Analysis on the Inventory Management of Enterprises

On the basis of discussing the necessity of enterprise inventory nuclear management, this paper analyzes the problems existing in inventory accounting and management of a building materials enterprise, mainly including unscientific inventory purchase plan, lack of effective communication between departments, potential risks in sales market and imperfect internal control system. Finally, in view of the problems existing in the inventory management of this enterprise, the countermeasures to strengthen inventory accounting and management are put forward.

Keywords: inventory of building materials enterprises; Management; Countermeasures

At present, there are many problems in the inventory management of enterprises, such as imperfect inventory management system, imperfect internal control system, backward inventory information system, and insufficient utilization of inventory by third-party logistics management. These problems not only affect the liquidity of enterprise assets and the efficiency and profitability of asset management level, but also restrict the healthy development of the company to varying degrees in the long run. Therefore, inventory is an important factor to reflect the long-term development of an enterprise, and adopting reasonable and effective inventory strategy has become an important focus that all enterprises should pay attention to.

I. The concept of inventory

Inventory is an important current asset, which is a variety of assets reserved by enterprises for sale or consumption in the process of production and operation, including commodities, finished products, semi-finished products, products in process, various materials, fuels, packaging materials, low-value consumables and so on. , which belongs to the category of current assets. Inventory liquidity is weak, there are many kinds and large quantities, and it is frequently sent and received. The existence of inventory will inevitably occupy a lot of working capital of enterprises, so its management directly affects the economic benefits of enterprises.

The inventory types of this building materials enterprise are as follows. 1. Commodities, such as tiles, sanitary wares, bathrooms (including toilets, shower rooms, bathtubs, bathroom cabinets, showers, faucets, squatting pans, mirrors, etc. ) and cabinets; 2. Semi-finished products, such as ceramic tile semi-finished products, cabinets, bathtubs (skirts), shower rooms and shower screens (semi-finished products of the above products appear because after customers buy products, when installing surveyors to measure the wall margin at customers' homes, the measurement size is not equal to the original size of the purchased products, and customers are not in a hurry to receive the goods, and the company will recommend customers to customize the original products to the ideal size before producing semi-finished products); 3. Materials, including turnover materials (bath towel gift box, towel gift box, ceramic utensils, etc. Sales promotion activities), spare parts for maintenance (corner valves, hoses and other parts in the bathroom, stone bases and cabinet legs attached to the shower room, etc. ), packaging materials, low-value consumables (gloves, tires, raincoats, etc.). Delivery master's use, building glass glue, self-tapping nails, charging drills, etc. ), they are all sold to shops.

Second, the content of inventory management

Inventory management is an important part of enterprise internal control and occupies a very important position in enterprise current assets. With the increasingly fierce market competition in China, the inventory problem has been paid more and more attention. However, in the specific accounting and management operations, there are problems such as system and personnel fraud, which directly leads to the narrowing of the profit space of enterprises and even adversely affects the reputation and development of the company. Inventory management is the dynamic control and management of enterprise inventory flow and circulation, and it is the core of enterprise logistics management, while inventory accounting is the management and accounting of inventory value flow by enterprise financial department. Inventory accounting and inventory management are generally integrated, which fully embodies the integration of business and finance and provides comprehensive and complete information for inventory management and accounting. Both of them have the characteristics of large data storage, frequent changes, extensive accounting contents, complex methods, more data transfer with other subsystems and high management requirements. According to the needs of management, all departments of the enterprise (including procurement, production, sales, warehouse, finance, etc.). ) Obtain inventory management information through certain means within its authority, and the management module in the ERP system automatically extracts effective information from inventory files, balance files, warehousing files and other files, processes and generates and outputs various account books, subsidiary ledgers and management analysis tables. According to the enterprise accounting system, if an enterprise sends and receives inventory according to the actual cost, the inventory accounting includes FIFO method, weighted average method, individual valuation method and moving weighted average method. Building materials companies take the weighted average method as the main inventory accounting method and the first-in first-out method as the auxiliary accounting method to account for low-value consumables and other consumables.

Third, the problems existing in the inventory management of building materials enterprises

(A) the inventory purchase plan is unscientific

The company has no rules and regulations for inventory management, and even if it does, it cannot operate effectively because of the lack of strict assessment and supervision. This not only wastes internal resources, but also increases the possibility of malpractice in the process of inventory circulation. For many enterprises, the enterprise procurement plan is the most detailed link in the inventory procurement process, and this company also has such problems. In the process of purchasing, the purchasing plan is not declared according to the actual needs, but only when there is no inventory, and the quantity of the repurchased goods is more or less inconclusive, which is entirely based on feelings, thus ignoring the cost price of the inventory and the capital occupation of the enterprise, failing to adopt the inventory limit responsibility management, and sometimes the inventory is very small, which leads to the delay in delivery and backlog of orders, often causing customer dissatisfaction. Sometimes the inventory is too large and no one wants it, which leads to the accumulation of inventory and seriously pledges the working capital of the enterprise. From this perspective, inventory is also a part of the company? Liabilities? Companies should try their best to meet the needs of production and sales with lower inventory.

(B) the lack of communication between departments

The lack of effective communication between the functional departments of the company makes the company's inventory unable to meet the market demand at any time. A company's supply, production and sales departments often unilaterally pursue the interests of their respective departments and lack effective information communication with each other, which either leads to the company's inventory reserve being lower than the market demand, which makes it lose market opportunities, or causes inventory backlog and increases its storage cost. The lack of professional quality of managers also makes it difficult for companies to determine scientific inventory. The unreasonable knowledge structure of managers makes them accustomed to relying only on subjective experience in the process of inventory management, rather than using scientific management methods to control inventory qualitatively and quantitatively.

