Inventory in trade: how to conduct a proper re-count?

Inventory in trade is a regular control and recalculation of goods. With the help of an audit, you can determine the real quantity of goods in the warehouse and automatically compare it with the quantity of goods in the accounting program.

Why do you need an inventory?

Inventory in the store is a control point and a search for discrepancies.
The most common reasons for discrepancies:

• fraud by customers or employees,
• accounting errors: re-sorting, unreceived batches, unaccounted for defects or write-offs, sales errors,
• natural causes: shrinkage, disturbance.

Inventory is a strict control and the basis of order in the store. During the inventory, employees maintain the aesthetic appearance of the goods, check the conformity of the product label, how neatly the price tags are affixed, and whether the goods have tags.

How to conduct an inventory correctly?

There are no uniform rules for conducting an inventory. Each entrepreneur determines the stages and procedure of the inventory.
 
If you have Torgsoft in your store, you are lucky: the speed of re-accounting and analysis of the results increases tenfold, and the number of errors decreases, because the goods are clearly identified thanks to barcodes.
 
It is most convenient to conduct a recount when the store is closed: early in the morning, at night, or on a weekend. This is due to the lack of fuss, concentration on the recount, and the "inner workings" of the store are hidden from customers.
In our experience with clients, it is rare for anyone to take an inventory of their company while they are working.
 
However, there are stores that cannot afford to close. Therefore, in Torgsoft, you can conduct a re-account and not close the store.

Recommendations for re-calculation during the store's operation

Conduct a store recount in stages: by type of product, by manufacturer, selectively, and by department.
It is advisable to restrict the department where the recalculation takes place to customers. This is necessary to avoid a situation when an item that is listed in the inventory is sold.
 
If you can't close the department, you can do the following.

Re-accounting with a barcode scanner:

Create an empty listing and do not add the item to the inventory listing. In the listing settings, in the "If the item is not found in the listing" field, select the "Add item to the listing" option.
 
This setting will allow you to add each item to the list at the time of counting. This is correct, since the actual quantity of the item in the Torgsoft inventory is pulled up at the time of adding the item to the list.

Manual recalculation:

1. Add products to the list.
2. Set the status for all items in the "No count" information.
3. Recount small batches and enter goods from these batches into the inventory sheet.

4. Enter the calculated quantity of goods.
5. For the goods that have already been finally counted, set the status to "Counting completed".
 
For manual inventory of goods, you can print an "Inventory statement for manual accounting with quantity" - this statement shows the current quantity of goods in the warehouse and an empty "Quantity" column where you need to enter the listed goods.

If your store prohibits the sale of goods during the re-account, but you need to keep the goods on the shelf and available for purchase, you can put up additional goods for sale, which should be immediately included in the statement.

How often do you need to conduct a re-count

The frequency is determined by the risk of shortages: bulky goods can be counted less frequently because they are not easily lost, small goods more frequently, and food that dries out or is disturbed regularly. Each type of product has its own degree of risk and, accordingly, the frequency of audits - once a week, a month, a quarter, six months, a year.

Starting an inventory

Save the database.
Before the inventory, prohibit employees from moving the goods - where the goods are usually stored, that's where they should be to avoid confusion and not searching for the goods all over the warehouse.
 
The goods should be counted sequentially, one by one.
 
In a store that has automation, you don't need to count the goods twice: after scanning the goods, Torgsoft compares the quantity in the program and on the store shelves.
 
To speed up the recount, divide the zones between employees: one employee - one type of product or department. To recount, the employee must have a wireless scanner, a data collection terminal, or the Torgsoft mobile application.

Completion of the inventory

After the inventory, you need to close the statement.
 
The program will perform warehouse adjustments: receipt documents will be created for goods with an excessive quantity and a write-off document for goods with an insufficient quantity. The quantity of goods in the warehouse is brought into line with the actual quantity.
 
In the receipt document from the inventory, the price of the item will be set as the last purchase cost: purchase price + additional cost of the item.

Which barcode to choose: the manufacturer's barcode or your own?

If you plan to use a manufacturer's barcode, you should keep in mind that all manufacturers have their own standards. But the most important thing is that a manufacturer can label products that differ, for example, in color, with the same barcode.
 
In this case, it is better to use your own barcode database, which will be automatically generated by the Torgsoft program. A unique barcode will be generated for each model, size, color, and other individual characteristics. This will minimize re-sorting and provide a more accurate analysis of trade results.
 
Label the product in such a way that it does not obscure important information for the consumer, such as the composition or rules for using the product. Do not stick on the front of the package, because if the product is intended as a gift, it is almost impossible to remove the price tag without damaging the package.

Re-sorting

Inventory is a method of control and constant prevention of re-grading.
 
If a discrepancy is found, conduct a sample inventory of the goods of this type. Check the movement of goods according to the documents. If the mistake was unintentional, you will find a product for which a shortage was detected.
In addition to re-accounting, to prevent re-sorting, employees should periodically check the compliance of the barcode with a particular product. Sellers label the product, maintain the aesthetic appearance of the product, and match the price tag to the product.
Delegate employees to selectively check the goods by name, color, size, and unit of measurement when moving goods.

Who is responsible for the shortage?

You can "punish with a hryvnia" if an employee has caused damage to the store.
 
Set acceptable limits for losses due to natural causes or errors.
If the shortage exceeds the established limit, the staff will compensate for it, but only if the business owner and employees have a liability agreement.

Video tutorials: how to take an inventory in Torgsoft

In this video tutorial, we tell you how:

• How to quickly conduct a warehouse recount with and without a barcode scanner.
• About wireless and wired barcode scanners for auditing.
• How to control the integrity of an audit conducted by a seller without the participation of the owner.
• About the results of the re-examination (shortages, re-sorting, surpluses) - how to identify the guilty parties and trace the history of the goods movement.

Webinar of 24.10.2013

Webinar from 04.07.2013

• Inventory using a barcode scanner, data collection terminal or without equipment - by counting the goods on the list
• How to take an inventory of goods that are located remotely from the accounting program or at non-automated points of sale;
• How to speed up the counting of small items in large quantities;
• Detection and prevention of fraud with goods during returns. We track the history of goods movement;
• How to recalculate without stopping trading;
• How to conduct a re-account for the required group of goods (for certain types of goods, by season, by manufacturer, etc.);
• How to control the inventory and entrust the count to the seller without your participation;
• How to write off or revalue low-quality goods found during inventory;
• How the result of the inventory affects the profit;
• "Reconciliation of accounting data and actual availability. Shortages, re-sorting, and identification of responsible persons. How to print the inventory results.

The video tutorial describes how to conduct a re-inventory in a store with the ability to view and delete the actions of the seller who conducted the inventory.