Youtube Video – Weekly Stock taking, Daily Physical verification of some items in stock
Continuous Stock Taking and Daily Physical Verification | Part 1
This video tells you about the importance of Physical Verification of your raw material on a daily basis, with the example of corrugation box industry.
According to Oxford Reference “A system of stocktaking designed to ensure that all the items of stock are physically counted and reconciled with the accounting records shown on the bin cards and the stock ledger within a specified period. For example, a stocktaking team may be working continuously so that all items of stock are checked four times a year, when adjustments are made to the accounting records to adjust them to the physical stock.”
Advantages of Continuous Stock Taking:
Accurate Accounting
Prevents Unnecessary Losses and Wastages
Improved Stock Management
In-house experts can be used
No Need to Shut down Operations
Eliminate Delays in Production/Delivery
Now why is Physical Verification Important?
For Reliability
For correct Profit and Loss Account
For Bank Stock Report # For Correct Drawing Power
MRP : Material Requirement Planning
To know correct closing quantity
and many more..
But does Physical Verification mean redo from the start? NO!!
But that happens so.. and it is not advantageous for anyone.
There could be many reasons for this difference in ERP records vs Actual Records such as Wrong opening reel no., missed some reels in opening, wrong kg in opening, wrong supplier reel no. in opening, barcode not put back on the reel, etc.
So in order to prevent such situations Continuous Stock Taking is essential to prevent wastage of resources and this can be done through a good ERP. In next video we will show you how it’s done in Finsys ERP.
