Definition Of Stock Taking Anda Implementation Tips

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One of the activities that are commonplace in warehousing activities is Stock taking of goods. These activities are usually done regularly and periodically, such as weekly, Monthly, quarterly, quarterly, per six months and yearly.

Definition of Stock taking

Although we may have applied the strict regulations and as hard as possible in the management of warehouses, the error in determining the amount of stock of goods is a common problem.

Such problems will always occur when managing the warehouse stock because there will always be the possibility of unrecorded transactions or loss of goods in the warehouse, but if you apply this stock count result method, then the problem may be minimized.

Before discussing the stock count result, first you need to understand the following:

What is meant by Stock taking?
What are the goals and benefits of Stock taking?
When do Stock taking do?
How do Stock taking implementation Tips?
How is the Stock taking report example?

What is Stock taking?

For those of you who are not yet familiar with the understanding of stock taking result then it is necessary to understand it first. Stock taking result is an activity counting inventory of merchandise that is in the warehouse, which in the activity will match the value of the physical available that exist in the warehouse with the value of the supply book in the system.

One of the activities aimed to recalculate the stock inventory of goods in the warehouse before the stock of goods was issued and sold that is called Stock taking.

What are the goals and benefits of Stock taking?

The purpose of doing the stock count result is to know exactly and accurately about the amount of inventory in the bookkeeping record in comparison with the actual goods in the warehouse whether it is the same value or there is a difference, whether the difference is more or less.

If the difference is found after the stock count result then the next action is that the data will be adjusted again by asking for the decision and policy of the management of the company.

If after Stock taking is found to be a difference more between the amount of inventory or the cash value of the inventory, then the company must re-check to see if there is a possibility of unrecorded transactions or an error occurred while recording.

But if it is found that the difference is lacking, then there are usually two possibilities that will be done that is, create a adjustment journal for the deficiency and then will be charged to the company.

However, if the company regulations require the officer in the supplies to replace the shortfall, the adjustment journal does not need to be made unless the underlying stock price differs from the price of the change. But it is different if the stock count result is a manufacturing company, it is usually done to know the supplies of raw materials, auxiliary materials, semi-finished goods (WIP), and finished goods.

Benefits of Stock Taking

Stock taking activities have many benefits, among others:

Can be used as a comparative data of the stock inventory of current goods with the stock of goods in advance so that you can analyze whether the stock supply of goods in the warehouse increases or decreases.
Able to know the amount of stock of goods in the warehouse in actual and ensure if there is no item missed or not recorded in the stock card.
To get the accurate stock data of goods so you can see and analyze whether there is a difference of inventory goods or not.
To find out if the amount of goods available in the warehouse equals the amount recorded in the reported bookkeeping.
To minimize the occurrence of deviation of goods stock.
Can take action immediately when there are lost or damaged items (not eligible for sale).
To know and monitor the inflows and discharge of supplies..

When do stock count result activities are performed?

As I have mentioned above, Stock count result activities are usually done at the end of each year, quarterly (three months), quarter (4 months) even at the end of the month, depending on the management policy of each company.

However, for companies that have internal control system that is more organized, usually the stock count result is frozen every period of three or four months.

Stock count result activities are time-consuming because the officers who carry out stock count result activities will check the situation and the condition of the supply of goods in both the WIP (Work In Process) and warehouse. Therefore, the company must manage the time efficiently when wanting to do stock opname.

But now this system of stock count result calculations in many companies is increasingly facilitated with the presence of bar code technology, so that the calculation of goods becomes faster. And the average company uses bar codes because this technology is believed to be able to easily and accurately help companies to reduce errors in recording and calculation of goods.

To get a valid stock count result calculation result, here are some tips you can do, namely:

1. Set up and determine the timing of Stock Taking

Because stock count result can take a long time, which is about 2 to 5 hours (depending on the number of stock items), then you should set the time of implementation when your company is not operating or producing.

You can do it in the morning or at night because this time usually the company is not in operation so you will be more thorough in counting the number of items in the warehouse.

2. Preparing the Stock taking needs

Before the execution of stock count result make sure that all required documents are ready and already collected. Included in this case are the tools used to perform calculations such as stationery, calculators, Paper Clip and counting cards.

3. Stop all movements of goods

Preferably when the execution of stock count result will be done then try so that there is no movement and transaction of goods made. For that reason you will have to give notification to your supplier so as not to deliver the goods for the temporary order. For that as a recommendation, it would be better if the stock count result was done when the long holiday company because at that time no activity whatsoever done.

4. Mapping the Goods

What is meant by mapping the goods here is the division of the stock count result, if you have more than one storage place of goods or have a lot of goods, the stock count result must be done by some people in the implementation.

To get accurate results, then you should group each item by item category before calculating.

You can do this by using one of the following three methods:

First in First Out (FIFO)
Last in First Out (LIFO)
First Expired First Out (FEFO)

5. Division Tasks

So that the stock count result can be done quickly, you need to share the task with the employees involved in different groups so that you can do the calculation of the goods in several different locations.

To avoid the occurrence of mistakes, you can create a list of the names of items that you will give to employees and you can also ask your employees, whether there are items they do not know so that there will be no mistake in recording.

6. Do a meticulous Stock

Do physical calculations of goods in WIP or warehouse carefully and carefully so that no calculation error occurs. After finishing the physical calculations following the goods found, then it is to compare the data of the calculation result of the stock count result with the amount in the recording system in the bookkeeping.

One thing that is important in the implementation of Stock count result is to ensure the type of goods, quality, and quantity of items.

7. Create a report Stock Taking results.

8. Report Stock Taking results to management.

After you have finished the stock count result calculation, you also have to input the result into the computer because the computer system can keep the data of the stock count result to keep it safe. So when you open it again later, you can find out how many items need to be replaced either because they are damaged, broken, or because they are missing.

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