Stock Take - Should every item be counted?
KellyH23
Registered Posts: 2 New contributor 🐸
Hi all
I am due to head my first annual stock take in July. Currently the business practically shuts down for up to 7-8 working days which I think is excessive for the size of the company. It is wholesale so the warehouse is split, one for bulk one for picking area. The bulk is counted when delivered and then packaged on pallets until needed.
I would like to conduct stock take over a weekend to limit the time the business is closed but seems unlikely this will be possible given the length of time it takes at the moment.
Do we really need to count all the bulk? I think time could be saved here but confused as to if this would be acceptable?
Any help would be appreciated. Thanks
I am due to head my first annual stock take in July. Currently the business practically shuts down for up to 7-8 working days which I think is excessive for the size of the company. It is wholesale so the warehouse is split, one for bulk one for picking area. The bulk is counted when delivered and then packaged on pallets until needed.
I would like to conduct stock take over a weekend to limit the time the business is closed but seems unlikely this will be possible given the length of time it takes at the moment.
Do we really need to count all the bulk? I think time could be saved here but confused as to if this would be acceptable?
Any help would be appreciated. Thanks
0
Comments
-
Do we really need to count all the bulk? I think time could be saved here but confused as to if this would be acceptable?
I think only yourselves know this, and maybe a discussion with what your auditors would be happy with.
I put estimates in for some groups of items, that would be time consuming to count, and total value not material.0 -
For what it's worth, I've often taken the view for bulk items that, if it's still sealed from the supplier, you can rely on the quantities marked on the packaging. Obviously if there are signs of damage then you might want to be a little more investigative, but, otherwise, if the stock is delivered in boxes of, say, 100 items, and there are 10 boxes on a palette, and two rows of 10 palettes per row, just multiply it up! (Which I'd make 20,000 units!)
Kelly's absolutely right though - ask your auditor. Unless I've misunderstood and you're from the auditor, in which case speak to a senior colleague.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 317 NEW! Qualifications 2022
- 155 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 92 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 274 Tax
- 136 Bookkeeping
- 7.2K General accounting discussion
- 201 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership