Tag Archives: valuation

SIMMS 2013 and Item Valuation

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SIMMS 2013’s Inventory Management software’s Item Valuation features empower users to implement within the system the valuation method that best suits their company’s needs. A choice of six leading-edge valuation methods makes SIMMS the most comprehensive package on the market today. Whether your business is in the service industry, providing products or goods, or wanting to be a greater competitor in your local or national economy, valuation is an important decision to help you keep on top of your market.

Overall FIFO (First-in, First-Out), Local FIFO, LIFO (Last-In, First-Out), Average, Weighted Average and Standard Valuation provide different advantages, depending on the needs of your company. The first principal of inventory management is to stock only the goods that you have a demand for. The second principal is convert stock items back into cash as soon as possible. SIMMS can help you achieve those two important goals.

In today’s economy, inventory turnover is of utmost importance. While dealing with rising prices for raw materials and a demand for a wide array of goods required by your customers, the wise choice is to plan for tax savings and the avoidance of debt — companies need to invest money only in stock that is selling, and not base their payments for stock on future sales: they win by owning the items in their warehouse outright, and organizing themselves to most efficiently move the stock out the door. Maximizing your cash flow and minimizing your tax burden and debt load should be the goal, and SIMMS 2013’s Item Valuation features allow you to select the best method to help you succeed.

Visit www.simmssoftware.com or email sales@kcsi.ca today to learn more about item valuation.

Reorganization of Your Business Concerns

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When your business is trending new of late, re-assessment may not be enough of a solution. If the changes in your market share have been more drastic, then it is likely a re-organization is required.

Some indicators of a needed re-organization are:

1) That your most important decision processes are too vague or too complicated, and waste more resources than they produce.

2) Changes to important personnel either dilute the energy of the company or alter the rhythm of business standards.

3) Competition has become stronger from new sources or a new business model has been adopted by a chief competitor.

4) For three consecutive quarters there has been diminished financial returns. At such a point, some drastic moves are needed instead of the piece-by-piece adjustments you had made previously.

Re-organizations should be implemented methodically and with a positive tone. Despite any panic you may feel, the message and the way it is delivered to your staff must be from the mindset of building and improving.

SIMMS 2013 Inventory Management software can help you achieve the goals you have for your company. Visit www.simmssoftware.com or email sales@kcsi.ca for more information.

Tracking Depreciation with SIMMS

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Information available through the SIMMS Depreciation module gives you the power to forecast next year’s depreciation expenses through the use of SIMMS Accounting modules, which allow you to control the allocation of the depreciation for groups of assets – or individual assets – to more than one source of funding.

The tracking of depreciation makes it easier for you to rotate your stock to take full advantage of your turnover rates and to know which items bring the greatest returns. This aspect of asset management is fully integrated into SIMMS to suit your needs while simultaneously eliminating redundant data entry.

With the Depreciation Module you can:

• Allow assignment of depreciation-related fields either individually or globally within the system.

• Calculate depreciation monthly, quarterly or annually.

• Comply with both GASB (Governmental Accounting Standards Board) 34 and 35 requirements.

• Control access to depreciation data through SIMMS’ built-in User Rights Protection.

• Develop custom reports or use built-in reports to acquire the data you require.

• Employ both standard and customized depreciation methods.

• Manage FIFO By Location warehouse data is automatically updated with each adjustment.

• Generate automatic journal entries.

• Implement depreciation of assets from the month of receipt.

• Review the Depreciation History table, which updates automatically with each transaction.

• Seamlessly integrate with the rest of the SIMMS Software suite of modules

For more information on depreciation and SIMMS Inventory Management software, visit www.simmssoftware.com or email sales@kcsi.ca today.

Comparison of Inventory Valuations

When companies establish their inventory management policies, they have to decide which of the standardized inventory valuation methods available will best suit the kind of business they conduct. Here is a look at the differences between the FIFO, LIFO and Weighted Average methods.

FIFO
If you use FIFO, ending inventory, cost of goods sold, and the resulting financial statements are as follows:

simms_fifo

LIFO
If you use LIFO, ending inventory, cost of goods sold, and the resulting financial statements are as follows:

simms_lifo

WEIGHTED AVERAGE
If you use the weighted-average method, ending inventory and cost of goods sold calculations are as follows:

simms_weighted

Now that we have seen the separate methods in action, we can look at the direct comparison:

simms_ivcompar

In summary, LIFO produces the lowest income, FIFO the highest, and weighted average an amount in between. Since LIFO tends to depress profits, one may wonder why a company would select this option; the answer is sometimes driven by income tax considerations. Lower income produces a lower tax bill, thus companies will tend to prefer the LIFO choice. In many countries LIFO is not permitted for tax or accounting purposes.

