Hexin Wood Products Company is a foreign-funded enterprise. 1999 to 2004, the annual export earnings ranked third in the city, with annual sales of about 43 million yuan. After 2005, the company's performance gradually declined, with serious losses, and went bankrupt in 2007. Such a medium-sized enterprise, from the peak to the decline, explores its reasons, and does not rule out objective changes such as the decline in the price of similar products and the increase in the price of raw materials in the market. However, internal management confusion is the fundamental reason. During the inspection by the tax authorities, it was found that the product cost accounting of the enterprise was inaccurate, the waste phenomenon was serious, and the procurement, acceptance, warehousing, requisition and storage of inventory were not standardized. In the final analysis, the problem is the lack of a good internal control system. Here we mainly introduce the management of inventory:

1. The chairman is away all the year round, and the material procurement is personally controlled by the chairman. After the materials arrive at the warehouse, the warehouse keeper carries out warehousing according to the actual quantity and variety of materials received, but the actual purchased quantity and variety cannot be mastered by the warehouse keeper, and there is no contract and other relevant information. The financial accounts were not recorded in time, and the accountants made their own valuation. Invoices for several months, some even come back for more than a year. The invoice quantity does not match the actual warehousing quantity, and it has not been checked, resulting in inaccurate material costs, some high and some low.

2. At the end of the period, the warehouse keeper takes stock by himself. If the result of the inventory is inconsistent with the financial check, he will not find the reason, nor will he deal with it, so that the inventory will become a mere formality.

3. There is no standardized material collection system, and the workshop will receive them when they are used in production. Without a plan, many people will not go through the formalities of returning the library. The waste in production can be seen everywhere, and it is a serious waste if you take it away.

case analysis

From the reasons of enterprise failure:

First, enterprises basically have no internal control system, let alone the rationality of institutional setup and staffing. In internal control, it is very necessary to standardize the authorization and approval system of the legal representative and senior management personnel of the unit for the disposal of physical assets. The disposal of major assets must be approved by collective decision-making, and institutional obstacles cannot be set for the person in charge of the unit to try to have the final say.

Second, the enterprise did not check and accept the quality and quantity of the warehousing inventory, and did not understand the requirements for purchasing inventory. Without an inventory keeping system, the warehousing department will adjust the inventory results at will.

The purchasing personnel shall provide the basic information of the purchased materials to the warehousing department in time, and the warehousing department shall fill in the material receipt form according to the actual quantity received after receiving the materials. Register the inventory account and pay attention to the arrival of material invoices at any time.

Third, there is no standardized material collection and statistics system and no quota management system. The consumption of materials depends entirely on the consciousness of production workers. We should refine the control process and improve the control methods. As we know, the acquisition and use of the company's physical assets are the responsibility of multiple departments * * * together with the purchasing department, the acceptance department is responsible for acceptance, the accounting department is responsible for accounting, and the user department is responsible for operation and daily maintenance. It can be said that the entry, exit and deposit of physical assets involve multiple departments. Why are there still problems? From this point of view, either the control process is incomplete or the control method does not work. If one person or several people want to do whatever they want, it won't work in front of the system unless he buys off all the people.

Fourth, there is no standard for the confirmation and measurement of inventory, and it is entirely based on the experience of accountants, which directly leads to the untrue cost of enterprises. It is for these reasons that a promising enterprise finally failed.