Inventory

 Introduction

Inventory or stock refers to the goods and materials that a business holds for the ultimate goal of resale, production or utilization. Inventory management is a discipline primarily about specifying the shape and placement of stocked goods.

Inventory Organization Setup

Inventory is tangible property to be consumed in production of goods or services or held for sale in the ordinary course of business.Inventories are unconsumed or unsold goods purchased or manufactured...more

1. Finished goods:

– Purchased or

– Produced completely but remaining unsold

2. Work-in-progress (work-in-process):

– Units introduced into the production process but are yet to be completed.

3. Raw Materials, Components, Stores and Spares:

– Raw materials -goods that are yet to be introduced into the production process.

– Stores and spares - factory supplies such as coolants, cleaning material, and machinery spares.

Manufacturing concern - Inventory consists of all of the above three components

Trading concern -Inventory consists of finished goods

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1. Sub Inventory Transfer

Sub inventory transfers are used to transfer the material from source sub inventory to destination sub inventory within an organization...more

2. Inter Org Transfer

It is used to transfer material between two different organizations within an operating unit...more

3. Move Order

Move Order transfers are used to transfer the material from source sub inventory to destination sub inventory within an organization. In Move order issue, we just issue the material from source subinventory we never provide the destination subinventory in the move order issue because we just issue or consume the stock by providing the GL account to issue the material...more

4. Inventory Controls

Inventory controls can be subclassified into below four types

4.1. Serial Controls...more

4.2. Lot Controls..more

4.3. Revision Control..more

4.4. Locator Control..more

5. Counting

Counting is performed to maintain the accuracy of the stock in the inventory

5.1 Cycle Counting..more

5.2 Physical Inventory..more

6. Planning Methods

6.1 Min Max Planning...more