Accountant Essay

3095 WordsMay 18, 201313 Pages
Stock control and inventory Share: Save this document Print Stock control, otherwise known as inventory control, is used to show how much stock you have at any one time, and how you keep track of it. It applies to every item you use to produce a product or service, from raw materials to finished goods. It covers stock at every stage of the production process, from purchase and delivery to using and re-ordering the stock. Efficient stock control allows you to have the right amount of stock in the right place at the right time. It ensures that capital is not tied up unnecessarily, and protects production if problems arise with the supply chain. This guide explains different stock control methods, shows you how to set one up and tells you where to find more information. • Types of stocks • How much stock should you keep? • Stock control methods • Stock control systems - keeping track manually • Stock control systems - keeping track using computer software • Using RFID for inventory control, stock security and quality management • Stock security • Control the quality of your stock • Stock control administration Types of stock Everything you use to make your products, provide your services and to run your business is part of your stock. There are four main types of stock: • raw materials and components - ready to use in production • work in progress - stocks of unfinished goods in production • finished goods ready for sale • consumables - for example, fuel and stationery The type of stock can influence how much you should keep - see the page in this guide on how much stock you should keep. Stock value You can categorise stock further, according to its value. For example, you could put items into low, medium and high value categories. If your stock levels are limited by capital, this will help you to plan expenditure on new and replacement stock.

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