Need help? Give us a call: (312) 313-1737

Why is Inventory Adjustment & Valuation Important for Your Repair Business?

RepairDesk Blog > Blog > New Features > Why is Inventory Adjustment & Valuation Important for Your Repair Business?
Why is Inventory Adjustment & Valuation Important for Your Repair Business?

Why is Inventory Adjustment & Valuation Important for Your Repair Business?

-RepairDesk’s New Feature

Yes, it is finally here; one of the most useful and highly demanded features to get your stock in control -The Inventory Adjustment & Valuation feature in Inventory Management.

Are you wondering how it will help you? Or what is exactly inventory valuation? No worries, let us explain.

Managing inventory can be a big challenge for your repair business with hundreds of repair parts & gadgets. Unsold stock means money is sitting on your shelves gathering dust. You also must keep track of which products sell out, so you can reorder in time.

Are you counting your inventory and found that you have more items at hand in store? But the system says there shouldn’t be that much stock left at your repair shop. During the stock count, there could be a shortage and excess of resources. Physically counted materials may not tally with your stock status in the system. You’ll then try to find a way to adjust your inventory, in order to keep your system records aligned with the real inventory.

RepairDesk is always here for you. So, here’s the solution!

Inventory Adjustments are used to update/correct the quantity and price of products in your Inventory. Adjustments could be due to new stock needing to be entered, removing damaged or stolen stock, data entry error etc. Adjustments can be negative or positive in case of excess or abundance of available stock. Your in-store stock level must match your records, and that’s why you need to adjust and make everything accurate.

Inventory Valuation is sometimes underemphasized but is very important for your revenue and profit calculations. Choose from multiple inventory valuation methods like

  • The FIFO method (first in, first out) where you assume that the first items to enter the inventory are the first ones to be sold.
  • The LIFO method (last in, first out) where you assume that the last items to enter the inventory are the first ones to be sold.
  • The weighted average method, where an average of the costs in the inventory is used in the cost of goods sold.

Whichever method you choose will affect the inventory valuation recorded at the end of the reporting period. Inventory valuation is important for your business because it can benefit you in the calculation of the cost of goods sold and determining how much you owe in taxes, whether you are eligible for a loan, and other legal matters. Since inventory is frequently one of the largest components in your assets, the value of your inventory can be critical in loan agreements.

Thus, inventory valuation has a major impact on reported profit levels. Here is a guide on How to Adjust & Value Inventory.

Handle your inventory efficiently with RepairDesk and use our most recent add-on. We strive our best to provide you everything for your cell phone repair business in your favorite POS. If it wasn’t exactly what you were looking for in the past, give it another shot because it is much better now!

Sign Up for a 14-day FREE Trial!


Leave a Reply

Recent Posts

web release notes

Web Release Notes: Maintain Record of All Faulty Items in a Single Report!

Welcome to another round of interesting improvements and bug-fixes in your very own RepairDesk web app. To run the operations smoothly, we have made two different teams in-house; the first

language translation

How Can Language Translation in POS Software Improve Your Business?

We have been living in a technological age for a couple of decades now. Today, businesses are not limited to a physical store location, and everything is accessible everywhere, every

iPad release notes

iPad Release Notes v3.7: Print Labels with the Super Fast Brother Printer Integration

At RepairDesk, we're constantly improving our iPad POS Register app, with advanced features and integrations along with taking care of all the issues and annoyances that you report to us!

computer repair

5 Secrets for Running a Successful Computer Repair Business

The computer repair industry gained momentum together with the development of computer technology in the late 20th century. Computers have exploded throughout America and the world over the past 30

used phones

Cellphone Refurbishment Business: A Surprising Growth in the Used Phones Market

A few years ago, many thought it impossible for the refurbished phones market to grow to the size that it has today. As early as 2013, there were rumors about

iPad Release

iPad Release Notes v3.6.5: Keep your Web Account & iPad App Aligned!

We ensure to keep you informed and updated with every improvement or change that we make in our iPad POS Register app. This week we have rolled out one simple improvement

web release notes

Web Release Notes: Another Step Closer to Stability

With each new release of our web app, our team strives to continually improve the product and make RepairDesk a bug-free solution for you. We want you to be able

iPad Release

iPad Release Notes v3.6.4: Know Your Already Paid Amount On the Go!

Stepping into May with a short and sweet release of our iPad POS Register app. Here's what we have been working on in the past week; Improvements: Display Already Paid

business technology

Here’s Why it is Important to Upgrade Your Business Technology!

It’s not unusual to find very outdated technology at some retail stores, simply because if it’s not broken, why fix it? This has left many businesses asking the question: when

customer facing display

iPad Release Notes v3.6.3: Customer Facing Display Comes to iPad

Keeping in sync with our web release, the RepairDesk iPad POS Register app has been updated to version 3.6.3 this week. This update is by no means a small one,


Ready to get started?

"Say goodbye to complicated ticket workflow and manual inventory management"

TRY FOR FREE

14 days Free Trial - No credit card required