Stock Count

Stock Count Overview

The Sapphire Web Pack Stock Count tool enables the user to do a stock count using the Sapphire Web Pack. The Sapphire Stock Count has been designed for the adjustment of stock levels and inventory counts.

Inventory counts, as referred to stock-takes in some countries, facilitates you to manage your inventory. While an inventory count is being completed, each item in your warehouse facility is recorded and counted. When the inventory count is submitted, your warehouse inventory levels are recorded and updated.

Stock-taking or physical verification wall-to-wall or inventory checking is the material verification of the quantities and condition of the inventory items held as inventory within a warehouse or location. This may be done to provide an audit of existing stock. It is also the source of stock discrepancy information.

Typically, a stock-take may be performed as an intensive end of financial year procedure or alternatively done continuously by means of a rolling stock-take, or sometimes referred to as a cycle count. A cycle count is a periodic inventory auditing process, where you follow a scheduled and repeated sequence of inventory counts on a subset of inventory. Cycle counts contrast with annual stock count of inventory in that a traditional material inventory stops operations at your warehouse or inventory location while all inventory items are counted. Cycle counts are substantially less intrusive and disruptive to daily operations. They execute an ongoing measure of inventory accountability as a procedural verification, and can be curated to focus on inventory of significant financial value, higher movement volume, or that are critical to business processes.

Cycle counting is ideally performed in warehouses or locations and is a means of supporting and maintaining an applicable degree of accuracy. Root causes of difficulties can be quickly identified and eradicated in a controlled manner. The effectiveness of the actions can be monitored and reviewed. In contrast, identifying root causes of inventory errors, agreeing on actions to eliminate them to the point of perfecting control processes is virtually impossible with traditional inventory audit approaches. An annual end of financial year inventory stock-take is typically undertaken by the company at the end of the financial year for use in the company’s end of year financial statements being profit and loss, income statement and balance sheet. Including your external auditors is recommended.

Periodic counting is usually performed on less expensive inventory items. Periodic may refer to daily, weekly, fortnightly, monthly, bi-monthly, quarterly, half-year or annual stock-take.

A stock-take sale refers to a sale with discounted pricing in a facility, for example a warehouse sale or a warehouse stock clearance to sell off stock from end of life or discontinued inventory lines. This makes the task of stock-taking easier. A specific point in time will provide a cut off point that will help determine the stock take level at a particular date and time for your organisation.

To access it in Client Server mode, go to Inventory \ Inventory \ Stocktake Entry

Web Pack-Data Entry
Web Pack-Data Entry Menu-Stock Count

When the Stock Count function is first accessed from the Sapphire Web Pack it will display the screen as seen below.

There are no corrections allowed in this function. To make a correction the user must select an existing item that requires a correction or alteration. SapphireOne will then display an alert asking for permission to delete the item. Once deleted the item may be re-entered correctly.

  • Inventory ID – You will normally scan the barcode, which will enter the Inventory ID. If you do not have a barcode, you should know all or part of the ID that you want to select. The use of the @ symbol is allowed to perform a wild card search for the ID.
    • Scan Inventory Item – Scan the barcode on each Inventory item. The user then has the option of re-scanning the item to increase the count by 1 each time the item is scanned.
    • Direct Quantity Entry – Scan the Inventory item once, and then directly enter the quantity using the mouse on a desktop computer or alternatively entering the numerical value using the iPad, iPhone or device to select numbers from the automatically displayed number pad.
  • Location – Select the Inventory Location that this Stock Count is to apply to. In the demo Bondi Blue file, we have locations for Sydney, Bondi and Commission.
  • Quantity – If required from above, enter the quantity using the mouse to select numbers from the automatically displayed number pad.
  • Add Button – Once all is correct, select the Add button to add the current item to the Stock Count list.
  • More Items – If more Inventory items are to be transferred repeat the procedure above but make certain that the screen is open deep enough so that the user can see the additional lines as they are entered.
  • Processing – Once all of the Stock Count items have been entered select the Process button to save the transaction and write the details to your SapphireOne data file.

SapphireOne’s implementation of both Dictation (MacOS) and Speech to Text (Windows) is a game changer for data entry. Any data entry field you can type into using a keyboard can use this feature.

You can also use this functionality on all inquiry screens within SapphireOne. For example, the user is in a Contact within a Client. They may have made a phone call to that particular client using the Softphone technology. Consequently, this will automatically date and time stamp both the contact and the phone number you called.

As soon as the call is completed, the user has the ability to use Speech to Text (Windows) or Dictation (MacOS). They can dictate into the memo field of the CRM contact, adding as much description as they require.

Dictation and Speech to Text Procedure

This functionality applies across every single Data Entry screen. For example, the SapphireOne user is entering a Vendor Invoice (VI). Additionally, you may want to add a memo within the Vendor Invoice (VI). The user can utilise the tool and simply dictate the memo.

Another example is if the user wants to add additional lines to the General Ledger account, within each General Ledger account. When the user is completing data entry using a General Ledger, there’s always a unique memo field for each GL account line. The user can then utilise this feature to quickly add the information they need to add. Alternatively, you may have an interview with an employee. After the interview process is completed, the user can then make notes about the employee.

Speech to Text or Dictation is an extremely powerful tool. It is something that we at SapphireOne, as well as our clients, utilise daily. It is a massive timesaver. 

Items to Consider:

If the Stocktake entry involves negative stock, there is no cost change.

When Stocktake adjustments are done, they must be posted immediately. These entries are based upon a current snap shot of the current stock levels at the time of entry.

The General Ledger Account cannot be the same as the Inventory Asset Account as the Inventory items will be re-valued. For this purpose, it is necessary to create a Stock Variance Account within the Cost of Sales section of your Income Statement / P&L.

You can review our Blog and YouTube channel for additional information and resources on SapphireOne ERP, CRM and Business Accounting software.

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