How to calculate inventory

Calculation of inventory gives the company the opportunity to analyze how much product was stored in the warehouse for the reporting period, how much product the company was able to sell, and how much product of which name would require new purchases.

You will need

balance sheet or other form of inventory accounting, contracts with suppliers and customers, calculator, notebook, pen

Instruction manual

1

Calculate your initial inventory. This indicator can be found in the balance sheet of the enterprise for the previous period or in some other form of inventory accounting. The indicator for the end of the previous year is usually carried over to the beginning of the current period. Let’s say, an X clothing company stores material in a warehouse for a total value of 1, 678, 000 rubles.

2

Determine the cost of procurement. This value is taken from contracts with suppliers or other documentation confirming the fact of the acquisition of goods. Suppose that at the beginning of the year, the X clothing company purchased 590, 000 rubles worth of material.

3

Calculate the amount of sales. In this parameter, you need to reflect the amount of sales that the organization was able to carry out at the beginning of the period. Let the Igre textile store buy material worth 630, 000 rubles from the X clothing company.

4

Calculate inventory according to the formula:

ТЗ = НТЗ + З - П, where

TK - inventory, NTZ - initial inventory, S - purchases, P - sales.

In the above example, TK = 1, 678, 000 + 590, 000 - 630, 000 = 1, 638, 000 rubles.

5

Calculate inventory for each type of product. For a better analysis of the movement of goods in the warehouse, it is necessary to calculate the TK indicator for each type of product and its variety. In particular, in our example, TK can be calculated separately for silk, separately for woolen fabrics, separately for synthetics. In this case, the stock of silk can also be distinguished by color, density or width of a running meter. Therefore, it is recommended to create special computer programs in which the movement of inventories for each specific type of product will be monitored. This will allow the company to quickly respond to the situation - to carry out promotions that promote the sale of goods or urgently purchase raw materials, materials or finished products from the supplier.

note

The calculation of inventory is recommended every quarter and at the end of the year, which should be reflected in the appropriate reporting forms.

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