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    Inventory Master File: Lecture Topic: During The Lecture, Take Notes Here. Insert A Sub-Page For Each Lecture Topic

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    palaviya
    The document discusses the inventory master file, which contains permanent records for each inventory item. The inventory master file tracks key information for each item like the inventory code, description, location, category, tax code, supplier, and reorder levels. Maintaining an accurate inventory master file is important for companies to keep track of inventory, generate reports, and ensure proper stock levels.

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    Inventory Master File: Lecture Topic: During The Lecture, Take Notes Here. Insert A Sub-Page For Each Lecture Topic

    Uploaded by

    palaviya
    45 views3 pages
    The document discusses the inventory master file, which contains permanent records for each inventory item. The inventory master file tracks key information for each item like the inventory code, description, location, category, tax code, supplier, and reorder levels. Maintaining an accurate inventory master file is important for companies to keep track of inventory, generate reports, and ensure proper stock levels.

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    Inventory Master File

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    The document discusses the inventory master file, which contains permanent records for each inventory item. The inventory master file tracks key information for each item like the inventory code, description, location, category, tax code, supplier, and reorder levels. Maintaining an accurate inventory master file is important for companies to keep track of inventory, generate reports, and ensure proper stock levels.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    45 views3 pages

    Inventory Master File: Lecture Topic: During The Lecture, Take Notes Here. Insert A Sub-Page For Each Lecture Topic

    Uploaded by

    palaviya
    The document discusses the inventory master file, which contains permanent records for each inventory item. The inventory master file tracks key information for each item like the inventory code, description, location, category, tax code, supplier, and reorder levels. Maintaining an accurate inventory master file is important for companies to keep track of inventory, generate reports, and ensure proper stock levels.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Inventory master file

    Thursday, 14 October 2021 9:47 am

    Homework: Today's Topics:


     Introduction
     Inventory master file

    Important Points:

    Lecture Topic:
    During the lecture, take notes here. Insert a sub-page for each lecture topic.
     Inventory master file
    Inventory is an item, component part or raw material a company uses in production, or a finished product kept
    to be sold at a later date. Inventory is a current asset of a business and it is an asset of the statement of
    financial position. Examples of inventory are raw materials, components, finished goods, work in progress,
    etc.

    Companies use a manual system or computerised system to receive, store, issue, and manage inventory items.
    A computerised system enable a company to keep a check on the inventory levels by performing automatic
    counting of inventories, recording issues and revising the inventory balance.

    Each system has a master file. A master file is the main that contains relatively permanent records about
    particular items or entries. The inventory master file has the following fields:
    1. Inventory code (key field)
    2. Description of stock
    3. Location
    4. Category
    5. Weight
    6. Tax code
    7. Nominal code
    8. Department
    9. Unit sale
    10. Item type
    11. Supplier account
    12. Part number
    13. Re-order level
    14. Re-order quantity

    Each field plays a different function and below is the functions of fields listed above:
    1. Inventory code
    This is a key field. The main function of inventory code is to identify each item of stock by giving it
    its own unique code. If you enter a code for an existing inventory item, its details will be displayed on
    screen. If you enter a new code, the screen of most computerised system will display that they is no
    inventory item for that code.

    2. Description of stock
    Its function is to display name of the inventory item. This will be printed on reports.

    3. Location

    Master files Page 1


    3. Location
    This field is used to enter the location of the inventory item. Locations categorise physical places
    where various items are located thereby providing easy access to each item. Other systems use
    location codes instead of names.

    4. Category
    Its function is to categorise inventory items into different inventory types for reporting purposes. On
    the other hand, this can help the system user to select a specific range of items, for instance he or she
    can select a certain category to display its report.

    5. Weight
    The function of this field is to record the weight of inventory item for reporting purposes. They are
    some items which are measured in kilograms and their weight can be recorded on this field.

    6. Tax code
    This field is used to enter the VAT rate to be applied by default. Normally stocks value does not
    include VAT element. Though stock items are kept in stores at an amount before VAT but stock items
    such as items of finished goods can be sold at VAT inclusive price.
    This means that the inventory shown on the balance sheet must be VAT exclusive.

    7. Nominal code
    This field is used to identify the nominal ledger to which the value of this item will be posted. When
    purchased inventory items are entered into the stores the double entry is completed, the system may
    debit stock nominal ledger and credit a supplier or bank. On the other hand, when items are issued
    from the stores a system also complete a double entry by debiting production cost (cost of sales) ledger
    and crediting stock nominal ledger.

    8. Department
    This field is used to assign an inventory to a department for reporting purposes more especially when a
    company uses the departmental analysis facility.

    9. Unit sale
    This field is used to enter characters that describe the unit of sale, for example, ‘each’, ‘box’, ‘10-
    pack’, etc. This is used for reference only and is not used in any calculation of prices.

    10. Item type


    This field is used to select the type of stock record. The stock record can be a stock item, non-stock
    item or service item. This practice of giving a stock item a type, help a company to categorise the
    products and services for better tracking.

    11. Supplier account


    This field is used to enter the account code for the supplier of each inventory.

    12. Part number


    This field is used to enter an inventory reference number. A part number (often abbreviated PN, P/N,
    part no., or part #) is an identifier of a particular part design or material used in a particular industry.
    Its purpose is to simplify reference to that item.

    13. Re-order level


    This field is used to enter the quantity of stock at which fresh stock should be ordered.
    If the stock level falls below this figure, the inventory item will appear in red in most system’s
    inventory window list box and will appear on the re-order levels report.
    If the re-order level box is left blank, the product item will not be included on the re-order report

    14. Re-order quantity


    This field is used to enter the quantity of stock that you would normally re-order.
    The quantity you enter here appears automatically for you when you raise a Purchase Order for this
    inventory, but can be overwritten.

    Summary
    After the lecture, use this space to summarize the main points of this Lecture Topic.

    Master files Page 2


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