General production enterprise inventory business process can be divided into obtaining, acceptance, warehousing and storage, production and processing, inventory disposal and other four stages, through the acquisition of inventory, acceptance into the warehouse, warehousing, storage and storage, use issued, raw materials processing, assembling and packaging, inventory, sales and disposal of the main links. Specific to a particular production enterprise, inventory business process may be more complex, not only involves all the above links, and even more, more detailed process, and inventory within the enterprise to experience multiple cycles. For example, raw materials to go through the acceptance of warehousing, processing, the formation of semi-finished products and warehousing and storage or on-site storage, use of semi-finished products to continue processing, processing is completed for the finished product and then warehousing and storage, until the issue of the process of sales and so on. There are also some production enterprises in the production and operation activities are relatively simple, its inventory business process may only involve a few links in the above stages.
As a wholesaler's inventory of the commodity distribution enterprises, usually through the acquisition, acceptance into the warehouse, warehousing and storage and sales issued by the main links; retailers from the production enterprises or wholesalers (distributors) to obtain the goods, after acceptance into the storage and preservation or directly placed in the premises of the external sales. For example, warehousing supermarket shelves placed in the goods is the supermarket inventory, commodity warehousing and sales process is closely linked together.
In a nutshell, whether it is a production enterprise, or commodity distribution enterprises, inventory acquisition, acceptance into the warehouse, warehousing and storage, use issued, inventory, sales and disposal of its **** there are links. The following are the main risks that may exist in these links and control measures are described.
(a) the acquisition of inventory
Inventory acquisition, such as outsourcing, commissioned processing or self-production, etc., enterprises should be based on the characteristics of the industry, production and operation plans and market factors, and other considerations, in line with the principle of cost-effectiveness, to determine the different types of inventory acquisition. The main risks in this segment are: unscientific inventory budgeting and unreasonable procurement plans, which may lead to inventory backlog or shortage.
Main control measures: In the practice of inventory management, the enterprise should, according to the various inventory procurement intervals and the current inventory, take into account the enterprise's production and operation plan, market supply and demand and other factors, make full use of the information system to reasonably determine the date and quantity of the inventory procurement, to ensure that inventory is in the optimal state of inventory. Considering that the risk control measures for inventory acquisition are mainly reflected in the budgeting and purchasing process, they will be regulated by the relevant guidelines on the application of internal control over budgeting and purchasing.
(ii) Acceptance and warehousing
Whether it is outsourced raw materials or commodities, or products produced by the Company, all must go through the acceptance (quality inspection) process to ensure that the quantity and quality of the inventories comply with the contract and other relevant regulations or product quality requirements. The main risk of this link is that the acceptance procedure is not standardized and the standard is not clear, which may lead to quantity deduction, substitution of good for good, and discrepancies between accounts and facts.
The main control measures: enterprises should pay attention to inventory acceptance, standardize inventory acceptance procedures and methods, and focus on the following tasks.
1. Acceptance of purchased inventory should focus on the contract, invoices and other original documents and inventory quantity, quality, specifications and other verification of consistency. Involving goods with high technical content, if necessary, can be entrusted with the inspection of qualified organizations or hire external experts to assist in the acceptance inspection.
2. Acceptance of homemade inventory, should focus on product quality, through the inspection of qualified semi-finished products, finished products can only be handled for warehousing procedures, substandard products should be timely to identify the causes, the implementation of the responsibility to report on the handling.
3. Other ways to obtain the acceptance of inventory, should focus on the source of inventory, quality conditions, the actual value of the contract or agreement is consistent with the agreement.
Accepted inventory into storage or sales. Warehousing department for warehousing inventory, should be based on the contents of the inventory list of inventory quantity, quality, variety, etc., to meet the requirements to be warehoused; does not meet the requirements, should be returned in a timely manner for the exchange of goods and other related matters. Inventory records should be true and complete, regularly check with the accounting and other relevant departments, and shall not be modified without authorization.
(C) warehousing and storage
Generally speaking, production enterprises to ensure the continuity of the production process, the need for warehousing and storage of inventory; commodity distribution enterprises from the purchase of inventory to be sold to customers between the existence of warehousing and storage links. The main risk of the link is: inventory warehousing and storage methods are not appropriate, supervision is not close, may lead to damage and deterioration, value depreciation, waste of resources.
