#Registration of inventory of goods
Measurement of inventory values
The amounts of material and goods inventories are determined through the following systems:
1. Periodic registration system of materials and goods inventories
2. System of permanent registration of material and goods inventories
Periodic registration:
In this system, inventory is counted objectively at the end of the period when financial statements are prepared.
In this system, the information related to the inventory of goods (meaning quantity) is not available at any time. Because detailed documents and information are not kept for this system, so that you can be aware of the amount of inventory at any moment, including the detailed documents, you can refer to the warehouse accounting card.
In this method, when buying or selling, accounts with the same names are used. And there is no news of the inventory account.
Buy:
Buy ****
creditors ****
Purchase return registration:
creditors**
Returns from purchases and discounts**
Registration of purchase cash discounts:
creditors**
Purchase cash discounts**
Sales registration:
debtors ****
sell ****
Registration of returns from sales:
Sales returns and discounts**
Debtors**
Permanent registration:
In this system, in addition to general ledger accounts, detailed documents are used for each of the inventory items. Therefore, for all types of inventories of materials and goods, a control account is kept in the general ledger and detailed documents for each of the inventory items to take into account imports and exports, as well as inventories, both in terms of quantity and amount.
Therefore, in this method, the cost information of the inventory is available at any time.
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While in the periodic registration method, the balances represent the balances at the beginning of the period. And the information about the inventory is not updated.
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Because there is no information about the inventory account in the periodic system.
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In the permanent method, an account called inventory is used to record all changes in inventory.
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In the permanent method, inventory counting is done only to check the accuracy of records.
Important point: In the permanent method of registration, there are no records for the end of the financial year, because the inventory account has also changed throughout the year with the corresponding changes.
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Permanent registration:
Buy:
Inventory
creditors
Purchase return registration:
creditors**
Inventory**
Registration of purchase cash discounts:
creditors**
Inventory
Sales registration:
Debtors
sale**
Immediately after the above registration, we will register the following
Cost of goods sold**
Inventory**
Registration of returns from sales:
Back from sale discounts**
Debtors**
Immediately after the above registration, we will register the following
Inventory**
Cost of goods sold **
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This post is written by sfhjhygfrhesabhaseb