Inventory Management

I. The concept of stock

Denotes stock "of all goods and services involved in the operating cycle of the
company to be: - sold as is, or completion of a process or pending, or - consume
d first use "PCG 1982. A property purchased or produced for sale is listed in in
ventory. Account No. 31 32 33 34 35 36 37 Account Name Commodities (supplies) Ot
her supplies in-process goods in-process service goods stocks stocks from capita
l goods stocks
II. The perpetual inventory
This is according to the PCG in 1982, an "organization of inventory accounts whi
ch, by recording the movements, means that information should be constant during
the year, the existing numerical quantity and values."
III. Inventory valuation
• Entries in stock (good reception) are valued at historical cost. Raw materials
, supplies and other goods are valued at cost (purchase price + costs of purchas
e). Finished goods and work in progress are valued at production cost (purchase
cost of materials used + loads of production) provided by management accounting.
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Outgoing stock (Good output) must be evaluated by one of two techniques proposed
by GCP (art.322-3) - the method of weighted average unit cost of end of period
(CUMP) can manage the stock without having to identify consignments which are ta
ken out property. - The method of first in, first out (LIFO or FIFO English): we
consider that the items out of stock are primarily older.
Sheet: Valuing stock withdrawals
There are other methods: the last in, first out (FIFO or LIFO) and the method of
replacing first-out, came next (NIFO).
•
The final stock value in financial accounting corresponds to the actual quantiti
es (physical inventory) is multiplied by the CUMP the month, either by the value
of the last items returned. This is the value of the stock, which figured in th
e balance sheet.
IV. Inventory Management
The value of stocks in a stock of a company is often very high. A stock mismanag
ed can lead to difficulties sometimes fatal to the company. That is why it is ne
cessary to rotate rapidly (rotation) without risking a rupture of stock. If stoc
ks are composed of a wide variety of products, it is necessary to limit the mana
gement or give priority to certain categories of items (those with the most impo
rtant movements or those that carry out much of the sales business). For this we
use two methods: • Method 20/80 • The ABC method
Factsheet: The 20/80 method and ABC method
Managing inventory has also: Time management: managing time, avoid waste, antici
pate obsolescence and reduce costs. Inventory management is a significant cost s
ometimes because stocks have a fee: 2
• •
At the time of their formation (preparation of control, launch control, order tr
acking, receipt and control of items, storage items in the store). At the time o
f their detention (rent of premises and charges designed to accommodate items, s
pecial facilities, babysitting costs, obsolescence, insurance against theft and
fire).
Since the early 1980s, after several years of use in Japan, the method of "just
in time" has appeared in France in industrial enterprises. This is simply to mak
e the products just in time to be sold (there is no intermediate storage). This
method is best known under the name "zero stock" calls into question traditional
approaches to inventory management based on an optimal number of orders (Wilson
method). Ideally this method means that we work with the order and the customer
must bear a waiting time equal to the time of manufacture or delivery. Besides
the fact that the "right time" requires continuous adaptability of the organizat
ion of the company (including a very flexible working hours) it completely chang
es the traditional relationships with suppliers of goods or services. Indeed, th
is method of "lean" has the following consequences: • Strict compliance with del
ivery schedules,€• A higher number of orders (smaller in size), • Choice of prov
iders geographically somewhat remote • Select means of rapid transportation and
flexible. In fact, the provider of an enterprise that uses the "just in time" ca
n not itself adopt this method of inventory management because it could not meet
his client. This is tantamount to transferring to the supplier the cost of stor
age which should normally be borne by the customer. This method is the subject o
f criticism from experts in the organization: • It increases the sensitivity of
the company to changes in economic conditions: to offset a sharp decline in acti
vity is increased by temporary staff to avoid Partial redundancy, increasing soc
ial instability; • It can be a dangerous system for SMEs because they are less s
uitable than larger firms to take on additional generation capacity. The SMEs ca
n not easily negotiate with their suppliers delivery terms tailored to the metho
d of "just in time" because the amount of orders is not comparable to that of la
rge organizations. That is why they often resort to more traditional methods. Th
e management of quality (ISO: International Standardization Organization, www.is
o.ch).
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V. Inventory management with Ciel Gestion Commerciale
Menu: Basics - Control: Articles
We may decide or not to manage the stock of each item by checking the box or not
stock management. The actual stock is a numeric field that we can learn that th
e creation of an article. The stock is automatically calculated by the program,
based on inputs / outputs. The theoretical stock corresponds to the actual stock
quantity in less quantity in "Customer Orders" more controlled "Purchase Orders
". Areas "In cde client" and "cde In prov. "Are not accessible. They are automat
ically calculated based on purchase orders and / or sales, not remaindered. The
stock is at a minimum in order to edit information, including statements concern
ing the replenishment of inventory (list of items the actual stock is below this
minimum inventory) to avoid out of stock. The stock is up information to allow
the publishing of list of "overstock" (the actual stock exceeds the maximum stoc
k) because the excess inventory represents a cost to the company.
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