Inventory Management is the bookkeeping of items, parts, and raw materials that a business process either uses in production or sells. Practice inventory management to ensure that you have enough stock and sales. The verb “inventory” refers to registering and counting items. It refers to all stock of various production stages. So, both retailers and manufacturers can continue to sell items and products. Inventory is a major asset on the balance for most companies. The main goal of the inventory management tool is for generating profit but if a stock is for sale it cannot be considered as inventory.
It is a mechanism to control the inventory of a business entity so that the inventories can be utilized efficiently. It is usually made in a sequence where it is simply represented as a list of stock items with details about each line item. However, most of the inventory management is done through computer software which makes such data tasks more bearable.
How to Create an Inventory Management in Excel
We have created free Inventory management software, some rules and categories to follow to make a good inventory list of your stock. Considering Microsoft Excel as a substitute, most retailers will keep such records. Because not using these tools in the long run, end up affecting business performance.
Steps to follow
Firstly, chose the type you prefer for your inventory management.
Through the given template select options the one that is suitable or meet your preferences.
Similarly, you will find this choice to the right of the template’s preview window. It will make your template.
You can delete the pre-formatted data and enter your data under the item number, item name, item cost, etc.
Insert your Inventory Data.
To modify a pre-filled column, double-click it, delete the number or word there, and enter your stock’s information.
The Columns Includes
Inventory Id- To track the status of the product in the list.
Name- to represent the item.
Description- Help in identifying a particular inventory item by general description.
Unit Price- represent the average unit price of the stock
Quantity- Total number of units of the specific stock in the list.
Value- The money engaged in the supply of stock
Recorder Time- Expected time
Quantity in Recorder- The stock for vendors.
Importance of Inventory Template
Inventory is a major advantage for any manufacturing or trading company, so it’s essential for business owners and managers to understand what it means.
- To learn your inventory turnovers
- Measure what you have for sale
- Find out which Item and Stock Aren’t Selling
- Exact Income Tax Reporting
- Keep you organized and spend accurately