Implementation of The Average Method for
Inventory Card Applications: Case Study at The XYZ
Pharmacy Banjarmasin
Monika Handayani1
Computerized Accounting Study Program
Politeknik Negeri Banjarmasin
Indonesia
Monika.handayani@poliban.ac.id1
Anti Roviana Dewi3
Computerized Accounting Study Program
Politeknik Negeri Banjarmasin
Indonesia
D020319005@akuntansipoliban.ac.id3
Abstract—The smooth running of the business and avoiding
problems, especially in business operations, becomes the main
wish of the business actors. XYZ Pharmacy Banjarmasin is one
of the Small Micro and Medium Enterprises (MSMEs) trading
businesses of various over-the-counter drugs. The recording
process for merchandise inventory at the XYZ Banjarmasin
pharmacy has not followed the accounting rules, so drugs often
expire. The research method used is qualitative, with a case study
at XYZ Pharmacy Banjarmasin. This study aimed to create an
inventory card system using the moving average method. This
study showed that the proposed application could help XYZ
Banjarmasin pharmacies make inventory cards to sell the
medicines on time.
Keywords— supply card, inventory card applications
I. INTRODUCTION
Trading business protects assets and information about
reliable inventory [1] [2]. In this case, the inventory is very
vulnerable to damage the item and the possibility of theft,
incorrect and inappropriate recording, inappropriate goods
issued with the order, and other possibilities that may cause a
different inventory record from the actual inventory in the
warehouse [3] [4].
XYZ Pharmacy is one of the Small Micro and Medium
Enterprises (MSMEs) that is a trading business of various types
of drugs, namely over-the-counter, limited over-the-counter,
and limited medicines with a doctor's prescription. XYZ
Pharmacy started the business in 2004. During this time, every
transaction that occurs is recorded in a memorandum that is
then stored. The recording process for merchandise inventory
at XYZ Pharmacy is manual that calculates the number of
purchase and sales transactions that are still carried out by
counting the number of purchases on the purchase note one by
one and calculating the money earned every day and to find out
200
Muhammad Bahit2
Computerized Accounting Study Program
Politeknik Negeri Banjarmasin
Indonesia
bahit@poliban.ac.id2
the amount of inventory that must check the warehouse and
storefront first at XYZ Pharmacy. This results in inventory
records needing to be more tidy, lost, and damaged. It makes
XYZ Pharmacy unable to determine the value of the ending
inventory and Cost of Goods Sold (HPP) at any time, so it has
the potential to the fraud at any time due to uncontrolled
inventory [5] [6].
Every sales transaction of XYZ Pharmacy merchandise
faces problems related to merchandise inventory because XYZ
Pharmacy knows the amount of merchandise inventory on
hand every day only by physically counting using paper and
only storing sales notes [7] [8].
Suppose the amount of merchandise in the XYZ Pharmacy
storefront has started running out. In that case, it will take the
merchandise inventory in the XYZ Pharmacy warehouse. If the
remaining merchandise inventory in the XYZ Pharmacy
warehouse has started to run out, XYZ Pharmacy will buy
merchandise from the supplier. It weakens the monitoring of
the purchase and sale of merchandise, the possibility of goods
that do not match the amount received, and the unknown loss
of merchandise [2] [9]. The purchase and sale transactions of
the XYZ Pharmacy are still made in writing in the general
ledger; when the purchase of the purchased merchandise is
stored, an invoice for the purchase of merchandise is recorded,
and when the cash sale transaction of the XYZ Pharmacy
records the sale of goods sold in the inventory record book, the
Pharmacy XYZ only knows the available quantity of
merchandise every day by checking the merchandise inventory
physically and adjusted to the records in the XYZ Pharmacy
inventory record book [10] [3].
The suitable recording method to be applied to XYZ
Pharmacy is the Average Perpetual method because this
method can know the amount of merchandise stock directly at
any time. If the Perpetual method is used, each type of drug,
category of drug, and unit of merchandise inventory will be the Proof of Goods Receipt, which consists of two copies. The
made a card [11] [12]. Inventory consists of several columns first copy was submitted to the supplier concerned, while the
that can be used to record purchases, sales, and inventory second copy was to be archived. Receipt proof of goods
balances. The calculation of merchandise inventory containing the date of receipt, name of the outlet, name of the
(stocktaking) is also needed because it aims to prove and match product, quantity, and reason for the return.
the amount of merchandise inventory according to the
