O'Reilly logo

Accounting Best Practices, Fifth Edition by Steven M. Bragg Englewood, Colorado

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

16–24. Train the Warehouse and Accounting Staffs in Inventory Procedures

The underlying problem behind the bulk of all inventory record errors is a lack of knowledge by warehouse workers in how to process a variety of inventory transactions. As a result, cycle-counting teams waste time investigating errors; the materials planning staff must order parts on short notice due to unexplained materials shortfalls; the company incurs express delivery charges to bring in parts on short notice; and the accounting staff must record unexplained losses related to inventory adjustments.

Many of these problems can be mitigated by creating a procedures manual for all inventory transactions and by continually training both the warehouse and accounting staffs in their use. Examples of common inventory transactions are as follows:

  • Back-flushing

  • Consignment receipts and deliveries

  • Cycle-counting adjustments

  • Inventory storage in rack locations

  • Issuances

  • Issuances of additional parts

  • Kitting

  • Loaning inventory to departments

  • Receiving

  • Receiving customer returns

  • Removing defective parts from the production process

  • Returning defective parts to suppliers

  • Returning stock to the warehouse from the shop floor

  • Shipping completed customer orders

  • Staging for shipping

  • Transferring between inventory locations

It is not enough to simply create a handsome procedures manual and issue it to the staff. On the contrary, all employees involved with these transactions should go through regular refresher training, while new employees ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required