Difference Between Inventory and Inventory The difference between warehousing and inventory

The landlord can be understood literally! Inventory refers to all the products that your company owns! Inventory refers to the things stored in the warehouse, if the semi-finished products are out of the warehouse for deep processing, they must be deducted from the middle! That said, you should be a little bit of a helper!

In fact, the most fundamental difference between them is that inventory refers to the name of the item, such as the purchased goods, raw materials, semi-finished products, etc., while the inventory refers to the quantity, usually the amount of inventory, refers to the quantity, such as how many kilograms of this raw material is left, etc., so it will be easy to understand!

The difference between warehousing and inventory is that the concept is different and the nature is different.

1. The concept is different.

Warehousing is commonly said to be the position state of material storage stagnation, and inventory refers to the quantitative state of the actual storage of materials. (as shown in the image below).

2. The nature is different.

Warehouse management is the all-round management control of material storage, form, region, layout, etc., while inventory management is the requirement of attributes, and it is the management and control of the amount of materials themselves. (as shown in the image below).

The role of inventory:

1. Maintain the stability of sales products.

Sales** enterprises (MTS method, see the main production plan section) must maintain a certain amount of inventory for the final sales products, and its purpose is to cope with the sales changes in the market.

In this way, the enterprise does not know in advance what the market really needs, but only produces the market demand, so it is necessary to produce a certain amount of inventory. But with the formation of **chain management, this inventory is also decreasing or disappearing, **chain management refer to the relevant chapters of this book.

2. Maintain the stability of production.

The enterprise arranges the production plan according to the sales order and the sales ** (refer to the production part of the master plan), formulates the purchase plan, and issues the purchase order. As the purchased items require a certain lead time.

This lead time is based on statistical data or under the premise of stable production of the first merchant, but there is a certain risk, which may delay and delay the delivery, and eventually affect the normal production of the enterprise, resulting in the instability of production.

To reduce this risk, companies increase their inventory of materials.

3. Balance enterprise logistics.

Inventory plays an important balancing role in the logistics of purchasing materials, production materials, work-in-progress and sales items. The purchased materials will be coordinated according to the inventory capacity (capital occupation, etc.), and the receipt and warehousing of incoming materials will be coordinated.

At the same time, the production department should consider the inventory capacity, the logistics of the production line (site, manpower, etc.) to balance the distribution of materials, and coordinate the inventory management of the work-in-progress. In addition, it is necessary to coordinate the inventory of the products to be sold according to the situation (such as the dispatch of each branch warehouse, the speed of restocking, etc.).

4. Balance the occupation of circulating funds.

Inventory materials, work-in-progress and finished products are the main occupation of the company's circulating funds, so the control of inventory is actually the balance of circulating funds.

For example, increasing the order batch will reduce the order cost of the enterprise, and maintaining a certain amount of work-in-process inventory and materials will save the number of production exchanges and improve work efficiency, but both aspects must find the best control point. <>

The two are different in terms of meaning, characteristics, and uses. Inventory is the finished product held by the enterprise in its daily activities, and the products in the production process. Inventory commodities refer to all goods that are idle, used for the future, and have economic value.

Specifically, inventory refers to the finished products held by an enterprise in its daily activities, the products in the production process, and the materials or materials consumed in the production process (or the provision of labor services). Inventory commodities refer to all goods that are idle, used for the future, and have economic value. Including all kinds of materials, work-in-progress, semi-finished products, finished products or inventory goods, as well as packaging, low-value consumables, commissioned processing materials, etc.

Inventories have several distinct characteristics: inventories are tangible assets; It has strong liquidity; Inventory is time-sensitive and has the potential for loss. Under normal business activities, inventories can be converted into monetary assets or other assets on a regular basis.

Businesses should set up"Inventory items"Accounts account for the increase and decrease of goods in inventory and their balances. When the goods are inspected and stored in the warehouse, they should be carried out by"Production costs"Subjects are transferred"Inventory items"Subjects; When selling inventory goods externally, the corresponding accounting treatment is carried out according to different sales methods; Inventory commodities such as construction in progress shall be transferred according to their cost.

