PROFESSIONAL TRAINING MANAGEMENT PROCESS

GUIDE FORMAT INTEGRAL OF

LEARNING

Hernán Darío Farías Ortiz

Solution Guide No. 14 Inventories

2. PRESENTATION

3. FORMULATION OF LEARNING ACTIVITIES

3.1 Initial Reflection Activities

a. What products are marketed in your company?, 'training project' what is the
unit of measure for your products?, how do you envision you can control them
to avoid losses of them?, how would you organize them?
RTA: leather products, controlling the inventory of what comes in, what goes out, what is
sell and what not, account for everything

In our homes, we keep a variety of elements (kitchen, furniture and

other items), identify them by categories, count them.
relate them in a chart and prepare a detailed report of your work done
(process).
RTA: 3 televisions, 1 computer, 3 cell phones, 3 beds, etc.

3.2.1 Consult the following links and individually write an essay on the importance
to control the inventory of goods and share it with your colleagues and instructor.

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RTA:

Inventory control in a company consists of understanding what is available, where it is located in the
warehouse or when the inventory comes in and goes out to help reduce costs, speed up the
compliance and prevent fraud.
Having a sophisticated inventory should be a priority for any business, as it involves
having greater oversight over the stock, being able to act even as a system of
Accounting set up to safeguard assets.
The company can also rely on inventory control systems to evaluate its
current assets, balance your accounts and provide financial reports.
Inventory control is important to maintain the correct balance of stock.
warehouses, something that prevents:
Losing a sale due to not having enough inventory to fulfill an order. The problems
Inventory constraints can lead customers to other suppliers. On the contrary, when
If inventory management is done properly in the company, better service can be provided.
client.
Not knowing which products sell more and which sell less. It also helps to better understand.
what is being sold and what is not. This way, it can be avoided that the excess of
inventory unnecessarily occupied space in the warehouses. Too much inventory can
trigger loss of profits, whether a product expires, is damaged, or goes out of
season.
The key to proper inventory control is a deeper understanding of the
demand for their products by customers.
Inventories in a company are a very relevant aspect, both in SMEs and in businesses.
of larger size. Poor management can generate discontent among customers, in addition
to cause financial problems that can lead the company to bankruptcy. What is the
inventory control
In a company? Inventory control in a company involves understanding what is available, where it is located.
is in the warehouse or when the stock comes in and out to help reduce costs,
accelerate compliance and prevent fraud. Having a sophisticated inventory should be a
priority for any business.

According to your knowledge and individually respond to the following

questions.

What is the importance of inventory management in commercial enterprises?

RTA: It is important for the company to identify the ideal amount of products to maintain.
in stock so that the company does not incur excessive costs in this regard. Likewise, if not
adequate levels of supplies are maintained, the profits will be affected
negatively by losing the ability to produce the good that is being traded. Moreover, if
short-lived inventories are not used effectively, their value may decrease.
or to get completely lost

2. What types of inventories would be managed in a manufacturing or industrial company?

 RTA: According to Colombian local regulations, there are mainly three types of inventories.
to know

• Inventory of raw materials, materials or supplies: They are the materials or inputs
essentials that go through a process of manufacturing, production, or construction to be
converted into a work in progress or finished product.

• Inventory of products in process: These are assets that are in a process of

modification and that will be used in the production of other products in process or
finished products. As the raw material is transformed, it increases its
value due to the production costs involved.

• Finished product inventory: These are, as the name suggests, the products
that have already completed their transformation process and are ready to be delivered. For
For this reason, they are often transferred from the production area to the warehouse.

3. What is your understanding of inventory systems and inventory valuation methods?

RTA: -The inventory system aims to control them, while

that the inventory valuation method aims to determine the cost of
sale and the appraisal or valuation of the final inventory

4. What documents do you think can be used to manage inventory controls for
commercial and manufacturing companies?

RTA: consider using different tools for your company's inventory, with
the following objectives:

Updated information.
Time saving in the preparation of inventories.
Have more accurate inventory control.
Have records of inventories conducted.
You can add features of the products you manage when making your
goods receipts and your movements to the inventory such as:
Expiration date, lot, distribution area, etc.
Invoices
-Kardex

