Stock / Inventory

 

Step 1: Filterations

1.     stock quantity < 0

2.     stock quantity > limit such as 1000

3.     cost > selling price

4.     cost <= 0

5.     selling price <= 0

6.     Markup > limit

7.     Margin > limit

8.     Product item list doesn’t have sales through the years.

- (Extra keyed? Human Error? Duplicate item?)

 

Step 2: Confirmation on stock value of old and damage stock

1.     Old stock Quantity, cost, selling price, dated when through bill

2.     Damage stock Quantity, cost, selling price, dated when through bill

 

Step 3: Confirmation on stock value of actual stock

1.     Physical stock taking tally with computer record.

 

Step 4: Carefully dealt with Year End, Inflation, Costing Method (FIFO, Fixed Cost)

1.     Falls between Hari Raya, Christmas, New Year, Deepavali, CNY

Stock value would be high and low each month, define your focus.

2.     Falls between petrol / diesel price hike, product cost price hike.

 

Step 5: Combine all product sales GP to generate total GP tally with accounts GP.

1.     Key in the stock value into the closing stock.

2.     The GP in Profit & Loss must tally with GP in total Sales of Product.

3.     Provide a list of top product sales that impact the GP.

4.     Provide a list of bottom product sales with higher GP.

 

Step 6: Most Difficult part

1.     Keep monthly stock value by performing steps 1 to 5.

 

Step 7: Giving strong evidence.

1.     Prepare at least last 2 weeks purchase traceable to sales and balance stock

for year End through stock cards, before and after year end.

2.     Please do not provide any internal adjustment.

All must have confirmation from sales and purchase bill.

 

This will give people idea that you are taking everything in order into the accounts, even inflation and monthly effect to your profit & loss. Getting the figure correctly.