Inventory Commodities The sub-ledger should be set up according to the type, variety and specification of the inventory commodities of the enterprise. If there are commodities stored in the sales department of the enterprise, commodities sent to the exhibition, and commodities that have been sent out and have not yet gone through the collection procedures, they should be separately set up for accounting. The inventory commodity ledger generally adopts the quantity and amount formula.

Accounting requirements for inventory: The criterion for determining whether an inventory belongs to the inventory of an enterprise is to see whether the enterprise has legal person property rights (or legal property rights) to the inventory. All items that belong to the enterprise in legal title at the date of inventory, regardless of where they are stored or in what state, should be recognized as the inventory of the enterprise.

On the contrary, all items whose legal property rights do not belong to the enterprise, even if they are stored in the enterprise, should not be recognized as the inventory of the enterprise.

Discrepancies in inventory? Not the same as survival.

Inventory, secondly, inventory variance, is the difference between the actual cost of inventory goods and the planned cost based on inventory goods.

Therefore, when you calculate the inventory of goods, there will be a time value in the actual cost, and there will also be a time value to be taken into account in the calculation of our planned cost.

The differences between inventory and in-stock items are as follows:

The difference between inventory and inventory commodities is that they are defined differently, their accounting requirements are different, and their scope is different.

1. The definitions are different.

Inventory refers to the finished products or commodities held by the enterprise in its daily activities, the materials or materials used in the production process or the provision of labor services, etc., and the inventory commodities refer to the products that the enterprise has completed the entire production process and have been inspected into the warehouse, or can be sold as commodities and various commodities purchased or commissioned to complete the inspection and receipt of the warehouse for sale.

2. The accounting requirements are different.

Before the cause is ascertained, the book records of the "inventory commodities" account should be adjusted through the account of "property loss and surplus to be disposed of - current asset loss and surplus to be disposed of", and then transferred from the account to the relevant account according to different circumstances after ascertaining the reason.

The criterion for determining whether an inventory belongs to the inventory of an enterprise is to see whether the enterprise has the property right of a legal person to the inventory, and on the date of inventory, the items whose legal property rights belong to the enterprise, regardless of where they are stored or in what state, should be recognized as the inventory of the enterprise, but the items whose legal property rights do not belong to the enterprise, even if they are stored in the enterprise, should not be recognized as the inventory of the enterprise.

3. The scope is different.

Inventory goods are all kinds of goods that have completed the entire production process and have been inspected and received into the warehouse, and can be used for sale; Inventory includes inventory goods, raw materials, finished products, semi-finished products, production costs, turnover materials (packaging, low-value consumables), material procurement, material cost differences, etc.

Inventory: refers to the number of un** items or commodities owned by a business or institution. It usually includes raw materials, semi-finished products, finished products, etc., as well as other materials and equipment used for production or sales. Inventory is often an important component of a company's or organization's financial reporting.

Inventory: Generally refers to commodities or products that have been purchased or manufactured but have not yet been **. Inventory includes raw materials, semi-finished products and final finished products used in the production process.

Inventory is usually an important part of the accounting of a business or organization, and it is also the basis for calculating gross profit and net profit.

To put it simply, inventory is more focused on quantity and type statistics, while inventory is more focused on financial accounting records and accounting. Mu is defeated.

Inventory commodities generally refer to the materials produced or purchased that have been put into storage to meet the sales conditions. Inventory is the collective name for all materials.

Inventory refers to the finished products or commodities held by the enterprise in its daily activities, the products in the production process, the materials or materials used in the production process or the provision of labor services, etc., including all kinds of materials, products in process, semi-finished products, finished products or inventory commodities, packaging materials, low-value consumables, commissioned processing materials, etc.

Inventory is the goods that are actually stored in the warehouse.

Inventory commodities generally refer to the production or purchase of goods that have been put into storage to meet the sales conditions. Inventory is the collective name for all materials.

Inventory refers to the finished products or commodities held by the enterprise in its daily activities, the products in the production process, the materials or materials used in the production process or the provision of labor services, etc., including all kinds of imitation materials, products, semi-finished products, finished products or inventory products, as well as packaging, low-value consumables, commissioned processing materials, etc.

Inventory is the goods that are actually stored in the warehouse.