accounting for stock including raw materials, work-in-progress, finished goods, and some fixed assets. Materials are received through various modes of transportation and verified before being accounted for in stores. Different machines like forklifts and overhead cranes are used to carry and store heavy materials. Once materials are received, a goods receipt note is prepared to record the receipt and enable supplier payment. Materials are stored properly according to type in various stores and sub-stores for security, easy retrieval and handling. Inventory management aims to maintain adequate supply to meet demand while minimizing total costs of holding, ordering and shortage. Key terms include maximum limit, minimum limit, reorder level, and safety stock.
This document provides an overview of stores and materials management. It defines what a storehouse is and discusses the key functions and objectives of stores management, including efficient materials planning, purchasing, inventory control, quality assurance and maintaining good supplier relationships. It outlines the responsibilities of stores managers, such as maintaining low inventory levels while providing good service, identification and inspection of materials, issuing materials to users, and stock control. The duties of storekeepers are also summarized, like receiving, storing and issuing materials, and maintaining records. Finally, some common store documents like bin cards and store ledgers are described.
The document provides guidance on conducting an effective stock take. It recommends preparing inventory sheets in advance with item names and descriptions. During the stock take, counters record quantities, expiry dates, and batch numbers while data entry staff input this information into the computer system. Proper resources, including enough counting and data entry staff as well as computers and printers, help ensure an accurate stock take. The process involves counting, recording data, verifying records, and updating the stock database.
Part of the induction course for students undertaking diploma and degree in environmental lab science, public health, Analytical Chemistry, Applied Biology, Medical Lab Sciences and Food Technology.
Cycle counting involves periodically counting inventory items throughout the year to ensure accurate inventory quantities and values. It can be performed instead of full physical inventories. ABC analysis classifies items into ranks to determine counting frequency. Setup involves defining items, ABC compiles, classes, groups, and associating these with cycle counts. The cycle count process generates schedules, counts items, approves adjustments, and updates inventory levels.
Successful inventory management involves creating a purchasing plan that will ensure that items are available when they are needed (but that neither too much nor too little is purchased) and keeping track of existing inventory and its use.
This document provides lecture notes on stores management and stock control. It covers various topics related to stores management including the importance of stores management, identification and coding of materials, records and related systems, stock taking and checking, stock control, economic order quantity, stock levels, and warehousing location and security.
The key points covered are: the importance of efficient stores management for business success; classification and codification of materials to facilitate management; the relationships between the stores department and other departments like production and sales; common classification categories for materials; advantages of codification systems; and characteristics of effective codification systems. Common codification methods like alphabetical, numerical, and alphanumeric systems are also discussed.
The counting job is the activity that helps count items that have already been made. An inventory count is a snapshot of the current inventory levels.
As soon as you have taken inventory and specified the quantity on hand, the difference between the quantity counted and the snapshot of on-hand inventory is posted as a loss or gain for the item.
The journal of inventory counts shows the on-hand quantity counted compared to the inventory levels. Each count is given a journal number and date. This lets you view data from earlier counts, specifically which counting journal and voucher the count was posted to, and the date of the count.
Effective store keeping and successful inventory control.2Tajudeen Wahabi
Store keeping involves accounting for stock including raw materials, work-in-progress, finished goods, and some fixed assets. Materials are received through various modes of transportation and verified before being accounted for in stores. Different machines like forklifts and overhead cranes are used to carry and store heavy materials. Once materials are received, a goods receipt note is prepared to record the receipt and enable supplier payment. Materials are stored properly according to type in various stores and sub-stores for security, easy retrieval and handling. Inventory management aims to maintain adequate supply to meet demand while minimizing total costs of holding, ordering and shortage. Key terms include maximum limit, minimum limit, reorder level, and safety stock.
This document provides an overview of stores and materials management. It defines what a storehouse is and discusses the key functions and objectives of stores management, including efficient materials planning, purchasing, inventory control, quality assurance and maintaining good supplier relationships. It outlines the responsibilities of stores managers, such as maintaining low inventory levels while providing good service, identification and inspection of materials, issuing materials to users, and stock control. The duties of storekeepers are also summarized, like receiving, storing and issuing materials, and maintaining records. Finally, some common store documents like bin cards and store ledgers are described.
The document provides guidance on conducting an effective stock take. It recommends preparing inventory sheets in advance with item names and descriptions. During the stock take, counters record quantities, expiry dates, and batch numbers while data entry staff input this information into the computer system. Proper resources, including enough counting and data entry staff as well as computers and printers, help ensure an accurate stock take. The process involves counting, recording data, verifying records, and updating the stock database.
Part of the induction course for students undertaking diploma and degree in environmental lab science, public health, Analytical Chemistry, Applied Biology, Medical Lab Sciences and Food Technology.
Cycle counting involves periodically counting inventory items throughout the year to ensure accurate inventory quantities and values. It can be performed instead of full physical inventories. ABC analysis classifies items into ranks to determine counting frequency. Setup involves defining items, ABC compiles, classes, groups, and associating these with cycle counts. The cycle count process generates schedules, counts items, approves adjustments, and updates inventory levels.
Successful inventory management involves creating a purchasing plan that will ensure that items are available when they are needed (but that neither too much nor too little is purchased) and keeping track of existing inventory and its use.