inventory card with the amount of merchandise inventory that B. Inventory Recording System at XYZ Pharmacy
XYZ Pharmacy owns. Based on the problems above, this study The transactions and sales of XYZ Pharmacy were done
aimed to create an application for determining the merchandise manually; when the purchased merchandise was recorded in
inventory cost using the Perpetual Moving Average method at the merchandise purchase record book, XYZ Pharmacy's
XYZ Pharmacy. recording inventory must have been recorded following
accounting standards. XYZ Pharmacy only recorded every
II. RESEARCH METHODOLOGY transaction in the sales note for every item sold for purchase
Determination of XYZ Pharmacy Merchandise Cost transactions obtained from suppliers. XYZ Pharmacy only
Inventory XYZ Pharmacy has not determined the merchandise knew the quantity of merchandise available every day just by
inventory cost. It has not calculated the cost of goods sold as checking the inventory of merchandise still in the storefront.
the basis for gross profit. Application of XYZ Pharmacy This will make it difficult to determine the cost of goods sold
Merchandise Inventory XYZ Pharmacy has yet to use the and the value of the ending inventory. In the business world, it
Merchandise Inventory Application Program; all merchandise is essential to manage the merchandise inventory to maintain
inventory recording activities are manually recorded in the stability and supervision of the business. Therefore, it is
XYZ Pharmacy inventory record book. Analysis of necessary to calculate using a method based on the financial
Information Systems Running at XYZ Pharmacy Based on the accounting standards suitable for the entity, accompanied by
analysis of the amount of merchandise inventory at XYZ computerized inventory recording, to control it at any time. The
Pharmacy, it is still performed by calculating the physical data obtained in connection with the merchandise inventory in
directly at the storage and checking the inventory journal. In manufacturing inventory cards use the Perpetual Moving
this way, manual calculations are considered very slow, Average formula.
ineffective, and efficient, and require accuracy and will slow
down the leadership to make decisions regarding the C. XYZ Pharmacy Merchandise Initial Inventory List
merchandise inventory purchase. List of initial inventory of merchandise from physical
calculations at the end of December 2021 that will be used as
A. Document Used initial inventory on January 1, 2022, using ten drugs as
The document used at XYZ Pharmacy in conducting sales samples. The list of the initial merchandise inventory can be
and purchasing activities is the recording of the inventory log seen in Table 1.
book. The document used at XYZ Pharmacy to determine cash Table 1. List of initial inventory merchandise
receipts from cash sales is the Inventory Record Book. The
sales department makes this Inventory Record Book and then No Merchandise Amo Unit Price /Unit Total
unt
submitted to the owner. The following is the Inventory
Rhimnos Neo
Logbook used at XYZ Pharmacy. 1 Drop Syrup 10 14 Bottle Rp 47.000 Rp 658.000
ml
III. RESULTS Tremenza
2 6 Bottle Rp 19.500 Rp 117.000
Syrup 60 ml
Paratusin syrup
A. Recording of Drug Sales and Purchase Transactions at 3
60 ml
38 Bottle Rp 25.500 Rp 969.000
XYZ Pharmacy 4 Rhinos SR 54 Blister Rp 4.750 Rp 265.500
Two duplicate notes were used to record sales transactions 5 Lapifed Syrup 4 Bottle Rp 23.000 Rp 92.000
for limited types of over-the-counter drugs at XYZ Pharmacy. Lapifed
6 Ekspektoran 5 Bottle Rp 25.000 Rp 125.000
The first sheet was for the buyer, and the second was for filing. Syrup 60 ml
The sales note contained the transaction date, the item's name, Lapifed Junior
the number of units, and the total purchase price that the sales 7 10 Bottle Rp 27.500 Rp 275.000
Syrup 60 ml
department then initialed. As for the purchase transaction, XYZ 8 Alco Drop 17 Bottle Rp 75.500 Rp 1.283.500
Pharmacy made an order containing the item's name, quantity Rhinos Junior
9 12 Bottle Rp 33.000 Rp 396.000
of goods, unit price, and total that was submitted to the Syrup 60 ml
10 Rhinofed Tab 169 Blister Rp 1.700 Rp 287.300
supplier. Furthermore, the supplier submits the goods, purchase
Total 329 Rp 282.450 Rp 4.459.300
receipt, and sales invoice stored for archives. Purchase notes
and sales invoices contained the transaction date, the number of D. XYZ Pharmacy Merchandise Purchase List
units, the name of the item, and the total purchase price of the List of merchandise Y purchases by XYZ Pharmacy for one
drug signed and stamped by the supplier. month, namely in January 2022. List of purchases of
Furthermore, the damage to the goods purchased can be merchandise used as stock for purchasing merchandise. The list
returned to the supplier by recording a list of damaged goods in of purchases of merchandise can be seen in Table 2.

