What is the number of stocks?

The number of stocks is a process that includes the creation of the physical number of each item found in a particular inventory. The numbers are commonly used with all types of inventory in any type of business environment. The aim of the number of inventories is to ensure that all inventory records are accurate. If the physical number and records disagree, procedures that are in accordance with corporate policies and any laws or regulations that apply must be used to reconcile these differences.

One of the most used forms of the number of inventories is known as the number of cycles. Manufacturing companies, such as textile corporations or electronics manufacturers, usually have massive reserves of raw materials, finished goods and parts and supplies that are held at hand to keep production machines in operation. For each of these stocks, the number of cycle number allows you to physically calculate part of the inventory during each month or quarter of the year. This allows the physical --ent will be gradually harmonized throughout the year and helps minimize the reconciliation process when donea complete annual number of physical reserves.

For many companies based on the production, parts and supplies of the machine, which are held on site and are divided into so -called material codes. Codes are often structured, so they relate to a specific separation in manufacturing equipment and type of machines that use these components or supplies. The last part of the code for each component usually applies back to the number of part -assigned part manufacturer. When performing the number of cycle, a specific number of material codes is selected and each item is calculated physically. If the physical number is more or less than the number of reflecting in the stock list, the note is made and the list is finally aligned with the actual number of and the documentation was submitted in order to take into account the irregularity.

The number of inventories is necessary for two key reasons. First, the number prevents situations in which one or more machines require spareParts, and these parts were found that they would not be present in the physical inventory. As a result, the production process is delayed for a shorter time and the production level can be met with greater ease. At the same time, maintaining the exact number minimizes the chances of gathering inventory, which is larger than necessary, and generating a larger tax burden on this major inventory.