The Annual Count

In organizing a stock count, critical is to know what one is planning to count, when stock count should take place, what tools and equipment are required and the timescale allotted. For example, if you are counting at height, ensure the safety of the warehouse staff. If you are using forklift trucks a suitable safety cage needs to be provided.

To begin the count, ensure all items are put away in their correct location and dispatch as many items as possible. Secondly, dispose any obsolete units before the start. Some companies use different-colour labeling on pallets during each year’s count.

Any discrepancies between the system figures and the count figures should be checked by a supervisor and this continues until the two figures match. Quantities are written on the sheets together with any changes to the product codes and other comments such as damages are recorded. This can lead to further inaccuracies as the administration staff tries to find mistakes and wastes time recording it. This system of counting is full of problems and if agreed by auditors a perpetual inventory counting system should be used over the single annual count.