POS System: How to use it to track inventory value?
POS System : For each and every retail operation, keeping proper and accurate track of inventory is considered to be vital and also challenging. Irrespective of the type and size of the retail business, monetary value of all items present in the inventory is to be taken into account. To ensure accurate financial statements as well as to make informed business decisions, it is vital, as the same might impact success of the business.
For greater accuracy of inventory and to save precious time, there is required POS system which will produce automatically the financial reports required by the tax accounts, auditors and financial department every month. It should track information automatically required for inventory valuation and state the items remaining and what is used. Cost of inventory item is to be captured and value tracked. Meaningful reporting is to include stock status report, by department, item and total inventory on order and on hand, subtotals by department and with estimated cost.
Although gift shop inventory will be different from that of the grocery store, but the inventory tracking process is quite the same. Inventory entry of each item is to be made on non P.O. & P.O. and indicate pack quantities and size. Number of items to be ordered and received is to be verified and cost adjustments to be made for cost changes. It will be necessary to determine if price increase is to be passed onto customers or absorbed. Inventory items are to be placed into categories or departments, based upon how the items are to be organized that is being tracked, ordered and sold.
POS software is used by many retailers to save time and produce order recommendations through setting of reorder point that is item based. Therefore with proper and up to date inventory file maintenance, it becomes possible to evaluate trends in accounts receivable and inventory value as well as to ensure growth of both in proportion to sales and revenue.