EFFECTIVENESS OF RAW MATERIAL INVENTORY ACCOUNTING SYSTEM IN SUPPORTING INTERNAL CONTROL: A STUDY AT ZOCCO GROUP

Abstract

Raw material inventory management is a crucial aspect in supporting the smooth operation of food and beverage companies. A properly implemented inventory accounting system can help companies control raw material availability, reduce the risk of recording errors, and generate information needed for decision-making. This study aims to evaluate the food and beverage raw material inventory accounting system at Zocco Group based on its compliance with the inventory accounting system theory according to Mulyadi (2016). The study used a qualitative approach with descriptive methods. Data were obtained through observation, interviews, and documentation of parties involved in inventory management, then analyzed using the Miles and Huberman model, which includes data reduction, data presentation, and conclusion drawing. The results of the study indicate that the inventory accounting system implemented by Zocco Group has basically been running well. This is evident from the division of functions, the use of accounting documents and records, the implementation of inventory procedures, and the implementation of internal controls that support the company's operational activities. However, there is still a dual role in the raw material receiving and storage functions, so that the separation of responsibilities is not fully in accordance with the internal control principles proposed by Mulyadi (2016). Therefore, it is necessary to separate the receiving function from the storage function so that internal control becomes more effective and the risk of errors or misuse of inventory can be minimized.