The inventory record: content, signatures and filing

When the count is over and the teams have gone home, one document remains: the inventory record. It is read months later by controlling, by head office and by the auditor, that is, by people who were not there. A good record therefore answers their questions without anyone from the warehouse having to explain what was meant. This article shows what belongs in it, who signs it and how the documents are filed.

What the record should contain

• Client, site, warehouse areas and the count method applied.
• Cut-off time and counting period with date and hour.
• Persons responsible: count leader, count teams with names and functions, representatives of the warehouse and of accounting.
• The valid version of the count instructions as an annex.
• Areas that were not counted, with the reason.
• Special features: blocked stock, third-party goods, goods in transit, measuring and estimating methods.
• Deviations from the plan, such as postponed areas or changed teams.
• The result in figures: number of positions counted, number of differences, distribution by tier, open points.

Also include what did not go to plan: a zone that was started later, a team that had to be replaced. A record that conceals problems looks unconvincing, and an auditor will find them anyway through the time stamps on the sheets.

A fictional example of the core figures in a record: 3 count zones, 120 count sheets, 3,120 positions counted, 164 differences, 11 of them with an open clearing status. What matters is not the figure itself but that every figure points to an annex: the 120 sheets to the issue log, the 164 differences to the difference list, the 11 open points to an action list with owners and dates.

Annexes that belong with it

1. Count instructions in the approved version.
2. Stock extract at the cut-off time with date and hour.
3. Count sheets of the first and second count, numbered, with the issue log.
4. Difference list with causes, status and approvals.
5. Evidence for the clearing, for example documents, e-mails and photos.

Signatures and approval

The record is signed by the count leader, the warehouse management and accounting or controlling, each with a date. Do not sign while differences without a status are on the list. A signature confirms that the procedure was carried out as described, not that every difference is explained. Open points may remain open if they are named as such. The count teams confirm their sheets individually; the signature under the record does not replace that. Decide beforehand in which language the record is written; the count sheets themselves can stay in the working language of the team.

Filing and retention

File the documents so that a third party can find them: one folder per count, organised inside by record, instructions, stock extract, count zones and differences. Supplement the paper file with a scan in a project folder with fixed file names. How long the documents must be kept depends on the requirements of your head office and the applicable rules. Clarify this with your tax adviser and the local chief accountant before you dispose of old files.

The five-question test

Before you approve the record, ask someone who was not involved in the project to put these questions and answer them from the file:

1. Who counted zone C, and when?
2. According to which instructions was the count carried out?
3. What was not counted, and why?
4. How was the largest difference cleared?
5. Where is sheet number 047?

If each question can be answered in a few minutes, the documentation holds up.

In short

An inventory record is good when it stands on its own: every figure leads to an annex, every annex to a name. AuditMaster delivers the inventory record, count sheets, difference list and a management summary as complete, traceable documents for accounting and the auditor.