Inventory best practices - tracking consumables?

Question

Currently, our accounting system tracks only inventory items because the accountants are concerned about having to count consumables (ie. screws, washers, nuts) for our auditors. However, not tracking these small items has created bottlenecks in the production line because the small part is essential for assembly. I'm thinking that it should be tracked in the accounting system but we need a way that satisfy auditing requirements while making it easier for accountants to count. Perhaps by weight? Just like buying nails in a hardware store. You don't buy just one nail but you buy a bag. The question is "Is this acceptable for counting consumables for a public company?".

Answer 1

Clearly they need tracking somewhere, but not twice.  Because they impact on production tracking needs to be close to the point of use.  If the items are cheap, then once everyone has stolen a handful shrinkage will be minimal and away you go.  If on the other hand they are expensive then security will be more of an issue.

Essentially, monitoring needs to be at the point of use, rather than in an office somewhere else in the building, or worse.