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Beginning inventory + net purchases – COGS = ending inventory Beginning inventory: The value of all the products your business had on hand the beginning of the year or accounting period. Net purchases: The value of all the new inventory added during the year or accounting period.

What is yearly inventory? Your annual inventory count is the physical count of all inventory you have at the end of the fiscal year. In addition to keeping track of your stock with inventory management software, a physical count at least once a year ensures your inventory is accurate.

How to Calculate Ending Inventory. The basic method for calculating ending inventory is straightforward. You simply take the beginning inventory at the outset of the current accounting period, add the cost of new purchases and subtract the cost of goods sold (COGS).

What is a year-end inventory count? A year-end inventory count reveals just how much available inventory value your business has on hand at the end of the year. It should be a comprehensive review and include all the different types of inventory.

Ending inventory refers to the sellable inventory you have left over at the end of an accounting period. When a given accounting period ends, you take your beginning inventory, add net purchases, and subtract the cost of goods sold (COGS) to find your ending inventory's value.

The types of inventory most commonly found in small businesses include raw materials, work-in-progress (WIP), finished goods, and maintenance, repair, and overhaul (MRO). Once you know what types of inventory your business deals with, you'll have an easier time finding the best inventory management platform for you.

The inventory report should be in spreadsheet form and include the following: Quantities and costs for each item, extended to the right, and totaled. Names and positions of staff involved in the count, testing, pricing and extending the value of the inventory by item.

Ending inventory, or closing inventory, is the total value of goods you have available for sale at the end of an accounting period, like the end of your fiscal year. It's an inventory accounting method that helps retailers determine net income, obtain financing, and run accurate stock checks.