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Generally, stocktaking requires some preparation work that will help you to reconcile your inventory quantities with actual counts when the counting is finished:

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Then, you need to reconcile the inventory quantities and costs and evaluate the actual resulting inventory.

Adjusting the

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inventory quantities and costs

Once the variances are approved, for the Inventory Reconciliation document, generate an Inventory Write Off to adjust the costs and quantities of items whose quantities are lower than the book quantities. According to IFRS, if it is found that the net realizable value of specific inventory items has declined below their cost, you can create an Inventory Write Off document and, for these items, write off the amount only, not changing the quantity. Also, you can use the Amount Only option if you need to write off any additional expenses recorded for the items that were later returned to their suppliers. For more information, refer to Creating an Inventory Write Off.

Generate an Inventory Receipt to register the item quantities that were not on books and set the appropriate costs for these items or adjust the costs only. For details, refer to Creating an Inventory Receipt.

Estimating the cost of inventory

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