Sub : Necessity & Importance of finished products inventory balancing
For any manufacturing unit, it has two main activities to perform :
To manufacture & To sell.
Here, CMA Department can play a very important role by preparing and if required submitting BALANCING OF KEY FINISHED PRODUCTS as mentioned in Annexure 1 to help management in their endeavour to monitor & control Productwise Production & Sale.
This BALANCING OF FINISHED PRODUCTS should be prepared atleast for key finished products constituting at least 70 % to 75 % of total sales.
Other Finished Products can also be considered for FINISHED PRODUCTS INVENTORY BALANCING.
Necessity & Importance of FINISHED PRODUCTS INVENTORY BALANCING
- FINISHED PRODUCTS Inventory Balancing provides confidence to the management as well as to Statutory Auditors, Cost Auditors & Internal Auditors with respect to Quantitative Datails of PRODUCTWISE PRODUCTION & SALE which are Balanced Quantitatively. ( ANNEXURE 1 )
- FINISHED PRODUCTS Inventory Balancing enables carrying out of Input / Output Ratios & thus in monitoring yields of the Products. ( ANNEXURE 3 )
- FINISHED PRODUCTS INVENTORY BALANCING for each FINISHED PRODUCT can be carried out for the Company as a Whole, for Each Factory & for Each Plant within the Each Factory.
- FINISHED PRODUCTS INVENTORY BALANCING for each FINISHED PRODUCT facilitates to provide Anti Dumping Submission ( Format E – Sales Qty, Sales Realisation ).
- Submission of Details of PRODUCTION & CAPACITY UTILISATION for Cost Audit Report.
- For Various MIS Reports Submitted to Management with respect to PRODUCTION & SALE of PRODUCTS.
- For preparation of Board Agenda where often PRODUCTION & CAPACITY UTILISATION ARE reported & presented to the Audit Committee and to the Board of Directors
TABLE SHOWING INVENTORY BALANCING OF EACH OF FINISHED PRODUCT
|PRODUCTS||UNIT||OPENING STOCK||PRODUCTION||EXTERNAL SALES||INTERNAL TRANSFERS||CLOSING STOCK|
TABLE SHOWING PRODUCTWISE CAPACITY UTILISATION OF LAST 5 YEARS
TABLE SHOWING CONSUMPTION OF KEY RAW MATERIALS PER MT OF FINISHED PRODUCTS
|RAW MATERIALS||FINISHED PRODUCTS||MT / MT||F.Y.2014-15||F.Y.2015-16||F.Y.2016-17||F.Y.2017-18|
|RAW MATERIAL 1||FINISHED PRODUCT 1|
|RAW MATERIAL 2||FINISHED PRODUCT 2|
|RAW MATERIAL 3||FINISHED PRODUCT 3|
|RAW MATERIAL 4||FINISHED PRODUCT 4|
|RAW MATERIAL 5||FINISHED PRODUCT 5|
|RAW MATERIAL 6||FINISHED PRODUCT 6|
|RAW MATERIAL 7||FINISHED PRODUCT 7|