At the beginning of each accounting period, you have to determine the beginning inventory. This serves several purposes, including inventory control, determining discrepancies with expected inventory, and providing a dollar amount for the company’s inventory. It is an essential function of accounting for industries that are required to keep an inventory, even if that inventory is only used internally. The beginning inventory is calculated based on an established formula:
To begin with, logistics is simply the efficient management of the flow of products including storage in a supply chain. Outbound logistics refers to the processes involved in the movement and storage of products and how related information flows from the end of the production line to the firm’s customer.
In business, an inventory control system is a system that integrates all aspects of administering a company’s inventories including shipping, purchasing, receiving, warehouse storage, turnover, tracking, and re-ordering. These systems often differ based on the type of business being run. From stretch film packaging to warehouses to manufacturing, and even small businesses, inventory control systems are unique tools that help you measure and balance your operations.