MyCIMA

Perpetual Inventory Procedure

Replies : 2
Keywords: Inventory

Hi

 I am in the process of setting up a perpetual inventory procedure at a new warehouse we are currently using.

 Has anyone got any ideas on where to start or any advice would be greatfully recieved.

 Thanks

Perpetual Inventory Procedure

Hi You mean you are setting up a perpetual inventory costing system where you need to keep costing the transactions as they happen? I guess there are few options available to keep track of costs: a) Perpetual weighted average costs You could maintain single weighted average cost for an item. b) Follow FIFO or LIFO costing Create layers for each inventory receipt. Track cost for each layer. Deplete inventory using FIFO or LIFO c) Follow specific identity Here you try to tie a depletion to a specific receipt. for example lot or serial # level transactions. Let me know more background.

Perpetual Inventory

I think Fiona means a contineous stock count process and not in relation to material costing.

A good place to start would be a stock take of the warehouse or use of the most recent stock take data. The stock take forms your base data, then say on a weekly basis you do a stock check of a location at random....checking movement in/out on that location to your base data.

The aim is to eliminate the need for a full stock take, especially if it is a large warehouse where stock take is an enourmous task and disrupts business + very costly.

The risk of this however is you will have locations not being checked/audited regurlarly....if you have loads of small locations