Inventory or list - How to cope?

Inventory is the process of determining the actual state of property on a given day, that is, it is the process of measuring, weighing and counting property. Inventory is the result of inventorying, ie. a detailed list of assets, claims and debts on that day. The law precisely regulates the ways and goals of this process, and here we give you some guidelines.

The law

The Law on Accounting of the RS describes the obligation to list (inventory):

1. Article 20 states that "A legal entity, i.e. an entrepreneur, is obliged to make an inventory of assets, liabilities, and off-balance sheet assets and liabilities at the beginning of business..."
2. In Article 21, in addition to that, he also "makes an inventory and reconciliation of the situation when handing over the duties of an accountant, changes in sales prices in retail, status changes..."
3. The law also stipulates the obligation to register at the end of each year, ie on the day of the balance sheet

The census as a mandatory procedure when undertaking certain business activities is also provided for:

• by the Law on Value Added Tax
• by the Excise Law
• Regulations on the amount of expenditure

This matter is also dealt with by a by-law

Rulebook on the method and deadlines for conducting the census from 2020. the list of assets and liabilities includes:

1. determination of actual quantities of property to be inventoried by measuring, counting, assessment and similar procedures, more detailed description of the inventoried property, as well as entering data into the inventory lists;
2. recording in the census lists the natural changes that occurred during the census period before and after the day on which the census is conducted and reducing the state of the census to the state on the day of the census;
3. entering the bookkeeping natural state of the property into the census lists ;
4. determination of natural differences between the situation determined by the census and the accounting situation;
5. entering the listed property prices ;
6. value calculation of listed property;
7. compiling a report on the completed census.

These Laws and Regulations precisely define the conditions, deadlines and the Census procedure itself, so be sure to study them more closely or consult an expert.

Inventory goals

The goal is, on the basis of the aforementioned legal acts, to determine the actual state of fixed assets and sources of funds at a given moment and to compare such state with the accounting state. Differences that may occur can be the result of a number of factors, from lack of up-to-date record keeping, through theft and damage due to force majeure to bookkeeping errors. The census should certainly compare the consequences and bring order to the records.

Fixed assets

Inventory, i.e. inventory, has a control function over the preservation and protection of the company's assets, which certainly applies to fixed assets as well. Starting to take care of it starts with labeling the assets.

Marking of fixed assets

Fixed assets are marked with a sticker or plate that clearly shows the following information:

1. The owner of the fixed asset
2. Inventory number

These two pieces of information form the basis for the accounting records of the assets in question. In addition to this information, you can also find:

• Year of registration,
• Type and name of the fixed asset,
• Batch or lot designation,
• Bar code or QR code to automate the inventory process,
• Positions for manual entry of information important for fixed asset records.

BAR CODE

On June 26, 1974, the UPC (Universal Product Code), known in our country as a bar code, was read for the first time at a cash register in Ohio, USA. Although it was first used as an improvement in retail sales and it is still used today and is practically mandatory, it was initially planned as an aid in inventory in warehouses.

Is the barcode a mandatory part of the inventory label? The short answer is - no, but it is definitely recommended depending on the number of items you have to list. It should be borne in mind that the reading of the Bar-code (or QR code in more advanced versions of the applications) is today the basic form of entering the results of the census into the database.

Conclusion

Proper keeping of inventory and records obligations are both a legal obligation and the basis for proper bookkeeping along with taking care of the tangible and intangible assets of the company. By following the aforementioned Law on Accounting and Rulebook on Census, with regular and proper marking with inventory stickers, the census will go smoothly and without interruption. For everything else there is Stickershop .