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

4th of July

4th of July Marketing Ideas for Your Computer Repair Store

America's Independence Day is almost here, and while the novel COVID-19 has certainly changed the lives of people everywhere, many are still planning to celebrate the big day: the 4th

Sell used phones with our cellphone repair shop software

Tips for Selling Used Phones at Your Cell Phone Repair Shop

Do you buy and sell used phones at your cellphone repair shop? Are you looking for ideas to make the most out of these second-hand device sales? If so, you

RepairDesk Roundup June 2020

RepairDesk Round-up – June Edition

It’s the end of June, and we wanted to get in touch with you on all the things we’ve done so far. RepairDesk has come a long way since the

Cybertek is growing with our computer repair shop software

How Cybertek Computer Repair is Growing with RepairDesk

Ready to celebrate the first anniversary of Cybertek Nambour, our friend Adam Donovan is growing his successful repair business by opening a second store in Mooloolaba, Australia. His repairs have

Best computer accessories to sell with our computer repair shop management software

Best Laptop and Computer Accessories to Sell in 2020

2020 has been a dramatic year so far and unlike anything we’ve ever seen. Its roller coaster ride is not over yet and people are trying to adjust. While many

New tax report is here in your computer repair shop software

Say Hello to the New Tax Report in Your Repair Shop Software

No business should ever take a break from improvement. It should keep on changing itself for the better to evolve into its best avatar. That is exactly what we do

Contactless Payments

Follow the New Trend of Contactless Payments with RepairDesk

"Contactless Payments" is a term that's been widely used in the retail industry, and for a good reason. The novel COVID-19 is still making rounds in several parts of the

Computer repair services with our software for computer shops

How to Improve Your Computer Repair Service in 2020

The year 2020 has so far been a challenging one for computer repair professionals. Not only are we facing a global crisis due to COVID-19, we are now looking at

First Response success story with our computer repair shop software

First Response Repair’s Move from Pen and Paper to RepairDesk

4 years ago Denis Gutsu and his cousin, electronics repair expert Daniil, started a phone repair service using a pen and paper based management system. Today, they use RepairDesk to

computer repair industry and our computer repair shop software

How Has Computer Repair Changed in 2020?

Computer repair, like most other things, has changed in the face of the COVID-19 epidemic of 2020. Since a majority of businesses now enforce work-from-home policies, the use of computers


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