Inventory management is important for businesses to control costs and meet customer demand. It involves setting minimum, maximum, and reorder stock levels to prevent overstocking or understocking. Maintaining proper stock levels allows a business to monitor market trends, track available storage space, and ascertain which items are selling well versus those that require more or less ordering. Effective inventory management also helps reduce theft and waste while ensuring production can continue smoothly.
Store keeping involves the proper storage and distribution of materials within an organization. It is responsible for receiving, handling, and issuing materials efficiently while keeping accurate records and protecting against damage and theft. The objectives of store keeping are to allow easy location and identification of items, ensure a speedy issue of materials as needed, and utilize storage space effectively.
Materials management –objective, scope & function (2)Vinay Kumar
The document discusses materials management, including its objectives to ensure continuity of supply, reduce costs, and maintain quality and supplier relationships. It then discusses a case study of Balaji Rechargeable Fan Co. which experienced a 40% sales decline in the first quarter of 2009 due to stock outs failing to meet customer commitments. Materials management aims to plan, organize, and control materials flow, and its scope includes planning, purchasing, inventory control, and waste management. Its functions include planning, purchasing, receiving, warehousing, transportation, inventory control, and disposal.
Click here to buy - http://imojo.in/bj9b8l
This presentation is aimed at helping small and medium businesses in their Stores / Warehouse Management. The module starts with an introduction to the function, Roles and Responsibilities of executives in the function, Key tools and methodologies, ABC Analysis, Storage Techniques, Visual Representation of best practices and various templates for MIS analysis.
This document provides guidance on auditing scrap sales. It outlines the audit objective is to prevent irregularities in scrap sales and ensure the company realizes true financial profit. Key documents to review include scrap sale policies, registers, production details, authorized personnel lists, and vendor contracts. The audit procedures involve understanding the scrap sale process, preparing an audit program, checking internal controls, analytical procedures, verifying scrap records, and ensuring proper vendor contract verification. The conclusion reiterates the importance of following these procedures to properly audit scrap sales.
Use of Inventory cycle counting is a recommended task that requires continuous monitoring of stock on a weekly, monthly or bimonthly basis. Better results of inventory management can be obtained by acquiring certain knowledge about this scheme which is available at InventorySkills.com
Material Management- Stocks to be verified in the stores is important duty of the store manager. Some methods help them to keep a check & avoid any discrepancies.
This document outlines store accounting procedures for a company. It discusses pricing of purchased and returned materials, material receipt accounting, issuing materials from the store, and physical verification of store stock. Key functions of the store include procurement, keeping, and accounting. Materials are priced according to their source and type of return. Physical verification is conducted annually to identify any differences in recorded and actual stock quantities.
This document provides an overview of warehouse operations including inbound and outbound processes. Inbound processes include receiving, put away, and storage of products. Receiving involves inspecting shipments and verifying counts. Products are identified through UPC codes, part numbers, or descriptions. Outbound processes involve order picking, checking, packing, and shipping. Order picking involves using product identification numbers on pick tickets or sales orders to retrieve items from storage locations for orders.
This document discusses various aspects of managing medical stores and warehouses, including objectives, activities, design principles, systems, classification, storage, and handling of materials. The key points are:
1. The objectives of medical stores are to receive, store, and distribute materials to meet user demands while minimizing waste through proper inventory control and storage methods.
2. Effective materials management involves planning, purchasing, receiving, inventory control, standardization, and disposal. Computerized stock records and communications between facilities are important.
3. Proper warehouse design considers product movement, handling technology, storage plans, and future expansion. Classification systems and fixed, fluid, or semi-fluid location methods determine how items are organized within zones and
This document discusses material management and inventory in manufacturing. It covers key aspects like the purpose of inventory, types of inventory, reasons for holding inventory, and functions of the stores department. The document compares high and low inventory levels and discusses approaches to stores location, recording material, issuing material, and centralized vs decentralized storing. The overall aim is to ensure smooth material flow and quality control to reduce costs and meet production needs.
The document discusses logistics and warehouse management. It provides an overview of logistics, lean principles, types of waste, and value stream mapping. It also discusses warehouse selection processes including proposal forms, checklists, negotiations, and automation technologies like conveyor systems, stacker cranes, sorters, and picking systems that can improve warehouse operations. Matrices for measuring transportation and fulfillment performance are also presented.
This audit program outlines the steps to audit a company's inventory. It identifies risks such as incomplete records, transactions in the wrong period, nonexistent items, and unrealizable carrying values. The steps include observing the physical inventory, examining receiving and issuing activity, testing schedules of obsolete/slow items, and testing the costing of inventory details to evaluate accuracy. The overall goal is to determine if inventory records, transactions, and values are complete and accurate.
This document provides guidance on effective store and inventory management. It outlines key objectives and responsibilities of storekeepers including understanding inventory principles, record keeping, and maintaining stock levels. The document describes best practices for core warehouse activities such as stock receipt, storage, issuance and record keeping. It also discusses inventory control systems and how to assess stock status. The goal is to provide timely customer service while minimizing costs and protecting inventory through proper care, storage, and security of the warehouse and stock.
1) The document analyzes space utilization in a 1,38,000 square foot warehouse operated by UTI Worldwide for Ford India.
2) It identifies two non-moving parts, PD6BBA044L00DDB5NF and PD6BBA044L00FDB5NF, occupying 82 locations that have not moved in 60 days.
3) By rearranging these parts, the analysis reduces the number of locations used from 66 to 7, freeing up 495 square feet of space valued at 495.12 rupees.
