Inventory checking is done at the end of the one-day and annual, financial year. Stock list cycle is done continuously through count. Typically used by the end of the financial year for use in the company’s financial statements. This is often done in the presence of external auditors. External auditors also audit financial statements.
Warehouse Inventory Management Material’s Regular Counts are also carried out, in which usually Inexpensive items are taken and the bestselling materials are also taken, priority is given in a short duration to take stock of High sale and Inexpensive Materials.
Stock list is designed on the basis of how much the sale of stock has happened in the last season. This makes the task of taking stock list easy. There is also another purpose of stock checking which gives information about what was the stock position of the company / organization at a specific point.
However, such stock taking is often done by the organization’s employees and also by the Service Provider who come from days to weeks. And Managed by Inventory. There are three module of inventory management which is mostly used for warehouse inventory management in warehouse.
- Physical inventory Verification(PIV)
- Perpetual inventory
- Cycle Count Inventory
Physical Inventory Verification(PIV)
Physical inventory is a process where a business counts its entire inventory physically. Business Management counts the material list of its stock so that component parts or raw material or salable parts can be re-installed.
Businesses use many different strategies to reduce the interruption in physical inventory. Inventory devises tools like More Manpower and Automation (SAP-ERP) to quickly count stocks and reduce time to business shut down.
Inventory control system software SAP -ERP CRM etc.helps in making physical inventory process very fast and easy. A continuous inventory tracks the receipt and use of the inventory system, and calculates the quantity. Cycle count is an option of physical inventory which is less disruptive. You will understand this further.
Perpetual inventory- The daily stock count or continuous inventory of any business has been considered as part of the Perpetual inventory systems where the quantity and availability information of the inventory is updated on a continuous basis as a function of doing business.
This is usually accomplished by connecting inventory systems to order entry and retail off sale system. In this case, the book list and the actual list are almost the same.
In earlier times, non-continuous or periodic inventory systems were more prevalent. Starting in the 1970s, digital computers enabled the ability to implement a perpetual inventory systems.
This has been made easy by bar coding and more recently Radio frequency identification (RFID) labeling, which allows for quick reading and processing of Inventory information by transactional processing by computer systems.
There is still a hurdle in making the Perpetual inventory system Permanent in which these sensitive causes are such as: theft, breakage, scanning errors or untrained inventory movements. Which is part of the Replenishment System errors.
Inventory start is usually like this Physical Stock List + Receipts Stock list – Shipment Stock list = Inventory Complete. The accountant then adds or decreases the value using Adjustment Entry, although the Invoice and transaction of all Purchase Materials and Shipment Materials are captured.
Cycle Count Inventory
A cycle count is an Inventory auditing process, which falls under Inventory management, where a small Subset (list) of Inventory stock at a specific location is counted on A specified day. The cycle count works in contrast to the traditional physical inventory.
All items are counted at once by closing the operation of a business or warehouse to do physical inventory. At the same time cycle count is also done during daily operation which helps in inventory accuracy and process execution and it is also important for concentrating on items with high value, high protest volume or for business processes. However some say that the counting of cycle count should only be done with high accuracy.
Cycle counting is a means of achieving and maintaining a high degree of accuracy. Procedures inventing control are specific procedures for using cycle count to quickly identify the root causes of problems. And then monitor effectively to eliminate root causes.
In fact, control procedures cannot be made reliable without conducting traditional inventory audit. Cycle count This is an Enough method to identify root causes of Inventory errors. Conversely, identifying root causes, working on actions to eliminate them, is included.
Warehouse inventory management entails stock control of a company and meeting various stock demands. Warehouse inventory management places purchase orders to maintain supply so that stock remains balanced and all departments operate together.
If your warehouse does not have inventory? The material untraceable will increase day by day. and your warehouse will gradually become like a scrap yard, So you should focus on warehouse inventory and manage it well.
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