3.3.1. Consult the bibliography suggested in this Guide or any other that is within your reach,
(about this topic, create a grid of concepts taking into account the following:
 Inventories
Definition: The inventory is the simplest document in accounting and consists of a
detailed, organized, and assessed list of all the assets, rights, and debts of a company.
Initial inventory: It is the one that is recorded at the beginning of an accounting period, prior to calculation.
of variations of this at the end of the previous exercise, in other words, it is about the inventory with
the one we counted physically at the beginning of the exercise
In-transit inventory: It is that which is located between the points of production or
storage when transportation is not instant, although these goods are not available
In some warehouse, they have already been paid.
Consignment inventories: It is one that does not form part of the assets of the person or company.
that markets the products, so they cannot be subject to seizure
Inventory system: It is a tool to record the quantities of existing goods.
in a business like this as well as to determine the cost of the products.
Inventory valuation methods: These are techniques applied to value the units in
warehouse in monetary terms
Recognition and measurement of inventories: inventories will be measured at cost or net realizable value.
realizable according to which is lower
Net realizable value of inventories: refers to the net amount that the entity expects
obtain from the sale of inventories in the normal course of operations
Kardex: It is a structured record of the existence of goods in a warehouse or company.
Order details: Specify the quantity in purchase, delivery method, the seller, etc
Remission: does not generate movements in the inventory, it is an informational document that indicates the
Quantities that have physically left the inventory and have been delivered but not
invoiced.
Purchase invoice: commercial document that reflects all the information of a transaction.
purchase and sale.
Classification of inventories according to economic activity: a classification of
different types of inventory
Accounting and dynamics of inventories: The study of the dynamics of system
inventories arise from the need of organizations to respond promptly to the
changes in customer demand and the challenges posed by technological change in the
replacement of products, processes, services, techniques and designs
Debit notes and credit notes for returns, surpluses, and shortages of goods: The note
debit differs from the credit note in that for the issuer, the debit note represents a
greater value or income, and the credit note represents a lesser value or an expense. The debit note
represents an income or increase, and the credit note a departure or expense.
3.3.2. Listen carefully to the instructor who will explain the dynamics within the entity.
management of purchases: the classification of invoices and the handling of their accounting record if it is
financial and tax management if there is still no transfer of the asset or service acquired.

According to this explanation, establish the management through a comparative table.

FINANCIAL and the FISCAL management of purchases and the supporting documents for each one
of them.

Establish an extra-accounting table that will assist the organization in collecting information.
to present the 'Tax Reconciliation Report' once the accounting period has ended
must be completed by taxpayers required to keep accounting, whose income
fiscal grosses are equal to or greater than 45,000 UVT or those who voluntarily
decide to take her). In preparing
the extraneous accounting table to manage the FISCAL information through the control account
that the DIAN requires, keep in mind that it must contain:
Please note that the invoices recognized in these off-balance sheet tables are used
as deductible in the income tax return and complementary, and therefore must
comply with the requirements of the corresponding tax regulations.
In GAES, I prepared the extrabookkeeping table that will collect the necessary information for
present the tax information reflected in the invoices; use a spreadsheet for the
development of the evidence.
This evidence will be socialized in an in-person session according to the instructor's instructions.
technical
The instructor will provide an explanation about the accounting record of merchandise purchases.
(assuming there is a transfer of the asset and control is held) taking into account the burdens
taxes and the withholdings that may apply depending on the different regimes with
those who carry out the commercial transaction.

% IN PURCHASES
Value of the merchandise
+ VAT
= Subtotal
- Source network

- VAT Rate

- Rheticus
= NET TO PAY

Using the previous invoice template, create a table that shows the dynamics of the records.
countable in the causation of merchandise purchases depending on the regimes to which
they belong to the entities involved in the economic transaction.
3.3.4. Clearly establish through a deschooling query of NIC 2 Inventories
(Inventories), the definition of inventories and the criteria for recognizing inventories given in the
paragraph 6 of IAS 2 Inventories and the asset criteria that you can find in the
Conceptual framework of the IASB. Highlight the importance of these criteria in an MS presentation.
Power Point that he will share with his work group

Similarly, establish in another slide the explanation of the initial measurement that you will find in the
paragraphs 10 and 11 of IAS 2 Inventories; this is referred to as the Cost of inventories
(in this guide we will address measurement for a commercial company). Add costs for loans and
Define it as it was done in the financial mathematics guide or refer to NIC 23 Costs for
loans.
Identify however and leave as evidence a third slide for the cost in a company.
industrial and a service provider.
Identify in a fourth slide the capitalization criteria for expenses incurred in
the purchase of the goods can be accounted for as an increase in their value. It is
to say, do not recognize them as expenses but as inventories. In it, explain what a suitable asset is.
Design and establish the extrabookkeeping table that you will use to disclose at the end of the accounting period, the
expenses that were recognized as a higher value of the inventory, call this table as cost of
acquisition and present it as slide 5.
Also identify the methods for calculating the cost of inventories that you will find in the
paragraphs 23 and 25 of IAS 2 Inventories and this will be the sixth slide.

