Stock Check Procedures – Full and Perpetual
Stock Checking is the menu option where stock checks are initiated, and any discrepancies reported on before carrying back into the stock file any variances and generating accounts postings. Most reports mentioned in this document are run from the specified module either in the Reports & Enquiries menu or the Frequently Used Reports menu.
Note: The stock check system does not prevent the issue or purchase of a part between the time of creating a check file and input of the stock count. Once you have generated a checklist for a bin location, changes or supersessions MUST NOT be carried out until the ‘Update stock file’ option has been run at the end of the stock check.
There are several steps involved in the Stock Check Procedure:
• Pre-Check Routines
• Free Check File
• Summary by Franchise Report
• Generating Check List (Select type of Stock Check)
• Printing Check List
• Print Extra Rough Sheets (Full Stock Check only)
• Count Stock
• Input Stock Count
• Input Rough Sheet counts (Full Stock Check only)
• Find Items not Counted (Full Stock Check only)
• Rough Sheet Report (Full Stock Check only)
• Merge Rough Sheets into Check File (Full Stock Check only)
• Stock Discrepancy Report
• Recounts routine
• Final Stock Discrepancy/Valuation Report
• Update Stock File
• Free Check File
1. Pre-Check Routines
It is recommended that some time is spent ‘pre-checking’ before proceeding with your stock check. This may save a lot of time and effort during the stock check. Allow ample time to carry out your pre-check routines.
Negative Stocks
Any negative stocks MUST be dealt with prior to the stock check. This will mean eliminating or correcting as many negatives as possible. During the stock check process, an empty bin will physically be counted as zero and the stock record will be updated to reflect that. Outstanding receipts of that part processed after the stock check would result in a quantity ‘on hand’ even though the bin is physically empty. Run the Negative Stock report from Stock Management.
Outstanding Parts Stock Receipts
Similar to the negative stock, some parts may have been physically binned without processing their receipt in the system. Any outstanding documentation relating to parts received from outside suppliers MUST be processed. Run the Purchases Awaiting Invoice report from Purchase Control.
Parts in Wrong Stock Location
Before the stock check ensure that parts haven’t been returned or transferred into the wrong stock location.
Non Valid Bins
Produce a list of Bin Locations and check for non-valid bins. Of importance are Stock Records with Bin Locations that do not exist and Blank Bin Locations. Any records that fit the criteria need to be identified and corrected with valid Bin Locations. There are several Bin Location reports in Stock Management to assist with this.
Old units / surcharge
Old units returned to stock should be returned to the supplier by raising a negative order in Purchase Control. The receipt of that order (i.e. with a minus quantity) will remove the item from stock.
Work in Progress Wip’s
There is normally no issue with Parts Issues to Workshop as these parts are removed from stock upon issue by “Requisition” in Point of Sale. What is of concern is the addition of parts to a Parts or Service Wip where the part is not Requisitioned or is left at a “P” status. There are several standard reports in Point of Sale, Reports & Enquiries, Report Generator, Run Report Generator to help identify these parts, K82 Detailed Parts Wip, K88 Wip Status Report and KUQ Wip Value not Invoiced. Work through these reports and resolve the issues on them. The question to ask is, “Have the parts physically been issued?”
2. The Day of Stock Checking
When you are ready to start your Stock Check, select Stock Checking from the Main menu. You will be presented with all the functions within the ‘Stock Checking’ menu (figure 1).
Note: If your dealership has more than one location you will be promoted to select the required location.
figure 1
3. Free Check File
Select Free check file. Displayed will be one of two message boxes. If “Check File Not Active” displays, then there is no other Stock Check in progress. If the second message box displays, “Do you want to free the current stock check file?’ (figure 2), displays, answer Yes to the prompt. The file will be cleared.
This option initialises (clears) the Stock-check file in preparation for the next stock check, so far as the current stock location is concerned. It should therefore only be run after a successful update has been completed and the Check-file is no longer required for auditing purposes.
Note: It is recommended that you do not run this option until you are completely finished with the current Stock Check which you may wish to hold open for auditing purposes.
figure 2
4. Generating Check List
Select Generate Check List from the ‘Stock checking’ menu (figure 1). You will be presented with the ‘Generate Stock Check’ screen (figure 3).
