Book Inventory refers to the stock of books that a business has in hand according to recorded figures. It is an essential component in inventory management, impacting both financial reporting and operational efficiency.
A Goods Received Note (GRN) is an important document used in the accounting and inventory management process, signifying the receipt of goods by a business.
Inventory control, or stock control, is a control system designed to ensure adequate but not excessive levels of stock are maintained by an organization. It takes into account consumption levels, delivery lead times, reorder levels, and reorder quantities for each commodity.
Inventory planning is the process of determining the quantity and timing of inventory needed to meet production or sales requirements. Effective inventory planning is crucial for reducing costs and increasing productivity by ensuring that inventory levels are optimized to meet demand without incurring unnecessary expenses.
Material control is the management term referring to the process of ensuring that the necessary materials for production are available at the required place, time, and quantity while maintaining proper accountability and avoiding overstocking.
Material Requirements Planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes. Most notably, it ensures that materials are available for production, products are available for delivery to customers, and inventories are maintained at the lowest possible level.
Materials Management is the administration of all activities concerned with the ordering, storage, and movement of materials, with a focus on optimizing the storage of raw materials, parts, and the manning of production operation centers.
A Materials Returns Note (MRN), also known as a Stores Returns Note (SRN), is a document used to record the return of materials to the store. Similar to a materials requisition, it is considered a prime document used to debit stock and credit expenditure.
The Order-Point System is an inventory management method wherein inventory is replenished automatically once it reaches a predetermined threshold, ensuring sufficient stock to meet demand and avoid stockouts.
The term 'over-and-short' is frequently used in accounting to indicate discrepancies between recorded amounts and actual amounts, usually involving cash or inventory.
Perpetual audit refers to a continuous, ongoing examination and verification of a company's financial records and inventory levels. This method ensures real-time accuracy and aids in early detection of discrepancies or fraud.
Physical Inventory, also known as a physical stock check, is the process of counting the physical balance of stock items at a particular time to facilitate stocktaking under systems like inventory control or continuous stocktaking.
A physical stock check, similar to a physical inventory, involves manually verifying the quantities and condition of items in stock, ensuring accuracy between records and actual inventory.
The rate of turnover, also known as the turnover ratio, depicts how frequently some part of the assets of an organization is turned over (i.e., replaced by others of the same class) within a specified period, typically a year.
The minimum level of inventory at which a new order must be placed, to prevent stockouts and ensure continuous business operations.
Stock control, also known as inventory control, refers to the processes and systems used to oversee the ordering, storage, and use of components that a company uses in the production of the items it sells, as well as the finished products themselves.
The stock record is an essential element in an inventory control system, documenting the movements in items of stock. This record can encompass entries in the stock ledger, which tracks stock movements in both quantities and values, or on bin cards, which focus on quantities alone.
A Stores Returns Note (SRN) is a document used to record the return of materials to the store or warehouse, often for reasons such as quality issues, over-ordering, or incorrect items delivered. It ensures accurate inventory management and financial accountability.
Usage rate refers to the speed at which a commodity, raw material, or other resource is used up. It measures consumption over a specific period and is crucial for managing inventory, production schedules, and financial planning.
A strategic inventory management approach emphasizing minimal stock levels to cut costs and enhance organizational efficiency. Known for its potential to significantly boost profitability.