Listen to the instructor's explanation, who will show the purchase of a through examples.
merchandise and its accounting record, the expenses incurred to place the merchandise at the point of sale and
that can be recognized as inventories and the extrabook table where it will be reported at the end of
period during which those expenses were capitalized.

This evidence will be prepared in a de-schooling manner and individually and will be presented to its
study group for socialization before the group.
[Link] en la NIC 2 Inventarios, las definiciones de:

Net realizable value

Fair value
To carry out this activity, you must work collaboratively with your GAES.
unschooled and based on NIC 2 or other reference texts that are available to you,
resolve the following items and submit them to your instructor in writing to be discussed under the
tutoring of this in the learning environment:

RTA: Net realizable value

Net Realizable Value is the estimated selling price of an asset in the ordinary course of business.
minus the estimated costs to complete its production and those necessary to carry out the sale.
Reasonable net worth.
Fair value is the price that would be received for selling an asset or paid for transferring a
passive in a non-forced transaction between market participants at the measurement date
The difference between both concepts is as follows:
Net realizable value takes into account the amount for which inventories are expected to be realized at
through contracts or agreements with clients; fair value takes into account the values of
market and not necessarily the contractual agreements with clients.
The net realizable value can be determined based on general selling prices and is a
own import of the entity's conditions; the fair value is a value related to the
market and the way it determines selling prices.

In companies, control processes play a leading role in the administrative cycle.

including inventories in this process. Refer to the bibliography suggested in this guide or
in any source I have access to, the topics that appear in the outline and continuation
make a synoptic chart for each of the following topics:

Valuation Systems and Methods

inventories: Inventory valuation systems: definition, definition
valid models for calculation methods, characteristics, valid model low inventories
IFRS, differences and similarities regarding inventories under IFRS, examples. the methods of
assessment, method for calculating final balances examples.

To understand and reinforce inventory management with Kárdex cards, your instructor
explain how to fill out this card for an asset or product for each valuation method
valid under IFRS

RTA: Inventory valuation systems definition: The valuation methods of

Inventory is the set of procedures used in order to evaluate and
control the flow and cost of merchandise.
Methods of calculation
Standard cost valuation.
Valuation at cost price.
Weighted average method.
FIFO Method
UEPS or LIFO method.
Weighted average.
PEPS or FIFO.
Characteristics
Inventory valuation methods determine the cost of sales and the value
of the final inventory in the perpetual inventory system, which means
that if we talk about inventory valuation methods, we are referring to
necessarily to the perpetual inventory system.
valid model for inventories under IFRS
To know this, we must take into account that in Decree 3022 of 2013,
Section 13. INVENTORIES. "It establishes the principles for recognition and
measurement of inventories. Inventories are assets with the following requirements:
(a) held for sale in the ordinary course of operations
(b) in the process of production for that sale; or in the form of materials or
supplies, 'to be consumed in the production process, or in the provision
of services.” An important difference with the Colombian standard is that the literal
it was not contemplated by the PCG

Inventory Valuation Systems and Methods:

Definition,
Inventory valuation methods are techniques applied to value the units in
warehouse in monetary terms. This valuation is especially useful when the units are going
acquiring at different prices. Companies need to know the cost of their inventories.
Characteristics
Understand the concept, characteristics, and fundamentals of valuation systems.
Inventories turn out to be very useful for the company, as it is they who truly determine the
production point that can be achieved in a period. The financial manager must have the
relevant information that enables you to make decisions about the management that should be given to this
organizational asset category
Valid models for inventories under IFRS
The inventory valuation methods or cost formulas that are allowed and recognized by IFRS.
Complete and the IFRS for SMEs are:
• Specific Identification of Individual Costs (Retail)
• Weighted Average Method.
• FIFO method or PEPS (First In First Out)
Differences and similarities between valuation methods
We assume we are referring to inventory valuation methods through accounting.
As an example, we use the valuation of antiques.
3.3.7.I have understood the recognition of goods and their causation in an accounting record,
let's look at the liability that arises from receiving the purchased asset by transfer and the asset of
contract that originates when paying in advance for the merchandise that has not yet been received.

