Physical Inventory Procedures Inventory Guidelines 1. Definite plans should be developed concerning the date of the physical inventory, who is to supervise the count, the personnel of the counters and checkers of the counting, 2. One person having knowledge of all phases of department operations should be assigned responsibility for planning, coordinating, and supervising the entire inventory operation. 3. Written instructions should be prepared and each person connected with the inventory-taking thoroughly acquainted with them, A meeting of all persons involved in the counts should be held prior to the inventory-taking to review instructions and answer questions, 4. The complete personnel of the inventory group should be selected and their duties fixed. The personnel should include persons familiar with all materials, products, and processes, Supervisors should be persons independent of purchasing, storekeeping, and maintenance of perpetual inventory records, A. Preliminary to count 1. Receiving and shipping areas should be cleared of merchandise before counting is begun, and the receiving and shipping documents which are prepared near the date of the invertory count should clearly indicate the date goods were received or shipped, ‘The document for incoming goods should be marked “include in inventory" of “exclude from inventory" 2. The dates and numbers ofthe last invoice, last receiving report, and last shipping document written in the period must be noted, 3. The inventory premises should be pul into good order prior to starting the count, Consignment, obsolete, damaged or defective goods, or any item(s) not to be included should be placed together, if possible, before counting begins. Only goods to which theCollege has title should be considered part of its inventory. Questions of ttle should be resolved before the count begins, 4. Inventory post it sheets will provide space for amount counted and the counting teams inilials the count tags. When the recorder comes to recount and black marker through the count so that there is no doubt it was recorded, 8B. Count Procedures 1. You should form a counting team(s). At this stage, pay attention to employees" experience and understanding of a physical inventory process. Let the experienced People make all counts and necessary calculations and less experienced record the results of counting. Some training about material types, counting methods, documentation will be also useful. 2. If counting is to be done simultaneously by two or more teams, specific inventory areas, should be assigned to each counting unit to assure that all inventory items will be counted only once, 3. The counters should work in teams of two, one counting the items and the other who. will record the information on the pot-itnote, The second person should then indicate in ‘some manner on the materials that they have been counted their initials, C. Verification 1. Supervisors should observe the counting process and make certain that instructions are being followed. A supervisor should check each area to verify that counting has been completed.2. Ablind” second count by another individual or team provides the best assurance that Counting has been accurately performed. The two count totals should be compared and any difference reconciled immediately. 3. Original tags should be retained, together with the summary sheets, unil the auditor has completed his verification of the inventory. * You should also prepare the warehouse(s). Make sure that all materiais/products are in their Proper places and can be clearly identified, clean up the store area, label all shelves and locations. Slow-moving items can be counted and marked a day before a full physical inventory. Identify damaged, discounted and obsolete classes of items; place them separately from other inventory (vendor return area). Prepare and provide the plan(s) of stock locations, Damages Product damage is a fact of lfe in any warehouse. Products can be damaged