Inventory is an asset that accounts for a large proportion, plays an important role in the production and business process of an enterprise, can be maintained continuously and only exists for a short period of time. To effectively manage inventory, managers often have to use many different management tools, including management accounting in general and inventory management accounting in particular. The article discusses the important role of inventory management accounting, reflects the current situation of inventory in manufacturing enterprises in Vietnam, and makes some suggestions and recommendations to improve the inventory management plan. inventory management in enterprises in the coming time.

Accounting for inventory management in manufacturing enterprises

Inventory management accounting is a part of the management accounting system to provide information about inventory for each enterprise to perform the function of managing consumption resources for its activities. , to help managers plan, control, evaluate activities and make rational decisions. Studies show that inventory management accounting has the function of linking goods purchased and sold.

When the supply and demand of a certain type of inventory is not regular between periods, maintaining a regular amount of inventory in order to accumulate for the peak period is a very important job that each person must do. Businesses need to do well. When performing this function well, the enterprise will ensure the quantity of goods consumed, the reputation of the enterprise itself, especially the stability of the buying and selling prices.

Inventory management accountants in enterprises not only receive, process, and provide historical information on inventory management and use in a timely and detailed manner according to management requirements, but also collect receive, process and provide information for forecasting the future, forecasting the amount of goods consumed, for the decision-making purpose of the administrator, thereby serving the construction of specific order plans. as well as choosing a reputable supplier that can cooperate for a long time.

In other words, thanks to the information of inventory management accounting, managers can plan to determine how much demand for goods is needed for consumption, when to buy and how much to buy each time. will achieve the highest efficiency in product management and consumption.

Therefore, in the process of production and business of enterprises, inventory is even considered a good investment activity of enterprises if the management accounting department has the right information and planning, can Calculations that take into account the risk in the correct stocking process.

Accounting information for inventory management facilitates better performance of administrative functions and aligns business activities with the external environment of the enterprise. Through the exchange of business information, new managers understand the needs of customers, the capabilities of suppliers and problems arising in the organization. Usually the information provided by the inventory management accountant includes both financial and non-financial information.

In Vietnam, in recent years, although awareness of the importance of management accounting for inventory has been increasingly raised, there are still many businesses that have not really paid attention to public organization. management accounting. Some enterprises, if they apply the management accounting model, are also very simple, spontaneous in nature, the applied model is not scientific and reasonable.

The work of making inventory estimates in manufacturing enterprises is still very simple, not meeting the needs of management. To make a reasonable estimate of ending inventory, businesses often rely on empirical statistical methods, and at the same time on ongoing projects and contracts. The determination of the quantity of goods to be ordered at a time, the time of ordering and the safe level of stock are mainly based on the seasoned experience of managers.

In addition, the collection of inventory information at manufacturing enterprises is still not professional and strict. The organization of vouchers, accounts, books and accounting reports for the requirements of inventory management is still very simple, not really supporting the inventory management of the company. DN.

In addition, it is a fact that at present, enterprise managers only consider inventory analysis to stop at a summary assessment of the situation in the year of implementation, not yet used as an effective tool to manage its business operations.

In addition, the qualification of accounting staff in inventory management accounting has not met the set demand, mainly focusing on financial accounting work, while enterprises have not yet invested in inventory management. invest or spend resources on training, searching for highly qualified human resources as well as building and forming a professional management accounting model in the company.

Completing inventory management accounting for businesses

In order for the organization of inventory management accounting to become a regular task of the business community in general and perfecting inventory accounting at manufacturing enterprises in particular, in the coming time, it is necessary to focus on a number of issues. after:

First, managers themselves need to raise awareness of the meaning of inventory management accounting in manufacturing enterprises today, thereby making appropriate investment for accounting work in general. and inventory management accounting in particular.

Second, it is necessary to train management accounting staff so that they can directly participate in the process of collecting, analyzing and providing information on inventory management accounting for managers.

Third, it is necessary to make an accurate inventory estimate in accordance with the capabilities and conditions of the enterprise. Inventory estimation has great significance in the organization, management and effective use of materials and capital of enterprises. Inventory estimates are usually made annually, in line with the financial year, to ensure analysis and evaluation.