Storekeeping involves the safekeeping and storage of goods and materials. There are two main types of storage: centralized storage in a single store for the whole organization, and decentralized storage with independent small stores attached to departments. The objectives of storekeeping are to prevent overstocking and understocking, protect materials from risks, minimize storage costs, ensure control over materials, and optimize storage space and workers. Key functions include receiving, storing, and providing information on materials availability by maintaining records. Duties of the storekeeper are to exercise control, ensure safekeeping of quality and quantity, maintain records, receive and issue materials, and check physical and book balances.
The document discusses inventory, inventory control, and various techniques used for inventory classification and control. It defines inventory as raw materials, work in progress, and finished goods held for future use. The objective of inventory is to ensure continuous supply of goods at reasonable cost. Some key inventory classification techniques discussed include ABC analysis, which classifies inventory based on annual usage value, and FSND analysis, which classifies based on consumption patterns. The document also provides examples of companies that have implemented inventory classification and control techniques.
The document discusses stores management in manufacturing organizations. It describes the functions of stores departments, which include receiving, storing, and issuing materials to user departments. The document also covers topics like centralized vs decentralized store structures, stores organization and necessary functions. Key points discussed are the role of stores in providing uninterrupted supplies to manufacturing while acting as a buffer between purchasing and marketing.
1.Introduction
2. Objective of stock verification
3. Methods of stock verification
4. Who should do the stock taking
5. Treatment of discrepancies (Reconciliation)
6. Application
7. Conclusion
This audit program outlines the steps to audit a company's inventory. It identifies risks such as incomplete records, transactions in the wrong period, nonexistent items, and unrealizable carrying values. The steps include observing the physical inventory, examining receiving and issuing activity, testing schedules of obsolete/slow items, and testing the costing of inventory details. The objective is to determine if inventory existence, completeness, cutoff, and valuation are fairly stated.
Inventory management is important for businesses to control costs and meet customer demand. It involves setting minimum, maximum, and reorder stock levels to prevent overstocking or understocking. Maintaining proper stock levels allows a business to monitor market trends, track available storage space, and ascertain which items are selling well versus those that require more or less ordering. Effective inventory management also helps reduce theft and waste while ensuring production can continue smoothly.
Store keeping involves the proper storage and distribution of materials within an organization. It is responsible for receiving, handling, and issuing materials efficiently while keeping accurate records and protecting against damage and theft. The objectives of store keeping are to allow easy location and identification of items, ensure a speedy issue of materials as needed, and utilize storage space effectively.
Materials management –objective, scope & function (2)Vinay Kumar
The document discusses materials management, including its objectives to ensure continuity of supply, reduce costs, and maintain quality and supplier relationships. It then discusses a case study of Balaji Rechargeable Fan Co. which experienced a 40% sales decline in the first quarter of 2009 due to stock outs failing to meet customer commitments. Materials management aims to plan, organize, and control materials flow, and its scope includes planning, purchasing, inventory control, and waste management. Its functions include planning, purchasing, receiving, warehousing, transportation, inventory control, and disposal.
Click here to buy - http://imojo.in/bj9b8l
This presentation is aimed at helping small and medium businesses in their Stores / Warehouse Management. The module starts with an introduction to the function, Roles and Responsibilities of executives in the function, Key tools and methodologies, ABC Analysis, Storage Techniques, Visual Representation of best practices and various templates for MIS analysis.
This document provides guidance on auditing scrap sales. It outlines the audit objective is to prevent irregularities in scrap sales and ensure the company realizes true financial profit. Key documents to review include scrap sale policies, registers, production details, authorized personnel lists, and vendor contracts. The audit procedures involve understanding the scrap sale process, preparing an audit program, checking internal controls, analytical procedures, verifying scrap records, and ensuring proper vendor contract verification. The conclusion reiterates the importance of following these procedures to properly audit scrap sales.
Use of Inventory cycle counting is a recommended task that requires continuous monitoring of stock on a weekly, monthly or bimonthly basis. Better results of inventory management can be obtained by acquiring certain knowledge about this scheme which is available at InventorySkills.com
Material Management- Stocks to be verified in the stores is important duty of the store manager. Some methods help them to keep a check & avoid any discrepancies.
This document outlines store accounting procedures for a company. It discusses pricing of purchased and returned materials, material receipt accounting, issuing materials from the store, and physical verification of store stock. Key functions of the store include procurement, keeping, and accounting. Materials are priced according to their source and type of return. Physical verification is conducted annually to identify any differences in recorded and actual stock quantities.
This document provides an overview of warehouse operations including inbound and outbound processes. Inbound processes include receiving, put away, and storage of products. Receiving involves inspecting shipments and verifying counts. Products are identified through UPC codes, part numbers, or descriptions. Outbound processes involve order picking, checking, packing, and shipping. Order picking involves using product identification numbers on pick tickets or sales orders to retrieve items from storage locations for orders.
This document discusses various aspects of managing medical stores and warehouses, including objectives, activities, design principles, systems, classification, storage, and handling of materials. The key points are:
1. The objectives of medical stores are to receive, store, and distribute materials to meet user demands while minimizing waste through proper inventory control and storage methods.
2. Effective materials management involves planning, purchasing, receiving, inventory control, standardization, and disposal. Computerized stock records and communications between facilities are important.
