E VALUATING ON THE INTERNAL CONTROL OVER INVENTORY PURCHASING AND STORING (A CASE STUDY AT PT.SANSICO NATURA RESOURCES)

Abstract

Inventory is the core resources to generate revenue i n PT Sansico Natura Resources. So the inventry management involved the inventory sales and inventory purchase activities is the most important issuse for the company, with the development of the company business, some weaknesses of the management system s tart to make big difference to the company and the company management is also taking measurment to solve it. The writer’s objective is to find out what and how the internal control over inventory purchasing and stroing implamentate in the company and give writer’s recommendation to imporve the system. The writer choses the qualitative method to do the research and analyze the internal control over the inventory purchasing and storing by conducting the interviews to respondents, inquire with person relate d to the activities as well as documentation the working procedures and job description of each related employees. During the research, the writer found out some improper behaviors related to inventory managment . Such as PT.XYZ facing surplus of inventor y, fails to handle its customer’s compalins properly, procedure of receiving return product is not problemed, and purchase inventory is not at best price. Based on the findings and the analysis of the causes and effects, the writer recommend the company to create a prudent sales plan and do cost and benefit analysis, to handle customers’ complains within two days, to evaluate their procedure of receiving return goods, and to make at least three vendors’ comparison.