For those of you who work in manufacturing companies are certainly no stranger to the term stock taking, right?
Stock taking is a form of stock inventory calculation in the warehouse before it is sold. This activity is indeed quite time consuming because you will be checking and calculating the goods in the warehouse directly. In addition, in making calculations there must also be no mistakes or something missed, because later it will affect the stock of goods they sell.
Stock taking can actually be applied by every company, not only for manufacturing or trading companies, it’s just that each company has a different system and procedure depending on the needs and type of business. Now with the development of technology there is already a barcode. By using a barcode, the stock taking process can be done more quickly and efficiently. Besides using barcodes, errors in recording and calculating items can be minimized.
Definition of Stock Taking
Stock taking is an activity of calculating the physical inventory in the warehouse. This activity is carried out to find out about the truth and accuracy of the company’s accounting records. Stock taking is an important activity because it is a function of internal control. Basically, stock taking is not only used to count inventory, but can also be used to count goods or objects related to the company’s operational activities.
Stock Hospitalization Period
Each company has a different time of stock taking. Generally the period of stock taking is the end of the year. However, it all depends on the company’s policies and needs. Companies with large scale have a lot of inventory so stock taking will be done several times a year, for example at the end of every month, once every 3 months, once every 4 months, or once a year. stock taking at the end of the year only. Or the type of business undertaken can also make a difference in the period of stock taking. A difference of a lot or at least is not a problem. The point remains the same, namely counting physical inventory.
Purpose of Stock Taking
It has been discussed above that actual stock taking is not only done by manufacturing companies. Stock taking can also be done for accounts such as cash, receivables, debt and other assets. Some objectives of stock taking are as follows.
Prevents company losses due to calculation negligence.
Know the number that actually exists.
Regulate the transfer of goods to and from the company.
Stock taking is conducted by the auditor not the inventory registrar. So the results are accurate because the calculation is done by an independent party.
Benefits of Stock Hospitalization
Stock taking should be done by the company regularly. This is because there are many benefits to be gained by the company. The benefits that can be obtained include:
Knowing the accuracy of the calculation by matching the accounting records with existing stock of goods.
- Help find the cost of goods sold (COGS).
- Help find out the actual inventory that is owned.
- Help identify fraud or negligence that occurs company.
- Helps in terms of making company policies.