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Automation of Inventory System

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The same case applies in Central Pangasinan Electric Cooperative, Inc., better known as CENPELCO, who currently has no automated fixed asset inventory method nor does it use barcode or other types of technology to track fixed assets on its daily operations.
CENPELCO currently relies on manual inventory methods to maintain their fixed asset information in their Accounting System and as a result, the inventory system becomes prone to human error.
Due to the inefficiency of manual inventory, security is also being risked. If not properly monitored, theft and loss of items can actually take place. It is also time consuming to take note of several details each time an item is brought in and out of the stock room which will most likely be a loss for the cooperative.
In CENPELCO, there are corresponding forms for every incoming and outgoing item (from the warehouse room). These forms serve as the basis of comparison when inspecting; that is, the amount of item that goes in or out must tally with those written in the forms. Afterwards, all the transactions will then be encoded manually in Microsoft Excel and Bin card for future reference. In addition to the complexity of the process, the employee/s responsible on this task also needs to check the stocks once in a while so as to monitor which items are already getting below the allowable minimum quantity.
To have proper accounting for materials, equipment and supplies, CENPELCO conducts physical inventory periodically (at least once a year) in order to reconcile per items shown on the Bin Card with the items on stock. Because of the draining work, there were circumstances when the inventory record in the computer does not tally with the actual amount of the available items

Lexi Hartman, http://academic2.bellevue.edu/-lamperti/ResearchPapers/Hartman.htm, August 27, 2014 4:25 PM
Kerner, Lisa. (1999, August).

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