What is Stock categories and stock items ?



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Difference between stock categories and stock items with proper illustration and example.

2 Answer(s)


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Stock Item refers to goods that a company manufactures or trades. It is the primary inventory entity or material in which the company deals with on a day-to-day basis.

Stock Category offers a parallel classification of stock items. Like stock Groups, classification is done based on similarity in behaviour. Stock categories is basically the categorisation of stock items of similar features belonging to different stock groups.

Eg: If the company is dealing with TVs. The company's inventory might consist of TVs of different brands like LG, Sony, Philips etc. Also it might have TVs of 19inch, 29inch & 32inch in each of these brands.

1.The TVs in general are stock items;

2.All the Sony Tvs of 19inch, 29inch and 32inch screens are a stock group (All LG Tvs are one stock group and so on..)

3.All 19inch TVs of all brands (Sony, LG, Philips) belong to one Stock Categories. (Same is the case with 29inch and 32 inch Tvs of all brands)

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great answer madduri! yes stock items are the lowest in the inventory hierarchy or structure. they are the items (products or services) a business trades or deals in. Category is way of classifying those items so that we can efficiently and effectively manage our inventory with proper control and planning.