Inventory is a special procedure, the main purpose of which is to identify certain violations in different companies. Using this process, you can determine how true and accurate the data are regarding the goods available in the warehouse. Errors in the work of various specialists of the enterprise are revealed. Additionally, it acts as a specific method of monitoring the work of employees.
Process concept
Inventory is a certain way of accounting at the enterprise that has control functions. It is designed to determine whether the actual quantity of certain goods in the company corresponds to the information contained in the organization’s documentation.
If in the process of inventory various errors or shortcomings are found, then this becomes the basis for conducting an internal investigation in relation to materially responsible employees of the company.
Problems arise not only with a shortage, but also with an overabundance of values, as this leads to difficulties in collecting receivables or repaying loans. The results of the inventory are important for the tax inspectorate, as serious discrepancies may result from unlawful acts on the part of the management or employees of the company.
What functions are performed?
Inventory is a complex process, during the implementation of which various functions can be carried out:
- controlling;
- accounting;
- revealing crimes.
There are several types of this procedure, which are selected depending on the objectives and circumstances.
Features of the procedure
The management of any company is interested in conducting an inventory. This is due to the fact that according to its results it is possible to identify the slightest discrepancies between the actually existing property and the data contained in the accounting records of the enterprise.
Experts who are not interested in its results are involved in the verification, therefore, independent experts are often hired for this by the company's management.
The main purpose of
The main purpose of the inventory is to determine the correctness of accounting, for which real indicators are compared with the data contained in numerous company documents. Therefore, using the test, different results are achieved:
- all objects involved in the inventory process are recounted, measured or weighted;
- the resulting totals are compared with the data that are available in the records;
- control over the implementation of the rules established by the company and intended to maintain the integrity of different values is ensured;
- identified goods or materials that will soon be damaged;
- corrupted property is discovered;
- reveals all the values that are not used in the enterprise, which are often sold after inventory;
- discrepancies are found in different documents;
- the conditions under which goods and items are stored are checked;
- the correctness of the display of numerous business transactions in accounting is controlled.
If there are really serious accounting errors, then this can cause negative consequences for the company, represented by material losses. Therefore, an inventory of the box office is regularly carried out.
If tax inspectors, as a result of a company audit, find that the organization does not conduct regular inventories, this is equivalent to a lack of accounting at the enterprise, therefore significant administrative sanctions may be applied to such firms. Often the results of the audit are drawn up incorrectly by an accountant or other responsible person, which is considered an administrative offense for which a penalty is imposed by the tax inspectorate.
Legislative regulation
The rules for conducting and recording inventories can be studied in the provisions of Order No. 49 of the Ministry of Finance. In addition, there are special Methodological instructions containing information on the inspection procedure.
Each company can additionally create its own internal regulatory acts, on the basis of which unique rules for the implementation of this process are fixed. Some firms prefer to take an inventory of property on a monthly or quarterly basis. It is the management of the enterprise that independently solves this issue.
Mandatory is the audit carried out before the immediate preparation of the annual statements. If there is no such inventory, then the company may be held administratively liable, and fines will be imposed on company officials.
The main varieties of the process
There are several classifications that characterize this check. They differ in many ways.
The choice of one or another type depends on the goals of the inventory.
Mandatory verification
An inventory may be mandatory or proactive. In the first case, it is required to be carried out on the basis of the requirements of the law, so usually situations arise in the company that are predetermined by law. Employees of the Federal Tax Service or other state bodies can insist on such a check.
An initiative check is carried out on the basis of the adoption of an appropriate decision by the leaders of the organization. In this case, there are no restrictions on the grounds for the process. Usually, the need for this process arises if management has doubts about the honesty of employees.
At the venue
Inventory is a procedure for checking the compliance of actual property with data from documents, so it can be carried out by companies in different places.
Therefore, the procedure can be implemented at the cash desk of the enterprise or at the factory, in storage facilities or in a store.
