Alkuvarasto

Alkuvarasto is a Finnish term that translates to "initial stock" or "opening inventory." It refers to the quantity of goods or materials that a business has on hand at the very beginning of a specific accounting period, such as a fiscal year, a quarter, or a month. This initial stock is crucial for financial reporting and inventory management.

The value of the alkuvarasto is typically determined at the end of the previous period and carried over to become the starting point for the current period. It forms a fundamental component of the cost of goods sold calculation, where it is combined with purchases made during the period and subtracted from the ending inventory to arrive at the cost of goods sold. Accurate tracking of alkuvarasto is essential for businesses to understand their profitability, manage their supply chain effectively, and prevent stockouts or overstocking. Different inventory valuation methods, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out), can be used to assign a value to the alkuvarasto and subsequent inventory.