SayPro 17 June, 2022 1208

A stocktake is the physical counting of all the stock that is in a store cost and or profit centre at a particular time. These figures are then compared to the stock records for the period of time covered by the stocktake. Conducting a stocktake allows retailers to accurately record what is actually in their stores. Audited Stocktakes are also required by law at the end of the financial year. The calculation for COGS is as follows:-Opening stock balance (O/S) plus purchases (or receipts) equals total stock balances for the trading period. Total stock balance minus closing stock balances (C/S) (what is left over) equals the stock quantity used during the trading period.O/S R cost value + R cost value of purchases by the business or the R value of issues from the stores to the cost/profit centers = total stock R cost value for the trading period for the business / cost and profit centers – C/S R cost value in stores /cost or profit centers = R cost of goods (COGS) by the business. Example: One month (January) trading in a bar.O/S R60, 000 + P/I R100, 000 = total stock for the trading period R160, 000 – C/S R50, 000 = COGS of R110, 000There are three main ways that stocktakes are undertaken (done):

• A full or total stocktake, where every item in the store is counted. Full stocktakes are generally undertaken yearly, six monthly, monthly or weekly, depending on the enterprise policy on internal accounting.
• A cyclical stocktake, where only part of the stock is counted at any one time, but these counts are carried out on a regular, scheduled basis, e.g. the meat department of a supermarket may carry out a stocktake on a weekly basis because it carries a large range of stock with a limited shelf life. (This is called the A B C method)
• Spot checks, where, in a particular area of the store, stock is checked for discrepancies.

For a stocktake to be of any benefit, it must be carried out accurately. Stocktakes can be carried out using stock sheets or tally sheets (where stock numbers are recorded manually); or by using electronic recording equipment. These are generally portable electronic hand held units that can record barcodes via a laser light to show current prices and stock name, quantities are manually entered into the device.Some large enterprises use a system called Electronic Data Interchange (EDI), which links Point of Sale (POS) equipment with computers which record sales as they are made and calculates new stock levels with each sale. When the predetermined minimum stock level is reached for a particular stock item, an order for new stock is automatically generated by the system. Any discrepancies in the stock should be recorded and reported to the relevant person. Totals should be signed and then recorded so that accurate crosschecking of the actual stock counts against the recorded stock records can be conducted. When the actual stock figures do not agree with the recorded stock (or book stock figure) then this can indicate inventory control problems and will need investigating by management to ascertain the reason(s).Problems can arise for many reasons including:-

• Stock (both o/s and c/s) counting errors.
• Inaccurate stock recording at delivery, e.g. invoice errors, short deliveries, mistakes in recording, damaged stock, unordered stock and returns.
• Mistakes when reconciling the recorded stock records.
• Mistakes in recording waste, staff feeding, complimentary (FOC) food and beverage products.
• Theft by customers, staff or suppliers.
• Different enterprises will have different policies concerning stocktaking. These policies should be followed by all employees.

Stocktaking – preparation checklist

1. Ensure every outlet containing stock is listed; i.e. bar 1, bar 2, restaurant, kitchen 1, kitchen 2, store rooms etc.
2. Arrange a time and time schedule to count stock (not during busy trading times)
3. Prepare stock sheets – adequate supplies, plus clipboards, pencils, erasers etc.
4. Organise stock takers – caller and penciller teams if required
5. Advise supervisors if appropriate although spot checks should be done without any warning
6. Advice stores controller to avoid stock movements during stock take.

During the stock take:

• Stick to a pattern i.e. left to right, top to bottom
• Take particular care over expensive stock
• Do not jump from place to place in count
• If interrupted, finish at an easily identified place to restart
• Check all cupboards and cabinets carefully
• Check stock behind other stock – don’t assume it is the same type
• When adding to a previous call, place a + sign between the figures e.g. “bells” 5+1
• Call item name before amount
• Avoid distractions i.e. social chat, spectators etc.

The stocktaking procedure The steps involved in stocktaking are similar whether an establishment uses a computerised or manual system. A computerised system will be quicker and more accurate, but the stock still has to be physically counted.

1. store inventory lists should be regularly updated
2. purchases, issues and transfers should be stopped for the time of the stock take
3. count stock and record on stock take sheets
4. note variances between physical stock value and book value
5. report variances
6. update inventory lists

To achieve useful results, the stocktaking procedure should be consistent and follow the same set guidelines each time. For example, many places count only unprepared food in the stores, so frozen meat pies would be counted but the pies in the warmer ready for service would not. As long as in the procedure is the same each time then the results over a 12 month period will be worth using.Another consideration is how the stock is to be priced. There are three ways to do this:

• use an average price for each item (over a 6 month period)
• use the price at the time of purchase
• Or most effectively the most recent price (replacement value)

Whichever method is employed, it should be the same each time to give the best results.Organising the stocktaking processOrganising a stock take is important not only to your warehouse and its staff, but also to your customers. Customers need to be notified well in advance if there is going to be a disruption to supply.Things to consider when planning or organising a stock takeWhen planning a stock take you need to:

• Have sufficient resources to conduct the stock take
• Draw up a stock take program and get everyone, including the finance department and auditors, to agree to it
• Prepare stocktaking sheets, cards or other documents in advance
• Instruct everyone involved about his or her duties
• Inform customers so that they can stock up during the stock take time.

Below is a schedule that can be used by a facility to allocate stock taking responsibilities to staff members?

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