If the Free check file (Step 2) was not selected before generating the checklist, a ‘Check file active’ box will appear. This is to remind you a previous file has been created for a stock checklist and you are amending the existing file. It is recommended the Free check file procedure is run before proceeding.
figure 3
Full Stock Check v Perpetual Stock Check
Full stock check is selected by default. You would proceed with this option if you were checking your entire stock at one time or were checking one or several bins within a range.
Perpetual stock check would be selected if you are completing the check over a calendar year i.e. system generated random selection of parts which may encompass several bin locations at one time.
Bin range between: For a selective Full Stock Check. Enter the first location to be counted. This is a ‘between ……. and ……’ value. Leave blank for a full stock check.
Part range between: For a selective Full Stock Check. Enter the first part number to be counted. This is a ‘between …… and ……’ value. Leave blank for a full stock check.
Value range between: For a selective Full Stock Check. Enter the first value range to be counted. This is a ‘between …… and ……’ value. Leave blank for a full stock check.
Not checked since: For a selective Full Stock Check. Leave blank for a full stock check.
Franchises: For a selective Full Stock Check. Include in your stock check for one or more of the franchises held within your branch. Input franchises code followed by a space franchise code followed by a space etc. Leave blank for a full stock check
Product groups: For a selective Full Stock Check. Include in your stock check parts relating to one or more product group to which those parts belong, excluding others by default. Enter product group followed by two spaces, product group followed by two spaces etc. Leave blank for a full stock check.
Models: For a selective Full Stock Check. To include one or more models in your stock check. Leave blank for a full stock check.
Perpetual stock check
If this option is required, select the Perpetual stock check radio button.
figure 4
Only the following tick boxes are enabled for Perpetual counting.
Supersessions If ticked superseded parts will be included in the stock check.
Non-stock lines If ticked non-stock parts will be included in the stock check.
Blank bin descriptions If ticked blank bin descriptions will be included in the stock check.
Create Rough Sheets Not required by Perpetual Stock checking as the system tells you which parts to count, randomly selected from all locations.
Un-ticking any of the three tick boxes above will reduce the number of items on the count sheets if the quantity held is zero, however, if there is a quantity of any item falling into one of the categories, then the part will print on the count sheet. Once you are happy with your selection criteria, select Generate. When this is complete the screen will display the number of pages and entries in the check file (figure 5).
figure 5
Click OK, you will be returned to the Stock checking menu (figure 1).
5. Print Check List & Extra Rough Sheets
Print Check List
Select Print check list to print a hard copy of your check list.
At the ‘Stock Check List’ screen (figure 6) the Start and End fields should be set to ‘0’. This will include all pages for printing. Select OK to print. The Print exceptions only (Y/N) checkbox can be used to later print only those items with a stock discrepancy from the count.
figure 6
Print Rough Sheets - (Full Stock Checks only)
Select Print Rough Sheets to print extra rough sheets (figure 7). It is recommended to print extra rough sheets from this area, rather than from the ‘Generate check list’ area. Tick the Create extra rough sheets box and enter the number required.
figure 7
Note: You cannot reprint rough sheets, however, you can print extra sheets if more are needed.
6. Summary by Franchise Report
From the ‘Stock Management’ menu, select Reports & Enquiries. Select Summary by Franchise. This will give you a stock value for each franchise before the stock check.
7. Count and Input Stock Count
Using the stock checklists you have printed, complete your stock check procedure
Once you are happy all the stock has been counted and the checklist has been completed return to the Stock checking menu (figure 1).
To input your stock counts select Input stock counts.
figure 9
By entering the appropriate page numbers in the Range between: and: fields, you can enter your stock count by page number (figure 9).
Upon completion of the header input select Refresh.
By default, the system will display the page ranges you wish to input (see the ‘Approach’ section of the screen in figure 9). This will display information from your stock checklist in the order it was
printed. There is also the show part with variance only check box that will filter the display to parts with variances only which will be used later if there are recounts.
Alternatively, you can input your stock count by selecting one of the other radio buttons (Bin location, Part number or Supplier).
Click on the record from where you wish to commence input and the Count field at the bottom of the page will be enabled. Enter the number of parts physically counted. This will update the Count column on the screen.
Status Column
‘C’: Denotes that the line has had a count quantity entered.
‘?’: Signifies that a variance exists between the stock physically counted and what is recorded on the stock file.
