Education on the Physical Expenditure of Fertilizer Supplies Using the FIFO System at PT Kalimantan Hamparan Sawit

Abstract

The implementation of this community service activity aims to provide education about the importance of physical fertilizer expenditure using the FIFO system. The fertilizer procurement process at PT. Kalimantan Hamparan Sawit (PT. KHS) itself is carried out according to fertilization recommendations from fertilizer consultants or management itself. The process of receiving fertilizer at the plantation is carried out by garden staff and warehouse staff. Issuance and recording of fertilizer in the warehouse are also carried out by staff and employees entrusted by management. The problems that occur at PT. KHS are the value of fertilizer supplies that cannot be calculated and the process of releasing fertilizer supplies that takes a very long time. FIFO expenditure is based on the assumption that the goods purchased first will leave the warehouse first, so that every item that enters the warehouse first is the item that will be taken out of the warehouse if a fertilizer supply request is made from the warehouse. Inventory is carried out using the FIFO system in order to maximize the use of company assets in the form of fertilizer supplies so that they are effective and efficient, avoid fraud, and minimize the depreciation of fertilizer supplies.