Count Stock
It is essential that stock items are counted for audit purposes at least once a year. Stores staff are encouraged to break the counting down into manageable chunks by using monthly cycle counting. By following this approach you will be able to count all items in your store over the course of a year without the need to close the store for all transactions.
Evidence of the physical stock count (ideally regular cycle counting) should be retained.
1. Cycle counts
There are a number of steps that need to be completed by the Inventory Process Owner to set up a cycle count. Contact the Inventory Process Owner for further details.
The following links provide full details of the steps to be taken by stores staff for each cycle count:
Step 1: Carry out a Cycle Count 
(201kb) (see also Physical counting)
Step 2: Carry out a Recount (195kb)
Step 3: Manage Cycle Count Variances (111kb) (see also Managing variations)
If new items are introduced into a store then these will need to added into the cycle count:
Step 4: Add items to a Cycle Count (76kb)
The criteria used at the University for splitting the items in a store into monthly batches for counting is quantity. The intention is that each month roughly the same number of units will need to be counted, although the number of different lines this involves will vary.
Physical counting
Each item counted should be carefully logged on the counting sheet in clearly legible writing.
Note: Where items are issued (and receipted) as single items, but physically stored in multiple units e.g. boxes, the count should be documented as per:
| (No. of boxes x No. of units per full box) + No. of
units in any open boxes e.g. 5 x 10 + 8 (i.e. a total of 58
units)
|
Where items are issued, receipted, and stored by the box, the count should be documented as No. of boxes e.g. 5.
Where stock levels are noted to be low there may be a need to order new stocks. See Reviewing stock needs for further information.
Managing variations
Differences between the physical count and system quantity will
need to be investigated and any corrections made as soon as possible. In the
first instance a recount will be required. (Carry out a Recount (195kb))
If after recount there is still a difference then receipts, issues etc will need to be checked both on Oracle Financials and physical paper records.
Where the counts are still not matched but the difference is acceptable the count can be approved by the Departmental Administrator or delegated member of staff.
| Note: This will have an impact on
the departmental budget.2. Annual stock counts
|
A complete count of items is required as part of the set up of a new inventory organisation. Otherwise, wherever possible it is preferred that items are counted on a monthly basis (see Cycle counts above).
If agreed with the Inventory Process Owner, an annual physical
inventory stock count can be carried out, as per the Inventory Stock Take Manual 
(1,635kb).