24iValue is based on proven audit methods of calculation of provision for slow moving inventory. You will quickly calculate reserve for slow moving inventory and you can save a lot of time, as you will not need too much information.
This module is very helpful when you do not know how to calculate a slow-moving stock provision, especially if you have a limited amount of information and need something for quickly and reliably calculating this type of allowance.
Also use this module to check the reasonableness of charges already established, especially when you can not count on a quick and independent review of your calculations by someone else.
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To calculate provision for obsolete inventory there are usually different percentage levels of inventory provision assigned to different groups of inventories; however, very often no analysis is performed to confirm that the levels are reasonable.
Testing the historical accuracy of the inventory provision levels will help to avoid material mistakes in the slow moving inventory accounting.
The determination of rules to recognise the provisions for doubtful debts or inventory provisions so that they reflect the reality and specific features of a company is a major challenge.
How can we determine the appropriate percentages of a provision for bad and doubtful debts or of a provision for slow moving inventory and how can we verify the applied accounting policies?
Incorrect policies of recognising a provision for slow moving inventory or doubtful debtors may distort the financial result. If we do not tailor the accounting policies to the company and actual events that take place, the provisions and allowances will likely be inadequate to future developments.
If we have no idea how to verify, if, the approved policies of recognising provision for doubtful debts or inventory provision are adequate, we often do not challenge the accuracy of the policies at all, which however, is a major error. On the other hand, we may look for various ways to verify the provisions; however, that may cost lots of time and would not guarantee that the assessment of the applied policy is correct.
The desired effect can be achieved by using easier methods, tested practically by others. With 24iValue, everybody can learn how to check the computation of allowance for doubtful accounts or calculation of a provision for a slow moving inventory applying methods used by auditors. The testing of provisions for debtors and slow moving inventory provisions becomes affordable and easy. 24iValue supports those persons who have no idea how to reliably assess these provisions.
We save lots of time. We do not need advanced methods to assess the provisions. Finally, we do not have to guess what the reasonable amount should be.
With 24iValue, time is saved not only by the person who assesses the provisions but also by the staff who prepare the information that is required for the calculation of an inventory provision or the computation of an allowance for doubtful accounts. The savings are made possible with little information required by 24iValue to determine reasonable charges. Finally, there is a tool supporting independent verification of the bad debts and an inventory provisioning policy applied in your company. The provisions are not unrealistic, as the 24iValue tool combines verification with past events in the company.
You do not know how to calculate provision for slow moving inventory.
