Compare the expected stock with what is there.
Use opening stock, receipts, sales and adjustments to investigate differences between records and a physical stock count.
Choose a consistent count boundary
Choose the time, location and unit. Pause or account for movements during the count so a sale made while counting is not mistaken for missing stock. Start with a manageable group of frequently sold or high-value items.
Work out expected closing stock
Expected quantity = opening quantity + received quantity − issued quantity, with separately recorded adjustments. Include returns and production movements where relevant. Check that all entries use the same unit.
Investigate before adjusting
Look for a missed sale, a duplicate purchase, damage, a return or a unit conversion. Record the reason for a correction and retain the original movement history. Repeated differences can reveal a process problem that needs attention.
Set a useful counting rhythm
Use short, regular counts for important items and a broader count when practical. The right frequency depends on stock value, volume and the reliability of your existing records; there is no universal schedule.
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