Periodic & Perpetual in Inventory System - Many owners of companies and shops face problems during the inventory of stores because the inventory process sometimes takes a lot of time and leads to the cessation of the sale or purchase process until the end of the inventory and requires reviewing all invoices, accounts and goods in each store.
What is the inventory?
Inventory Stock is the follow-up monitoring of what is in stock for some items to ensure the conformity of the quantity in the stores with the books or accounting programs, it is like a physical verification of the quantities in stock or warehouse, and the extent of validity.
Types of inventory
The types of warehouse inventory are different, and each type differs according to the method of inventory used, the means, as well as the time period itself, the most notable of which are:
Periodic inventory: inventory is taken at the end of each year, or when the list of the company's financial position is prepared, and periodic inventory, it is concerned with the actual inventory of the inventory and not just the book inventory, meaning that the number of quantities actually present in the warehouses is counted and limited by cost.
Continuous inventory: the movement of inventory is recorded with each process of adding inventory (incoming) and each process of subtracting from inventory (outgoing) so that the inventory balance is affected instantaneously by each process.
Annual inventory: inventory and inventory of all the goods in the warehouses, and those goods are matched, which is registered in the ERP systems
Sudden inventory: it is the one that occurs sudden inventory at any time, and the purpose of it is:
- Detect theft operations and show corrupt elements that work within the company or organization.
- Confirm that all incoming and outgoing to the warehouse is fully recorded in its time in the book record.
- A snap inventory is useful for recognizing the amount of inventory.
- Review the expiration date of the items in the store and detect damaged ones.
It is possible that the inventory is monthly and this procedure is currency in some companies. Also, the inventory is most likely to be at the end of the year .
In all cases, the inventory is carried out through a committee consisting of a financial member, a technical member and the storekeeper, who takes the inventory in a warehouse.
The exchange permits are signed by the inventory committee to be taken into account when evaluating the inventory after the completion of the inventory of the warehouse
The inventory is carried out on all items inside the store, and not items among them, and it is possible to exchange during the inventory for the need of work not to stop production lines, for example, on a certain spare part
The difference between periodic and continuous inventory
The difference between periodic inventory and continuous inventory, in accounting terms, is the financial accounting entries that the accountant makes in the company's books using the procurement account in the periodic inventory method or the inventory account in the continuous inventory method. Periodic inventory seems to be the most common at the moment, and although it is more expensive and requires a lot of time and effort, it is more extensive. The continuous inventory of warehouses also helps a lot to reduce the burden on the periodic inventory committee
Warehouse inventory software
The Inventory Program facilitates the inventory process completely because the warehouse program stores all the data related to the goods in the warehouses, the dates of receipt and storage of goods, the dates of sending quantities of goods to merchants or shops, the details of quantities, prices and parts shops need, especially if they deal in currencies, which facilitates the inventory process completely and finish it quickly without stopping work for a long time and without having to think about the difficulty of the inventory process that occurs from time to time.
Benefits of annual inventory of stores
- The annual inventory of the warehouse is one of the important things that the company's managers are keen to do to avoid changing any resources in the warehouses and to ensure the availability of production resources within the company.
- Registration of all matters related to the store and its resources in the company's special accounting system. While making sure that it corresponds to the actual existing assets, which makes the company's internal resources available and, consequently, the regularity of the company's work.
- It is also important that all items and products are numbered with their own barcodes to avoid interference, and these operations are recorded in an appropriate accounting program, while ensuring the compatibility of barcode numbers and item counts with your accounting system.
Warehouse inventory reports
The Crystal View program provides you with all inventory reports that help you manage the store and also facilitate the process of inventory of stores and manage it with ease and here is a list of the most important reports:
- Reports on items in stores at all prices.
- Item inventory reports: general inventory - inventory of a specific item –inventory of certain quantities
- Deficiency reports-waste report --limit report-raw materials report
- Reports of items under delivery-invoices under delivery - transfers between stores
- Cargo balance reports-comprehensive item movement reports-item movement-type movement
- Stocks of items in negative - inventory by Types totals-inventory comparison
- Reports of inventory movement of items on a certain date - discount and addition permits for quantities of items
- Combined payment authorization report for invoices during a period - reports of payment authorization and receipt of items
- Report of transfers between stores-report of quotation of all items-exchange and addition permits
- Aggregated item traffic reports for clients - aggregated item traffic reports for platforms
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