Stocktaking is the process of counting by hand the number of each type of product in your store/dispensary. Stocktaking is conducted for both managerial and financial reasons.
The management functions of stocktaking are to:
- Verify the accuracy of storekeeping records.
- Ensure efficient organisation of stocks in storage
- Ensure that all stocks are useable
The financial function of stocktaking is to determine the value of stocks held in storage to the organisation to complete picture of its assets. This should be done on a quarterly basis and obligatory at the end of the year. When conducting stocktaking, there may be differences between the number of products that are counted and the balance recorded on the Tally Card/Store Ledger. If the stocktaking count shows the balance recorded and the balance tally card is higher or lower than the quantity of the product counted, then an adjustment needs to be made on the card.
One method for evaluating the effectiveness of stores operations is to monitor losses and adjustments as a percentage of the total stock managed. Adjustments of more than 5% of the total stock quantity managed, is a signal that there are problems that needs to be corrected. All losses (including product expiry, damage or theft) are reported on the Stock Valuation Form. The Stock Valuation Form tracks both the quantities and value of products lost.