‘U’: Denotes that the line has already been updated on the Stock File.
If the Status field is blank, then no count quantity has been entered against that line. Quantities should be entered for all lines displayed on the screen. This includes items with zero quantity counted. If it is necessary to skip a part line, then use the mouse to highlight the next item for input so that a quantity of zero is not recorded against the skipped line. If a value of zero is entered then the system will write a value of zero to the record.
Once all the pages are entered, select Exit to return to the Stock checking menu.
8. Input Rough Sheets (Full Stock Checks only)
Select Input rough sheets to enter any extra parts you found during the stock check (figure 10). .
Select Refresh to update the display.
figure 10
Click on the record from where you wish to commence input and the ‘Input Rough Part’ screen (figure 11) will appear. Complete the details of your part and select OK. The display will be updated with the new part.
figure 11
Once all the information from the rough sheets has been entered, select Exit to continue (figure 10). You will be returned to the Stock Checking menu (figure 12).
figure 12
9. Find Items not Counted (Full Stock Checks only)
Select Find items not counted from the displayed menu. Select OK from the ‘Items Not Counted’ screen (figure 13). This will give you a list of all parts that did not have a counted quantity entered against them during the stock count process.
figure 13
Note: The option Update stock file will ignore any item that has not had a count quantity entered against it.
10. Rough Sheet Report (Full Stock Checks only)
Select Reports & Enquiries from the Stock checking menu (figure 12). Select Rough sheet reports from the ‘SC Reports & Enquiries’ screen.
Displayed will be the ‘Print Rough Sheet Reports’ screen (figure 14).
figure 14
This will give you a listing of all Duplicate part numbers, Parts not on stock file & Parts not on price file.
Note: Parts that are found not to be on the stock or price files MUST have a stock file created for them. At this point an average cost for the part should be entered.
11. Merge Rough Sheets into Check File (Full Stock Checks only)
Select Merge rough sheets. Displayed will be the ‘Merge Rough Sheets into Check File’ screen (figure 15). Select Merge, and you will be returned to the Stock checking menu. Note: this can only be performed once.
Figure 15
12. Stock Discrepancy Report
From the Stock Checking menu (figure 12) select Reports & Enquiries. From the displayed menu select the Stock discrepancy report (figure 16). Select OK to receive a print out of all stock with discrepancies highlighted by the stock check. You will be returned to the Stock checking menu.
figure16
13. Recounts
Normally you would return to step 5 Print Check List at this point to print a new stock checklist with discrepancies only. Tick the “Print Exceptions Only” tick box to only get the exceptions. This will produce new count sheets per location containing the exceptions relating to that location. Recount the stock on these pages.
After the recounts are completed, return to step 7 Input Counts. Enter the original page number off the new count sheets and tick “Show Parts with Variance Only”. This will display information from your new stock checklist in the order it was printed. Enter the counts as described previously.
Reprint a second Stock Discrepancy report described in step 12.
The recount procedure may be repeated until you are satisfied that no more stock can be found.
14. Valuation Report
From the Stock Checking menu (figure 12). Select Valuation report. This will produce a full report of the stock check with quantities and values for audit purposes. This report will include:
• number of times a count was entered
• input quantities and values
• original frozen quantities and value
• variances quantities and value
• flag to denote whether the part has been updated to the stock file.
To achieve a full report the following prompts MUST be entered.
Start & End page: ‘0’
Include Updated Lines: ‘Y’
Include Matching Lines: ‘Y’
You will be returned to the Stock checking menu (figure 12).
Update Stock File
Once you are happy with all the above procedures you can update your stock file. From the Stock Checking menu (figure 12), select Update stock file.
The ‘Update Stock Check’ screen will display (figure 18).
figure 17
This update will scan the stock check input file and process all lines from your stock check process.
Select Update to complete the update process. A report is produced in conjunction with the update, showing net movement by quantity and value.
16. Stock Reconciliation to NL
If there were discrepancies found in the Stock Check, after step 15 Update Stock File, the value of the physical stock would not agree with the value held in the Nominal Ledger. An automatic journal would be carried out to bring the NL in line with the physical value
17. Free Check File
Once the Stock check is complete the Check File should be cleared in preparation for the next Stock Check as outlined in step 3 Clear Check File. For Audit purposes, you may wish to not clear this immediately.