While accountants may argue that financial statements are enhanced by LIFO because it matches recently incurred costs with the recently generated revenues. Others suggest that FIFO is better because recent costs are reported in inventory on the balance sheet. Whichever method you use, the inventory method must be clearly revealed within the financial statements and related notes. LIFO companies frequently augment their reports with supplemental data about what inventory cost would be if FIFO were used instead.

In practice as well as in theory, you should be consistent with the method you have applied. With SIMMS Inventory Management software, your choice of any of the available methods of valuation are available, and depending on your preferred choice, SIMMS will manage your business with accuracy and comprehension in both your inventory and accounting needs. Visit www.simmssoftware.com or email sales@kcsi.ca today to learn more about how SIMMS can help in your inventory evaluation.

Checklist for Your Stock Improvement

The best systems of inventory management all contain a particular series of criteria that make them both efficient and worthwhile. When one considers that improvement of your inventory management system by as much as 15% can affect your profit margin by over 30% minimum, an intelligent structure and “practice” of sound policies should be the least that you do.

The criteria are as follows:

Systematic Inventory Updates-
Operation of proper perpetual inventory system should be used so that it is possible to determine at any time the amount and value of each kind of materials in stock. It also enables the comparison of book inventory with the result of physical counting.

Control of Stock Areas and and Sales of Product
The proper operation of a system of stores control and issue is introduced so that there will be delivery of materials upon requisitions to departments in the right amount at the time they are needed.

Checks and Balances
The operation of internal check should be introduced to ensure that transactions involving materials and equipment are checked by reliable and independent officials.

Establishment of Controlling Accounts and Subsidiary Records
Controlling accounts and subsidiary records reveal  summary of detailed materials costs at each stage of materials receipt and consumption from the storeroom to finished goods.

Regular Reports
Regular reports and information should be provided for the management in connection with the purchase of materials, issues from stock, inventory balances, obsolete stock, goods returned to vendors, and spoiled of defective units.

Standards or Level to be Fixed
A minimum quantity of each item of materials, below which point the inventory is not allowed to drop, and a maximum quantity, above which stock is not carried should be fixed. In the same manner ordering level and economic order quantity may be determined.

If you are planning to consider a modern and feature-rich software application to manage your stock, please review the above sections and devise what you need, then visit www. simmssoftware.com or email sales@kcsi.ca to get help with taking your first cohesive steps toward increasing your business success.

SIMMS Help With Decisions

SIMMS 2012 Inventory Management software composites information about your business to allow you to make decisions about your business as well as helping you to make changes for its improvement. With the advantage of customizing reports for the more useful collection of financial data on each report, where you hand-pick content that permits your departments to view the precise numbers and trends that are significant.

In addition, SIMMS helps you monitor and manage your transactions with ease and accuracy. Having integrated all types of data from every aspect of your business, SIMMS collects and compiles purchase orders, inventory, General Ledger, kitting, Receivables, sales orders, and item details into the most accurate and complete reporting content on the software market today.

Presentations about your business allow you to see the “big picture” while also helping you find and adjust the small things that can result in choices of vital importance. The dynamic and fastidious attention to detail that you gain the fastest and easiest control over your company than at any other time in its existence. Using deep analysis, transactional precision and immediate access, SIMMS 2012 represents the most comprehensive package for the twin areas of concern — accounting and inventory — in either a multi-level hierarchy or on a simple columnar view.

Visit www.simmsoftware.com today or email sales @kcsi.ca for more information on how SIMMS 2012 can benefit you and your business.

 

 

The Pains of Overstocking

Too often companies will realize that though their shelves are loaded with stock items, the revenues for the month are not making all this storage — and its costs and personnel expenses — worthwhile.

Obsolescence and Expiration
A number of items deteriorate or become obsolete over time, such as perishable drug or food products. Stocking large counts of such material increases the chance that you will not sell it all before the “expiration” date. Take, for example, stocking too many tank tops or swimsuits and then as the seasons change they sit on the shelves; too many sweatshirts will not sell in the summer months and therefore too many of them will sit on the shelf for too long. Other items like electronic devices are replaced by newer and better models approximately every six months; computers in particular have a four month obsolescence term. Large stocks of such items is often risky and always expensive – often you’re lucky to make back the wholesale price you spent on them.

