An inventory count is usually taken at the end of the year, but can also
be taken for shorter accounting periods.
The purpose of an inventory count is to find out if any differences between
the book inventory of items/goods in Pantheon and the physical inventory of
items/goods in the company exist.
1. Entering Information
There are two ways to enter inventory information:
a.) An inventory count sheet can be entered directly in the program (using
portable scanners, by direct entry or by scanning).
b.) You can create an inventory count sheet by taking an inventory
count on paper and entering it in the program.
2. Comparing Inventories
Once an inventory count has been taken and entered in the program, the balance
must be compared to the balance in the program's records. You will be comparing
the actual, physical balance with the balance displayed on warehouse cards.
This comparison will reveal any variances between the actual balance and
the posted balance. Later, these will be appropriately posted.
3. Reconciling Inventories
The next step is reconciling the inventory. Variances revealed through the
inventory count are carefully examined on the level of the entire company. For
an explanation and example, see Reconciling Inventories.
4. Confirming an Inventory Count
Once an inventory has been reconciled, the excesses and shortages must be
correctly recorded.
For all items with an inventory excess, appropriate excess documents (essentially
documents for receipts at the warehouse) must be created. For all items with
an inventory shortage, appropriate shortage documents must be created (essentially
documents for issues from the warehouse).
Documents for excesses and shortages must be created separately for each
warehouse used in the program.
Because excess and shortage documents will only align the physical inventory
with the book inventory, they must be appropriately posted in the general ledger.
General Functions:
Related Topics: