Stock-taking

Stock-taking or inventory checking is the physical verification of the quantities and condition of items held in an inventory or warehouse. This may be done to provide an audit of existing stock. It is also the source of stock discrepancy information.

Stock-taking may be performed as an intensive annual end of fiscal year procedure or may be done continuously by means of a cycle count.[1] An annual end of fiscal year stock-taking is typically done for use in a company's financial statements. It is often done in the presence of the external auditors that are auditing the financial statements.

Periodic counting is usually undertaken for regular, inexpensive items. The term "periodic" generally refers to annual stock count. However, periodic may also refer to half yearly, quarterly, monthly, bi-monthly or daily.

For expensive items a shorter period of stock-taking is preferred.

A stock-take sale is a sale with reduced prices in a shop designed to sell off stock from previous seasons. This makes the task of stock-taking easier.

Another purpose of stock take is determination of a cutoff point i.e. what was the stock position of the company/organization at a specific point of time. The following forms may help in this regarded usage:

Cut-Off Procedures:
Goods Received Note: Vehicle Number:
(Received by Store)
Date: Bill-T Number:
Quantity: Value:
Description:


Goods Issued Note: Vehicle Number:
(Goods Dispatched)
Date: Bill-T Number:
Quantity: Value:
Description:


Gate Inward Number:
Gate Outward Number:
Materials Requisition Order: Quantity:
(Issued by Production)
Description:


Materials Issue Order: Quantity:
(Issued by Process)
Description:


Materials Returned Order: Quantity:
(Returned by process)
Purchase Requisition:
(Raised by Stores)
Last Cheque Issued: ________ Date ________ Ch. # ________ Amount ________ Issued To ________

See also

Notes

  1. ↑ Antony Wild (2004), "Inventory checking (stocktaking)", Improving inventory record accuracy: getting your stock information right, pp. 96–107, ISBN 978-0-7506-5900-0


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