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Inventory Accounting
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The classical view of inventory data collection is that of employees filling out forms of various kinds throughout the warehouse and production areas, which are then forwarded to a central data entry location, where hordes of clerks keypunch the data into a central computer database. Although this was a reasonably accurate view of the situation in the past, the types of systems available for collecting information are now more efficient and effective. These systems were developed because of a growing recognition that traditional data collection methods require a great deal of employee time that could be better spent on value-added tasks. Also, having a sec- ondary data entry step increases the likelihood of keypunching errors, which can be completely avoided by some of the data collection methods discussed in this chapter. Some of the data systems that can be used to collect inventory information are shown in Exhibit 1-1. They lie along a continuum that begins with loosely format- ted data, such as that found on a faxed document, and ends with perfectly formatted data that can be directly entered into a computer system without alteration, such as electronic data interchange (EDI) transactions or transactions entered through an electronic form. A special case is document imaging, which can be tightly coupled to a company’s computer systems or maintained as a freestanding system with no linkages at all. Accordingly, it is surrounded by a larger box in the exhibit, indicat- ing the range within the exhibit that it can occupy. Based on the information in the exhibit, it is evident that an inventory accountant should recommend installation of the systems noted in the upper right-hand corner because they provide the best means for collecting the highest-quality costing information that can be injected directly into a company’s central database of costing information.
Steven M. Bragg - Personal Name
0-471-35642-5
NONE
Accounting
English
2005
1-257
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