This article is about physical verification of goods for for other usages of this word you may need to look for wiktionary.
A Stocktake involves the physical verification of the quantities and condition of items held in an inventory, warehouse etc., in order to provide an accurate audit of existing inventory and stock valuation. [1] It is also the source of stock discrepancy information.
Physical stock take is considered important routine measure for the effectiveness of inventory control [2] procedures Process is closely related to audit of systems laid down for stock management ,internal and external audit, process mainly involves going round and finding out which goods in a store or a shop are on the shelves and is part and parcel of asset management and has impact on valuation of products there fore financial statements of the orgnisations are also dependent.
Businesses do it to verify actual inventory to book keeping records, Financial information on status of inventory investment, find out how much value they do have on the shelves, what items are missing (unaccounted/ stolen) or to find out what items you may need to order more of. [3]
physical verification may take place at various levels and items that may include physical verification of cash in hand.
Stores/Inventory department usually makes an itemized list of merchandise or supplies on hand; periodical physical stocktake are necessary to see if anything is missing; besides end of the financial year stock taking is done periodically as per need of every business.
Analysis reports may confirm highlighting slow moving lines, the most popular lines and the most profitable lines, thereby an important tool in Management Information System analysis and confirmation provides opportunity to both enhance cash margins and cash flow confirmed by Physical stock taking reports are also useful tool
Physical stock take helps identify Go-backs are sometimes referred to as re-shop, put-backs, misplaced, shop-backs, returns, abandons, left-behinds, or shop-downs.
stock discrepancy shortages and shrinkage are again searched in at both the ends at stores and also in books of account either those are rectified on identification of goods or its accounting or such desripancies which are do not get identified are written off from books of account.
Purpose and Frequency
- Financial Year end
- Business Sale out
- Insurance
- Periodic routine
- Surprise inspections
- Internal Audit
- External Audit
- Investigation
Process
In routine method before taking the stocks available, Misplaced are restored in the places where they are supposed to be, then stocks are arranged neatly that includes keeping same goods together preferably in hips of same number of quantity for easier stock taking calculation.Each stock entry on books of account is cross checked if the same quantity for given items is available.The primary routine processes are conducted by staff itself, Then internal auditors cross check and verify the records where as invigilators and external auditors do entire or sample or surprise checking.
Stock taking Services
See also
References
 | This business term article is a stub. You can help Wikipedia by expanding it. |
This article is about physical verification of goods for for other usages of this word you may need to look for wiktionary.
A Stocktake involves the physical verification of the quantities and condition of items held in an inventory, warehouse etc., in order to provide an accurate audit of existing inventory and stock valuation. [1] It is also the source of stock discrepancy information.
Physical stock take is considered important routine measure for the effectiveness of inventory control [2] procedures Process is closely related to audit of systems laid down for stock management ,internal and external audit, process mainly involves going round and finding out which goods in a store or a shop are on the shelves and is part and parcel of asset management and has impact on valuation of products there fore financial statements of the orgnisations are also dependent.
Businesses do it to verify actual inventory to book keeping records, Financial information on status of inventory investment, find out how much value they do have on the shelves, what items are missing (unaccounted/ stolen) or to find out what items you may need to order more of. [3]
physical verification may take place at various levels and items that may include physical verification of cash in hand.
Stores/Inventory department usually makes an itemized list of merchandise or supplies on hand; periodical physical stocktake are necessary to see if anything is missing; besides end of the financial year stock taking is done periodically as per need of every business.
Analysis reports may confirm highlighting slow moving lines, the most popular lines and the most profitable lines, thereby an important tool in Management Information System analysis and confirmation provides opportunity to both enhance cash margins and cash flow confirmed by Physical stock taking reports are also useful tool
Physical stock take helps identify Go-backs are sometimes referred to as re-shop, put-backs, misplaced, shop-backs, returns, abandons, left-behinds, or shop-downs.
stock discrepancy shortages and shrinkage are again searched in at both the ends at stores and also in books of account either those are rectified on identification of goods or its accounting or such desripancies which are do not get identified are written off from books of account.
Purpose and Frequency
- Financial Year end
- Business Sale out
- Insurance
- Periodic routine
- Surprise inspections
- Internal Audit
- External Audit
- Investigation
Process
In routine method before taking the stocks available, Misplaced are restored in the places where they are supposed to be, then stocks are arranged neatly that includes keeping same goods together preferably in hips of same number of quantity for easier stock taking calculation.Each stock entry on books of account is cross checked if the same quantity for given items is available.The primary routine processes are conducted by staff itself, Then internal auditors cross check and verify the records where as invigilators and external auditors do entire or sample or surprise checking.
Stock taking Services
See also
References
|
| This business term article is a stub. You can help Wikipedia by expanding it. |