In your evidence folder, prepare a manual with examples that explain the following cases,
Remember to make the accounting entry if the situation requires it and fill out the extra-accounting document.
pertinent

Purchases where there is no transfer of the asset, but there is the existence of an invoice.
(Account control registration through the off-balance sheet table)
RTA: In this case, we must acknowledge the purchase because it is already done.
the invoice has been issued in our favor with our name as well as being a negotiable instrument.
Purchases where there is an invoice and at the same time transfer of the asset.
RTA: Acknowledgment of the purchase of the good the acknowledgment of the purchase of
inventory because I have the elements that force me to do it such as the invoice and the
Same time that I have the inventories I bought with the power. It implies a record.
common and current accountant receives goods debit a 14 and also the tax and
I am terminating by crediting account 2205.
Payment of the invoice before the transfer of the goods
RTA: We could interpret them in two ways if we read the first Purchases where
there is no transfer of the good, that is to say, before the transfer of the merchandise, but if the
existence of an invoice, that is, if there is an invoice.
Payment of the invoice at the moment the goods are received
RTA: It is exactly to the second because it says that this is Purchases where the invoice exists and
at the same time transfer of the asset and it is required to be done
accounting recognition of the inventory purchase.
I pay part of the invoice before receiving the transfer of the goods and the rest.
of the payment after the transfer
RTA: It is a kind of initial what we are delivering here and the difference would be
delivered at the moment we receive the goods.
A single payment of the invoice, at a future time established by the entity as short.
deadline.
RTA: In the short term, there is no problem, but when it comes to the long term, I must be careful.
consider the value of money over time.
A single payment of the bill, at a future time established by the entity as long.
deadline
 RTA: In the short term, there is no problem, but in the long term, I must have
consider the value of money over time.
Several payments cancelled in installments within a set timeframe and with an agreed rate
RTA: When we say that several payments are canceled in installments over a set period of time
It's the following: we tell a gentleman and I tell him sir I need 18 million pesos in
merchandise and he tells me ready I have your inventory there and I say it's just that I'm not very
The gentleman tells me it doesn't matter, pay me in 3 installments but I will charge you 2%.
of interest, that is to say, I will pay him in three installments, but I will pay an interest that we agreed upon.
2%.
Conclusion: the bank lends us money and we pay it back in the installments that there are.
agreed upon and I also acknowledge an interest rate it is exactly the same the
differentiate this in a bank and the other is a supplier and he did not lend cash
I must pay you for the inventory as per the agreement we made.
Various payments canceled in installments without agreeing on any rate (implicit financing)

Several payments canceled in installments with a rate agreed lower than the market rate.
RTA: Since inventories are not subject to revaluation, it does not affect recognition.
accountant.

3.3.8. Develop individually and outside of school the following performance workshop, where
Inventory management under International Standards is evidenced (Accounting records,
discounts, deterioration, and valuation methods) will allow them to strengthen their knowledge
related to inventories.
1. Analyze the following situations and discuss them in a round table with your instructor.
justifications for your answers:
a. An entity deals in real estate (that is, it buys commercial premises with the
intention to sell them for a profit) Do commercial premises form part of the
inventory?
Commercial properties are part of the inventory of the real estate merchant. They are
assets held for sale in the normal course of operations

b. A farmer has two hectares of cassava planting which will be ready for sale in six months.
Is the cultivation of cassava considered inventory?

It is an inventory when it is harvested; for now, it is a biological asset when the cassava is harvested.
an inventory.
c. An entity maintains lubricants that are used in the entity's machinery during production.
Goods. Are the lubricants part of the inventory?
Lubricants are part of the inventory. They are supplies that will be consumed in the process.
productive. The building is not part of the inventory. It is an investment property (that is,
an asset that is held to obtain income.
d. An entity owns a building that has five offices, of which two are occupied by the
administrative area of the company, and the rest are leased. Do all the offices belong to the
inventory?