3. Proper warehouse design considers product movement, handling technology, storage plans, and future expansion. Classification systems and fixed, fluid, or semi-fluid location methods determine how items are organized within zones and
This document discusses material management and inventory in manufacturing. It covers key aspects like the purpose of inventory, types of inventory, reasons for holding inventory, and functions of the stores department. The document compares high and low inventory levels and discusses approaches to stores location, recording material, issuing material, and centralized vs decentralized storing. The overall aim is to ensure smooth material flow and quality control to reduce costs and meet production needs.
The document discusses logistics and warehouse management. It provides an overview of logistics, lean principles, types of waste, and value stream mapping. It also discusses warehouse selection processes including proposal forms, checklists, negotiations, and automation technologies like conveyor systems, stacker cranes, sorters, and picking systems that can improve warehouse operations. Matrices for measuring transportation and fulfillment performance are also presented.
This audit program outlines the steps to audit a company's inventory. It identifies risks such as incomplete records, transactions in the wrong period, nonexistent items, and unrealizable carrying values. The steps include observing the physical inventory, examining receiving and issuing activity, testing schedules of obsolete/slow items, and testing the costing of inventory details to evaluate accuracy. The overall goal is to determine if inventory records, transactions, and values are complete and accurate.
This document provides guidance on effective store and inventory management. It outlines key objectives and responsibilities of storekeepers including understanding inventory principles, record keeping, and maintaining stock levels. The document describes best practices for core warehouse activities such as stock receipt, storage, issuance and record keeping. It also discusses inventory control systems and how to assess stock status. The goal is to provide timely customer service while minimizing costs and protecting inventory through proper care, storage, and security of the warehouse and stock.
1) The document analyzes space utilization in a 1,38,000 square foot warehouse operated by UTI Worldwide for Ford India.
2) It identifies two non-moving parts, PD6BBA044L00DDB5NF and PD6BBA044L00FDB5NF, occupying 82 locations that have not moved in 60 days.
3) By rearranging these parts, the analysis reduces the number of locations used from 66 to 7, freeing up 495 square feet of space valued at 495.12 rupees.
Storekeeping involves the safekeeping and storage of goods and materials. There are two main types of storage: centralized storage in a single store for the whole organization, and decentralized storage with independent small stores attached to departments. The objectives of storekeeping are to prevent overstocking and understocking, protect materials from risks, minimize storage costs, ensure control over materials, and optimize storage space and workers. Key functions include receiving, storing, and providing information on materials availability by maintaining records. Duties of the storekeeper are to exercise control, ensure safekeeping of quality and quantity, maintain records, receive and issue materials, and check physical and book balances.
The document discusses inventory, inventory control, and various techniques used for inventory classification and control. It defines inventory as raw materials, work in progress, and finished goods held for future use. The objective of inventory is to ensure continuous supply of goods at reasonable cost. Some key inventory classification techniques discussed include ABC analysis, which classifies inventory based on annual usage value, and FSND analysis, which classifies based on consumption patterns. The document also provides examples of companies that have implemented inventory classification and control techniques.
The document discusses stores management in manufacturing organizations. It describes the functions of stores departments, which include receiving, storing, and issuing materials to user departments. The document also covers topics like centralized vs decentralized store structures, stores organization and necessary functions. Key points discussed are the role of stores in providing uninterrupted supplies to manufacturing while acting as a buffer between purchasing and marketing.
1.Introduction
2. Objective of stock verification
3. Methods of stock verification
4. Who should do the stock taking
5. Treatment of discrepancies (Reconciliation)
6. Application
7. Conclusion
This audit program outlines the steps to audit a company's inventory. It identifies risks such as incomplete records, transactions in the wrong period, nonexistent items, and unrealizable carrying values. The steps include observing the physical inventory, examining receiving and issuing activity, testing schedules of obsolete/slow items, and testing the costing of inventory details. The objective is to determine if inventory existence, completeness, cutoff, and valuation are fairly stated.
SAP MM IM Physical inventory -cycle countingLokesh Modem
Cycle counting is a process where inventory is counted at regular intervals within a fiscal year to increase accuracy. It can be configured and implemented in SAP. Key steps include defining cycle count indicators, generating physical inventory documents for materials using report MICN, printing documents using MI21, entering counts using MI24, and integrating differences by posting.
Inventory control techniques include ABC analysis, economic order quantity, perpetual inventory systems, reviewing slow and non-moving items, setting inventory levels, material budgeting, effective purchasing procedures, and scrap/surplus disposal. The document discusses these techniques in detail, providing examples and explaining how they help manage inventory levels and costs. ABC analysis prioritizes inventory items based on value and consumption to focus control efforts. Economic order quantity calculates optimal order sizes. Perpetual inventory systems facilitate ongoing inventory tracking.
This document discusses key concepts of effective inventory management and control. It begins by outlining different inventory control methods like periodic review, re-order points, and perpetual inventory systems. It then discusses ABC analysis for classifying inventory items. The document provides definitions and explanations of concepts like economic order quantity, re-order level, safety stock, and techniques for determining order quantities. It evaluates costs associated with inventory like ordering costs and carrying costs. The purpose of inventory management and control is to minimize total inventory costs.
This document discusses different types of materials used in production including raw materials, work in progress, and finished goods. It also covers inventory control processes like ordering, receiving, and issuing materials. Key aspects summarized include the different stock control levels used like reorder level and economic order quantity, which aims to minimize total holding and ordering costs. Recording inventory accurately through methods like bin cards and ledger accounts is also emphasized.
