Tools for Taking Physical Inventory
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The physical inventory menu that appears on your
main Inventory Maintenance menu has the tools that you need to take a
physical inventory. You should take a physical inventory at
least once a year to make sure that you actually have all the items
that are listed in your online store.
The process of taking a physical inventory works
like this:
-
Decide which warehouse you are going to
inventory (if you have only the inventory that's visible to
customers, this is very simple because there is only one warehouse!) and use the menu option to
print an inventory worksheet for that warehouse. The
inventory worksheet is a list of all the items that you have on
your item master where the status is not 'deleted'm 'sold-and-show' or 'sold-and-hide', their names
and their cost. The quantity is not included. This
is deliberate; the purpose of an inventory is to help you find
and count everything that you have.
If you don't have a title defined for your item, the description
will be used instead, but it will be highlighted in blue. In general, its a good idea
to use titles on the things in your store because they are used
by the search engine and it will raise the probability of a
customer (particularly one from offsite) finding your item and
buying it. For your convenience, the item numbers on the
worksheet are linked to the inventory maintenance program, so it
would be easy to correct this on the spot if you wish to do so.
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Using the inventory worksheet, count your
inventory and write the amount that you have on your worksheet. It
will make it much easier when you are counting if you get some stickers
that you can put on the items that are already counted to make sure that
you do not count them more than once.
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Your inventory will be updated from a CSV
(comma separated values) spreadsheet file that you need to fill
out. Click here
to get a master copy of the input file in the format that you'll
need or select the menu option titled 'Download Input
Worksheet.' Note that the top line contains titles; you
may leave this or delete them as you wish. If they are
present, they'll be disregarded by the adjustment
program. You are free to create your own file, but it
must be in this format:
|
A |
B |
C |
D |
E |
F |
G |
H |
I |
1 |
Line |
item number |
on-hand quantity |
Category
Id |
price |
cost |
title |
description |
optional |
2 |
1 |
1339 |
48 |
|
|
|
|
|
|
3 |
2 |
750-136 |
12 |
|
|
|
|
|
|
4 |
3 |
grab-box |
5 |
37 |
2.00 |
1.00 |
A Grab-bag of
goodies |
Who knows what
you may find in this super-value box? Its a
combination of the odd and ends that we have in our
warehouse. |
this was a new
item we added during inventory |
Do not leave items
blank, unless you don't have them any more and want the quantity
set to zero! Zero is a real number and your inventory of
any item will be set to zero if that's what's in the
spreadsheet. To keep an item from being updated,
delete it from your worksheet!
Note that the upload program will allow you
to create new items and add them to your store during your
physical inventory. You'll need to add pictures for these
items after the fact, but this is a quick way to add extra
items. If you do not specify a category for your new
items, they will be placed in your category that is associated
with the system category of 'miscellaneous'; if you have no such
category, it will be created. Items that are added in this
manner are placed on 'hide' status so that you can find and
update them before your customers see them.
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When the data is complete and correct, select
the option 'Upload Adjustments' from the menu. You
will have an option to browse for the adjustment file, and to
specify the warehouse to which the adjustments are to be
applied.
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It is a VERY good idea to run a trial
balance. In this case, the program will do everything for
you EXCEPT apply the changes to your inventory. Running a
trial balance allows you to preview the effect of the changes
you are about to make to your inventory and ensure that they
make sense.
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After you are sure your changes will be
correct, select the option to apply your changes. This
process is called 'adjusting your book to your physical
inventory'. When you apply the changes, the new
inventory balances will be written to the warehouse you've
selected (or if you only have customer-visible inventory, to
your main inventory file). If you find during your
inventory that you have items that are missing or have been
damaged since your last inventory, you may be able to deduct the
cost of these items from the profits of your store. Please
discuss this matter with your accountant.
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You can print a report that shows your
changes and you may wish to do so:
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If you need to reprint your physical
inventory adjustments, select the menu option and do so.
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The inventory reports have some helpful
information that allow you to gauge the accuracy of your
inventory maintenance practices. At the end of the
report, you can see the value of your physical inventory before
and after the changes. The variance is also
calculated.
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For auditing purposes, the inventory reports
are permanently stored and can be reprinted at any time.
As a general rule of thumb, inventory error of
about 2% per annum is considered 'normal' if you are not doing
cycle counting or using any other means of maintaining your
inventory accuracy. If your level of error is higher than
this, you may want to see about changing your inventory management
procedures to improve the accuracy.
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