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im Jaded..i create this blog to share my little knowledge about what i've been taken from my college life and my greatest frustration in life is to develop my own accounting software..

Wednesday, August 10, 2011

Inventory Reconciliation

Inventory Reconciling is a one way of maintaining and checking accurately on hand balance of inventory. Its helps to management to know how much the available balance of inventory time to time because it can help project the sales. Another is to know what product or item are the fast moving and non moving, from this they can evaluate what the product  do more to sell, or what product they maximize to sell.


Inventory Reconciliation is important not only for projecting but also to maintaining, specially the physical of inventory, from that we can check the product or inventory from damages, expiry date and etc. For the result of this checking we can now eliminate the cause, why does has damage?


The inventory count conduct monthly inventory or annually and depend to company when they want.The good Inventory reconciling is done by comparing the physical count against to ending balance from inventory database. How is it?
First, generate the ending balance of inventory from inventory database, or the print copy of ending inventory from the inventory database, and it is serve a count list at the warehouse when counting or inventory sheet, it show like this..


No.        Item Name                Ending Balance per Qty    Actual Count per Qty   Discrepancy

1            CokeReg. 1.5L                      500 
2            CokeZer.  1.5L                      600
3            CokeLtg   1.5L                      150

4            CokeReg. 1.0L                     1500
5            CokeZer. 1.0L                      2000

_______________________________________________________________


When done the physical count, the inventory sheet shows like this..


No.        Item Name                Ending Balance per Qty      Actual Count per Qty      Discrepancy


1            CokeReg. 1.5L                      500                                      500                        0            
2            CokeZer.  1.5L                      600                                      600                        0
3            CokeLtg   1.5L                      150                                      150                        0


4            CokeReg. 1.0L                     1500                                     1500                      0
5            CokeZer. 1.0L                       2000                                    2000                       0


By then, The inventory database versus actual count is no discrepancy. Means, no problem about warehouse and the posting of purchase nor sell to database.







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