How to apply the calculate inventory standards is not only a legal requirement, but also is the key to help enterprises achieve transparency in business operations. With this article, Accnet will guide in detail how to calculate the inventory according to the common method, which helps businesses easily choose the solution best suited to model their activities.
1. Basic concepts about how to calculate inventory
How to calculate inventory is the process of determining the value and quantity of inventory in a given time period. How to calculate impact to cost of goods sold, profit, the entire business strategy of the enterprise.
The influence of how to operate the business
- Financial statements: inventory value directly affects the profit margin, tax payable.
- Supply chain management: timely Response to the needs of the customer without the backlog of goods excessively.
- Product pricing: Is the base for calculating selling prices affect the competitiveness on the market.
2. The calculation of inventory currently popular
To calculate accurate inventory, businesses need to select the method appropriate to the specific business, accounting regulations. Below is the calculation of downloads:
2.1. Formula for calculating inventory by the method of weighted Average
The recipe is the weighted average price: The average price = (Total value of inventory the beginning of the period + value of income in the period) / (Total amount of inventory the beginning of the period + Number of rows entered in the states)
Formula inventory value, end of period: inventory value, end of period = Number of inventory end of period × Unit price average
Illustrative examples:
- Survive the beginning of the period: 100 product, price 20,000 VND/products → value: 100 × 20,000 = 2,000,000 VND.
- Enter in: 200 products, only 25,000 VND/products → value: 200 × 25,000 = 5,000,000 VND.
- End of the period remaining: 150 products.
Calculation:
- Unit price average = (2,000,000 + 5,000,000) / (100 + 200) = 23,333 VND/product.
- Inventory value at maturity = 150 × 23,333 = 3,500,000 VND.
2.2. How to calculate inventory according to the method of first in - first out (FIFO)
Formula value of stock: value of stock = Get value from the shipment before until the full number.
Formula inventory value, end of period: inventory value, end of period = value of shipments remains unpublished, from the plot to enter the final.
Illustrative examples:
- Survive the beginning of the period: 100 product, price 20,000 VND/product.
- Enter in the states: Plot 1: 150 product, price 22,000 VND/products; Lot 2: 200 products, only 25,000 VND/product.
- In states: 250 product.
How to calculate inventory:
- 100 products from plots the states: 100×20,000=2,000,000 VND.
- 150 products from plot 1: 150×22,000=3,300,000 VND.
- Value of stock = 2,000,000+3,300,000=5,300,000 USD.
Value inventory end of period:
- 50 products from batch 1: 50×22,000=1,100,000 VND.
- Also 200 products from batch 2: 200×25,000=5,000,000 VND.
- Total inventory = 1,100,000+5,000,000=6,100,000 USD.
2.3. Formula for calculating inventory by the method Enter the following - prerendered, (LIFO)
Formula value of stock: value of stock = Get value from the shipment enter last until the full number.
Formula inventory value, end of period: inventory value, end of period = value of shipments remains unpublished, from the plots of first entry.
Illustrative examples:
- Survive the beginning of the period: 100 product, price 20,000 VND/product.
- Enter in the states: Plot 1: 150 product, price 22,000 VND/products; Lot 2: 200 products, only 25,000 VND/product.
- In states: 250 product.
How to calculate inventory:
- Export 200 products from batch 2: 200×25,000=5,000,000 VND.
- Cumshot 50 products from batch 1: 50×22,000=1,100,000 VND.
- Value of stock = 5,000,000+1,100,000=6,100,000 USD.
Value inventory end of period:
- Also 100 products from the beginning of the period: 100×20,000=2,000,000 VND.
- Also 100 products from lot 1: 100×22,000=2,200,000 VND.
- Total inventory = 2,000,000+2,200,000=4,200,000 VND.
2.4. How to calculate inventory according to the method of Landing the
Formula value of stock: value of stock = Total value of the particular item can have.
Formula inventory value, end of period: inventory value, end of period = Total value of specific items remaining.
Illustrative examples:
- Inventory: 5 pcs rotary type A, rated 100 million VND/pc; 3 the machine type B, the price of 200 million VNĐ/machine.
- Sold: 2 type A and 1 type B.
How to calculate inventory:
Value of stock = 2×100+1×200=400 million VND.
Inventory value:
- Machine type A still 3 pcs: 3×100=3003 × 100 = 300 million VND.
- Machine type B 2 pcs: 2×200=400 million VND.
- Total inventory = 300+400=700300 + 400 = 700 million VND.
2.5. Formula inventory control
How to calculate inventory end of period: inventory, end of period = inventory the beginning of the period + enter in - Goods in the states
Illustrative examples:
- The first states: 1,000 products.
- Enter in: 500 product.
- In the usa: 800 products.
- Calculate: inventory, end of period = 1,000+500-800=700 products.
2.6. How to calculate the Rate of inventory turnover
Formula inventory turnover: inventory turnover = cost of goods sold / inventory average
How to calculate inventory average inventory average = (inventory beginning of the period + inventory end of period) / 2
Formula Number of days of inventory: the Number of days of inventory = 365 / inventory turnover
Illustrative examples:
- Cost of goods sold: 1,000,000,000 VND.
- The first states: 200,000,000 VND.
- Inventory end of period: 300,000,000 VND.
Calculation:
- Inventory average = (200,000,000+300,000,000)/2=250,000,000 VND.
- Inventory turnover = 1,000,000,000/250,000,000=41,000,000,000=4 times.
- Number of days inventory = 365/4=91,25365=91,25 day.
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3. The factors that affect the inventory
- Accounting policies and legal regulations: Business need to comply with accounting regulations, current legislation, such as circular, 200 or accounting Standards in Vietnam (VAS).
- The influence of time factor: inventory, end states, the states play an important role in determining the value of inventory, cost of goods sold.
- Scale/industry: manufacturing Enterprises often used in inventory weighted average. Commercial business priority FIFO method to manage goods quickly.
- Element technology: Use warehouse management software helps business automate the calculation and reduce errors. Increase efficiency through the track inventory in real time.
4. Technology solutions to support business in the inventory calculations
Software LV DX Inventory is one of the most advanced solutions available today, with superior features:
- Inventory management real-time: track number, value of goods correctly.
- Automatic calculate: Support all the way inventory as FIFO, LIFO, weighted average, the destination list.
- Detailed report: Provide reporting, multidimensional analysis, leadership easy decision.
- Flexible integration: connect with accounting software - business management other, creating a synchronized system.
Experience and reference price warehouse management software LV DX Inventory of Vietnam today to process optimization, inventory management, increase business efficiency!
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How to calculate inventory plays an important role in any business activity, the application of how to calculate the suitable help businesses optimize management. In the era of technology, businesses should not ignore the solution modern software to enhance performance. Select software LV DX Inventory today!
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