What is the connection between sales and inventory management?

The relationship between sales and inventory management is important because the company owner can know what inventory he has if he knows what he bought and what he sold. Proper sales recording allows the company owner to know when the inventory is low on the item, whether it should add the item, and if so, how much to buy. Correct records of records every time the sale is made can alleviate this process. It can also help the company owner monitor its profitability and decide on the future of business. The raw materials are transmitted to a transitional account of unfinished work while used for production. Then the items are transferred to the category of finished goods and are sold. Parture items are immediately placed in the relevant inventory accounts R, which are accepted and inspected. From there, the sale and stock management is processed simultaneously with the recording of income and the item is removed from the finished goods.

When a business associate records a transaction, stock balances are re -modified. The only other circumstances under which it isThe product removed from the inventory at the point of sale, is damage or theft. In order to properly assign revenue and loss, the connection between sale and inventory management must be strong and co -workers must follow any reserves on sales, damage and theft.

For the company, only one chance is-especially large with many items for sale-make transactions at the point of sale (POS) and adjust the stock levels. Co -workers cannot be expected to remember every transaction, so a reliable system is essential. Most POS systems are integrated with TRAC Inventoryking System and barcodes ensure that each product will be properly counted. As long as each item is properly scanned or recorded, the stock levels will be precisely maintained. Damaged items must be manually removed from the inventory as well as the items lost through the known theft.

Although there are iOther ways to modify inventing after sale, the best method is to create an easy -to -track POS procedure and support a strong understanding between business collaborators and stock management collaborators. While the duties department is important for maintaining a control system and balancing, each department must understand all related basic procedures, if not higher. The Sales and Inventory Management Department must cooperate to ensure that the items are properly charged. Inaccurate sales data and inventory levels can lead to statements of inflated earnings and may eventually affect the health and longevity of the company.