Stocktake procedure

Procedure

Operational responsibility

Responsibility for the control of the physical inventory rests with the Manager of each location. The manager will oversee the process to ensure that planning is carried out and that counters are aware of the procedures and that established procedures are followed. The managers will be responsible for the co-ordination and completion of the stocktake. All issues should be directed to the manager for resolution.

Intent and objectives

To ensure stocktakes are undertaken in accordance with Retail Management Policy with the overall objectives of:

  • Verifying the accuracy of stock records
  • Supporting the value of stock shown in the balance sheet through physical verification
  • Disclosing the possibility of fraud, theft or loss
  • Revealing any weakness within the system for the custody and control of stock.

Scope

The procedure is applicable to the Campus Stores (All Locations). This procedure will also apply to Linktopia post October 2013 (once Linktopia is an integral part of the Campus Store.)

Exclusions

Nil.

Procedure steps and actions

Stocktake Procedures cover 3 important stages:

1. Planning

2. Conducting

3. Review and follow up of matters

Timeline:

April and September Month End Stocktakes, with planning occurring month before each.

Stage 1 - Planning Stocktake

Responsibility

Appoint one person to control whole operation.

Campus Store Manager

Confirmation of stocktake date and time communicated to all stakeholders (including external auditors).

Campus Store Manager to communicate to retail staff & FSG to all other parties

Identify staff to participate in the stocktake including ensuring that where appropriate FSG staff are available to supervise the physical inventory count and follow up of any variances.

Campus Store Manager and FSG (for supervisory staff)

Issue all stakeholders with detailed written instructions for stocktake well in advance of stocktake date; also follow up with verbal instructions to ensure they know what is required including follow up procedures for resolving variances.

Campus Store Manager and FSG

Ensure all applicable staff either attend or view the BookNet stocktake training either online or via a ‘live’ WebEx session.

Campus Store Manager

Allocate areas to be counted to individuals or teams of counters to ensure that a systematic approach is taken to ensure a complete and accurate count.

Campus Store Manager

Ensure all stock to be counted is identified prior to commencement of physical count (inclusive of any stock in transit) and that cut off instructions have been adhered to.

Campus Store Manager

If stock in transit does exist ensure details are provided to external auditors so that confirmation can be obtained.

Campus Store Manager

Organise stock for efficient counting. Like items should be grouped together, excess storage locations should be noted. Goods that are to be excluded should be marked and located away from inventory.

Campus Store Manager

Stage 2 – Conducting Stocktake

Inventory cut off to be reviewed prior to stocktake commencement.

Campus Store Manager

Arrange for operations to be halted to cease movement of inventory during count.

Campus Store Manager

Staff to be issued with stocktake scanners.

Campus Store Manager

Scan stock within areas assigned and in accordance with stocktake instructions.

All staff allocated

Consider any damaged or obsolete stock and where considered material to stocktake provide FSG with details of any suggested write off in the Stock Write Off Template.(link to template to be included here) For the purposes of stock material variances required for FSG review are defined as 5% of total value of stock at time of stocktake.

Campus Store Manager

Once count is completed compare count to inventory listing from BookNet system.

Campus Store Manager

Investigate any variances by re-counting where necessary.

All staff allocated

Final review of any further unresolved variances.

FSG Supervisory Staff

Ensure count is appropriately supervised throughout preferably by an independent staff member.

Campus Store Manager and FSG Supervisory Staff

Final tour of count area should take place at cease of counting to ensure that all inventory has been included within count. Once satisfied all inventory has been counted, areas can be released for business as usual.

Campus Store Manager and FSG Supervisory Staff

Ensure FSG is provided with Stock Write Off Template in the case of any material obsolete stock items.

Campus Store Manager

Stage 3 – Review and Follow up of matters

Once approved, update inventory for stocktake results within system including any approved Stock Write Offs prior to opening for business next business day to ensure that final stocktake results agree with month end reporting

Campus Store Manager and FSG Supervisory Staff

Generate Final Inventory Report and Variance Report and provide to FSG for month end purposes.

Campus Store Manager

Evaluate count procedures and update stocktake instructions where appropriate.

Campus Store Manager and FSG Supervisory Staff

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