Tuesday, January 04, 2011

Time for end-of-year inventory counting...

For many companies, New Year's Day is not a day off. Instead, it is a day to do the physical inventory count while the phone isn't ringing. Though it isn't always "fun", there is often a shared sense of mission and purpose to get it done.

Here are a couple of articles on conducting inventory counts that I thought were helpful, if not just interesting.

- http://www.accountingtools.com/procedure-inventory-count
- http://support.quickbooks.intuit.com/support/pages/inproducthelp/Core/QB2K6/wholesale_n/mwd_n/mwd_year_end_inventory_count.html

You don't have to shut down the company to conduct your physical inventory when you are doing your physical inventory. Here are some helpful hints when using MISys Manufacturing to do your inventory count:

MISys Manufacturing uses a Net Change Physical Inventory.
This means that MISys Manufacturing will adjust the quantity of your Items based on the difference between the Counted Quantities and the Recorded Quantities for each entry in the Physical Inventory Batch. The difference of those two values is applied to the Current quantities when you Check (which you should always do before posting!) or Post the batch.

When you are ready to take your Inventory, you would Print the Physical Inventory Worksheet which captures your current Stock Levels as Recorded Quantity. Since we have these values you are free to continue processing in MISys Manufacturing as the Counts are being performed.

Once you have completed the actual counting of you inventory, you would then Feed the Worksheet into the Physical Inventory Batch and then enter the counted values. Once you've entered all of your Item counts in the Batch, you can then Check the Batch and MISys Manufacturing will use the method described above to calculate the resulting quantities. If the results are at odds with the actual quantities, you can adjust the Batch as needed. Once the quantities are correct, you would then proceed to Post the Batch.

If you have any questions regarding this process, feel free to contact us at MISys Manufacturing Technical Support.

Visit us online at http://www.misysinc.com/

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