Physical inventory

(Find from Latin invenire = something or find something ) The inventory is the collection of all existing stocks. Through the inventory assets and liabilities of an entity are determined on a specific date and set down in writing. The result of an inventory is the inventory, an inventory that lists all your assets and liabilities on the type, quantity and value.

Every trader is required pursuant to § 240 HGB and § § 140, 141 AO in the ordinary course of accounting for inventory, namely when he founded a company or takes over when he closes it, and at the end of each fiscal year.

Sets the inventory deviations between desired and actual stock fixed, this leads to a correction of the target stock. Inventory differences, fully reflected in profit or loss in the profit and loss account.

  • 3.1 Timely annual inventory
  • 3.2 Misplaced Inventory
  • 3.3 Continuous Inventory (permanent inventory control )
  • 3.4 Inventory Sampling 3.4.1 requirements
  • 3.4.2 Procedure

Inventory procedures

Physical inventory

The physical assets are recorded by counting, measuring or weighing. An estimate with subsequent review is also allowed if an exact recording is economically unreasonable or impossible (for example, coal inventories stockpiled ).

Book inventory

The book inventory identifies the stocks of non- physical assets and liabilities (For example, receivables, payables, bank balances) that are on the awards of financial accounting terms take (For example, receipts, documents)

Asset inventory

In asset accounting, the asset inventory replaces the physical inventory of goods of the movable fixed assets (vehicles, machinery, office furniture and fixtures, but not low-value items ). In the system directory, a system card must be performed with the following information for each item:

  • Exact name of the object
  • Carrying amount at the balance sheet date
  • Date of acquisition or production
  • Amount of the purchase price or production cost
  • Useful life
  • Annual depreciation
  • Day of departure

Time of inventory

Basically, the inventory is carried out at least at the balance sheet date, ie at 31.12. a calendar year or the last day of the fiscal year. Since the recording of stocks may be associated with a considerable time and human effort, however, so-called simplification procedure for more flexible deadlines are acceptable for goods of current assets.

The company is free to decide to carry out further dates an intermediate inventory, eg a change in the fiscal year, with the transfer of ownership of the Company or at any relevant for the balance sheet restructuring of the divisions, and finally updates the inventory process.

Types of Inventory

A company can decide to apply for certain items, the annual inventory and for others the connections or the permanent inventory. But if uncontrolled risks to worry about due to shrinkage or deterioration of the goods, can the income tax law, the flexible inventory methods do not apply and requires a timely recording of stocks. The same is true for particularly valuable goods.

Timely annual inventory

In a periodic inventory stocks at a specified day of admission, such as the balance sheet date are quantitatively recorded and entered into inventory lists. The inventory does not have to be done directly on the balance sheet date. Permitted for time shifted recording is a period of ten days before or after the deadline. The inflows and outflows between the admission and the date, even the movements on the date itself, are updated volume and value terms based on records or back-calculated. The assessment of the goods shall be the acquisition cost, damaged merchandise can be devalued. The inclusion of capital gains is not allowed according to the lowest.

The annual inventory forms the stocks from the way they actually are at the end of the financial year. However, it leads to a large amount of work within a few days, which often has the effect of workplace disruption or even makes a plant shutdown required. The risk of recording errors increases.

Misplaced inventory

The misplaced inventory can come into question when recording to date is impossible (for example, for very large holdings ), or if the conditions for a permanent inventory missing.

The physical inventory is carried out on any day within the past three months before or the first two months after the balance sheet date ( § 241 paragraph 3 HGB No.1 ). The determined on admission stock is only of value (not volume) were updated to the date or back-calculated, the inventory shall bear the date of the actual recording.

Permanent inventory (permanent inventory control )

The perpetual inventory makes it possible to distribute the inventory in the financial year in time. This requires the maintenance of a stock book and verifiable documents for all acquisitions and disposals. At least once a year must be performed and the desired stock of inventory accounting are compared with the actual stock a physical inventory. In contrast to the annual inventory must not be recorded simultaneously all stocks, that is, the recording times and quantities can be chosen freely. However, the inventory may not be limited to samples or a representative cross section. The result of the inventory is held, indicating the exact date of commencement in the stock ledger and stock books or storage card files to be adjusted accordingly.

The advantage of the continuous inventory lies in the fact may be that the physical inventory of the whole year and planned useful, for example if the stocks are at their lowest. However, it can be inconvenient when the goods movements for individual commodity groups for organizational reasons can not be determined separately. This is the case for example in the retail trade.

For an item, the amount is conveniently then found

  • If the stock is zero
  • If another packaging unit (eg cardboard ) must be begun.

This eliminates most of the counting work (Only Number of full boxes and small residual amount ). The accuracy and precision of the result is considerably larger. Special shrinkage falls considerably on earlier, consequential damage can often be avoided.

Inventory Sampling

In the inventory sampling is a commercial law permissible methods for inventory optimization that comes particularly in large companies to apply. In Germany in the early 1970s led the Siemens AG the first company to the inventory sampling. 1977 this method was then enshrined in law.

Requirements

  • More than 1000 stock items
  • Computerized inventory accounting
  • 20 % of the stock to cover at least 80 % of the inventory value

Method

Only the few high-quality articles will be counted as a full survey. Much of the inventory value is therefore already covered. From the remainder takes you to randomly select a sample from which then the total stock is extrapolated.

The legal requirements for the inventory sampling are regulated in § 241 paragraph 1 dHGB or § 192 para 4 UGB: The statement value must match the value of a full recording, and the preparation of the inventory may only be with the help of recognized mathematical and statistical methods ( z. B. means appreciation ) take place. Before the first application of the inventory sampling also the approval of the tax authorities must be obtained. In Switzerland and Austria in similar provisions, in Austria, additional, national requirements must be fulfilled apply.

Special inventories

  • Forest Inventory
  • Revision ( Library Science )
Debt Business record Sample (statistics) Inventory (library)
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