Periodical Stocktaking Procedure

Periodical Stocktaking Procedure

Periodical stocktaking is an effective controlling tool for identification of missing or theft inventory. Stock take can be performed monthly, quarterly or annually. Stock take procedure has been elaborated below

1.    Non Store Staff

It is better to involve non store staff for the physical count. This is necessary to achieve one of the main objective of stock take i.e. identification of mission or theft stock.

2.    Well Planned

Stock taking activity should be well planed, and staff should be given written instruction, special counting sheet before the stock take for study & understanding. All relevant people should be informed before stock take.

3.    Supervised

Stocktaking should be supervised by a senior management member, who has detailed knowledge and experience of stock take. It is to be noted that stock take is a technically and complex process and requires effective supervision.

4.    No stock Movement

The movement of stock should be completely stopped during the stock take; otherwise it would not be possible to count the stock accurately.

5.    Stock take at once

To avoid stock take should be done at once (one day). The stock take work should be divided carefully and stock must not be double counted.

6.    Stock properly recorded

Stock count should be properly recorded on pre numbered and special sheet, which has been designed for stock take.

7.    Stock count sheet Comparison

Stock count sheet must be compared with stock record. Any variation should be investigated. There may be mistakes in recording of stock or chances of theft.

8.    Reporting to management

Unanswered variation must be reported to management. Immaterial variation should also be reported as control weakness.