Fourth, when deciding on inventory, attention must be paid to determining the level of inventory that needs to be purchased and the amount of goods purchased in one purchase. If buying enough demand and right quantity need to buy more will minimize the cost of inventory.

Experience shows that the optimal inventory order quantity model is a suitable model, helping Vietnamese manufacturing enterprises to manage inventory costs optimally and effectively.

In the event that the order is received without delay or the production is in line with the expected production volume per day, there is no need for safety inventory.

Along with that, the construction of the optimal inventory level is related to the determination of the optimal quantity and the appropriate import schedule. When determining the optimal order quantity, factors such as fluctuations in market prices, source risk and safety stock analysis must also be taken into account.

Fifth, the preparation of the inventory report needs to reflect in detail the inventory situation of the enterprise by type, each item to serve the requirements of business administration. Usually, accountants often prioritize issues such as deciding when to order inventory and how much to buy each time to achieve the most optimal economic efficiency.

The construction of the report form also needs to fully reflect detailed and specific criteria set by business administration requirements such as detailed items of purchase cost for each type of inventory.

In the report, the actual accounting information must be recorded, and at the same time, the planned or estimated data must be recorded as a basis for comparison and evaluation when using the information in the accounting report to serve the requirements of use. information…

Sixth,  complete the work of accounting documents, accounting accounts and accounting books related to inventory management accounting. Accordingly, for accounting vouchers, it is necessary to apply principles and methods on making, circulating, managing and using accounting vouchers suitable to the specific conditions of each enterprise. Concretize and add necessary contents to each prescribed form of accounting vouchers to serve the collection of internal corporate governance information…

For accounting accounts, enterprises shall base themselves on the system of accounting accounts promulgated by the Ministry of Finance or approved by the Ministry of Finance to apply to enterprises to detail them according to levels in accordance with the approved plans and estimates. Establish and request management accounting information to be provided to enterprise managers.

Regarding accounting books, enterprises shall base themselves on the system of accounting books issued by the Ministry of Finance. The addition or design of the contents of the accounting books must not distort the contents of the items specified in the accounting books.

Enterprises can design book templates in accordance with management requirements according to types of inventory, by department, by job and other requirements of management accounting… Enterprises can follow up and implement current regulations related to accounting vouchers, accounting accounts and accounting books are clearly stated in the Law on Accounting 2015, Decree No. 174/2016/ND-CP dated December 30, 2016 of the Government regulating expenditures. detailing a number of articles of the Law on Accounting and other documents of the Ministry of Finance.

Thanks to the information of inventory management accounting, managers can plan to determine how much the demand for goods is needed for consumption, when to buy at what time and how much to buy each time will be effective. highest efficiency in product management and consumption.

Therefore, in the process of production and business of enterprises, inventory is even considered a good investment activity of enterprises if the management accounting department has the right information and planning, can Calculations that take into account the risk in the correct stocking process.

References:

1. National Assembly (2015), Law on Accounting No. 88/2015/QH13 dated November 20, 2015;

2. Government (2016), Decree No. 174/2016/ND-CP dated December 30, 2016 detailing a number of articles of the Law on Accounting;

3. Ministry of Finance (2006), Circular No. 53/2006/TT-BTC guiding the application of management accounting in enterprises;

4. Assoc., PhD. Pham Van Duoc, Dang Kim Cuong (2007), Management Accountant,
Statistical Publishing House;

5. Assoc. Prof., Dr. Pham Van Duoc, Dr. Huynh Loi (2009), Model and operating mechanism of management accounting, Finance Publishing House;

6. Dr. Dang Thi Hoa (2006), “Textbook of Management Accounting”, Statistical Publishing House;

7. MSc. Tran Thi Quynh Giang (2014), Inventory management accounting: A tool to help businesses integrate effectively, Financial Journal No. 5/2014;

8. MSc. Nguyen Thi Hong Suong (2016), Inventory management accountant for Vietnamese manufacturing enterprises, Duy Tan University;

9. Phan Huong Thao (2017), Inventory management accounting in Japan and the US: Lessons learned for Vietnamese manufacturing enterprises, Industry and Trade Journal No. 12/2017.