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1. #Best home inventory apps how to#
2. #Best home inventory apps software#
3. #Best home inventory apps Pc#
4. #Best home inventory apps free#

Standard Costing requires that you create estimated costs for inventory used in business this method is used when it's too time-consuming to track actual costs. This approach is often simpler than using FIFO in situations where there is a large amount of historical cost information. With Standard Costing, you substitute an expected cost for an actual cost in the accounting records, and then periodically record variances showing the difference between the expected and actual costs. The weighted average method divides the cost of goods available for sale by the number of units available for sale, which yields the weighted-average cost per unit.Īnother frequent inventory valuation method is called Standard Costing. Weighted Average Costing is often used in situations where items are identical to each other and it's impossible to assign a specific cost to an individual unit, or where the accounting system doesn't have the ability to track inventory by using FIFO (which isn't the case in any of the inventory systems we review here). FIFO assumes that the oldest inventory is being sold or transferred first, while LIFO assumes that the newest inventory will be used first.

The acronyms LIFO and FIFO represent the order in which inventory is acquired and then sold or transferred. Last In First Out (LIFO) was popular for a while but has fallen out of favor and generally isn't used anymore in most countries. Common inventory valuation methods used in the US include First In First Out (FIFO), Weighted Average Costing, Standard Costing, and Specific Costing (or Specific Identification). That figure is computed by using one or more pricing methods. When assets are sold or used, those results are also recorded in the Cost of Goods Sold (COGS) or Cost of Goods Used section of the income statement. As such, it is accounted for in the Assets section of a company's balance sheet. Inventory is considered a business asset. However, any business larger than that will want the asset identification, order tracking, and supply chain optimization capabilities that a good inventory management system delivers. Very small operations can get away with fulfilling these functions with a simple spreadsheet.

#Best home inventory apps software#

Aside from accounting, inventory management software is also often tied to point-of-sale (POS) software in many retail and storefront service operations. Core functionality definitely centers around your inventory levels, but this kind of software also tracks sales, purchase orders (POs), and deliveries. In this way, inventory management software sometimes overlaps with typical asset management software. An inventory management system's function is to track those warehouse items through acquisition, sales, or use processes locate them across one or many warehouses, and price (cost) the inventory (sometimes in multiple currencies) so you know the value of items you have in inventory for accounting purposes. The software should integrate with at least one other back-end office system, namely, with either your accounting or enterprise resource planning (ERP) package. While "inventory management" sounds like it's a simple tracking of what you have, inventory management software actually goes several levels deep.

To help with this task, we have tested and compared nine inventory management software packages in this review roundup. Deciding on the right software package for your business can be difficult as you need to weigh required features against the best pricing. Tying that inventory product information into all of the other data platforms your organization uses requires a dedicated software called inventory management software.

For small to midsize businesses (SMBs), keeping track of all these items can get difficult quickly if you're just using a spreadsheet to do so. Inventory management also involves finding out what your supply partners or your best customers have in stock. Inventory management also includes keeping track of what's in your parts department, including individual parts and the combinations of those parts used to build other products and services. Inventory management encompasses much more than simply keeping track of what you keep in your warehouse or retail storeroom. Since 1982, PCMag has tested and rated thousands of products to help you make better buying decisions. ( Read our editorial mission (Opens in a new window) & see how we test (Opens in a new window).)

#Best home inventory apps how to#

#Best home inventory apps Pc#

#Best home inventory apps free#