Inventory year end count

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#1
juro  
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Mu client has $500k cost of Inventory.

The year end count is important, but having an independent service making the count seems like a good idea.

But how do i convince my client to do it? Is it worth it?
 

#2
juro  
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also
do i include in Inventory an item that was moved to the job site of a customer?
The item will be included as material cost for the job.
The client says his company still owns the item, until the customer pays in full.
Last edited by juro on 5-Jan-2022 6:06pm, edited 1 time in total.
 

#3
sjrcpa  
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juro wrote:The client says his company still owns the item, until the customer pays in full

Then it's part of ending inventory.
 

#4
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The inventory remains on the books if it is still owned by selling entity until customer pays or takes delivery, though there is the issue of taking back materials delivered to a job site if client fails to pay. In some areas, it is illegal once it is delivered.

$500k inventory is pretty low to me, and we never utilized outside services. Instead, we implemented cycle counts in addition to year-end counts. I'd randomly generate a list of what needed to be counted while hiding the inventory figures in the system. It worked as long as you have management that is disciplined and can enforce the requirements on lower level staff.
 


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