Inventory Accounting.
Inventory accounting tracks stock movements and values them correctly each month, across raw materials, work in progress and finished goods. We set up item masters and costing methods, record inward and outward movements, reconcile book stock with counts and value inventory at the lower of cost and net realisable value under AS 2 or Ind AS 2.
Monthly valuation is typically ready within 7–10 working days of month-end. The number of items, locations and production stages drive the time.
A partner — a chartered accountant or company secretary — from the first call to sign-off.
Based on your situation, and fixed in writing before any work starts.
Is this for you?
- Manufacturers and traders carrying significant stock
- Businesses whose stock records do not match physical counts
- Companies with bank limits based on monthly stock statements
- Businesses that need quantitative details for the tax audit
What you receive at the end.
- 01Monthly stock valuation report
- 02Stock movement and ageing reports
- 03Book-to-physical reconciliation
- 04Stock statements for lenders, where needed
Inventory Accounting, step by step.
Monthly valuation is typically ready within 7–10 working days of month-end. The number of items, locations and production stages drive the time.
- 1
Item and costing setup
We review item masters, units, locations and the costing method, such as FIFO or weighted average.
- 2
Movement recording
We record purchases, issues to production, output, sales and transfers in your system.
- 3
Cost computation
We compute cost including freight and conversion costs, and value work in progress.
- 4
Count reconciliation
We reconcile book stock with periodic counts and investigate differences.
- 5
Valuation and reporting
We apply net realisable value tests, identify slow-moving items and prepare stock reports.
What we need from you.
Don't have everything yet? We send a short checklist after the first call and work with what you have.
- Item master and opening stock
- Purchase, production and sales records
- Bills of materials for manufactured items
- Physical count results
- Recent selling prices
The fee depends on your situation. After a short call, the partner who will do the work tells you what's involved and gives you a fixed fee in writing — before any work begins.
- Government fees and statutory charges are billed at actuals.
- When you pay — upfront, in stages or on completion — is agreed in writing with the fee.
Questions about Inventory Accounting.
Ready to discuss Inventory Accounting?
30-minute confidential call — no proposal, no commitment. A partner will write back within one business day.