Types of inventories

<p>If you found this article useful, please rate it with <span>5 stars</span><p>

There are many types of inventories and each company will catalogue its own depending on its own needs. However, each company knows that the inventory is one of the most important parts because its correct management can generate profits, productivity and a good operation of the supply and demand.

If you are the owner of a business it is important to know its scope and the needs of your different customers. Knowing what kind of inventory is best for our business will help us be prepared, have better control of the goods and know the capabilities we have.

Table of Contents

Accounting inventory

It is clear to all of us that the nature of a company is to buy and sell goods or services, and for this reason we must keep our inventory accounting very much in mind. Poor accounting can result in losses to the company and in large and deep problems with the law.

Having an inventory accounting serves to have a control of the goods, taxes, sales in the business, debt capacity and cash flow. By analyzing this type of information, we will know what type of accounting practices we can adopt for the benefit of the whole.

Merchandise inventory

This type of inventory is in charge of cataloguing all the goods that belong to the company, whether they are commercial or mercantile; these will be sold without any kind of modification. Here we will know all the products or merchandise that we have available for sale.

You can also read  What is a sales commission?

It can be confused with others, such as products that are on the way, which we have acquired but not yet received, or goods given on consignment. However, the latter two are catalogued in different inventories.

Permanent Inventory

With this type of inventory the company can keep a continuous record of all their goods, control the costs of the products or goods they have sold. Having a permanent inventory provides different advantages, such as allowing control of all items and the application of marketing strategies by knowing, in real time, the inventory levels we have.

Likewise, it allows us to verify the information of the inventories in a physical way, so that everything is properly organized and there are no problems in the future. In addition, it reduces costs and helps us to offer a better service to customers who put their faith in us.

Physical Inventory

This type of inventory is one of the most detailed that exist. It is done by counting, weighing or measuring each of the goods or merchandise we have. By evaluating each one of them, we will be able to know the quality, the state and the way in which the products are found. Later all the information is noted in a list where the goods in existence will be detailed.

Final inventory

At the end of a period, every businessman must make a final analysis of all his goods. This serves as a means of control and to determine the asset situation in which the company finds itself.

Conclusion

Just like the famous saying “every sheep with its mate”, every inventory too. It is important to know how to apply each one at the right moment of the process. And as you can guess, our ERP software helps you in every step, because that is what we have prepared it for, to make your life easier. Any questions?

You can also read  What is a product report?

 

<p>If you found this article useful, please rate it with <span>5 stars</span><p>

Related Posts

InnovaCommerce

© 2020 Copyright IDX Innovadeluxe. All rights reserved. The brand InnovaCommerce is property of Innovadeluxe Diseño y Desarrollo Web, S.L.. Any other brand named on this website is the exclusive property of its respective owner and is named by Innovadeluxe for information purposes only.
Subscribe to the Newsletter

Subscribe to the Newsletter

Subscribe to our newsletter to be informed of news and offers from InnovaCommerce, you will also receive free information on marketing tips to increase sales in your business.



You have successfully subscribed