Inventory Management and Control, Production Planning and ControlSimranDhiman12
This document provides an overview of inventory management, production planning, and control. It discusses key objectives like minimizing costs and ensuring adequate supply. Inventory management techniques include ABC analysis, VED analysis, EOQ, lead time, and buffer stock. Production planning determines facility requirements and layout, while production control monitors plan execution and addresses deviations. The perpetual inventory system uses bin cards, store ledgers, and continuous stock taking to regularly check and prevent stockouts.
Cost accountancy historical development @ mbaBabasab Patil
Cost accounting evolved from manual bookkeeping practices in the 19th century and saw major developments before and after World Wars I and II. It is encouraged through professional organizations and helps companies determine selling prices, prepare financial statements, and make operating decisions. Adopting cost accounting provides businesses benefits like establishing accurate unit costs, eliminating inefficiencies, presenting accurate financial reports, and developing cost comparisons to increase efficiency.
Cost accountancy historical development @ mbaBabasab Patil
Cost accounting evolved from manual bookkeeping practices in the 19th century and saw major developments before and after both World Wars. It is encouraged by professional organizations and helps businesses with important tasks like determining selling prices, preparing financial statements, making operating decisions, and establishing accurate unit costs. Adopting cost accounting provides benefits like eliminating inefficiencies, presenting accurate financial reports, and developing cost comparisons to increase efficiency.
The document provides an audit program for inventory for Sheridan AV for the year ending March 31, 2021. It outlines the audit objectives and tests to be carried out to assess inventory balances, including tests for presentation and disclosure, valuation, completeness, existence, and cut-off. The auditor found some issues with inventory tags and classification but otherwise inventory was fairly stated. Substantive testing at the physical inventory count found accurate counting and controls but some suspected work-in-progress and unfinished goods incorrectly classified as finished goods.
This document discusses Six Sigma and inventory management. It provides guidance on inventory goals, including properly identifying, slotting, accounting for, and ensuring inventory is sellable. It recommends reviewing inventory movement overall and by item, looking for gaps in sales before items become obsolete, and arranging inventory to improve efficiency. The document also covers overages, shortages and damages on receiving; timely returns processing; and using specific time frames or cycle counts for physical inventories.
Investigation on Cycle Time Reduction in Production and Implementation of an ...IRJET Journal
This document discusses implementing lean practices and an inventory model in an apparel industry to reduce cycle times and costs. It found that long material delivery times caused production delays. By analyzing activities, it identified fabric delivery as the bottleneck. It then implemented an inventory model using ABC analysis and continuous review to reduce material wait times. This allowed sections to start earlier, reducing cycle time from 27 to 11 days. It concluded that inventory management improved on-time delivery and reduced costs by 6.66% by preventing excess orders.
The audit programme summarizes the auditor's plan to test Sheridan AV's inventory balances as of March 31, 2021. Key steps included attending the physical inventory count, checking cut-off procedures, and confirming inventory is properly classified, valued, and disclosed. Issues identified were improper stock coding, potential work-in-process items misclassified as raw materials, and delivered items not removed from finished goods. The auditor concluded inventory was fairly stated subject to highlighted matters requiring follow-up.
This document outlines an information technology training program submitted by Pawan Yadav. It discusses the objectives and requirements of material control, including elements like material procurement, storage, and usage control. Specifically, it describes the material procurement procedure involving bills of materials, requisitions, purchase orders, quotations, and receiving/inspecting deliveries. It also covers inventory control methods like setting quantitative levels, classification, ratio analysis, and physical controls like bin cards and two-bin systems. The training program aims to provide Pawan with skills in systematically managing and regulating materials for optimal production.
This document discusses the key aspects of conducting an inventory audit. It outlines the audit procedures that will be performed, including physical inventory counting, ABC analysis, cut-off analysis, analytical procedures, and product reconciliation. The inventory audit report will provide a dashboard analysis, details of physical count differences, ABC analysis results, information on shrinkage and negative inventory, identification of dead stock, and a review of internal controls. Conducting regular inventory audits helps businesses know what's missing from their inventory, assess the overall inventory status, and better budget by understanding usage patterns of different inventory items.
Here are the calculations for the stock levels of component A:
a) Re-order level = Normal usage per week x Normal re-order period
= 50 kg/week x 5 weeks
= 250 kg
b) Maximum level = Re-order level + Re-order quantity - (Minimum usage x Minimum re-order period)
= 250 kg + 300 kg - (25 kg x 4 weeks)
= 250 kg + 300 kg - 100 kg
= 450 kg
c) Minimum level = Re-order level - (Normal usage x Normal re-order period)
= 250 kg - (50 kg x 5 weeks)
= 250 kg - 250 kg
= 0 kg
d
The document discusses the key aspects of auditing and inventory management. It begins by defining an audit as the process of gathering evidence to evaluate assertions and ensure financial statements are fairly presented. The main features of an audit are that it examines a specific subject matter using evidence in a systematic and unbiased manner, involving three parties: shareholders, managers, and auditors. Inventory management is then discussed, defining inventory as assets held for future sale and including raw materials, work in progress, finished goods, consumables and spares. The objectives of inventory management are to ensure continuous supply while avoiding over- or under-stocking, maintaining optimum investment levels and controlling costs.
