Physical inventory
In Arabic الجرد الشامل
A physical inventory, or stocktake, is a full count of every item in a warehouse at one time, compared with the book figures and corrected for the difference.
In plain words
Many businesses count everything at least once a year, often at year end, so the stock figure in the accounts rests on a count rather than on the books alone. Auditors usually expect it, and it is the moment every error of the year, from a wrong pick to a missing pallet, comes to light at once.
It differs from a cycle count in scope and timing. A physical inventory counts the whole warehouse on one cut-off, usually with movements stopped; a cycle count covers a few bins at a time over the year. Many businesses run cycle counts so the yearly full count has fewer surprises.
The common mistake is counting while goods still move. A delivery received or an order shipped during the count leaves the shelf and the books at different moments, and a real difference cannot be told from a timing one. Stop movements, or count each bin against the books at that moment.
- Items counted
- 420
- Items with a difference
- 24
- Book value
- SAR 248,600.00
- Counted value
- SAR 246,740.00
- Shortfall posted as a loss
- SAR 1,860.00
In Axon Suite
How Axon Suite handles it
An Axon Suite count can cover a whole warehouse or a single bin. Counters enter what they find, a reviewer approves, and closing posts the difference as one stock adjustment at cost.
Feature
Cycle counts that post the difference
Open a count for a warehouse or a single bin and fill the sheet from what the books hold. Counters enter what they find, a reviewer approves, and the difference posts as one adjustment at cost.
Open: Cycle counts that post the difference