Inventory audit

How to run a stocktake and write off correctly

Stages

  1. 1

    Preparation

    Inventory order, commission, sales stop or 'to-total' trading. Prepare count sheets.

  2. 2

    Counting

    Two people: one counts, one records. Weighed goods — weigh; piece goods — scan/count. Sign each page.

  3. 3

    Reconciliation

    Compare actuals with system balances. Discrepancies — recount before drafting the act.

  4. 4

    Act and write-off

    Shortages/surpluses via act; write-off within natural loss norms vs compensation by culprits. VAT implications.

Frequency: at least quarterly for fast categories, yearly full audit. ABC approach: expensive goods (A) monthly, medium (B) quarterly, cheap (C) semi-annually. Shortages beyond natural loss norms are compensated by the responsible person.