The inventory is used to record all existing stocks in a company. During the inventory, assets and debts are recorded on a key date and documented in writing. The inventory, the inventory list, is the result of the inventory. It is an inventory in which all assets and debts are listed according to type and amount and value. According to § 240 HGB and §§ 140 and 141 of the tax code, merchants are obliged to take an inventory, it is part of the proper bookkeeping. If a company is founded, taken over or closed, an inventory is required, as are inventories at the end of a financial year required. An inventory can show deviations between target and actual stocks. If such deviations occur, a correction of the target stock is necessary. Inventory differences must be taken into account in the income statement.
Times for the inventory
According to Gradphysics, the inventory must be carried out on the balance sheet date , that is on the last day of a financial year, usually on December 31. It takes a long time to complete the inventory and requires a large amount of staff. Simplification procedures with flexible dates can therefore be used for the inventory of goods in current assets. In addition, inventories can also take place on other key dates in the year for special reasons, for example if the company is to be liquidated or sold.
Inventory of fixed assets
In the physical inventory in the form of an inventory, the fixed assets have a high priority. The listing can be made for fixed assets. This directory must contain the following information:
- Designation of the fixed assets
- Date of receipt of the fixed assets
- Acquisition and production costs of the capital goods
- Balance sheet value on the balance sheet date
- Departure date.
A distinction is made between different types of fixed assets. Low-value assets do not have to be included in the inventory if they were written off in full in the year of their acquisition and their value does not exceed 150 euros. Intangible assets are recorded on the basis of the relevant contracts. Financial assets are included in the inventory based on bank statements. Fixed assets also include receivables and liabilities. A balance list is created for you, which contains all balances from the accounts receivable and accounts payable.
Physical inventory and book inventory
The physical inventory takes place in the warehouse, physical assets are recorded. Not all goods in the warehouse can be counted. For different stocks, it is therefore necessary to take stock by weighing or measuring. If measuring or weighing is not possible or unreasonable, an estimate with evaluation can also be made. Inventories of non-physical assets, which include receivables, liabilities and bank balances, as well as debts, are recorded as part of the book inventory. The basis is provided by financial accounting awards in the form of receipts and receipts.
Types of inventories
The key date inventory takes place on a specific key date, the stocks are recorded in terms of quantity and included in inventory lists. The inventory is not required directly on the balance sheet date, it can be done with a period of ten days before or after the reference date. On the basis of receipts, receipts and issues between the entry date and the key date, as well as movements on the key date, are updated or calculated in terms of quantity and value. The goods are valued at acquisition cost. If it is not possible to record on the reference date due to very large stocks or for other reasons, a postponed inventory can be carried out. The postponed inventory can also take place if the requirements for the permanent inventory are not met. A physical inventory can take place on any day within the last three months before the balance sheet date or within the first two months after the balance sheet date. The update or recalculation of the inventory determined on the recording date to the reference date is only done in terms of value, not in terms of quantity. In the case of permanent inventory, the inventory can be spread over the fiscal year. For this purpose, a stock book and verifiable documents must be kept for all entries and exits. A physical inventory must be carried out at least once per fiscal year. The target stock of the warehouse accounting must match the actual actual Stock to be compared.