An annual stock count ensures that your physical stock, the stock value in the system and the bookkeeping all agree. This guide takes you through the whole process — from preparation to the final reconciliation. Follow the steps in order; each step builds on the previous one.
Before you count, the stock must be in a known state. Post everything that is in progress:
Pending purchase invoices and goods receipts, so received goods are added to stock.
Pending sales and invoices, so sold goods are removed from stock.
If there are unposted stock or accounting drafts when you start, you will count and reconcile against figures that are about to change. Clear them first.
Count the physical stock and enter the counted quantities in a count draft. A few tips:
Count per location to keep the overview.
Count serial-number items individually.
Decide how to handle goods you own but that are not physically with you (goods in transit or on consignment), and goods that are with you but belong to others.
In a full count, products that were not counted are assumed to be in stock with a quantity of 0. Zero out the non-counted products, so stock only contains what you actually have.
Once the draft is filled in and reviewed, it must be posted. Note that this is a separate step: entering the count is not the same as posting it. Only when the draft is posted is the stock level corrected.
Compare the stock value with the FIFO stock value to find where things do not match. Typical things to look for:
Negative stock at a location (goods withdrawn before they were added).
Stranded value (a value left on a location with a quantity of 0).
Products that are negative at one location but exist at another.
The analysis can be done manually or with help from the reconciliation assistant. Contact support if you would like help with the review.
An annual count is also the occasion to value the stock correctly. Write down goods that can no longer be sold at full price — obsolete, damaged or discontinued products — so the stock value reflects the real value.
Once the analysis is approved and the stock value matches FIFO, the entries that reconcile the stock value against the booked value in the accounts are created. This too can be done manually or with help from the reconciliation assistant.
Finally, set the reconciliation date. After this, everything is reconciled and no stock entries are missing a financial date — stock and accounts now stay aligned up to that date.
Keep the reports and printouts from the process. They are your documentation and audit trail for the count.
