Course Description

Inventory has a major impact on your net income and on the balance sheet, regardless you are a merchandiser, manufacturer, contractor or a service provider, In this course, you are guided step by step through best practices for the purchasing process, the allocation of direct costs, indirect costs and production costs and comparisons between the different cost flow assumptions such as FIFO, LIFO and weighted average cost along with their impact on the financials and the physical counting of goods.

Course Goal

To enhance the participants knowledge, skills, and abilities necessary to understand the process of inventory accounting and costing from the physical counting of goods to the inclusion of costs, to the calculation on the value of the goods thereby connecting the cost of goods to retained earnings and the balance sheet. Also, necessary to understand different methods of apportioning costs to a stock item, and more.

Course Objectives

By the end of the course, participants will be able to:

• Identify the types of inventories and recognize the timing of inventory ownership.
• Understand when to use the periodic inventory system, and how the perpetual system can be enhanced.
• Identify the situations that can cause incorrect inventory transactions.
• Understand the activities needed to establish a system of inventory record keeping, and how such a system may be rendered less accurate.
• Recognize and correctly measure inventory under International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP)
• Apply professional judgment in accounting for inventory not on hand.
• Categorize different inventory cost flow assumptions and describe how they affect the company’s financial position and income statement.
• Understand the various approaches for cost accounting.

Who Can Benefit

Inventory professionals, including supervisors, account managers, purchasing and facility supervisors and coordinators, financial controllers, new employees handling inventory, internal auditors, warehouse assistants and managers, and operations managers.