• EH Lim

Stocktaking

December is the last month of the year.

It's a time to celebrate with your loved one.

It's a time to regroup after being disrupted by the COVID pandemic for two years.

It's time to have a resolution for the new year.

It's time to close your book if your company's fiscal year-end is in sync with the calendar year-end.

It's time for a stocktake if you are closing the book.


What is a stocktake?

To compare the physical stock count against the stock on hand shown in the book. Adjust the book if there are differences due to missing or damages.


What and how to prepare a stocktake?

First, determine a cut off date. Assuming you have decided to do a stocktake on 28 December, you should enter and post all inventory related transactions before your stocktake. Then, do a backup before you proceed with stocktaking.


stocktake
stocktake

From the MoneyWorks accounting system item list, click on the start stocktake button to proceed with the stocktaking process. MoneyWorks will then create a snapshot based on the current stock on hand. Any transactions entered after the stocktake started will not account for the stock discrepancy.


Assuming your current stock on hand is 100 units. MoneyWorks copy the current quantity (100 units) into the snapshot quantity when starting the stocktake. MoneyWorks will use the snapshot quantity to compare against the actual count entered to derive the differences (you should not enter any inventory related transaction dated before the stocktake).


Print a stocktake worksheet report for your store person to do the physical count. Enter the actual quantity counted into the stocktake list once the stocktake worksheet has returned. Select all the items and click on the finish stocktake button, then enter the stocktake adjustment journal date and account to complete the stocktake.


You may then proceed with stock revaluation or written off for obsolete products after your stocktake.


Stock valuation report.

Print a stock valuation report once you have completed the stocktake. The valuation report will base on the current stock on hand quantity and value. Ensure the asset value in the valuation report is the same as the ledger, and proceed with other closing tasks once verified.


Stocktake is part of the financial year-end closing. Start the stocktake process before your long holiday break.


Stay safe and healthy.

Happy new year!

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