Retail Method of Inventory

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#1
rkrcpa  
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22-Apr-2014 11:46am
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Southeastern PA
Here's one for the older accountants....way back in another life I was in retail and we used the "Retail Method of Inventory" whereby we tracked inventory at retail in order to estimate inventory and cost of sales on a perpetual basis. I have a client who could really use this system but my examples were discarded 30 years ago.

Back in the day we had a huge spiral bound book that we used to track activity (any old ARCO franchisees out there?). I developed a spreadsheet that replicated the manual system using a Commodore 64 and Multiplan (Damn that makes me feel old) and I would like to do the same for this client. Unfortunately, about 10 years ago I had to start forgetting old stuff in order to remember new stuff. This, apparently, is one of the things I have forgotten.

Does anyone have an example of this or remember how this was done. I know it's not a perfect system for tracking inventory or calculating cost of sales but it beats the hope and prayer system currently in use.
 

#2
Coddington  
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Fort Worth, TX
I have some experience with RIM, though mostly with LIFO RIM on the tax side. Your best bet is to acquire pre-existing software that calculates RIM. It has been 15+ years since I last looked into that for a client, so I am not terribly familiar with what is currently on the market. And I don't have any Access or Excel models from when I was with Deloitte.
-Brian

Director of Tax Accounting Methods & Credits
SourceAdvisors.com

Opinions my own.
 


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