Why would you perform a stock count procedure?<\/p>\n
There are two reasons you might and should do it. Remember that stock count is not just for the \u2018checkmark\u2019, but for actually providing the company\u2019s accounting and management with relevant information \u2013 accurate positions in stock and understanding whether there\u2019s anything missing (that is there haven\u2019t been any thefts) or if there\u2019s something that\u2019s actually long standing and if the net realisable value of such items has actually dropped below the currently recognized cost.\u00a0<\/p>\n
One of the reasons why you\u2019d perform for the stock count is to provide you with actual information regarding what you\u2019ve spent in the production and what\u2019s still standing in stock \u2013 this can be applied as \u2018change in inventories\u2019 on the income statement. It is okay to recognize all expenses incurred within the production as they occur, but it\u2019s important to take those back from profit and loss into inventories based on actually standing stock at the end of the period. If for an example you\u2019re just producing and on the other hand also selling without actually monitoring what\u2019s moving out and what\u2019s in stock at any given time. In such a situation you\u2019d find it crucial to perform regular stock counts.<\/p>\n
Another and a more general reason for performing a stock count is to at least once a year gain an understanding of whether there\u2019s anything missing (i.e. there\u2019s something on the list which doesn\u2019t actually exist for an example). It\u2019s also not for understanding if anything\u2019s missing per say, but to also evaluate whether existing controls we have applied for monitoring inventory, for recognizing inventory related transactions, whether they are appropriate.<\/p>\n","protected":false},"excerpt":{"rendered":"
Why would you perform a stock count procedure? There are two reasons you might and should do it. Remember that stock count is not just for the \u2018checkmark\u2019, but for actually providing the company\u2019s accounting and management with relevant information \u2013 accurate positions in stock and understanding whether there\u2019s anything missing (that is there haven\u2019t […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[42],"tags":[],"class_list":["post-5075","post","type-post","status-publish","format-standard","hentry","category-2-2-stock-count"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5075","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=5075"}],"version-history":[{"count":1,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5075\/revisions"}],"predecessor-version":[{"id":5076,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5075\/revisions\/5076"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=5075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=5075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=5075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}