What is Inventory?
Inventory is the stock of goods, materials or parts a business holds to sell or use.
Updated
Meaning
English
Inventory is the stock of goods, materials or parts a business holds to sell or use.
Roman Urdu
Inventory woh saara maal hai jo karobar ke paas bechne ya istemal ke liye mojood hota hai.
Also called stock, stock in hand, maal.
Example
A mobile accessories shop has 300 chargers, 150 covers and 80 earphones on its shelves and in its back room. That total is its inventory.
Counting and valuing
Inventory has a quantity and a value. Quantity comes from purchases minus sales plus returns and counts. Value is usually quantity times cost; see stock valuation. Healthy inventory means enough of what sells and little of what does not; see dead stock and inventory turnover.
In Nafaa
Nafaa updates stock on every bill and purchase, flags low stock and shows stock value at cost. See inventory management.
Related terms
- Stock Valuation
Stock valuation is the money value of the inventory a business holds on a date, usually counted at cost.
- Reorder Level
A reorder level is the stock quantity at which a new order should be placed, so stock arrives before the shelf runs empty.
- Stock Take
A stock take is a physical count of the goods on the shelves and in the store, compared with what the system says should be there.