tailieunhanh - Accounting Best Practices Podcast_11

Tham khảo tài liệu 'accounting best practices podcast_11', tài chính - ngân hàng, kế toán - kiểm toán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 390 Inventory Best Practices ial which can be a problem if a company uses back-flushing. In this instance items will be automatically withdrawn from the quantity shown in the computer system as soon as production is recorded so the system will show negative usage of items that are no longer there. One should carefully consider and resolve all of these problems before moving parts out of inventory and into floor stock. Cost Installation time 16-21 Segregate Customer-Owned Inventory A dangerous problem for many controllers is incorrectly valuing inventory too high because customer-owned inventory is mixed into it. This problem is especially common where customers frequently ship components to a company for inclusion in finished products. This situation arises when a customer has the rights to a proprietary product component prefers to do some finishing work on selected components or only wants a company to do final assembly work on its products. When any of these situations arise the receiving staff commonly makes the mistake of recording receipts as company-owned stock and storing it alongside all other inventory in the warehouse. As a result the inventory can be massively overvalued leading to incorrectly reported profits. A solution is to institute procedures and set up segregated areas that allow one to promptly identify customer-owned products at the receiving dock and shunt them immediately to the segregated area. By doing so one can be assured of having much more accurate inventory quantities and costs. To implement this best practice it is critical to require a purchase order on all items arriving at the receiving dock. With this procedure in place the receiving staff can identify all receipts that the purchasing department has previously noted on a purchase order as being owned by a customer. With this information in hand the receiving staff records the entry in the computer system and then moves the items to a separately marked-off area. This approach .