Bar Codes

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cschmid

Senior Member
We are just starting the process and it is not a speedy one either. but if followed the theory is good and should help inprove inventory tracking and inventory levels. nothing more frustrating then in the middle of something and someone uses the last one and says nothing.
 

laketime

Senior Member
I am just starting out and a 2 man operation right now. At what point in your business did holding inventory start to pay off?
 
We used bar code here at the plant for a few years, maintenance of it is expensive. What I mean is typically your paying for expensive software that collects the data and translate it so you can format it into a accurate inventory. We changed directions a few years ago to a tool room with part ID numbers rather than bar codes and created our own excel spread sheet that deducts to id number from the inventory when it's removed. This is all based on the reliability of the employees to follow procedures.

LHarrington
 

benaround

Senior Member
Location
Arizona
I am just starting out and a 2 man operation right now. At what point in your business did holding inventory start to pay off?

Right around tax time, you know a 400a disconnect even if slightly used is worth the same

as a new one as far as inventory goes, so I've heard. :)
 

RH1

Member
I am just starting out and a 2 man operation right now. At what point in your business did holding inventory start to pay off?

Remember that inventory is taxed, you cannot expense it until it leaves the shop.

Here's how it works, you get a check for $10,000. You decide to buy $10,000 worth of wire. Even though you bought wire, that $10,000 is still subject to tax. All you did is take your wealth and convert it from one form of wealth (money) to another form of wealth (wire).

When you take that $10,000 worth of wire and install it on a job, *now* you can expense the $10,000.

For accounting purposes, running an inventory is very time consuming, as parts are entered into inventory, you must record the cost of each item. Since the electrical trade consists of about 100,000 parts, this can be a nightmare.

Inventory is something you don't want. You only do it when you are forced to by circumstances.
 

dbuckley

Senior Member
Strikes me you'll spend more time printing barcodes and sticking them on stuff then you'll ever get back in added value. To do bin level tracking is less hard, but you need the same kit they use in supermarkets (Symbol readers with keypads and RF link) where you scan the bin barcode, and then manually enter ins, outs or stock level onto the portable scanner.

Where barcodes do save time is in paperwork; set your software up so that every bit of paper you print has the job reference as a barcode printed on it, and then when the bit of paper comes back to the office just wave it under the barcode reader and the computer jumps to the right record on screen. To do this just needs (usually) some time making the software play ball and a cheap USB barcode reader.
 

laketime

Senior Member
Inventory is something you don't want. You only do it when you are forced to by circumstances.

That is what I was thinking. Anything I have left over from projects I return and convert back to a credit with the wholesale house.
 

roy g

Member
roy g

roy g

Inventory is taxable ay year end. We don't use bar codes or formal inventory, but have been thinking about it. Without it, its difficult to know if 3 items or 10 items went on the service trucks. Its becoming more important in tougher economic times to account for materials costs. If material is shipped directly to a larger job, it seems easier to track, but its the smaller items which are harder to follow. I worked with a guy once who made it a habit of stealing breakers or wire on a regular basis. The EC let all employees load their trucks and no real control over quanity of materials stocked on truck. He could have paid an inventory control clerk and been way ahead considering his losses.
 

RH1

Member
That is what I was thinking. Anything I have left over from projects I return and convert back to a credit with the wholesale house.

I should do that, but I keep it well organized in a shed. It's not "inventory" in the accounting sense, just stuff left over. I could wire about 3 houses with all the junk I have....
 

benaround

Senior Member
Location
Arizona
I should do that, but I keep it well organized in a shed. It's not "inventory" in the accounting sense, just stuff left over. I could wire about 3 houses with all the junk I have....

I thought you said that you have to pay taxes on those materials ?
:)
 
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