Accounting

Inventory Management

إدارة المخزون

📖 Definition

Inventory management is the process of ordering, storing, tracking, and controlling a company's stock. Includes methods like FIFO, LIFO, and weighted average for costing inventory in financial statements.

In everyday Saudi accounting work, inventory management matters because it affects invoice accuracy, financial reporting, tax filing, or ZATCA compliance depending on the transaction.

📖 التعريف بالعربية

إدارة المخزون هي عملية طلب وتخزين وتتبع ومراقبة مخزون الشركة. تشمل طرق مثل FIFO وLIFO والمتوسط المرجح لتكلفة المخزون في القوائم المالية.

💡 Example

A retail store uses FIFO inventory method: first items purchased are first items sold, ensuring oldest stock moves first.

متجر تجزئة يستخدم طريقة FIFO للمخزون: أول الأصناف المشتراة هي أول المباعة، مما يضمن تحرك المخزون الأقدم أولاً.

When this term matters

Invoices

Use the correct term and value before issuing ZATCA-compliant invoices or credit notes.

Reports

Map it to the right account, tax field, or compliance report to avoid reconciliation gaps.

Compliance

Keep the Arabic and English meaning aligned when working with auditors, ZATCA, or customers.

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