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Stock-taking
Stock-taking or "inventory checking" or "wall-to-wall" is the physical verification of the quantities and condition of items held in an inventory or warehouse. This may be done to provide an audit of existing stock. It is also the source of stock discrepancy information. Stock-taking may be performed as an intensive annual, end of fiscal year, procedure or may be done continuously by means of a cycle count. An annual end of fiscal year stock-taking is typically undertaken for use in a company's financial statements. It is often done in the presence of the external auditors who are auditing the financial statements. Periodic counting is usually undertaken for regular, inexpensive items. The term "periodic" may refer to annual stock count. However, "periodic" may also refer to half yearly, seasonal, quarterly, monthly, bi-monthly or daily.Applegate, M.How Often Should You Do Inventory? accessed 2 February 2017 For expensive items a shorter period of stock-taking is preferred. A sto ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Physical Inventory
Physical inventory is a process where a business physically counts its entire inventory. A physical inventory may be mandated by financial accounting rules or the tax regulations to place an accurate value on the inventory, or the business may need to count inventory so component parts or raw materials can be restocked. Businesses may use several different tactics to minimize the disruption caused by physical inventory. *Inventory services provide labour (economics), labor and automation to quickly count inventory and minimize shutdown time. *Inventory control system software can speed the physical inventory process. *A perpetual inventory system tracks the receipt and use of inventory, and calculates the quantity on hand. *Cycle counting, an alternative to physical inventory, may be less disruptive. The Finance or Business Manager of the unit is responsible for ensuring the annual physical inventory is properly performed, inventory records reflect actual quantities on hand, inve ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |