It often happens, that stock management procedures are used in the company, but the stock balance given by the system does not match the actual amount. The reasons of such discrepancy may be the following: not all invoices entered into the system, staff errors, incorrect product specifications or improper organization of goods movement.
With properly implemented stock management in Bakeit.app you can:
– spend 10 minutes per day on inventory count;
– identify errors in the process of inventory count immediately;
– correct the reasons of discrepancies at once;
– timely react to product cost changes;
– delegate routine tasks to operating personnel;
– manage all business processes remotely, when it is convenient for you;
– automatically receive valid information on balances, raw materials and products movement;
Stock management system is based on the following:
1). Entering primary documentation.
2). Creating specifications.
3). Movement of raw materials between the warehouses.
4). Inventory count at the warehouse.
5). Spot inventory.
6). Working with discrepancies.
Entering primary documentation
Correct accounting in the system is not possible without the full and correct entering of primary documentation. The most popular documents you need to pay attention to:
– Purchase Invoices – goods and materials received from suppliers.
– Movements to another warehouse – transfer of raw materials and semi-products among the shops within organization.
– Shipment to a third party – shipment of goods or products to another legal entity.
– Write-off – writing off raw materials, semi-products and finished products after their expiry, due to sorting, spoilage or other reasons.
– Raw materials to production – release of finished items, and, thereafter, ingredients write-off from the warehouse.
For detailed description of each document see the article Primary document flow of the organization.
Creating specifications
Flow chart or a specification is a document where all the information about a dish, baked product or other item is contained, as well as components ratio, processing losses and cooking technology.
Precise and accurate write-off of raw materials per each product during production and sale depends on the correctness of this information.
For details on how to fill in specification see the section Entering specifications.
Transfer of raw materials between warehouses
All operations with raw materials, including finished products release or new deliveries, transfer between warehouses within organization, inventory count, write-off and other operations are reflected in Goods Movements Report.
Accounting is maintained based on total amount, market prices of finished products and goods and the cost of raw materials in terms of each location. The report is set up based on time period, categories, individual positions or assortment type.
For more detailed description how to work with the report see the article Transfer of Raw Materials between Warehouses.
Warehouse stock-taking
Inventory check is a procedure of counting leftover stock available at the warehouse. It is an internal control measure which gives an idea of the current stock balance at the warehouse. Knowing the valid figures it is easy to forecast the raw materials consumption for future periods, control the cost of products and reduce expenses.
K-Retail compares the planned balance with the data entered into inventory count and calculates all the discrepancies, both of raw materials cost and sale price for goods and finished products.
For more detailed information see Inventory count at the warehouse.
Spot inventory
We are sure you agree that an inventory count conducted once a month is not good enough. It is hard to find the guilty party after the month has elapsed. It is too late to amend specifications, and the search of not entered documents can easily take several days.
We suggest making inventory every day before the end of shift, in this way it is not so time-consuming for the personnel. You can review inventory check results and make corrections accordingly on the next day.
For example, we suggest the following inventory procedure for bakery shops:
– A cashier conducts inventory count of all the products every evening before the shift end;
– A baker or a kitchen worker conducts a spot inventory for raw materials during the day and at the end of shift
The result of such inventory principle is rewarding: stock balances are true-to-life and confirmed, raw materials movement and consumption is systematized, document corrections are reduced to minimum, staff and a manager needs less efforts to run business.
For detailed setup of spot inventory mode please read the article Spot inventory.
Dealing with discrepancies
Inventory discrepancies is a normal practice. Staff members could forget to enter new invoices for raw materials. Spoiled milk could be discarded but not written off. A cashier could confuse donuts when selling. All these facts result in discrepancies in inventory.
Ordinary absent-mindedness or intentional actions of staff can be revealed by the inventory check. For example:
– You have excess of 3 kg meat stuffing – check purchase invoices.
– Packaged juice is sold but the stock figures remain unchanged – check write-off settings.
– All balances were set to zero – make sure that a cashier chose the correct inventory type.
See the detailed explanation of discrepancies in the article Checking discrepancies during Inventory count.