Validation Objects
Inventory objects may be different values belonging to a particular company. This includes fixed assets represented by buildings, structures or equipment, inventories, money, finished goods or even financial obligations of the enterprise.
A specific object is pre-selected by the initiator of the verification, after which the information is transferred to the commission involved in the procedure.
According to the process implementation method
The procedure may be full or partial. Each variety has its own characteristics:
- Full check. It is carried out before the formation of annual reports or before the audit. Often implemented during the audit. All material values, money and liabilities available at the enterprise and reflected in the accounting of the company are checked. Inventory is even subject to property received by the company on the basis of a lease.
- Partial It can be carried out at any time, for which only an appropriate decision of the company's management is required. To do this, property that is combined by type, location or other principles is usually covered. For example, only one warehouse or values for which one employee is responsible can be inspected.
The companies themselves should be interested in the fact that a partial inventory of funds is regularly carried out, since in this case it is possible to track the correct work of various specialists in the company.
By method
According to the method of conducting the inventory can be selective or continuous.
A spot check is carried out on the basis of a decision by the enterprise management. The survey is conducted for several values selected by the director. Often this method of verification is used in large firms. If the results of such an inventory reveal even slight differences, then a full check will certainly be assigned.
A continuous inventory can be carried out at any time after a decision by the management of the company. During this process, the entire property of the company, as well as various values located in divisions or branches, is subject to evaluation.
By surprise
The inventory may be:
- planned, taking into account the schedule drawn up at the beginning of the year by the management of the enterprise, and the dates for its implementation are additionally announced in advance;
- unscheduled, realized when certain unforeseen circumstances arise, for example, the person in charge is replaced or an emergency occurs at the enterprise;
- re-appointed, provided that the results of the previous audit are considered unreliable or doubtful, therefore, it is required to confirm certain facts;
- control carried out upon completion of the full inventory, for which all the actions of the commission are evaluated and the accuracy of compliance with the procedure is verified.
All of the above types of inventories can be carried out based on the decision of the company management.
The concept of technical inspection
A technical inventory is represented by a property inventory that defines all its characteristics and cadastral value. Usually carried out in relation to different real estate objects.
The procedure must be followed before annual reporting. Based on the act drawn up, you can understand how much the cadastral price of the object has changed.
When is the inventory required?
This check is certainly required in such situations:
- property is redeemed, sold or leased;
- before preparing annual reports;
- the responsible person is replaced;
- theft or damage to property is revealed;
- after a natural disaster or other emergency;
- upon closing or reorganization of a company.
An inventory may also be taken in other situations provided for by law.
Validation Procedure
The inventory procedure is considered simple, for which sequential actions are performed:
- a corresponding order is issued by the company's management;
- an inventory commission is being formed;
- the timing of the process;
- documents are transferred by materially responsible employees;
- a direct inventory is carried out, which involves weighing, counting, measuring and performing other similar actions;
- compares the results obtained after the implementation of the inventory, with the data available in the accounting records of the company;
- discrepancies are identified;
- identifies the causes of problems;
- the results are drawn up.
At the end of the check, an inventory act is formed. It contains all the facts identified as a result of the inventory. Based on this document, you can understand how effective the inventory was. A sample of this document is located below.
The act should contain different information. It includes information:
- date of inspection;
- lists all persons who are members of the inventory commission;
- objects under study are given;
- describes all the methods used to obtain information;
- fit the results;
- at the end are signed by all participants.
The act is considered important documentation in any company. It can be checked by employees of the Federal Tax Service, so it must be kept at the enterprise for at least five years. If there are doubts about the accuracy of the information contained in this document, then a re-examination may be appointed as the head of the company.
Conclusion
Inventory is considered an important process, on the basis of which there is a verification of actual data with the information that is recorded in the accounting records of the enterprise. It can be presented in many forms.
There are situations when the audit should be carried out without fail on the basis of the requirements of state bodies. The process is carried out only by a specially created inventory commission, which includes only professionals, and often even outside experts who are not interested in the results of the inventory are invited here.