This document provides information on inventory management for technical education institutions. It discusses maintaining adequate inventory levels to meet demands while avoiding excess stock. Tracking inventory accurately is also important. Replacement costs refer to the costs to replenish stock and should be lower than market value. Regular stocktaking and proper documentation are needed for inventory control. Insurance can help cover losses, and all inventory must be legally accounted for.
Cover Story - China's Investment Leader - Dr. Alyce SUmsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
Best practices for project execution and deliveryCLIVE MINCHIN
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
Dive into this presentation and learn about the ways in which you can buy an engagement ring. This guide will help you choose the perfect engagement rings for women.
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...my Pandit
Explore the fascinating world of the Gemini Zodiac Sign. Discover the unique personality traits, key dates, and horoscope insights of Gemini individuals. Learn how their sociable, communicative nature and boundless curiosity make them the dynamic explorers of the zodiac. Dive into the duality of the Gemini sign and understand their intellectual and adventurous spirit.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...Neil Horowitz
On episode 272 of the Digital and Social Media Sports Podcast, Neil chatted with Brian Fitzsimmons, Director of Licensing and Business Development for Barstool Sports.
What follows is a collection of snippets from the podcast. To hear the full interview and more, check out the podcast on all podcast platforms and at www.dsmsports.net
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1. Rev. 2, 17-OCT-2007 page 1
Physical Inventory Guidelines
Purpose
This document provides guidelines for conducting annual physical inventories,
and is applicable to all units that hold inventory for resale to external or internal
customers. Annual physical inventories not only help ensure the accuracy of
inventory balances reported in the University's financial records but also help you
manage the activity in your area.
While these guidelines address annual physical inventories, similar concepts
apply to cycle counting, but the specific steps are different. Cycle counting is a
process that uses regularly scheduled counts but does not count the entire
inventory in a single event. Please contact the Controller's Office Business
Operations Department at 3-0781 for guidance.
The document consists of the following sections and supplemental information in
the appendices.
Table of Contents
Purpose ...........................................................................................................1
Responsibilities................................................................................................2
Planning for a Physical Inventory.....................................................................2
Conducting the Physical Count........................................................................5
Reconciling the Physical Inventory ..................................................................6
Appendix..........................................................................................................8
A: Sample Inventory Tag ..........................................................................8
B: Sample Instructions for a Physical Inventory........................................9
C: Sample Inventory Reconciliation ........................................................11
D: Sample Report 161 Posted Journals..................................................12
E: Sample Report 138 Invoice Detail ......................................................13
F: Sample Report 206 Purchase Order Detail.........................................14
G: Sample Inventory Adjustment Journal................................................15
2. Physical Inventory Guidelines
Rev. 2, 17-OCT-2007 page 2
Responsibilities
The Finance or Business Manager of the unit is responsible for ensuring
the annual physical inventory is properly performed, inventory records
reflect actual quantities on hand, inventory valuation methods are
appropriate, and adjustments are entered in the University's accounting
system on a timely basis.
In addition, the Finance or Business Manager is responsible for ensuring
that segregation of duties is maintained throughout the inventory process
to promote the safeguarding of the assets, protection of employees, and
objective reporting of inventory. Specifically, no one person should be
able to authorize a transaction (e.g., a purchase or sale), record the
transaction, have custody of the inventory, and perform the related
reconciliation.
Planning for a Physical Inventory
Time spent planning and preparing for the physical inventory will
streamline the count process and reduce errors and rework.
A. Clearly define roles and responsibilities. In general, the
inventory counting process and the reconciliation should be
supervised or performed by an independent person. This
independent person should NOT be the person who checks in or
receives inventory, maintains the inventory records for the items, or
is responsible for the daily security and accountability of the
inventory.
An example of participants' possible responsibilities follows:
1. Manager: plans and supervises inventory, makes test
counts, approves adjustment journal.
2. Staff Member #1: tabulates physical count and identifies
possible errors.
3. Staff Member #2: reconciles physical count to Oracle
Financials; creates adjustment journal.
4. Count teams: count the stock on hand.
The number of people involved will depend upon the size and
complexity of the organization and the items being counted.
3. Physical Inventory Guidelines
Rev. 2, 17-OCT-2007 page 3
B. Establish a master schedule that sets the beginning and
completion dates for both the counting process and the inventory
reconciliation.
1. Physical inventories are typically done in the summer to
allow sufficient time to reconcile and adjust balances before
the August fiscal year-end close.
2. For ease of reconciliation, consider scheduling the
completion of the physical inventory count to coincide with
the last working day of a period.
3. Suspend all transaction activities such as receiving and
sales during the count process to make the process more
efficient.
C. Notify affected parties providing adequate lead time to plan
appropriately. For example,
1. Notify suppliers if deliveries will not be accepted during this
time.
2. Advise customers in advance of the shut-down period.
3. Inform employees to allow them sufficient time to plan for the
activity.
D. Purchase necessary supplies before the count. Supplies might
include:
1. Sequentially-numbered inventory tags (see sample in
Appendix A) to be used to identify items that have been
counted and how many times they have been counted.
Consider preprinted tags, if available from your inventory
tracking system, containing all of the information except the
actual counts and team numbers, to reduce the effort on the
day(s) of the count.
2. Other supplies like name tags, pens, markers, clipboards,
calculators, tape, scales, step stools.
3. If needed, special materials for handling product, such as
plastic gloves or masks.
