Online business-enhancing software programs are excellent. They make sure that several crucial business processes are streamlined, which includes inventory management. Any company that would deal with physical products of various types in their business module must have inventory systems of some kind. An inventory control technique called the perpetual inventory system updates products each time …. View detail https://blog.efex.asia/disadvantages-of-perpetual-inventory-system/

To estimate demand and avoid surplus stock, all companies must keep track of how much inventory they own. Therefore, every manufacturing company uses the inventory record system to maintain track of its inventory movements throughout the year. Inventory systems are classified into two types: periodic and perpetual. Each system has different advantages, so if you …. View detail https://blog.efex.asia/periodic-and-perpetual-inventory-system/

Companies selling tangible goods and those engaged in maintenance and repair both need to keep track of their obsolete inventory. The quantity of obsolete inventory that a company has can be a key sign of whether inventory management and purchasing are being optimized or whether they need to be reevaluated. At this point, journal entry …. View detail https://blog.efex.asia/journal-entry-for-obsolete-inventory/

It’s annoying to have extra or obsolete inventory. Once you have an excessive amount of unsold inventory, it takes up too much space and has to be protected from damage. In this case, selling as many inventories as you can is the best way to free up space. Use your creativity to make the products …. View detail https://blog.efex.asia/disposal-of-obsolete-inventory/

You may find a ton of businesses willing to buy your excess stock products if you search for “excess inventory” in almost any search engine. This will give you an immediate cash infusion and make more room in your warehouse. However, at what cost? The possibility of it being out of date is just one …. View detail https://blog.efex.asia/excess-and-obsolete-inventory/

Maintaining your retail inventory management in order ensures that your racks are filled, your warehouse spaces are not congested, your cash flow is consistent, and your vendors are satisfied. Without effective inventory control procedures, it is hard to run a profitable small firm. Despite this, nearly half of small enterprises do not manage inventories at …. View detail https://blog.efex.asia/advantage-of-perpetual-inventory-system/

Possibly the most crucial statistic for industrial processes is inventory accuracy. The business won’t be able to plan or predict, the supply chain will break down, expenses will increase, consumers will be dissatisfied, and the shop floor will have low productivity and efficiency. That’s a big impact from a straightforward measurement, whose significance is sometimes …. View detail https://blog.efex.asia/inventory-accuracy/

The FIFO perpetual cost flow tracking system assumes that the first unit of inventory obtained is the first unit used or sold. Furthermore, in a perpetual inventory system, inventory inflows and outflows are reflected in stock records as quickly as transactions take place. The resultant charge to the cost of goods sold is the same …. View detail https://blog.efex.asia/fifo-perpetual-inventory-method/

Manufacturing businesses now compete in a dynamic and highly competitive business environment. The supply chain undergoes changes, and depending on environmental variables, customer demand can fluctuate or even spike. A business must measure KPIs inside a production facility to ensure that it is accomplishing its goals and is adaptable enough to effectively satisfy customer demand. …. View detail https://blog.efex.asia/manufacturing-cycle-time/

In contrast to the FIFO technique of inventory evaluation, the LIFO perpetual inventory method posits that the last expenditures expended to acquire items or direct supplies are the first costs charged against revenues. In other words, it presumes that the cost of items sold in a retailing firm or the cost of supplies provided to …. View detail https://blog.efex.asia/lifo-perpetual-inventory-method/