Acts of Audit

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Overview

Inventory Acts are those transactions that affect your Inventory. We have seen before that these are all reflected in Documents / Journal. So while they are really a sub-set of Journals, they are so pervasive we have chosen to give them a KB Category of their own.

As you go about your daily business activity you will increase your Stock on Hand by receiving goods from your suppliers, receiving stock transfers from your linked stores, using acts of production to turn raw materials into finished inventory items, processing refunds at your POS, …

Similarly, the available stock levels will be decreased by acts like sales, write offs, transfers out, …

Acts of Audit are how you confirm that all movements of an INVENTORY ITEM have been registers – correctly. Any growth or shrinkage in your Stock on Hand should be investigated.

Rolling or Full Stocktake

I am not a fan of doing 1 big stocktake a year for the tax man. They are time consuming, labour intensive, usually have to be done after hours with additional expense incurred. If you wait for most of a year to perform a stocktake, it is usually too late to capture any issues.

By counting a smaller number of items and regularly, you are ensuring that your stock levels are more consistent. This also means that routines like automatic reordering are more accurate and you are not going to run out of stock to sell. Your stock valuations are also going to be more accurate for your reporting. Slow moving items or those of a low value are generally counted less frequently. High value items are counted more frequently – identifying shrinkages very quickly. Rolling Stocktakes can be assigned to your staff to do during a current shift – saving time and money.

Rolling Stocktakes may also referred to as Partial Stocktakes or Cycle Counting.

Perform Rolling Stocktake

BOM - Documents - Journal of Documents - Acts of Inventory Operations
BOM – Documents – Journal of Documents – Acts of Inventory Operations

Navigate to BOM/ Documents / Journal and select < Audit>

BOM - Documents - Journal of Documents - Audit - Choose Mode
BOM – Documents – Journal of Documents – Audit – Choose Mode

Select <Simple Mode>

Select <OK>

BOM - Documents - Journal of Documents - Audit - New Audit Act
BOM – Documents – Journal of Documents – Audit – New Audit Act

If you have more than one STOCK LOCATION you will need to select the one you are preparing this Audit Act for.

Optionally, you can also select an INVENTORY CATEGORY. This is a great way to “group” like product together so you can perform a count on a small selection of your store.

You may also export the INVENTORY ITEM to an XLSX.

BOM - Documents - Journal of Documents - Audit - Update After Audit SOH
BOM – Documents – Journal of Documents – Audit – Update After Audit SOH

As you enter your count into the column marked “After Audit” you will see your growth / shrinkage in the column called “Changes”.

Note the <SAVE> button on the bottom right. Use this to save your progress, but not actually commit it into the database.

Once you have entered all the required fields, hit <SAVE & APPLY>.

Open Shifts

BOM - Documents - Journal of Documents - Audit - Audit Error
BOM – Documents – Journal of Documents – Audit – Audit Error

To ensure the accuracy of your Audit Act, you can only apply your count after ending all shifts on all POS in that STOCK LOCATION.

So how does this work with a STORE that trades 24/7 ?

Consider the following scenario …

30/05/2019 – The CSR does a physical count of an area – probably using a printed count sheet. The CSR will end their SHIFT and another will log in.

31/05/2019 – The new CSR will enter the physical count dated as 30/05/2019 when all shifts were closed ( use reports / Shifts to choose a suitable period ).

 

 

About the author: Tim Atkinson