Inventory is one of the most important key elements that make up current assets, so the subject of measuring the cost of inventory and the way it is applied to process inventory needs an optimal way to calculate the cost of products, the cost of sales, and therefore to measure income and financial position, so the need for an inventory control system is very important.
Inventory management
The concept of inventory management is a term that indicates how to manage the inventory of your items in line with the nature of your activity and it is also the process of following up and organizing products in the period that you specify, so it is important to determine the importance of inventory management, managing your items and how to maintain them and manage your inventory accounts correctly in this article we will learn about how important and how to manage your inventory.
Warehouse problems
Some of the problems of stores lie in several simple points that we can clarify, namely:
- Failure to identify deficiencies early.
- Distressed inventory is in the warehouse.
- Excessive stock in stores and inability to sell quickly .
- Employee theft.
Failure to identify a deficiency early
Businesses always need a number of items and are surprised that they do not have enough in stock and need to buy a quantity of those items. However, this can slow down the supply process and put you in case of not meeting customer demand and lead to poor customer relations, so you should check the inventory on a regular basis to make sure that the product is in sufficient quantity in stock.
Distressed inventory in the warehouse
The concept of non-performing inventory is the existing inventory of which there is a good amount, but it must be sold as soon as its expiration date is near, and this is what happens in most commercial activities, especially in the activities of food, grocery, feed and everything that depends on the expiration date, so you should be aware of and follow up on those items.
Over-stocking in stores and inability to sell quickly
This problem occurs when you overbuy a certain item because you don't know that you have an accurate quantity of this item available in the store and it has reached the maximum, and this is the most common problem for most activities and stores, as the cash flow comes from moving inventory.if the activity buys a quantity of items as inventory and is not sold, it leads to a slow movement of capital, which leads to losses.
Employee theft
One of the causes of inventory problems and causing its loss is the theft of internal employees, employee theft leads to significant losses over time and this comes from not following up the movement of employees and also not following up on work on a daily basis and inventory inventory at intervals so you do not notice the theft only when making an annual inventory .
Inventory problems
There are many inventory problems, which generally affects the accounts of your activity or company, and in particular affects your inventory and profits, so inventory problems are represented in several points :
- Inventory using writing in the books, which exposes them to depreciation or loss.
Following the spelling method, which exposes you to errors and inaccuracies . - Exposure to depreciation of items during repeated inventories.
- The difficulty of inventory makes you inventory your stores at very spaced intervals.
- The presence of expired varieties and their late detection.
Common mistakes in inventory management
- registration of some durable items as consumer items and vice versa.
- write-off with stock or financial books.
- the value of the discharged items is not recorded with the exchange permit.
- receiving financial or stock books from stores without making sure of their safety and the safety of the number of their papers.
- appending a financial book to another book in the collection.
- Not to send the inventory statements to the control of the covenant in the stores immediately after the end of the inventory .
As we can see, most of the inventory and inventory management problems lie in the use of paperwork and stores, and the optimal solution to these problems is to have an accounting system that solves these problems, so we offer you today the inventory control program from Crystal Soft company, which enables you to link all points of sale (stores – customers– accounts ) in a single database registered on a computer, which avoids
The most important methods of store management and their application
- The method of working papers .
- Barcode method and accounting software.
First : the method of working papers
This method is applied manually by relying on paper and pen, where the movements of sale, purchase, incoming and outgoing in stores are recorded inside the sheets and also relied on in the inventory, inventory management planning is also relied on through the sheets and the quantities of the best-selling items are determined for purchase as well as reviewing the lowest-selling items, but it has become very rare to use this method for inventory management because of its serious disadvantages, namely :
- Very slow.
- Inaccuracies in inventory management.
- The probability of human errors.
- It becomes very difficult with the large volume of production, the increase in products and inventory items, and with the presence of many branches.
Second: barcode method and accounting program
This method is considered one of the optimal methods in store management, which depends mainly on linking an accounting program with a barcode program, and this method depends on the presence of numbers affixed to the product, and these numbers contain an identification record of all product characteristics, and the scanner reads the barcode on the product and feeds the account management program with all the data – Inventory adjustments) as well as inventory operations, inventory assessment, notifications of the best-selling and least-selling items, reports and data necessary for inventory management. This method is considered one of the most suitable ways to manage stores, especially in light of technological progress, increasing the volume of products and branches, the speed of obtaining reports at any moment and for any period, and reducing error rates by not interfering with the human element in store management.Features of the best accounts and stores program
- registration and codification of items .
- complete management of sales and purchase operations .
- managing stores and their settlements and losses.
- managing the operations of storage and banks .
- manage inventory operations on a daily, weekly, monthly and annual basis.
- Account Management.
- Personnel Management.
- managing and printing reports.
General features of the store and point of sale Management Program Crystal View
Crystal view is one of the best store programs for managing business activities through several features that help you manage business activity with ease, including :
- add an infinite number of items .
- add stores and specify the responsible for each store.
- the possibility of transferring between stores.
- export and import of items from Excel sheet.
- use barcodes to inventory stores faster .
- settlement of quantities of items and products.
- manage each of the accounts, sales and procurement departments in detail.
- linking branches on a single database.
- the program works fully on the accounting course system.
- the program fully supports VAT.
- make more than 200 + detailed reports to follow the workflow.
- work out the audit balance, income statement and profitability report.
- determining the powers of users on the program according to their work
- making sales and purchase invoices .
- support the VAT billing system.
- record and archive details of invoices and suppliers .
- display prices, issue receipts and record sales.
- comprehensive commodity price display .
- recording the value of assets, capital and the value of the lost .
- registration of safes, banks, checks, loans and advances .
- bank loan account support and installment system management.
- add accounts and data of customers, suppliers, representatives and companies.
- management of Personnel Affairs, attendance, departure, vacations and others .
The main elements that make up current assets, so the subject of measuring the cost of inventory and the method that is applied to process inventory need an optimal way to calculate the cost of products, the cost of sales, and therefore to measure income and financial position, so the need for an inventory control system is very important.
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