-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!