E. Prepare the storage area for the inventory count. (If the
warehouse is clean and organized throughout the year, additional
efforts before the count should be minimal.)
1. Clean all areas for ease of counting.
a. Make sure like items are grouped together.
b. Arrange items so they can be easily counted (i.e., in
"batches").
c. Ensure there are no hazards in the warehouse that
could be dangerous during the inventory count, such
as boxes to trip over, wet floors, items that could fall,
etc.
4. Physical Inventory Guidelines
Rev. 2, 17-OCT-2007 page 4
2. Organize the stock.
a. Clearly mark package quantities if necessary.
b. Count and seal partial packages with the count and
date clearly marked. Cross out any conflicting
information, like previous counts, different part
numbers, etc., and ensure that the package has the
correct part number clearly marked.
c. Clearly mark items that will not be counted with "DO
NOT INVENTORY". Identify damaged goods and
move them to a designated separate location.
d. Label each area to be counted. For example, label
shelving units alpha-numerically (BA1, CD2) and each
individual shelf numerically (top shelf = BA1-1, second
shelf = BA1-2, etc.). In this way, you can create a
complete list of all areas to be inventoried and "check
off" each area as it is completed. Count each marked
location separately.
e. Make sure all items are identified with a part number,
bar code, or other identification.
f. Update storage area floor plans to reflect current
stock locations and identify count areas.
F. Organize counting teams. Physical inventories should be
performed by personnel who have no direct responsibility for assets
subject to the inventory count. If the use of such personnel is not
feasible for any part of an inventory, then those portions should be
tested and verified by an independent person.
1. If supplemental resources are required, consider using staff
from other areas or hiring Stanford students and temporary
employees to supplement the unit staff.
2. Define count teams with at least two members per team.
G. Develop written physical inventory instructions for individuals
participating in the count. Appendix B contains a sample of such
instructions.
5. Physical Inventory Guidelines
Rev. 2, 17-OCT-2007 page 5
H. Establish clear cutoff guidelines, identifying which items to
include or exclude from the inventory count.
1. If possible, complete all handling and recording of inventory
products before the physical inventory count begins. This
includes receipts, returns, consolidation between stocking
locations, etc.
2. No movement of any inventory should be permitted during
the physical count. Any items that are delivered during the
count should be physically separated and labeled "POST
INVENTORY: DO NOT COUNT".
If movement is required, backup documentation should be
maintained and the quantity reflected in the count or
subsequent discrepancy reconciliation. A good practice is to
attach a count tag to copies of the documentation.
Conducting the Physical Count
A. Review counting instructions with the counting teams before
they begin. Provide examples of how to find codes, units of
measure, quantities, etc. Demonstrate an actual count. Explain
the complete process, including reason for the count, storage area
and stock layout, numbering and distribution of inventory tags,
collection, and summarization of the count sheets.
B. Control of the inventory tags or count sheets helps ensure
completeness and accuracy of the count.
1. If inventory tags are used, confirm that each stack issued to
count teams is complete and in numerical sequence. A log
should be kept of the tags issued to each team to ensure all
are returned and accounted for, otherwise a tag with a "real"
count may be misplaced and you may not be aware of it.
2. Complete inventory tags in pen to prevent erasures. Correct
errors by lining out the error, writing the correct entry, and
initialing the change. If an entire tag must be redone, the tag
should be marked "ERROR – DO NOT COUNT" and a new
tag created for the item. No inventory tags should be
discarded.
3. Collect the completed inventory tags from each team at the
end of the second counts, confirming against the log that the
same tags issued have been returned and that no tags are
missing.
6. Physical Inventory Guidelines
Rev. 2, 17-OCT-2007 page 6
C. Count items twice to provide as accurate a count as possible.
Each count team should be assigned to a specific area for their first
count, then perform a second count in another area to confirm that
area's first count. Discrepancies should immediately be brought to
the manager's attention. Third and fourth counts may be necessary
to obtain an accurate count.
Reconciling the Physical Inventory
Reconciliation is defined as the process of identifying, explaining, and
correcting the differences between the physical count and the asset
balance in the General Ledger (GL). It is easiest to reconcile after month-
end close to ensure up-to-date information in Oracle Financials and
ReportMart3. Appendix C contains a sample of an inventory
reconciliation.
A. Determine the amount per physical count.
1. Enter the physical count into an inventory control system
(database), if there is one, or into a spreadsheet listing all
items in the inventory.
2. Significant discrepancies between the records and the count
should be investigated and explained.
3. Calculate the total inventory cost by multiplying units per
count by unit cost.
4. Adjust the value per the count by costs not included in the
unit cost, where appropriate. For instance, if unit cost
excludes sales tax or shipping charges, add those values to
the inventory on hand since they are included in the GL
balance.
B. Determine the amount per the General Ledger.
1. Begin with the month-end inventory balance in the GL
(object code 11405) per ReportMart3 Posted Journals
Report (FIN_GL_161_Post_Jrnl_By_Obj_Code). Use the
month-end report and limit the result by object code to
shorten the report. A sample report is included in Appendix
D.