(3) There are potential risks in the sales market.

The continuous rise of the price level has hindered the expansion of the enterprise sales market. In recent years, the producer price index (PPI) in China remains high, the pressure of rising prices persists, the supply of raw materials is increasingly tight, and the prices of energy and transportation are also rising. In order to reduce the risk of out-of-stock, the company had to increase the safety inventory and choose the appropriate inventory pricing method to avoid the risk brought by price changes, but it also led to unreasonable inventory. Too much or too little inventory makes the income that enterprises can get in sales uncertain, and it is impossible to make good and accurate enterprise market planning. The acceleration and intensification of market demand changes will also increase the difficulty of company inventory management. Enterprises often have a large backlog of obsolete products and related raw materials, low-value consumables and spare parts. Due to the inaccurate sales forecast, this will lead to sluggish funds and ineffective turnover, thus affecting the sales performance of enterprises.

(D) The internal control system is not sound enough

At present, there is no internal audit institution in enterprises, and even if there is, its functions are relatively weakened, which makes it impossible to correctly evaluate the financial information of enterprises and the performance of management departments, resulting in departments at all levels not daring to take advantage of internal control. This company has the same problem. Although there are strict internal controls and the corresponding inventory system, the division of labor is not clear enough, and the purchase and replacement of machines are paid attention to while the control of scrapping links is neglected, which leads to some inevitable wastes, such as the internal control of tiles, which only pays attention to the number of boxes and ignores the integrity of tiles, sometimes leading to the inconsistency between packaging and physical objects, shortage of quantity or other quality problems, and the normal calculation cannot be realized. Third, the company's inventory management.

(A) to develop a scientific procurement management plan

In order to solve the problem of irregular purchasing inventory, a clear purchasing plan should be made before purchasing. First, according to the needs of production and operation, combined with the budget, put forward the application for material demand. After approval according to the accrual basis principle, the production department will conduct on-site audit. Then, according to the balanced inventory, the company's procurement plan is prepared and submitted to the leaders for approval after being audited by the finance department. When purchasing, the company can determine the supplier and price through bidding, inquiry and price comparison. And compare the goods to choose the best one. After purchasing, the purchased goods arrive at the warehouse, and the warehouse administrator will inspect and count the goods, go through the warehousing formalities, prepare the inventory list, and the warehouse purchaser will sign and register the warehousing details to avoid duplication and clutter, thus effectively preventing financial risks in the process of inventory purchase.

(2) Organize activities to improve communication with each other.

For internal employees, the company can regularly organize employees to participate in outdoor activities, such as spring outing and field survival. , let employees increase interaction, mutual understanding, increase harmony and tacit understanding, lay a good foundation for smooth cooperation between employees, but also promote the enthusiasm of employees and enhance the potential appreciation space of enterprises. For enterprise customers, the friendly and enthusiastic attitude of sales staff can increase customers' desire to buy goods, which seems to give customers a great discount amount, which can actually bring huge benefits to enterprises and make consumers willing to accept it. Of course, a good after-sales service attitude is the decisive factor to determine whether an enterprise can develop for a long time. The better the service attitude, the better the reputation among consumers, and the more potential consumers, thus effectively increasing the profit-making benefits of enterprises.

(C) establish and improve the internal control system

As a management tool, internal control plays an irreplaceable role in maintaining the safety and integrity of enterprise property, ensuring the authenticity and reliability of accounting information, and ensuring the economy, efficiency and effectiveness of management and operation activities. It is necessary to test the physical circulation procedures and recording procedures of inventory in warehousing, accounting and sales, establish and improve the production acquisition system, and clarify the use of materials. In inventory bookkeeping, attention should be paid to the audit of abnormal accounts, cost accounting accounts and related original vouchers. Auditors should pay special attention to high-value inventory accounts, inventory accounts with large changes in quantity and unit price, inventory accounts with long-term inconsistent accounts, overstocked damaged and scrapped inventory accounts, cost accounting accounts with large changes in unit value, cost accounting accounts with significant changes in accounting methods, inventory accounts with major accounting adjustments, cost accounting accounts and their original vouchers. At the same time, in order to strengthen the supervision and clearance of inventory, inventory with inconsistent accounts, high value, large quantity change, long-term unused inventory and inventory with frequent reconciliation should be listed as the focus of supervision and clearance.

Four. conclusion

Building materials company is a developing building materials enterprise. In order to control the inventory management of enterprises, it is necessary to establish a strict procurement system for outsourced inventory, reduce procurement costs and strictly control procurement. Improve the process of warehousing and warehousing, and formulate an effective and feasible inventory system; Strive to improve the professional level of financial personnel and make cost accounting true, accurate and complete; Strengthen the supervision mechanism and plug the possible loopholes in all links; Strictly arrange the post responsibility system and formulate the reward and punishment system related to work performance. Only by mastering people's hearts can we achieve a win-win situation for the common development of enterprises and talents. Mastering the accounting and management of enterprise inventory is the basic condition for the steady development of enterprises. Good inventory accounting and management is one of the characteristics of excellent management performance, and it is also the goal of enterprises to achieve business. In order to ensure the stability of the inventory needed for enterprise development, the enterprise management authorities should arrange and manage the ordering and storage of goods in a planned way to avoid unnecessary losses caused by improper inventory management. In order to improve the enterprise's own value, promote the optimization of enterprise's inventory structure and improve the investment efficiency of inventory, it is necessary to design a practical and effective supervision mechanism to promote the effective operation of enterprises.

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(Author: Beijing Electronic Technology Vocational College)

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