stock valuation

An MRP system will give you a detailed stock valuation but many companies want to make adjustments, particularly for slow moving stock.

You may benefit from a customised stock count report organised to match your stores layout for easier counting. Do you need serial numbers on your stock count report?

Are you matching purchase invoices in 123. A disciplined approach through the year reduces the queries at year end. A web report that everyone can see showing goods booked in but not yet invoice matched will make life easier.

Stock count

Stock counting can be much easier and efficient with a report customised to your needs. A report that is tailored to your stores layout will save time when it comes to counting stock. If you use bins then a report sorted by bin will be a big help. Do you need to count by batch or just the total? Do you need to count by serial number?

All these requirements can be met with a customised report or a dynamic spreadsheet where data can be regularly refreshed.

slow moving stock

Calculating a provision for slow moving stock in a consistent manner which can be justified to the auditor or accountant is a real challenge.
Calculating the sales run rate of each product or component is a typical approach, allowing the months of stock to be determined. Using your defined parameters a slow moving provision can be calculated.

The sale run rate of each product may be straightforward, but if a product has components used on multiple products it needs a bit more thought. If there are sub-assemblies, and sub-assemblies of sub-assemblies, it can get complex very quickly.

awaiting supplier invoice

Costing works orders and preparing year end accounts can flush out purchase invoices that have not been matched.

Staying on top of matching purchase invoices during the year will make life easier. The 123 system has an internal report which helps. This can be turned into a web report so accounts and purchasing have a simple view of what has been booked in but not yet invoiced keeps everyone focussed and ensures any discrepancies are resolved within a few days.

transactions that span end of year

Often suppliers will invoice with a date at the end of your financial year but the goods are not booked in until after the new financial year starts. Less common is they make deliver early and invoice in the following month.

Either way, using the Goods Received Note numbers will show where the transition is. Get a list of the GRNs a few week or so either side of the financial year and lookup the date of the purchase invoice and value. From there you can calculate the required stock value adjustment for transactions that span the end of the year.

If you can have a lot of items being booked in this can be automated in a report that combines GRN and purchase invoice data.

Can we help you get more from your mrp system?