7. Physical Inventory Guidelines
Rev. 2, 17-OCT-2007 page 7
2. Increase the GL balance in the reconciliation worksheet by
accounting for items received before, and included in, the
physical inventory count but for which the purchase has not
been posted. Two conditions must be considered:
a. The invoice has been received by Accounts Payable
but payment has not been made and therefore will not
be recorded until the next period. The Invoice Detail
Report (FIN_EXP_138_Invoice_Detail_Recon) will
help identify these transactions. A sample report is
provided in Appendix E.
b. The invoice has not been received by Accounts
Payable or the invoice is "on hold". The Purchase
Order Detail Report
(FIN_PO_206_AP_Purch_Order_Detail) should be
used to help identify these transactions. A sample is
provided in Appendix F. This report may also be used
during the year to monitor purchases and ensure
prompt payment to suppliers.
C. Determine the adjustment amount. The difference between the
amount per physical count and the amount per GL is the
adjustment required to reflect the true amount in the GL. An
adjustment journal must be created in Oracle Financials iJournals
and routed for approval. A sample adjustment journal is included in
Appendix F.
D. Consider obsolescence. Compare the quantity on hand to the
quantity used or sold during the year:
PHYSICAL COUNT, PREVIOUS YEAR
+ PURCHASES, CURRENT YEAR
- PHYSICAL COUNT, CURRENT YEAR
= QUANTITY USED, CURRENT YEAR
If the amount on hand greatly exceeds what was used during the
year, you may have an obsolescence issue. Determine if excess
quantities or obsolete goods exist and prepare an adjustment to
write them off, similar to the inventory adjustment described above.
8. Physical Inventory Guidelines
Rev. 2, 17-OCT-2007 page 8
Appendix
A: Sample Inventory Tag
Available via Campus Wide Agreements, part number AVE153%
|------Count #2------|-------------------------Count #1------------------------------------------|
.
Count #1
A. Description of Item (Product Name)
:
B. Stock # or Barcode # or
C. Quantity Counted
Manufacturer Catalog #
D. Unit of Measure (box, each, pkg.)
E. Location (listed on shelf, e.g., AB1, AB2)
F. Team Number
Count #2:
G. Description of Item
H. Quantity Counted
I. Unit of Measure
J. Team Number (on both sections of the tag)
9. Physical Inventory Guidelines
Rev. 2, 17-OCT-2007 page 9
B: Sample Instructions for a Physical Inventory
There will be two counts. Instructions for each count are different and are
provided below:
First Count
A. One person will count the item.
. We will have teams of two; each team will receive a stack of
inventory tags:
B. The second person will record the count and item information on
the inventory tag.
C. The tag will be taped to the shelf where the item is located.
D. Switch roles occasionally to stay sharp.
You are responsible and accountable for all tags assigned to you during the first
count. Please use them in order and return any unused tags to the issuing staff
member.
The following will need to be indicated on the bottom half of the inventory
tags. Refer to the Sample Inventory Tag for correct placement of each
entry.
A. Description of Item (Product Name)
B. Stock # or Barcode or
C. Quantity Counted
Manufacturer Catalog # (Tag requires
only ONE of these. We prefer that you list them in the order above.
If you cannot find the stock #, look for the barcode; if there is no
barcode, look for a catalog #. Do not list all four numbers.)
D. Unit of Measure (box, each, pkg.)
E. Location (listed on shelf, e.g., AB1, AB2)
F. Team Number
If your team is unsure of any of the needed information for the tags,
please see a supervising staff member.
Once your team has completed the first count for the shelves or area which you
have been assigned please see a supervisor for assignment to a second count
area.
10. Physical Inventory Guidelines
Rev. 2, 17-OCT-2007 page 10
Second Count
G. Description of item
. After all first counts of inventory have been completed, your
team will be assigned to a different location to verify its first count. Teams will
count items and compare it to the first count made. Once it has been verified,
the team will complete the top portion of the tag with the following:
H. Quantity Counted
I. Unit of Measure
J. Team Number (on both sections of the tag)
Your team will tear off the bottom portion of the tag and submit them in
numerical order to the supervisor for data entry after you complete your second
count. If your team finds ANY discrepancies during your second count please
notify a supervisor immediately.
11. Physical Inventory Guidelines
Rev. 2, 17-OCT-2007 page 11
C: Sample Inventory Reconciliation
Inventory On Hand, 30-JUN-20XX $ 664,453.16 a
Inventory Per Physical Count
Sales Tax @ 8.25% 54,817.39
TOTAL INVENTORY ON HAND, 30-JUN-20XX $ 719,270.55
b
General Ledger Inventory per Report
Inventory Per Oracle Financials General Ledger
161 Posted Journals $ 528,004.00 c
Items received by 30-JUN-20XX but not
on GL until after 30-JUN-20XX:
A. Invoices unprocessed at month-end $ 92,784.65 d
B. Receipts not invoiced 108,139.62
TOTAL ADDITIONS $ 200,924.27
e
TOTAL ADJUSTED INVENTORY PER
ORACLE FINANCIALS, 30-JUN-20XX $ 728,928.27
Difference Between Count and General Ledger $ (9,657.72)
a
e.g., "Physical count of inventory, extended at unit cost"
b
e.g., "Sales tax not included as part of unit cost"
c
e.g., "Year-to-date total of entries for object code 11405 posted to award
AAAAA"
d
e.g., "Per Report 138 Invoice Detail, total of all invoices received by Accounts
Payable but paid in a GL Period after JUN-20XX"
e
e.g., "Per Report 206 Purchase Order Detail, total of all purchase orders
received with no invoice or invoice on hold as of 30-JUN-20XX"