Warenvorratskonto
A Warenvorratskonto, often translated as an inventory account or stock account, is an accounting ledger used to track the value of goods held by a business for sale. It is a crucial component of a company's financial records, particularly for businesses involved in manufacturing, wholesale, or retail. The Warenvorratskonto reflects the cost of acquiring or producing inventory, including expenses such as raw materials, labor, and overhead.
There are generally two main methods for accounting for inventory: the periodic system and the perpetual system.
The Warenvorratskonto is essential for determining a company's cost of goods sold (COGS), which is a key