Yes, I have gone back to keeping manual records :) and sometimes I track several purchases on one page. If I were using an electronic file the process may be slightly different.
P.S. I added a written summary to capture information relevant to the month such as qualitative and quantitative factors. Now ideally our inventory count figures,should have been added to the Summary to enhance the information. Thus one of my qualitative factors in last month's summary was the absence of an Inventory and valuation of raw materials/ consumables on hand.
Thus this month given the occurrence of Carnival on the last two days in the month, the plans of persons, the occurrence of the dates as it relates to Wednesdays and weekends I did a close off shortly after the middle of the month.
Then I did a quick Inventory Count, wrote down a list of items with the quantities purchased, estimates of amounts, then obtained the values of items. Luckily most of our purchases of bulk items occurred in the week prior to the close off and with little amounts being used, the values were either close to the cost or were adjusted slightly. In real terms, two (2) lbs of flour removed from a nine or ten Kilogram bag of flour would not make much difference in the weight or value. It is easier to round up usage to a kilogram so that the 10 kg becomes 9 and the value is decreased by the cost of 1 kg. The same process was used with rice and luckily the oil was not opened. In less than half an hour, the inventory was completed.
Items which were harvested from the garden which had been refrigerated such as cassava, had not been included in the inventory count.
Items I had purchased in prior periods such as the Richmond Valley cocoa which I had bought last year (2016) was not included. Some persons would consider this a slow moving item, which given the time between its purchase and today (the age of an item in accounting) a full provision of the value would have been necessary. So in dollar terms, these containers of Cocoa would have a nil value (Yes, I have two containers; one larger size with the original contents and one to which I transfer some of the cocoa to use as the in use container is emptied.)
Materially from a quantitative point, this is not significant to the inventory count or valuation as the purchase would have been made in another year. From a qualitative point, this is significant as I can have chocolate cakes and cocoa drinks as I like.
Next month, I may do a list of slow moving items, so that I can have some idea as to when I need to replenish these items and I can start budgeting for them, cash wise.
However, the close off may take place on March 24 & 25th, 2017, so that the last week in the month can be used for planning.
Copyright: Jennifer N Bailey
As an Accountant, I may not have much experience with counting and valuing inventory and given the industries for which Inventory counts are required, one may not be experienced enough to perform or observe counts of every type of Inventory. However it is good to remember the concepts, practice them and keep the skills current.
In my career, I observed a few counts as an auditor and given the size of the company, the preparation for the count and the observation period may take a month or more while in some instances, it can take half an hour. So being prepared mentally and physically is important.