Types of Inventories

Inventories are the documentary records of movable and immovable property owned by a person, community, institution, association, company, or government entity, which is carried out through the counting, description and orderly and systematic annotation of movable and immovable objects. that belong to or are under the domain of an entity, company or institution, (public or private), annotation where there is a detailed list of the goods and stocks that are owned in a specific place and date. Within a company, an inventory includes the count and description of the existing items, the number of units that exist, the price per unit, the amount, the partial sums of the products ordered by groups, and the total of what has been inventoried. ,

Inventories are used by industries, businesses, government agencies, and various public and private institutions, to make calculations of the economic assets that companies have, or descriptions and annotations of the various objects that are held as patrimony of an institution, or that are in the charge or custody of an institution (such as in the case of museums in which inventories are made of the pieces that the museum is in charge of), and to know the state in which the objects or goods, (such as in the case that one company buys another, where inventories of the machinery and the conditions it presents at the time of the transaction are made). They also serve among other things in companies and shops, to know the status of some products, if they are in good condition, or if, as the case may be, they remain in the warehouse due to lack of sale, in order to exchange the product for another, etc. Commonly, in cases in which the inventory must be delivered to some authority (for example, tax authorities, or, as in the case of museums, to authorities responsible for cultural heritage or assets that are under the protection of a museum, the inventory and a physical inventory record is attached, detailing the times and place where the inventory was carried out, as well as its details.

cat food cans

Some types of inventories are:

Initial inventory.- It is the one that is carried out when operations begin, for example in commerce, it is carried out when commercial operations begin in a new location.

Final inventory.- It is the one that is carried out after the closing of the economic operations, after a pre-established period, as in the case of a business, it is the one that is executed after the closing of commercial operations for example quarterly, with the purpose of know the number of stocks that a store has or the state of the same (detecting defects in products, expired expiration dates, etc.,), in order to evaluate the economic situation and the value of the products or objects at the close of the operations.

Physical inventory.- It is the type of “real” or physical inventory of the objects that would be inventoried; the quantity, type and location of the inventoried goods are quantified, measured, weighed, classified and recorded, on a certain date, including the description of the conditions in which the goods (movable or immovable) are found, of which the inventory is made up. Inventory.

Cellar inventory full of wines

Intermittent inventory.- Refers to inventories that are carried out frequently during several occasions throughout the year, its use is common in businesses in which the volume and frequency of product sales are high, so it is necessary to have an up-to-date record of product stocks.

Inventory of raw materials.- It is the type of inventory that specializes in non-transformed material supplies, which are used within an industry, accounting for the various raw materials with which industrial production is based, understanding this as raw materials. , to materials that have not yet been subjected to transformation processes within the industry, but that will be used to produce transformed products through manufacturing.

Shelves with screw inventory

Factory supply inventory.-This type refers to the various supplies necessary for the manufacture of various objects, but where these materials cannot be quantified exactly, meaning that the parts used for the manufacture of manufactured objects cannot be accounted for. or their number is insignificant or insignificant, as in the case of the number of nails, tacks or buttons, used in shoe factories, furniture factories, clothing factories or in upholstery respectively, these objects are not identified as part of the product, but they do intervene in the process of making it. Although in this regard it should be noted that although they are not accounted for “per piece”, they can, on the other hand, be accounted for as factory supplies, counting as sets (kilos of nails, thousands of buttons, etc.).

Inventory of finished products.- In this type, only the products or objects that have already been finished are registered, after the elaboration processes that are carried out in a factory, only the products that have already passed all the manufacturing processes are counted, finished and quality controlled and that they are fit for delivery or sale.

Inventory in the manufacturing process.- It is made up of the stocks that are held and those that are acquired within the manufacturing companies, in which labor, various materials and other production expenses are added, which are added to the manufacturing process. before the closing date, being inventoried during the production development processes.

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