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Summary of Inventory Control

What is inventory control ?
Inventory control, also called stock control, is that the process of managing a company’s inventory levels, whether that be in their own warehouse or contact other locations. It comprises management of things from the time you've got them available to their final destination (ideally to customers) or disposal (not ideal). a listing system also monitors their movement, usage, and storage. Inventory control means managing your inventory levels to confirm that you simply are keeping the optimal amount of every product. Proper internal control can keep track of your purchase orders and keep a functional supply chain. Systems are often put in situ to assist with forecasting and permit you to line reorder points, too.

Inventory control can include :-
  1. Barcode scanner integration
  2. Complete inventory counts
  3. Keeping track of physical inventory with sales and get orders
  4. Product details, locations, and histories
  5. Reports and adjustments

The general goal is to maximize your profits while the smallest amount amount of inventory possible is sitting in your warehouse. Your business must try this without compromising customer satisfaction. While you'll handle internal control manually, there are automated systems that take the responsibility of managing your stock levels, and help eliminate costly human error.

Why is inventory control important ?
Here are some ways internal control is very important for your business so you'll gain an inherent understanding of the aim of inventory control.

1. Inventory control
Having a listing management system allows you to implement greater internal control. If you'll track and manage all aspects of your stock, you better control quality. The longer you hold inventory, the more likely it's to urge damaged. you'll be able to avoid that by ensuring that stock gets rotated through your warehouse.

2. Organizational control
Inventory control means you have got organizational control in your business. A well-organized stockroom helps you to manage your merchandise and make the foremost of your investment in physical inventory. This aspect of internal control is significant for knowing where your stock is and also the expediency with which you'll access it.

3. Accounting accuracy
Keeping an accurate record of your inventory is significant for managing your assets. it'll also facilitate your within the event of an audit. Knowing what you have got in assets allows you to understand your overall spoilage and understand the worth of your company.

Financial accounting ules and tax regulations may mandate your company to own a physical inventory account. All stock should have correct numbers and pricing in your inventory systems and your accounting software. this may ensure your company can bear audits with none question to your business’s accounting integrity.