CPE
Books
Financial Accounting
Operational Accounting
Podcast
Q&A
Dictionary
Accountants' Guidebook
Organize the inventory. It may not seem like a control to simply organize the inventory
in the warehouse, but if you cannot find it, you cannot control it. Thus, a fundamental
Financial Analysis
basis for inventory internal control is to number all locations, identify each inventory
GAAP Guidebook
Count all incoming inventory. Do not just take the word of the supplier that the quantity
Hospitality Accounting
IFRS Guidebook
Interpretation of Financials
Inventory Accounting
Investor Relations
Lean Accounting Guidebook
Mergers & Acquisitions
Nonprofit Accounting
Payables Management
stated on the delivery is the correct one. Count the inventory before recording it as
received. This keeps errors from being introduced into the inventory records.
Inspect incoming inventory. Verify that all incoming inventory is of the correct type and
is not damaged. All items that fail
inspection should be returned at once, and the
accounts payable staff notified that the returned items should not be paid for.
Tag all inventory. Every scrap of inventory in the warehouse should be identified with a
tag, which states the part number,
description, unit of measure, and quantity.
Otherwise, inventory items are bound to be mis-identified.
Segregate customer-owned inventory. If there is inventory on-site that customers own,
Payroll Management
the warehouse staff will likely count it as though it is owned by the company, so have a
procedure in place for labeling these items as customer-owned when they arrive, and
Operations Bestsellers
Constraint Management
in the warehouse, for use either in the production area or for sale to customers, have a
standard procedure for recording the picks as soon as they leave the warehouse (which
Inventory Management
is easier
if there is a warehouse fence, and inventory can only pass through a single
Purchasing Guidebook
@
Receive monthly discounts on
accounting CPE courses & books
contains mostly raw materials, keeping track of it is essential for ensuring that the
Accounting Controls
Bookkeeping Guidebook
Home
Accounting Bestsellers
About
controlled gate).
Sign for all inventory removed from the warehouse. If inventory items are being
removed from the warehouse for reasons outside
of the normal picking process, have
the person removing the inventory sign for the removal, so that there is a record of who
is responsible.
Audit the bill of materials. The bill of materials
is a record of the parts used to construct
a product. The bill of materials is used to pick items from stock, so if the bill is incorrect,
pickers will pull incorrect amounts from the warehouse. This calls for a
periodic audit of
Submit
Contact
| Site Map
| Copyright 2015, All Rights Reserved