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Description

Inventory: Valuing Receipts, Recording Issues and Managing Stocktakes

Substantiate the inventory figure on the balance sheet without waiting until the eve of the year-end close

  • 2 days — 14 h
  • In-person or virtual
  • Foundation
  • Up to 6 participants

The inventory line concentrates discrepancies that nobody can explain: receipts valued differently depending on who records them, returned goods never taken back into stock, unsaleable items still carried at their purchase cost.

Over two days, this programme follows the full chain from goods receipt to year-end close. Participants learn to determine the entry cost of an item, select a method for valuing issues, record the change in inventory and write-downs, then substantiate the line during the stocktake and the audit review.

Learning objectives

  • Determine the entry cost of goods purchased or produced
  • Apply a valuation method to inventory issues
  • Record changes in inventory and write-downs
  • Organise the physical stocktake and handle discrepancies
  • Substantiate the inventory line at year-end close and during audit

What makes this programme different

Entries are posted on a single set of transactions tracked from goods receipt to year-end close
The most frequent stocktake discrepancies are analysed together with their accounting correction
A substantiation file for the inventory line is built during the session

Programme

1Nature of Inventory and Entry Cost

Knowing what comes in and at what value

  • Distinction between merchandise, raw materials and work in progress
  • Components of acquisition cost and incidental charges
  • Cost of production for manufactured goods
  • Treatment of discounts, rebates and settlement allowances
  • Consignment stock and goods in transit

2Valuing Issues and Ongoing Tracking

Choosing a method and applying it consistently

  • Weighted average cost method and first-in first-out method
  • Impact of the choice on profit and on the reported margin
  • Consistency of methods and justified changes in method
  • Tracking movements under perpetual or periodic inventory systems
  • Reconciliation between inventory management systems and the ledger

3Accounting Entries and Write-Downs

Translating movements into journal entries

  • Closing entries for changes in inventory
  • Write-downs for slow-moving or obsolete items
  • Treatment of losses, breakages and goods returned
  • Effect on the income statement and on the balance sheet
  • Consistency check between the change in inventory and the margin

4Stocktake, Substantiation and Audit Review

Substantiating what you present

  • Preparing and organising the physical stocktake
  • Handling differences between book stock and counted stock
  • Building the substantiation file for the inventory line
  • External auditor expectations and supporting documents requested
  • Turnover indicators and alerts on dormant stock

Who is it for

Accountants · accounting assistants · finance and administration managers · inventory controllers and management accountants.

Prerequisites

Working knowledge of general accounting and the recording of purchase transactions.

Dates & locations

24 scheduled dates between November 2026 and December 2027. Seats are confirmed in the order enquiries are received.

November 2026

December 2026

January 2027

February 2027

March 2027

April 2027

May 2027

June 2027

September 2027

October 2027

November 2027

December 2027

None of these dates suit you? We open additional sessions on request, and any programme can be run privately for your team.

Practical details

Before the programme
Online positioning questionnaire. Your development objectives are shared with the trainer, who tailors the practical case studies to your context.
Teaching methods
Theoretical input, workshops and practical case studies. Digital course materials and method sheets provided.
Assessment
Multiple-choice tests and role-play exercises. Assessment of learning at the start and end of the programme, with immediate and 60-day follow-up evaluations.
After the programme
One year of access to the e-learning platform. Self-assessment of the skills acquired and a 30-day follow-up session with your trainer.
How to register
Registration online or on the basis of a quotation.
Lead time
11 working days after confirmation of registration.
Accessibility
Accessible to people of determination. Contact our accessibility coordinator to design a suitable solution: contact@mpf-academy.ae
Start dates
Rolling intake: in addition to the scheduled sessions, this programme can start on request.