Storage Concerns
Housing a mass of inventory requires space – from medium to small cubic feet. Storage bins or rooms or warehouses require an outlay of funds to maintain, build or rent. Vast amounts of items also cost larger amounts to insure them. Further, an allotment of manpower is another expense to keep the goods organized, tracked and transported workers to categorize and organize items and transport items from one place to another.

Summary
While high levels of inventory can be a disadvantage, carrying too few goods on hand can also be harmful to a business. Running out of an item could mean that you miss out on sales and profits, and customers will go down the street to someone else. Ultimately, administrators must set inventory levels that maintain buffer stock, sell inventory items before it is designated as obsolete, avoid stock-out situations and eliminate storage costs.

To take advantage and control at the same time requires planning and dedicated policy implementation. A comprehensive software package provides accuracy and mastery of your company’s needs and demands. SIMMS 2012 handles all these challenges and more. Contact KCSI today to learn how SIMMS can make your inventory process more immediate and more lucrative. E-mail here to get the quickest response.

Printing Options in SIMMS

From SIMMS’ Global Settings window, users can select which transactional documents they want automatically, which ones they want to be prompted to print, and which ones they never want as hard copies. These options for quotes, picking sheets, sales orders, purchase orders, receipts of goods, invoices, invoice packing slips, bills of lading, barcodes on receipt, item transfers and depreciation reports can each be set in the system to observe the above criteria — automatically, every time.

Further options for inclusion on printouts are serial numbers, item details, extended descriptions, valued backorder items and components of kits (BOM). These printout options are yet another group of features easily set and easily used within SIMMS Inventory Management solution. Contact KCSI today for more information on how SIMMS can move you ahead of your competition and stay there.

Each company has its own requirements in regard to the number of trees that it will use each year. Some require everything to be printed, some everything in triplicate, and some only need analytical reports to be in hard copy form. Many firms run as close to a paperless system as they can. SIMMS Inventory Management software permits a company to set its own defaults in regard to what they actually print out and what they don’t.

Data Sharing Allows Your Success to Doubled

If one department or office of a business is operating with information that does not match the data used by other branches or departments then decisions and plans somewhere will be faulty or incomplete. SIMMS Inventory Management software provides a consistency of accuracy and analysis that users need, wherther they work in the warehouse, the retail storefront or an accountant’s cubicle. Assessment of today’s numbers help everyone plan for tomorrow’s profits, and inter-branch communications has never been easier.

Users logged into SIMMS from any location acquire the same numbers and information in real-time so that regular refreshes of the easy-to-use screens provide the best data now, making trend and sales analysis precise and dependable. Historical data is accessed and cross-referenced easily and profit margins can be anticipated and overhead reduced, ultimately making all departments shine like a star.

Reporting capabilities are vast and customizable in every way, enabling each manager or department head to run the report that he or she needs each time they need it, either annuall, quarterly, monthly, weekly or daily. Adaptible analysis charts are available on any laptop for any meeting session or presentation for any group within the company. Complete customer and vendor histories and balances are viewable at any time, keeping your sales and accounting departments on top of any challenges that may occur. Contact us at www.kornyk.com for more information about, or a trail version of, SIMMS Inventory Management software, the application that keeps your data available for those in your company who need it the most.

Gateway to the Past: Using SIMMS’ Inventory Valuation

Unlike most other inventory software packages, SIMMS Inventory Management system offers a comprehensive Inventory Valuation Report. Often users require their valuation information to be historical in nature, or sometimes based upon the last financial quarter or turnover. Valuation methods at times need be versatile to allow for valuations of a particular location compared with another. Perhaps a valuation is called for on the anniversary of a previous one.

Valuations also become invaluable for accounting departments in their scheduling of quarterly profit analysis and in planning for budgets. Accurate inventory counts and sale records make those decisions not only possible but also much more indicative of the progress and success of the finances.

Users also have the option to run valuation reports on RMAs as they progress. Also, users can switch between Standard Valuation method, Average method, Weighted Average method, Last-In-First-Out method, or First-In-First-Out methods, depending upon the analytical results that the user requires. These available options keeps SIMMS Inventory Management software on the leading edge of providing the information its users need, precisely when they need it.