Inventory


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inventory

[′in·vən‚tȯr·ē]
(engineering)
The amount of plastic in the heating cylinder or barrel in injection molding or extrusion.

Inventory

 

the control of the presence and condition of material values (fixed and working capital) in kind as well as monetary resources, balances in bank accounts, and accounts with debtors and creditors. Taking inventory is one of the most important methods of control over the safeguarding of socialist property, over the qualitative preservation of raw and other materials and finished goods, and over the accuracy of warehouse management and current accounting. In the USSR, taking inventory is obligatory for all state, cooperative, and public enterprises, organizations, and institutions.

Inventories may be complete or partial, planned or unexpected. A complete inventory includes checking of all resources of the enterprise and of all its accounting relations; it is held on the basis of the Statute on Accounting Reports and Balances of State, Cooperative (Except Kolkhoz), and Public Enterprises and Organizations (this statute was confirmed by the Council of Ministers of the USSR of Sept. 12, 1951, with subsequent amendments and supplements). The purpose of a complete inventory is to ensure that the bookkeeping balances as of the end of the year are real and by the same token to prove the reality of the financial results of the enterprise’s activity as shown in these balances. Such an inventory is taken also at the time of organization or liquidation of an enterprise. Partial inventories are taken to check the existence of those resources which according to their physical properties are subject to natural loss when stored; they are also taken when writing off goods that have become worthless and when hiring personnel responsible for material values. Planned inventories are taken during the whole year according to a calendar chart confirmed by the manager of the enterprise or of the economic organization. Unexpected inventories are made to prevent embezzlement and misappropriation of material or monetary resources and to establish the extent of losses in case an embezzlement has taken place. Dates and the number of inventories during the year are established with due regard to different kinds of resources.

The taking of inventories is entrusted to a commission that is appointed by the manager of the enterprise and in which the chief (senior) accountant takes part. This commission is headed by the manager of the enterprise or by his deputy. The procedure of taking the inventory is determined by ministries and government departments.

References in periodicals archive ?
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The objective of this study is to empirically examine the impact of fuel prices on disparities in inventory levels across the United States.
While everyone in the broader organization talks about inventory, they don't talk about it the right way.
The company said that Florida, California and Illinois account for more than one-third of the shadow inventory. Six states accounted for fully half of the shadow inventory: Florida, California, Illinois, New York, Texas and New Jersey.
Cost-to-retail ratio under the retail-LCM method: The preamble to the proposed regulations explains that, under the retail-LCM method, a reduction in retail selling price reduces the value of ending inventory in the same ratio as the cost-to-retail ratio.
In this article Inventory Management in Iron and Steel , Harbans Lal Verma, (1989) evaluated the practices and performance in inventory management in Iron and Steel Industry in India.
"Inventory optimization technology has moved beyond its previous 'black box' perceptions and has increasingly been adopted and deployed by leading-edge companies," says Simon Ellis, practice director for supply chain strategies at the analyst firm IDC Manufacturing Insights.