Introduction to inventory tracking
Inventory management is a important feature for many types of business, whether you are running a retail store or a manufacturing company handling raw materials and finished goods. The inventory tracking feature that comes with Financio covers the basic needs for businesses tracking quantity of goods on hand. It doesn't currently support assembly items, raw materials, work-in-progress and finished goods for manufacturing companies.
Inventory tracking is currently only available to Premium plan subscribers.
- Tracking quantity on hand
- Integrated with the accounting system (Adjust quantity as you buy / sell)
- Ability to adjust the quantity of inventory due to stock loss / adjustments.
- Simple reporting: Inventory summary & detail reports.
The Costing Method
There's many different ways of calculating the cost of consumed inventory, such as weighted average cost, first-in-first-out (FIFO), last-in-first-out (LIFO). These methods produce different results because their flow of costs are based upon different assumptions. The FIFO method bases its cost flow on the chronological order purchases are made, while the LIFO method bases its cost flow in a reverse chronological order. The average cost method produces a cost flow based on a weighted average of goods.
Financio uses FIFO (First-in-first-out) costing method. Which means older items in the inventory will be sold first.
Two inventory reports are provided in Financio, namely Inventory Summary and Inventory Detail report.
Inventory Summary report shows the total quantity and the total asset value of all tracked products on a date.
Inventory Detail report shows every transactions resulting a difference in stock balance for every products in details.