(a) The property, otherwise, would meet the definition of investment properties and the
The tenant can measure the fair value of the right to the property at no cost or effort.
disproportionate, and in an ongoing business context.
Likewise, the entity accounts for all its rights over the investment properties.
property under operating lease that meet the conditions.
the property, otherwise, would meet the definition of investment properties and the
the tenant can measure the fair value of the rights over the property at no cost or
disproportionate effort in an ongoing business context (regardless of whether others
rights over property under operating lease that meet the conditions
they are accounted for as investment properties; that is, the option is available to the entity in
function of each property separately.
The property, otherwise, would comply with the definition of investment properties and the
Tenant accounts for all their investment properties (and rights over the properties under
operating leases that meet the conditions) at fair value, with the change in value
reasonable recognized in the results.
otherwise, the property would meet the definition of investment properties and
the tenant accounts for all its investment properties (and rights over properties under
operating leases that meet the conditions) applying a cost-amortization model
deterioration established in Section 17 Properties, Plant and Equipment

2. From the following cases, the recognition (accounting) must be done, prepare the kárdex:
3. Select the FIFO method or Weighted average, prepare the kárdex card, and carry out the
recognition, associating each sale, purchase, return or discount
February 1/2015 we purchased merchandise invoice 10, the quantity of 1250 units at a cost
The unit price is $1,100.

✓February 5/2015 we bought goods invoice 212, the quantity of 250 units whose cost
the unit price is $1,180

✓February 8/2015 we bought goods invoice 305, the quantity of 650 units whose cost
The unit price is $1,100.

✓February 9/2015 we purchased merchandise fac.430, the quantity of 1650 units whose cost
unit price is $1.150
February 12, 2015, refund of merchandise purchase invoice 305, the amount of 150.
units whose unit cost is $1.100
6. BIBLIOGRAPHIC REFERENCES

6.1 BIBLIOGRAPHY

Gudiño, E., Coral, L. (2016). Plus Accounting. Mexico City: McGraw-Hill.

Fierro, A. (2015). General accounting with IFRS approach for SMEs. Bogotá: Ecoe Editions.
 Godoy, E. (2016). Accounting application for small and medium enterprises SMEs. Bogotá: group
new legislation editorial

Fierro, Angel (2015). Accounting of Assets with IFRS focus, Bogotá: Ediciones Ecoe.

Moya, Lui, (2015). Manual of accounting policies in the application of IFRS for SMEs. Bogotá: Legis

6.2 WEBGRAPHY

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accounted for as impairment/inventory obsolescence

6.3 INFOGRAPHIC

SENA Virtual Library Access the SENA database. You can access collections of books,
magazines, articles, bibliographic indexes, abstracts and full-text theses in English and Spanish, which
They can be accessed from the SENA network.

[Link] click on databases and you can access: e-brary, Gale, Galé
 Cengage Learning, Ocean for management, Knovel, Ocean universities P&M, Proquest

7. DOCUMENT CONTROL
Name Cargo Dependency Date

Author(s) Fredy Alberto Guarín Instructor CSF - Coordination 2019

accounting in finance
taxes e

Verifiers
Technicians

Review Jasbleidy Contreras Instructor Accounting Coordination 2019

Beltrán Finance and Taxes. CSF -
Capital District

Approval Jorge Enrique Cifuentes Coordinator Accounting Coordination, 2019

Bolaños Academic finances and Taxes. CSF -
Capital District

8. CHANGE CONTROL.
Name Cargo Dependency Date Reason for Change

Author(s) Yonis Pots Instructor Coordination April 2020 Adjustment in

Palace Accounting activities of
finance and initial reflection and
Taxes. CSF - contextualization
Capital District update

Verification Gerardo Instructor September

Regional 2020
Alfonso
Technique Cundinamarca
Jiménez Bernal
John Paul Instructor Regional Antioquia September
Ríos Rodríguez 2020
Juliana María Instructor September
Osorio Regional Valley 2020
Ramirez
Jairo Alberto Instructor September
Jiménez Regional Valley 2020
Benavidez
 José Manuel Instructor September
Montero Regional Boyacá 2020
Yanquen
Alba Gisela Instructor September
Regional Cúcuta
Araque Orozco 2020
Alejandra Instructor Regional September
Arias Durán Santander 2020
Blanca Yaneth Coordinator Regional September
Walls Academic Santander 2020
Good
Review Jasbleidy Instructor Coordination September
Contreras Accounting 2020
Beltrán finances and
Taxes. CSF -
District
Capital
Review and Jorge Enrique
Coordinator Coordination September
ApprovalCifuentes Academic Accounting 2020
Bolaños finances and
Taxes.
CSF - District
Capital