INTRODUCTION
Whether you are a merchandiser, manufacturer, contractor or a service provider, inventory has a major impact on your net income and on the balance sheet In this course, participants 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.
Inventory Accounting and Costing Course training course will discuss the importance of having accurate inventory figures reflect the net realizable value, use Excel and pivot tables to analyze inventory balances, calculate values of obsolete inventory and simulate calculations of weighted average cost.
Participant will study this process from the physical counting of goods to the inclusion of costs such as transport or insurance, to the calculation on the value of the goods thereby connecting the cost of goods to retained earnings and the balance sheet. You will also look into the different methods of apportioning costs to a stock item, and more!
OBJECTIVES
By the end of Inventory Accounting and Costing Course, you will:
Identify the types of inventory and recognize the timing of inventory ownership.
Specify the situations in which the periodic inventory system should be used, and how the perpetual system can be enhanced.
Identify the situations that can cause incorrect inventory transactions.
Recognize the activities needed to establish a system of inventory record keeping, and how such a system may be rendered less accurate.
Estimate ending inventory using the retail method.
Recognize and correctly measure inventory under International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP)
Explain the proper use of write downs, write backs and impact of change in inventory accounting policies on financial statements
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
Outline the various approaches for cost accounting
Use Excel and pivot table tools and techniques to analyze inventory and calculate weighted average costs
WHO SHOULD ATTEND ?
This Inventory Accounting and Costing Course ideal for: 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.
COURSE OUTLINE
Day 1
Introduction to inventory
Current assets and inventory management
The four reasons for keeping inventory
Inventory cycle from purchases to sales:
Ordering and receiving
Sales and delivery
Best practices in count process
Inventory industry types: merchandise, manufacturing, construction and real estate
Differences between inventory, fixed assets and investment properties
Understanding and analyzing inventory ratios
Day 2
Accounting for Inventory
Perpetual versus periodic inventory methods
Cost accounting versus financial accounting
Cost allocation techniques:
Direct material, direct labor and manufacturing overhead
Initial recognition
Cost of purchase, cost of conversion and treatment of discounts and rebates received
Measurement after recognition
Calculating net realizable value (IFRS)
Calculating market price under the Lower of Cost or Market (LCM) method (GAAP)
Estimating and booking write downs for slow moving and obsolete inventory
Accounting for write backs of impairment under IFRS and GAAP
Accounting for errors identified in physical count
Day 3
Accounting for Inventory: Special Topics
Accounting for inventory not on hand
On consignment
Goods in-transit: defining incoterms
Sold with right of return
Sold subject to installation and inspection
Sold on a bill and hold basis
The concept of inventory credit : inventory used as collateral to raise finance
Impact of accounting policies changes on financial statements
Inventory required disclosures
Day 4
Inventory Cost Flow Assumptions
First-in First-out (FIFO) and Last-in First-out (LIFO)
Weighted average and moving average
Specific identification
Day 5
Inventory Estimation and Cost Accounting Approaches
Inventory estimation techniques
Gross profit method
Retail method
Cost accounting approaches
Traditional costing versus activity based costing
Target costing versus cost plus pricing method
Standard cost accounting
Throughput accounting
Using Excel for efficient analysis of inventory
Consolidating your inventory data
Validating data for accuracy
Analyzing slow moving and obsolete inventory
Tests of recalculating weighted average and moving average costs
Using pivot tables to efficiently analyze and report on inventory issues
IN-HOUSE TRAINING
LPC Training is capable of conducting this training programme exclusively for your delegates. Please e-mail us on admin@lpcentre.com for further information and/or to receive a comprehensive proposal.
DOCUMENTATION
High-Quality material has been prepared by the LPC team for distribution to delegates. In addition, a special note pad to facilitate note-taking will be provided.
CERTIFICATES
Accredited Certificate of completion will be issued to those who attend & successfully complete the programme.
SCHEDULE
Our Course timings commence at 09:00 and conclude at 13:00.
REGISTRATION & PAYMENT
Please complete the registration form on the course page & return it to us indicating your preferred mode of payment. For Further Information, please get in touch with us.
CANCELLATION AND REFUND POLICY
Delegates have 14 days from the date of booking to cancel and receive a full refund or transfer to another date free of charge. If less than 14 days notice is given then we will be unable to refund or cancel the booking unless on medical grounds. For more details about the Cancellation and Refund policy, please visit www.lpcentre.com/terms-and-conditions/
TRAVEL AND TRANSPORT
We are committed to picking up and dropping off the participants from the airport to the hotel and back.
LONDON
Oxford Street Offices: London - Oxford Street 25 N Row, London W1K 6DJ
+44 (0) 20 36 916 970
West London Office: 47 49 Park Royal Road London NW10 7LQ +44 (0) 20 80 900 464
info@lpcentre.com
DUBAI
Business Bay - Marasi Drive Churchill Tower commercial1, Office 107 +971 4 421 4616
dubai.training@lpcentre.com
KUALA LUMPUR
No. 03-06-05, UOA Business Park, Jalan Pengaturcara U1/51A, Section U1, Kawasan Perindustrian Temasaya, 40150 Shah Alam, Selangor
+60 19-305 5694
www.lpcentre.com
www.lpcentre.com