Inventaariomenetelmä

Inventaariomenetelmä is a Finnish term that translates to "inventory method" or "stocktaking method." It refers to the systematic process of determining the quantity and value of a company's inventory at a specific point in time. This process is crucial for accurate financial reporting, effective inventory management, and preventing loss.

There are two primary types of inventory methods: periodic and perpetual. The periodic inventory method involves counting all inventory items at the end of an accounting period. This method is simpler to implement but provides less real-time information. The perpetual inventory method, on the other hand, continuously updates inventory records with each purchase and sale. This requires a more sophisticated inventory management system, such as barcodes or RFID technology, but offers up-to-date inventory levels.

The choice between these methods depends on factors like the size of the business, the nature of the inventory, and the available technology. Regardless of the method used, a thorough inventory count helps identify discrepancies, such as theft, damage, or obsolescence, and forms the basis for calculating the cost of goods sold and determining the value of assets on the balance sheet. Accurate inventory data is fundamental for informed business decisions, including purchasing, pricing, and production planning.