What are the types of inventory maintenance and pricing methods?

What are the types of inventory maintenance and pricing methods?

There are two methods of maintaining inventory in accounting: permanent and periodic
The methods of pricing goods in accounting are divided into several methods: FIFO, LIFO and average and special identification

Permanent method:
In this method, any change in the inventory of goods, including purchase, sale, consumption, return from purchase and return from sale, is recorded and stored in an account called the inventory account and as a quantity in the warehouse system, in such a way that after each change The inventory shows the actual amount of inventory and the warehouse system shows the actual amount of inventory. The cost price of consumed and sold goods is available after any change.

The accounting steps of this method are as follows:
1⃣ Purchase: goods inventory (purchased amount * purchase price) debtor
Accounts Payable – Creditor Supplier Details
The total amount of the purchase is stored in the accounting software, and the amount along with its Rials is stored in the warehouse software separately by product code.

2⃣Return from purchase: accounts payable – details of debtor supplier
Inventory (Returned Amount*Rate) Creditor
Material consumption (sending raw materials to the production line for product production)
Debtor’s work in progress
Creditor’s inventory

To determine the amount of #inventory_consumption, the software calculates the amount using one of the cost flow methods, such as first out of the first import (FIFO), first out of the last import (LIFO), weighted average (WA) and special identification, and in this case Also, the total consumption amount is recorded in the accounting software, and the amount along with the Rial consumption in the warehouse software is recorded separately by goods and deducted from the balance of goods.
Delivery of goods to the customer for sale:
The cost of goods sold to the debtor
Creditor’s inventory

This registration is recorded by the warehouse software, the sales of goods are recorded by the sales software as follows:
Accounts receivable – details of the debtor customer
Domestic sales of credit products

Calculating the amount of the #cost_of_goods_sold, such as consumption, is calculated by one of the cost flow methods such as first out of the first import (FIFO), first out of the last import (LIFO), average (AVE) and special identification by the software. In this case, the total price of the carpet is recorded in the accounting software and the amount along with its Rial is recorded in the warehouse software and deducted from the inventory balance.

Delivery of goods to the warehouse for return from sales:
Debtor inventory
The cost of goods sold to the creditor

This registration is registered by the warehouse software, the registration of the return of the sale of goods is registered by the sales software as follows:
Returns from domestic sales of debtor products
Accounts receivable – details of the creditor’s customer
End of course:
It has no registration
Mehdi Koh Soltani (financial services, accounting, financial and tax consultant):
The group of accountants and auditors of Tabriz
https://t.me/joinchat/BnzBsTuioTshiXBwf9bBPQ