Inventory Control System

Inventory control system is a system that helps in controlling, calculating and locating the products or the raw materials within an inventory either manually or through a computer aided system. In modern era the inventory control system refers to a software system that helps in maintaining and controlling the inventory. Modern day inventory control systems take help from the bar code readers or frequency detecting devices called radio frequency identifiers to identify and store products in the inventory.

With the help of an inventory control system a business can run all the inventory related operations such as shipping, purchasing, receiving the materials, tracking the orders, entering orders in the warehouses, storing the materials, inventory turnover and reordering of the finished goods. The firms and the companies dealing with the high turnover rate and high number of manufacturing goods must install a competitive inventory control system to run the operations smoothly and in an error free mode. With the help of inventory control system a business can easily remove manual data entry, paper files and the chances of human errors. Modern day inventory control systems also help business to create sales order, purchase order, full inventory reports, printing bar code labels, communication with mobile devices and concurrent usage by the employees.

There are three common components of an inventory control system that includes the bar code scanner, the mobile computer to connect as a mobile device and inventory control software that will help in connecting all the hardware devices together.

Other Related Accounting Articles:

• Material Requirements Planning (MRP) Definition
• Inventory Accounting
• Accounting System
• Business Model
• Periodic Inventory System Definition
• Inventory Conversion Period
• Overall Turnover
• Computerized Accounting
• Operations Management Definition
• First In First Out (FIFO) – Materials and Inventory Costing Method