The key factor to tally Inventory and Account
Construct an SOP operation process that conforms to the principle of internal control.
Establishing standardized processes and procedures is the most important key to creating consistent performance. Through the process of standardizing the operating procedures, the employees will reach a consensus on the way of operation. “Standard Operating Procedures” (SOPs) is necessary to improve the process of setting up all relevant details, so that the operators can follow the table at a glance, employees can follow the assignments, and all employees can be more distinct. New staff or rotating workers can get started processing faster, and it is not easy to make mistakes when performing the work, which affects the correctness of the inventory.
ERP system control has to combined with internal control wise.
For the enterprise to improve internal control, the ERP operating system can be combined with operation process. All the trajectories of the execution work can be closely connected, ensuring that the related operations from the beginning to the end can be based on the SOPs. The ERP system can effectively avoid the loss or disadvantage of human operations.
Inventory Storage Management with Documents and following the OEC management style
Inventory storage management needs follow with ERP system operations, it has to follow the document process, which implement the bill and issue the system receipt, then immediately perform the posting on the system to avoid the situation that the system has not been posted after the material is taken away. Daily closing is to ensure the correct instant account and inventory quantity.
Functional division of labour and thorough inventory count
When the warehouse personnel enter and exits the warehouse, the warehouse controller must ensure that the quantity is collected or grant. It is not allowed to be marked out inventory by according to the outer box quantity. The detailed quantity must be counted and the warehousing operation is completed by the ERP system. After warehouse controller identify the quantity of inventory, both parties are strictly requiring to sign on the records of warehouse. If there are any adjustments, it will be reviewed by the supervisor, and the risk of any wrong amount of the account will be eliminated and the account be matched (inventory account, receivable and payable) The account and the general ledger are consistent, due to the account (the accounting records meet the actual time and quantity) and the account certificate is consistent (the accounting documents are consistent with the accounting records).
Proper Inventory Storage Management
To ensure accurate inventory, a complete SOP workflow and ERP system process are required. Through inventory, supervisors can understand the real inventory situation and find out the reasons for the inconsistency of the bills opportune, and strengthen the inventory management system and operation process.
Conclusion
In a nutshell, a company establish a good warehouse management mechanism is the basic management capability to enter the IPO path and prove that it can properly preserve assets and provide correct financial figures.
In addition, regardless of the type of industry, a company will face the continued growth of its operations. The types of items are becoming more and more complex. Under the management conditions of the same storage space, only a good inventory and account management can effectively manage the order demand and inventory status. It can help company quickly and correctly complete the customer’s ordering service and improve the delivery.
On the other hand, correct inventory information is the cornerstone for effectively operating sales forecasts and material plans, it can be strengthening inventory level analysis, and also reducing or preventing the occurrence of stagnant waste.
Lastly, create a unified inventory management basis will be an important tool for enterprises to effectively improve inventory turnover, reduce costs and enhance their competitiveness.
