Today we'll show you how to take an inventory. In this guide, you will discover:
Why take an inventory
The different categories
The steps to follow to achieve it
And many others
If you want to do this exercise successfully and save time and money, you've come to the right place. Let's go!
Definition of stock inventory
An inventory is the counting and valuation of a business's inventory. This operation allows you to know the real quantities of your goods which are potentially different from those displayed in your management software. The inventory is essential to establish the balance sheet.
Why take an inventory?
The inventory of stocks is a legal obligation: article L123-12 of the Commercial Code. Any natural or legal person being a trader must carry out an inventory at least once a year. This must be done before the end of the financial year (often before December 31).
Beyond the legal aspect, a well-carried out inventory will allow you to better manage your stocks, to exercise in-depth quality control and to be in a process of continuous improvement. Conversely, a poorly done inventory can waste time and money. A simple example: a counting error results in an unavailable product for your customer and therefore a lost sale.
What are the different types of inventories?
There are 3 types of inventories, each with its advantages and disadvantages.
The annual inventory
This is the type of inventory most used by SMEs and businesses. It consists of counting the entire stock once a year. The rule is simple: as long as the product is not invoiced to your customer, you must include it in your inventory. Therefore, unbilled product that is outside your premises should also be recognized.
It is important to distinguish between the products your company buys and the products manufactured.
Here is how to integrate the value of these 2 categories into your inventory:
Products purchased = Purchase price excluding VAT - any discounts, rebates ...
Manufactured products = cost price (raw material + production cost + labor + charges)
The annual inventory is suitable for companies with a single storage location and a limited range of products. In order to avoid errors caused by stock movements, it is necessary to stop the activity during the process, which can be a disadvantage.
If you have the possibility to do so, we strongly advise you to carry out 2 or 3 annual inventories. This will allow you to reduce the presence of defective or damaged items (due to poor packaging, for example). The principle is simple: the more up to date your stocks are in quantity and quality, the more you will increase the efficiency of your sales process.
The rotating inventory
The rolling inventory consists of carrying out a count several times a year. It is suitable for companies with many different products and multiple storage locations (often large SMEs and corporations). A good organization of the storage place is essential for a success of this type of inventory.
The advantage of this formula is that it allows you to have a very precise view of the stock thus avoiding problems of shortage or surplus. In addition, here the blockages of activity will be more spread out over time and more suited to large structures.
The permanent inventory
This type of inventory, also called "computer inventory" consists of counting each movement, that is to say entries and exits. It is only applicable by companies with very little stock and few references. This inventory allows you to be informed in real time of the quantity and value of stocks.
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Refund policyOur policy lasts 3 days.
If 3 days have gone by since your purchase, unfortunately we can’t offer you a refund or exchange.To be eligible for a return, your item must be unused and in the same condition that you received it.
It must also be in the original packaging.To complete your return, we require a receipt or proof of purchase.Please do not send your purchase back to the manufacturer.Refunds (if applicable)Once your return is received and inspected, we will send you an email to notify you that we have received your returned item.
We will also notify you of the approval or rejection of your refund.If you are approved, then your refund will be processed, and a credit will automatically be applied to your credit card or original method of payment, within a certain amount of days.Late or missing refunds (if applicable)If you haven’t received a refund yet, first check your bank account again.Then contact your credit card company, it may take some time before your refund is officially posted.Next contact your bank.
There is often some processing time before a refund is posted.If you’ve done all of this and you still have not received your refund yet, please contact us at [email protected] items (if applicable)Only regular priced items may be refunded, unfortunately sale items cannot be refunded.
Exchanges (if applicable)We only replace items if they are defective or damaged.
