Storage inventory appraisal and documentation
Storage inventory appraisal is the process to measurements, identification & verification the values of the inventory to assure situation of financial values.
Storage inventory appraisal procedures for the measuring the values of the inventory, identify inventory and verify all materials storage in unit, the procedures are conducted to assure condition of the financial values to managing and determine actions for the further inventory and compliance of regulatory & legal requirements. Storage inventory evaluation is conducted for understand financial condition as per frequency defined by company which can be yearly or company requirements, the system of inventory appraisal is to identify current condition of the inventory, values of the inventory and system management if required to controls the inventory system. The inventory management system and its accounting is managing some different system which one is periodically management and second is continuous management, in the continuous inventory management system is conducting and formatting the system without any break out and its format or ledger is maintain for the same. Where periodically inventory management system where inventory inspection, audit and evaluation, appraisal is conducting quarterly, half or annually basis, the system is supporting as the formatting and documentation are maintain same for frequency and inventory system is adopted by company. In the periodically inventory management, inventory appraisal is conducted as per frequency and documentation is maintain as per the system, inventory appraisal format which is part of periodically inventory management system, in the continuous inventory management system Ledger format, inventory record sheet are used instead of inventory appraisal format where valuation is continuous maintain in it, but is making a confusion or much care required to maintain the database & accuracy of value, mostly company is if used continuous inventory management are conducting values as average value of materials, see picture below for reference of inventory appraisal format:
Inventory appraisal form conducted and used in the system by storage department and the format owners and concern responsibility of storage peoples. Inventory appraisal effectively establish, maintain and improvement in the system is very important that all the concern steps are taken by storage department to ensure the management system requirements. Inventory appraisal is conducted in various types that here as you can see picture below is maintained by the grade wise, but in case the materials are in different types that category wise, standard wise, type wise or any other method of conducting can implement to easy for adopting and appraisal is makes easy for peoples of storage department. The authority of storage department assigned duty to concern person for the conduct appraisal method for inventory and evaluate record as on date task conduct.
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