economy

inventory definition

The Inventory It's that one Documentary record of assets and other objects belonging to a natural person, a company, a public agency, among others, and which is made from great precision and neatness in the capture of the data.

Document in which the goods and belongings of a company, a public entity or a house are registered with the mission of organizing, ordering and having them formally registered

Although the inventories are especially used at the request of companies or public agencies, which, as we have pointed out, already have goods and other products that belong to their assets, that is, in the commercial and state sectors, the inventories can be used in various contexts and situations when you want to order and record the elements available in a place with a specific purpose.

For example, an individual who rents a furnished apartment, will carry out an inventory of each element, furniture, appliances, and any other component present in the apartment at the time it is delivered for rent so that they are reliably registered and thus be able to keep a control of what was left and when the time of the end of the rental agreement is reached, check with this inventory that all the furniture and items that were inventoried are present and in the corresponding conditions.

In places like libraries it is also super necessary to carry out an inventory, since it offers us a detailed record of everything that exists in that place that would be inventoried.

Makes it easier to find things

It also makes it easier for us to find each item in a faster and easier way because its disposition is listed in the inventory.

We must emphasize that inventories are carried out in places that have many quantities of belongings and items, and this is so because they are a very efficient tool when organizing many things, checking and knowing when they enter, when they leave, the costs involved in their income and expenses, among other issues.

In other words, the inventory provides us with order and organization, as well as allowing us to know what is available in a given place.

Also and as a consequence of the aforementioned situation, inventory is called the verification and counting, both qualitative and quantitative, of the physical stocks with the theoretical ones that were duly documented.

In the field of business management, what inventory does is register all the assets owned and available to a company for sale to its customers and which are therefore considered as current assets.

The goods that are plausible to be subject to inventory are destined for direct sale or those activities destined internally to the production process, such as raw materials, unfinished products, spare parts destined for maintenance, materials packaging, company goods, finished goods, partially finished goods, goods in transit and packaging materials, among others.

Inventory classes

There are a large number of types of inventories, among the most recurrent are: final inventories (takes place every time the fiscal period closes, usually on December 31), periodic inventories (it takes place every certain time), starting inventories (all the assets of the company are registered), legal clearance inventories, raw material inventory, safety inventory, management inventory, physical inventory, among others.

Among the reasons that exist in companies to carry out an inventory we can cite: to reduce acquisition costs, to reduce quality costs per start-up, to reduce costs related to missing material and to reduce order costs.

Although, there are also many other reasons that make inventory a cumbersome, complex issue for the company in question, such as: storage costs, difficulties in responding to customers, the costs of coordinating their production, the costs of defective products at the same time. dealing with large batches and the costs associated with capacity reduction.

The incorporation of technology has made this task of inventorying companies, or other spaces, much easier, since there are software specially developed for such tasks, such as databases, which greatly facilitate this task, which was previously more cumbersome since it had to be done in writing and in special books.