Stock Counting Process

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The purpose of a stock count is to reconcile the calculated total of inventory items shown in m-power to the actual totals you count in your warehouses. These numbers can differ for many reasons such as poor record-keeping and loss & damage of stock.

Inventory within m-power is calculated as a running total. Every transaction that affects the inventory of an item (such as receiving goods, sale of goods) creates a row in the transaction table for the item. Each transaction either increases inventory (a positive number) or reduces inventory (negative amount).

The running total of these positive and negative transactions gives us the calculated inventory total. If you are tracking inventory by location and sublocation then we simultaneously track the running totals for these also.

If the calculated total varies by the counted total then we place a balancing transaction into the table to reconcile the two numbers.

STOCK COUNT PROCESS

The recommended steps in a stock count are as follows

  • Print an inventory count form - this is a paper report that lists the items that are tagged as inventory items within the system. The report is grouped by location and category and contains the barcode for the item for ease of data entry
  • Count the Inventory - physically count the inventory items in the warehouse, recording their totals and sublocations (if applicable)

  • Enter the stock count - create a new stock count entry in m-power. Each physical location (Warehouse 1, Warehouse 2) should be entered as separate stock counts.
    > Enter the date of the stock count and; 
    > Select the location at the top of the form; 
    > Scan in the item codes into the stock count using the barcodes on the hardcopy report. Key in the inventory totals for each barcode. Enter the sublocation if applicable (with each sublocation on a separate row)

  • Apply the stock count - use the [adjust] button to apply the stock count. This will make the adjusting entry against each item. You can drill into a few items and check that the totals match at the stock count date. (note that subsequent transactions to the stock count will continue to change the current total so you need to count back from these to check). If there is an issue, then you can use the rollback button to remove the adjustments


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