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Stock Taking

Stock Taking (Physical Inventory Count)

Maintain Inventory Accuracy
Regular stock taking maintains inventory accuracy above 95%, helps identify theft or loss, and ensures compliance with accounting standards.

Stock taking is the process of physically counting your inventory and comparing it to system quantities. Perform regular counts to maintain accuracy, identify discrepancies, and ensure your records match reality.


What is Stock Taking?

Stock taking, also known as physical inventory count, is the systematic process of counting all items in your inventory and comparing the actual quantities to what your system shows. This critical process ensures data accuracy and helps identify issues early.

Why Regular Stock Taking Matters

  • Maintains inventory accuracy above 95% for reliable operations
  • Identifies theft, loss, or unrecorded transactions quickly
  • Ensures compliance with accounting and regulatory standards
  • Provides accurate data for financial reporting and taxes
  • Reveals counting or data entry errors for correction
Regular Stock Taking
Best practice: Full inventory count monthly or quarterly. High-turnover items should be cycle-counted weekly. Maintains inventory accuracy above 95%.

Starting a Stock Taking Session

Create a stock taking session to organize your physical count. You can count your entire inventory at once or focus on specific categories, products, or batches.

1

Create Session

Navigate to Stock Taking → Click 'New Session'. Enter session name (e.g., 'Monthly Count - January 2025') and optional notes.

2

Add Products

Search and add individual products/batches, select multiple from inventory list, or add entire categories at once for comprehensive counts.

3

Perform Count

Physically count items on shelves. Enter actual quantities for each batch in the system using mobile or desktop interface.

4

Review Variances

System auto-calculates variance (Actual - System). Variances display in red (shortage) or green (overage) for easy identification.

5

Complete Session

Select adjustment reasons for variances. Add notes explaining discrepancies. Click 'Complete' to update inventory levels automatically.


Understanding Variances

Variances occur when your physical count differs from system quantities. Understanding why variances happen helps improve inventory accuracy over time.

Investigation Required
Large variances (>10%) may indicate theft, counting errors, unrecorded sales, or data entry mistakes. Investigate and document findings before completing the session.

Common Variance Causes

  • Counting Errors: Miscounted during physical count (most common)
  • Data Entry Errors: Incorrect quantities entered during receiving
  • Unrecorded Sales: Sales not properly recorded in system
  • Theft or Loss: Unexplained inventory shrinkage
  • Damaged Products: Items damaged and discarded without recording
  • Expired Products: Products removed without updating system

Pack-Based Counting

For products sold by the pack (e.g., "Paracetamol 500mg - Pack of 10"), the system provides separate fields for counting full packs and loose units. This ensures accurate counts for wholesale and retail operations.

Count in Packs
For pack-based products, enter full packs and loose units separately. Example: 5 packs × 20 units + 7 loose = 107 total units. System auto-calculates.

Completing Stock Taking

Before completing your session, carefully review all variances and ensure counts are accurate. Once completed, inventory quantities automatically adjust to match your physical counts.

1

Review Variances

Check variance column for accuracy. Re-count any batches with large discrepancies (>10%) to ensure physical count is correct.

2

Add Reasons

Select reason for each variance: Damaged, Expired, Theft, Counting Error, Data Entry Error, Unrecorded Sale, Other. Required for audit trail.

3

Complete Session

Click 'Complete Session'. Inventory quantities auto-adjust to actual counts. Session permanently saved with full audit trail including performer, timestamp, and reasons.

Audit Trail
All stock taking sessions are permanently saved with: performer name, date/time, item counts, variances, adjustment reasons. Required for accounting and regulatory compliance.

Stock Taking Best Practices

Preparation

  • Schedule during slow hours to minimize interruptions
  • Print counting sheets or use mobile devices for efficiency
  • Organize shelves and products before counting
  • Assign specific sections to team members if working in groups
  • Clear workspace and ensure good lighting for accurate counting

During the Count

1

Count Systematically

Work shelf by shelf, left to right, top to bottom. Don't skip around to avoid double-counting or missing items.

2

Double-Check High-Value Items

Re-count expensive medications and controlled substances to ensure accuracy. Small errors here have big financial impact.

3

Note Discrepancies Immediately

If you find a large variance, stop and investigate before continuing. Check for misplaced items or data entry errors.

After Completion

  • Review variance reports to identify patterns
  • Investigate large discrepancies (>10%) thoroughly
  • Update minimum stock levels based on findings
  • Train staff on areas where errors occurred
  • Schedule next stock taking session

Cycle Counting vs Full Counts

Full Inventory Count

Count all products in your entire inventory at once. Best for:

  • Monthly or quarterly comprehensive audits
  • Year-end accounting requirements
  • Major inventory reconciliation needs
  • New store setups or system migrations

Cycle Counting

Count specific products or categories on a rotating schedule. Best for:

  • Weekly counts of high-turnover items (antibiotics, painkillers)
  • Daily counts of controlled substances
  • Continuous accuracy monitoring without full closure
  • Minimizing business disruption
Hybrid Approach
Combine both methods: Full count quarterly + weekly cycle counts for fast-moving items = optimal accuracy with minimal disruption.

Next Steps

Related Documentation

Managing Inventory

Return to inventory list and learn about bulk operations

Low Stock Alerts

Set up alerts to monitor inventory levels automatically

Product Details

View transaction history and batch details for products

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Stock Taking | Inventory Management | PharmaSync