Purpose 

Physical stocking taking is the process of counting, weighing or otherwise measuring all items in stock and recording the results. 
The reasons for doing this are as follows:

1. To verify the accuracy of the stock records.
2. To support the value of stock shown in the balance sheet by physical verification.
3. To disclose the possibility of fraud, theft or loss.
4. To reveal any weakness in the system for the custody and control of stock.

The size and number of surpluses and deficiencies revealed by stocktaking is a good criterion of the efficiency of storekeeping, control and procedure generally.

Procedures for Stock-takes

For a satisfactory stocktake, a good deal of preparation is necessary.

First of all, a program should be drawn up and agreed with all concerned, including the finance department, auditors, management and warehouse personnel.

Secondly, proper cut-off time, inventory report, stocktaking sheets have to be prepared in advance.

Thirdly, all personnel concerned must be instructed and briefed beforehand on their respective duties come the day of the stock take.

1. Appoint one person to control the whole operation.
2. Ideally, while stocktaking is in progress, do not have the hospital open for normal business or operations.
3. After the end of the last working day before the stock take, no more issues (deliveries) should be made and no more receipts recorded into the inventory system until the stocktake is complete. The number of the last receipt and issue should be noted, and all documents up to and including these numbers posted to the computer system or records. At this point, all the records can be ruled off and no further postings are made until the results of the stocktaking have been entered. Have stocktaking sheets under the control of one person, consecutively numbered, and issued to the staff on duty as required. No duplicates should be allowed and at the end of the job, all stocktaking sheets must be accounted for.
4. There should be count teams assembled on the day of the stocktake. The number of items in each bin should be counted. The count sheet for each Location should be countersigned by the duty person. The object is to make each person taking stock responsible for a particular section or clearly defined area of the warehouse and record everything that is found in the area.
5. Count all normal stock including loose packages and items under inspection. Damaged stocks should be recorded separately.
6. After the teams have completed their counts and handed the count sheets to the verifiers, the results of the count sheets should be entered into a computer and verified on the spot. The number of total items in the count and in the system should be compared to see if there are any shortages. If the number of items counted matches but there is a difference in individual models, there may have been cross counting or cross delivery of stock. If the number items does not match or there is a large discrepancy, then the items which show large discrepancy have to be recounted immediately.
7. Normally it is only possible to match the total number of items in the system and that counted on the day of the count. A detailed item by item comparison will normally only be completed a few working days after the stocktake day in the case of counts with large numbers of items.

Stocktake by Location Planning Template