Inventory is any material in the company which is in process of working or which helps in generating profit for company. Inventory application template is therefore a table consisting of information regarding goods in the company and in the store and more which are being ordered. It is very important in causing success or loss of business.
You can easily maintain and record inventory stock through these useful Excel template, it’s little bit delivering trouble in starting phase of any business, but things in smoother in next cycle.
Types of inventory Stock
- Inventory can be raw material which is used by company to make a product. It is therefore a basic need of company for starting of any job.
- Other type is work-in-progress which as the name implies is raw material which is in the process. It is not completely raw material or finished product.
- It can be a finished good or final product which can be selling to a consumer to earn profit for business.
- One other type is inventory which is ordered not yet delivered however it is consider as inventory.
Effective running of business depends on maintaining all these inventories without anyone been stock out.
Importance of inventory Application Template Excel
- One of the major causes of business loss is stock out of any certain raw material. In case of stock out of raw material work process will be stopped which causes a major loss to business as wasting of labor hour and machine hours which are a major expense of business.
- In case of product stock out mean company is unable to deliver products to the store or consumer which results in no profit earning and bad name of company also. Therefore inventory should be kept in a way to avoid any such situation.
- Major motive of business is to cut down expense and to earn more profit therefore with holding cost of inventory must bee calculated. It means units of inventory which results in less holding cost should be maintained.
- Inventory in any form is placed in certain storage place for which a company has to pay rent which is a fixed expense of business; therefore units of inventory should be maintained to reduce holding costs.
Microsoft Excel as Inventory management System
Microsoft excel template is efficient for this task. Basic template consists of item number and annual quantity in columns followed by cost per order and holding cost per unit and unit price should be mentioned. This table can then be used by accountant and manager who needs the required information.