What is Inventory Accounting What is Inventory Accounting? What s the point?

Inventory refers to all kinds of assets stored by enterprises for sale or consumption in the process of production and operation, including commodities, finished products, semi-finished products, work-in-progress, various material models, fuels, packaging, low-value consumables, etc. Inventory is a necessary condition to ensure the smooth progress of the production and operation process of an enterprise. In order to ensure the continuity of the production and operation process, enterprises must constantly purchase, consume or sell inventory.

Inventory is an important current asset of an enterprise, and its value accounts for a large proportion of the current assets of an enterprise.

Inventory refers to the finished products or commodities held by the enterprise in its daily activities for the first time, the products in the production process, and the materials and materials consumed in the production process or the provision of labor services.

Inventory accounting refers to the measurement of the inventory value (i.e., cost) of an enterprise, which is used for the inventory in and out of industrial and commercial enterprises.

Library voucher processing, accounting report inquiry, early and late processing and related data maintenance.

1. It can help enterprise warehouse management personnel to carry out detailed and comprehensive control and management of inventory goods;

2. Help inventory accountant to account for inventory goods;

3. Provide various inventory reports and inventory analysis to provide a basis for enterprise decision-making;

4. Reduce inventory, reduce capital occupation, avoid backlog or shortage of goods, and ensure the smooth operation of enterprise activities.

As an important liquid asset, the existence of inventory is bound to occupy a large amount of working capital. Under normal circumstances, inventory accounts for about 30% of the total assets of industrial enterprises, and commercial circulation enterprises are higher, and their management and utilization are directly related to the level of capital occupation and asset operation efficiency of enterprises. Therefore, if an enterprise wants to maintain high profitability, it should pay great attention to inventory management.

Under different levels of inventory management, the average level of capital occupation of enterprises varies greatly. Through the implementation of correct inventory management methods, to reduce the average level of capital occupation of enterprises, improve the speed of inventory circulation and total asset turnover, in order to ultimately improve the economic benefits of enterprises.

The weighted average method, also known as the one-time weighted average method for the whole month, refers to a method that calculates the cost of inventory issued in the current month and the cost of inventory at the end of the period by taking all the purchased quantities of the month plus the inventory quantity at the beginning of the month as the weight, removing the total purchase cost of the month plus the inventory cost at the beginning of the month, and calculating the cost of the inventory at the end of the period.

The weighted average unit cost of inventory (cost of inventory at the beginning of the month, cost of inventory purchased this month) (quantity of inventory held at the beginning of the month, quantity of inventory purchased this month).

Inventory accounting includes first-in-first-first, weighted average accounting, moving weighted average accounting, individual valuation accounting, Senhong plan cost accounting, etc.

To carry out the inventory accounting of the group song, it is required:

1. Correctly calculate the cost of inventory purchase, and encourage enterprises to strive to reduce inventory costs;

2. Reflect and supervise the receipt and delivery, return and custody of inventory;

3. Reflect and supervise the occupation of inventory funds, and promote enterprises to improve the use of funds.