The main control measures:
1. Inventory flows between different warehouses, should be handled in and out of the warehouse procedures.
2. Inventory storage period should be properly stored in accordance with the storage conditions required for storage materials, fire, flood, theft, moisture, pests, deterioration and other custodial work, different batches, models and uses of the product should be categorized storage. Raw materials, turnover materials, semi-finished products, etc. in the production site should be arranged in a way that helps to improve production efficiency, while preventing waste, theft and loss.
3. Inventory in escrow, sales, temporary storage, and commissioned processing should be stored and recorded separately to avoid confusion with the unit's inventory.
4. Combined with the actual situation of the enterprise, to strengthen the insurance of the inventory insured, to ensure the safety of the inventory, and reasonably reduce the risk of accidental loss of inventory.
5. Warehousing department should carry out daily inspection and regular sampling of inventory materials and products, detailed records of inventory; found that the destruction, there are signs of decline in value, should be promptly communicated with the production, procurement, finance and other relevant departments. For personnel entering the warehouse should go through the entry and exit registration procedures, unauthorized personnel shall not have access to the inventory.
(D) the use of issued
production enterprises, production departments to receive raw materials, auxiliary materials, fuel and parts for production and processing; warehousing department according to the sales department issued a delivery note to the distributor or the user of finished goods; the wholesalers in the field of circulation of goods according to the contract or order form, etc., to the downstream distributor or retailer to send out the goods; consumers with the proof of payment, etc., take the goods from the retailer, etc., all involve the use of goods. Consumers take goods from retailers with payment vouchers, etc., all of which involve the issue of inventories. The main risk of this link is that the goods may be lost due to the lack of strict audit and formalities for the issue of inventory.
The main control measures: the enterprise should be based on their own business characteristics, to determine the applicable inventory issue management mode, to develop a strict inventory approval system, clear approval authority for the issuance and use of inventory, improve the inventory out of the warehouse procedures, and strengthen the record of the use of inventory. Usually, for general production enterprises, warehousing department should check the content of the audited collaterals or shipment notification form, to achieve complete documentation, name, specifications, unit of measurement is accurate; eligible to be allowed to claim or issue, and face to face with the user to check, point clear delivery. In the malls and supermarkets and other commodity distribution enterprises, in the inventory sales issued by the link should focus on the prevention of theft of goods, at any time to organize the abandonment of commodities, daily reconciliation of sales records and inventory records and so on. No matter what kind of enterprise, for large quantities of inventory, valuable commodities or dangerous goods issued, should be implemented special authorization; warehousing department should be based on the approved sales (out of stock) notice issued goods.
(E) inventory check
Inventory inventory check on the one hand to check the number of physical, to see whether it is consistent with the relevant records, whether the account is consistent; on the other hand, we also need to pay attention to the quality of the physical, to see whether there is obvious damage. The main risk of this link is that the inventory counting and checking system is not perfect, and the plan is not feasible, which may lead to the work of formality, unable to find out the real status of the inventory.
The main control measures: enterprises should establish inventory counting procedures, combined with the actual situation of the enterprise to determine the inventory cycle, inventory process, inventory methods and other related content, regular inventory and occasional spot checks combined. Inventory inventory, should draw up a detailed inventory plan, rationalize the arrangement of relevant personnel, the use of scientific inventory methods, to maintain the integrity of the inventory records to ensure the authenticity and effectiveness of the inventory. Inventory results should be prepared in a timely manner inventory table, the formation of a written report, including inventory personnel, time, location, the actual inventory inventory name, variety, quantity, storage, and inventory process found in the account does not match the situation and other content. Problems found in the inventory count shall be promptly identified, the responsibility for the implementation of the report in accordance with the prescribed authority after approval to deal with. Multi-departmental personnel *** with the inventory, should fully reflect the mutual checks and balances, in strict accordance with the inventory plan, carefully record the inventory. In addition, the enterprise should at least at the end of each year to carry out a comprehensive inventory count inventory, timely detection of signs of inventory impairment, the results of the inventory count to form a written report.
(F) Disposal of inventory
Disposal of inventory sales is the withdrawal of inventory from the production and operation activities of the enterprise, including normal external sales of commodities and finished goods, as well as the disposal of inventory due to deterioration, destruction and so on. The main risk of this link is that the responsibility for the disposal of inventory obsolescence is not clear and the approval is not in place, which may lead to damage to the interests of the enterprise.
The main control measures: the enterprise should regularly check the inventory, timely and fully understand the storage status of inventory, for inventory deterioration, destruction, scrapping or loss of disposal should be divided into responsibilities, analyze the reasons, timely and reasonable.