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 Table 2 Purchase List of Merchandise per January 1, 2022 30/01/2022 Rhinos Neo Drop Syrup 4 47.000 188.000

F. Final Inventory List of XYZ Pharmacy Merchandise

Date Drug name Unit Price Total The final inventory list of XYZ pharmacy merchandise in
01/01/2022 Lapifed January 2022 is seen in Table 4. This final inventory list is
Ekspektoran 30 Rp 25.200 Rp 756.000 obtained from the sales of merchandise carried out so that
Syrup 60 ml unsold merchandise is made a final inventory list.
Total 30 Rp 756.000
Table 4 Merchandise ending inventory list
02/01/2022 Lapifed Syrup 20 Rp 23.500 Rp 470.000
Lapifed DM 100 No Drug name Unit Total
25 Rp 27.800 Rp 695.000
ml Syrup 1 Rhimnos Neo Drop Syrup 10 ml 21 Rp 997.356
Total 2 Tremenza Syrup 60 ml 22 Rp 529.386
45 Rp 1.165.000
3 Paratusin syrup 60 ml 30 Rp 779.929
05/01/2022 Tremenza Syrup 4 Rhinos SR 43 Rp 206.658
12 Rp 19.500 Rp 234.000
60 ml 5 Lapifed Syrup 37 Rp 876.169
Alco Drop 30 Rp 75.500 Rp 2.265.000 6 Lapifed Ekspektoran Syrup 60 ml 59 Rp 1.497.975
Rhinos Junior 7 Lapifed Junior Syrup 60 ml 41 Rp 3.107.243
20 Rp 33.000 Rp 660.000
Syrup 60 ml 8 Alco Drop 43 Rp 1.207.056
Total 9 Rhinos Junior Syrup 60 ml 33 Rp 1.104.187
62 Rp 3.159.000
10 Rhinofed Tab 243,5 Rp 434.747
15/01/2022 Rhimnos Neo Total ending inventory per January 1, 2022
Drop Syrup 10 10 Rp 47.000 Rp 470.000
ml G. Purchasing transaction form
Total The purchasing transaction form contained information on
10 Rp 470.000
20/01/2022 Tr emenza Syrup
the good purchased at the XYZ Pharmacy to meet the
24 Rp 19.500 Rp 468.000 warehouse's inventory needs. Every time there is a purchase
60 ml
Lapifed Syrup 20 Rp 23.500 Rp 470.000 transaction, the inventory section can add a new transaction to
Total
44 Rp 938.000
the purchase transaction menu. A transaction form is an
application designed by the author to facilitate recording
30/01/2022 Rhimnos Neo purchase transactions. The purchase transaction form can be
Drop Syrup 10 10 Rp 47.500 Rp 475.000
ml seen in Figure 1.
Lapifed DM 100
25 Rp 27.800 Rp 695.000
ml Syrup
Total
35 Rp 1.170.000
31/01/2022 Paratusin syrup
20 Rp 26.000 Rp 520.000
60 ml
Rhinos SR 150 Rp 4.750 Rp 712.500
Rhinos Junior
20 Rp 33.200 Rp 664.000
Syrup 60 ml
Rhinofed Tab 150 Rp 1.700 Rp 244.000
Total
340 Rp 2.151.500

Figure 1. Purchasing transaction form

E. XYZ Pharmacy Merchandise Sales List H. Sales transaction form

A detailed list of merchandise sales carried out by XYZ The sales transaction form contained information on the
pharmacy, with ten types of drugs sold in January 2022, is seen goods sold at XYZ Pharmacy and the sales data obtained from
in Table 3. the sales transaction. The sales transaction form records all
transactions made by the admin every time. The sales
Table 3 Sales List of Merchandise per January 2022 transaction form can be seen in Figure 2.
Date Drug Name Unit Price Total
03/01/2022 Rhinos Neo Drop Syrup 2 47.000 94.000
05/01/2022 Rhinos Neo Drop Syrup 1 47.000 47.000
09/01/2022 Rhinos Neo Drop Syrup 1 47.000 47.000
10/01/2022 Rhinos Neo Drop Syrup 3 47.000 141.000
12/01/2022 Rhinos Neo Drop Syrup 2 47.000 94.000
16/01/2022 Rhinos Neo Drop Syrup 2 47.000 94.000
17/01/2022 Rhinos Neo Drop Syrup 1 47.000 47.000
19/01/2022 Rhinos Neo Drop Syrup 1 47.000 47.000
22/01/2022 Rhinos Neo Drop Syrup 1 47.000 47.000
24/01/2022 Rhinos Neo Drop Syrup 1 47.000 47.000
26/01/2022 Rhinos Neo Drop Syrup 1 47.000 47.000

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 Figure 2. Sales transaction form
I. Inventory Card Form with average method
The inventory card report displays information about the
stock of goods and the cost of goods inventory contained in the
XYZ Pharmacy. Inventory cards are displayed per item and
month. To display the desired inventory card, the first step is to
select the desired item and month. The inventory card display
can be seen in Figure 3.
Figure 3 Inventory card report form
J. Inventory Card Output with average method
Inventory card output is used to print inventory card
reports. Inventory card is used as inventory control in various
formats. Because the stock card will record every inventory of
each item and help your staff when stock-taking goods in the
warehouse, the results of the inventory card output using the
average method can be seen in Figure 4.
Figure 4. Inventory Card Output with average method
IV. CONCLUSION
This study showed that implementing merchandise
inventory cost calculation using the perpetual Moving Average
method could determine the inventory and cost of merchandise
inventory every time. The system made with the moving
average method can simplify finding out the remaining
inventory of goods and can find out the cost of goods inventory
to determine the cost of merchandise inventory. The system
created makes it easier to record the merchandise inventory. It
can facilitate finding out the available stock of merchandise
that has been sold and must be purchased in the next period. It
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facilitates the leaders to make decisions in determining the
inventory of merchandise.
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