1 March 2021

Considerations when adopting Stock Management


This document is for clients who want to calculate a value of their stock on hand for their company and for each outlet, compare the stock values between outlets, and use the data in conjunction with e-procurement so they can calculate the consumption per product and per outlet.

How Stocktaking Works

Closing stock can be recorded by outlets at the end of each period (at the end of a week, reporting period or calendar month) using Stock Location sheets set up by each outlet and populated from the products uploaded by suppliers and approved by the head office gatekeeper.

When a user is recording their closing stock for convenience over a number of days, they should always select a single date (i.e. the period end date).

Stock can be recorded in a basic way by a) case and part case, or alternatively by b) case, ‘pack/sleeve’ and by individual item or a combination of both. However, b) requires significant user or head office maintenance because many suppliers are unable to provide the detail of packs and items per case in separate ‘useable’ fields in their catalogue submissions.

Outlets can record stock live online into the application using a laptop, tablet or phone (though the latter screen may be too small), therefore eliminating the need to enter on paper and then re key.  As the closing stock is entered it is stored offline on the device (in the cache) so if the internet drops or is temporarily unavailable that is not a problem as the live system will be updated when internet returns.

Extra products can be added into stock locations sheets from the supplier product lists during the stock taking process (unless a company prefers to restrict outlets from access to this).

Suppliers discontinued products (identified as part of the supplier catalogue upload and approval process) are automatically highlighted on Stock Location Sheets, but users are still allowed to record stock to them as they may still have stock on hand.  The outlet user is responsible for removing discontinued products from their Stock Location Sheets when they no longer have that stock.

There is a process to record the transferring of stock between outlets, recorded by the issuing outlet; the application automatically records the receipt of the transfer in the receiving outlet.  If any stock is wrongly transferred, the receiving outlet must record a transfer back to correct the error.  This process is NOT for transfer requests to a Central Stores for which there is a separate Fact Sheet and separate option that can be licensed.

A ‘Simple Stocktaking’ tool is also available to record stock as a single value by purchase category but is not recommended as a compliant process as it prone to ‘dishonest’ use and cannot be audited.

Stock sheets can be managed centrally or by each outlet. Stock sheets can be set by supplier or by location, with the latter enabling stock from multiple suppliers to be on the same stock sheet.

End of Week Period End Tasks (and Calendar Month if required)

Each outlet must close each period (normally a week); this is a process that converts the data in outlet mode to ‘read only’ so it cannot then be edited (though a head office user can still edit it prior to exporting).

There is no requirement for a head office user to authorise stocktakes, but there is an optional process in the Close Period tool that enables a head office user to select the green close period stocktake button to convert it to blue to signify they have checked and authorised that outlets closing stock.

Stock Valuation Criteria

The default is that all closing stock is valued at the Last Price Paid.  Once a Stocktake Period has been closed the stock value is frozen.  There is an alternative upgrade option that can be licensed for the Stock Take Report Wizard to view the closing stock valued using a Weighted Average formula that adds ‘the VAT exclusive value of all purchases for booked off products since the previous stocktake and before midnight on the date selected for the Closing Stock’ and divides that total figure by the total quantity that has been purchased for that product.


Will you allow Simple Stock to be used?

How often will closing stock be recorded?

Do you want the users to create their own stock sheets or do you want to manage this centrally?

Do you want a rule option to be set that only displays products that have a theoretical closing stock?

Do you want a user to see the quantity of the last stock take for each product?

Do you have a target number of stock holding days and/or total stock value (which can be set by outlet)?

Do you want to set any Stock take Check Questions in the Close Period process?

Do you want outlets to key in direct or enter on paper and re key?

Do you want to export closing stock values into your accounting application?

Related Processes

See separate Fact Sheet for Line Checks and for using Central Stores