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| Corporate Practice bd |
Physical inventory counting process -With Examples
Physical inventory refers to the process of counting and verifying the actual stock of goods, materials, or products held by a business at a specific point in time. This process involves comparing the physical counts of items in a warehouse or storage area against the recorded quantities in an inventory management system.
Conducting a physical inventory in your factory is essential for maintaining accurate records of your assets and ensuring operational efficiency.
Physical inventory counts can also include:
1. Work-in –Process (WIP)
2. Stock of Finished Goods
3. Stock of Raw materials
4. Stock of Waste Materials
5. Stock of Plant Machineries
6. Stock of spare Parts
7. Cash in hand check
8. Stock of stories Materials
9. Stock of Furniture Fixture & Equipment
10. Stock of Civil Materials
Here’s a detailed guide to help you through the process:
We are the 100% Export oriented Group of company. We mainly import raw material as raw cotton & by taking several steps we produce yarn with some mixing waste material beside in raw material ,after then we sales yarn as deemed export. We generally execute Physical Inventory counting process in every June in the year.
Additional Information:
1. It is assumed that approximately 2500 kg dust produce in every day.
2. Sometimes waste material sales to our Local party in cash
Others Information:
1. With the undue situation we actually start physical inventory counting process start from (01.07.2024 & Finished as on 30.09.2024).
2. Transfer in Waste materials from our sister concern
3. Transfer out Waste materials to our sister concern
Inventory Committee report after physical count in the following:
1. Work-in –Process (WIP) = 35,500 kg
2. Waste Materials (Dust) = 39,794 kg
3. Waste Materials (F/S Dropping) = 1, 30,251 kg
4. Waste Materials (Recycling Waste) = 39,502 kg
5. Waste Materials (RD) =11531 kg
6. Waste Materials (Filter waste bd ) = 18,462 kg
Now we calculate actually physical inventory count in the following way
(1)Physical inventory count (Dust)(For the Period (01.07.2024 to 05.09.2024)
|
Criteria |
ABC |
XYZ |
Total |
Remarks |
|
Delivery(Sales) |
77875 |
39325 |
117200 |
|
|
Less: Production |
(61815) |
(21859) |
(83674) |
|
|
From Go down |
16060 |
17466 |
33526 |
|
|
Add: Physical Count |
19897 |
19897 |
39794 |
|
|
Inventory Report |
35957 |
37363 |
73320 |
|
|
Less: Non Saleable |
1100 |
1100 |
2200 |
|
|
Saleable |
34857 |
36263 |
71120 |
|
(2)Physical inventory count (Flat strip/Dropping) (For the Period (01.07.2024 to 05.09.2024)
|
Criteria |
ABC |
XYZ |
Total |
Remarks |
|
Delivery(Sales) |
000 |
000 |
000 |
|
|
Transfer in |
5700 |
16297 |
21997 |
|
|
Add: Purchase |
8900 |
93435 |
102335 |
|
|
Total Available |
14600 |
109732 |
124332 |
|
|
Transfer out |
(15600) |
(172123) |
(187723) |
|
|
Go down(1) |
1000 |
62391 |
63391 |
|
|
Add: Physical Count(2) |
5600 |
124651 |
130251 |
|
|
Inventory Report(1+2) |
6600 |
187042 |
193642 |
|
(3)Physical inventory count (Recycling Waste -RW) (For the Period (01.07.2024 to 05.09.2024)
|
Criteria |
ABC |
XYZ |
Total |
Remarks |
|
Delivery(Sales) |
5560 |
58190 |
63750 |
|
|
Cow Consume |
3500 |
22313 |
25813 |
|
|
Total |
9060 |
80503 |
89563 |
|
|
Less: Production |
(8000) |
(72084) |
(80084) |
|
|
From Go down(1) |
1060 |
8419 |
9479 |
|
|
Add: Physical Count(2) |
9500 |
30002 |
39502 |
|
|
Inventory Report |
10560 |
38421 |
48981 |
|
(4)Physical inventory count (Rotor Dropping RD) (For the Period (01.07.2024 to 05.09.2024)
|
Criteria |
ABC |
XYZ |
Total |
Remarks |
|
Delivery(Sales) |
18500 |
66895 |
85395 |
|
|
Transfer out |
90000 |
155221 |
245221 |
|
|
Total consume |
108500 |
222116 |
330616 |
|
|
Less: Production |
(100000) |
(193265) |
(293265) |
|
|
Go down(1) |
8500 |
28851 |
37351 |
|
|
Add: Physical Count(2) |
5000 |
6531 |
11531 |
|
|
Inventory Report(1+2) |
13500 |
35382 |
48882 |
|
(5)Physical inventory count (Rotor Filter Waste -BD)(For the Period (01.07.2024 to 05.09.2024)
|
Criteria |
ABC |
XYZ |
Total |
Remarks |
|
Delivery(Sales) |
4000 |
9254 |
13254 |
|
|
Less: Production |
(3000) |
(4627) |
(7627) |
|
|
From Go down(1) |
1000 |
4627 |
5627 |
|
|
Add: Physical Count(2) |
8000 |
10462 |
18462 |
|
|
Inventory Report(1+2) |
9000 |
15089 |
24089 |
|