during transport or during the pick-and-pack operation, during which full cases are broken down and repacked for shipment in smaller quantities. Concealed damage can be discovered months after the item was ‘eceived. In each of these instances, the product must be properly deducted from the inventory. ‘An accurate inventory of available products is crucial to both sales and purchasing departments All inventory adjustments relating to damages must be carefully monitored and recorded. There should also be an effort to identify the person responsible for the damage~not order to assign blame but to monitor the inventory process. This dala can be used to develop specialized training if trends are discovered. if single associate continues to damage inventory, that person can be singled out for retraining or specialized training to help correct the problem.STUDENT INVENTORY INSTRUCTIONS’ 1, INVENTORY IS THE SECOND MOST IMPORTANT DUTY YOU FOR THE BOOKSTORE COMPARED ONLY TO EXCELLENT CUSTOMER SERVICE. PLEASE MAKE SURE YOU HAVE PLENTY OF REST AND ARE READY FOR THE TASK AT HAND. 2. YOU WILL BE PAIRED UP WITH EITHER ANOTHER STI UDENT WORKER OR CLASSIFIED AND WILL BE GIVE A PAD OF POST-IT-NOTES. YOU WILL BEGIN A FIXTURE FROM THE TOP LEFT WORKING RIGHT AND DOWN. PLEASE MAKE SURE YOU HAVE COUNTED THE ENTIRE FIXTURE BEFORE MOVING ON. YOU WILL COUNT THE. ITEMS AND WRITE THE COUNT AND YOUR INITIALS ON THE POST-IT-NOTE AND AFFIX IT TO THE ITEM BEING COUNTED. MAKE, SURE YOU ARE VERIFYING ALL ITEMS HAVE THE SAME BAR CODE AND IF TEXT BOOKS, SEPARATE THE NEW FROM THE USED AND PUT COUNTS ON EACH ITEM. THIS AGAIN IS A VERY SERIOUS, AND IS WHAT KEEPS US ALL EMPLOYED, 8. IF YOU ARE ON & SCANNIONG TEAM AGAIN START FROM THE UPPER LEFT HAND SIDE WORKING ACROSS AND DOWN TO ENSURE ALL ITEMS ARE SCANNED. AFTER ENTERING INTO PDA OR, COMPUTER A BLACK MARKER LINE SHOULD BE PLACED THROUGH THE COUNT. ONCE THE AREA IS SCANNED GO TO THE STORE MAP AND SHADE IN THAT FIXTURE NUMBER. ONCE THE MAP IS COMPLETELY SHADED INVENTORY IS COMPLETE. 4. ONCE THE INVENTORY IS DONE AND THE CLASSIFIED HAVE GIVEN THE THUMBS UP IT IS TIME FOR CLEAN-UP. AT THIS TIME ALL POST- IT-NOTES SHOULD BE REMOVED AND AREAS CLEANED UP. THIS IS IMPORTANT SO THAT THE NEXT INVENTORY DOES NOT RE USE THE TAGS AND MESS THAT INVENTORY UP.Storage Room Fixture 90 Fix 93 Fixture 92 Fix 79) Fix 80][ Fix | Pica [ria wr OLE Soe Fix 71 Fix 72 Fix 73 Fix62 Fix 63 BS ou Bore tp axis | [op amma | [Sp ome ‘QUO }g Jo TUOAT OF BufoodO, a10ysyoog Os Baly WsBl0}g YOog wayMain Store Area SJC Bookstore Fewes | [rxwea —] [rues] Fixture? | ‘Cubby Storage Fix 43 =] [@ 2400, Ov “| Et 38 #13 Fixture 14 Fixture 15 #16 a7 a8, Fixture 10 Fixture 7 Fix33__fix34__fix35__fix36__fix 37 Door to Door to Door to Safe ‘Opening to Back Room Break Ottice Room No # Room No Fixture 95Myc Clay Cage Vending Machines Vending machine» DAP EEY: palria yatta] aed? | # ar [toa hy peu | HY | e157] % rs 3 asa ae | eH See ao [#0 [eg #a3itag Hl EY, G ENTRANCE, 7 E e vse} lee | ose! Ler] Str Cer] oce] =e «HE | eee] pe 20 Ie NOUVAITA INOMPreparation of data Make sure all information has been entered into WinPRISM ICS that is pertinent to inventory counts or the value of your inventory, } Verify all sales that were incurred prior to taking physical inventory are posted Receive all items that are going to be counted (including merchandise transfers). . Enter all miscellaneous stock adjustments, ». Post buyback totals and post all buyback invoices. EET Be —3. Enter and post all available invoices. Hea, Hts 6 » Ensure that all Merchandise Transfers done before the inventory count are generated, received, and that the invoice and credit memo have been closed. 7. If there are pending returns or sales to wholesale, decide if they will be counted. If they are NOT going to be counted, post the return or sale to wholesale prior to starting the inventory count. —8. Enter and post any credit memos that are ready to be posted in Resolve Credit Requests (including merchandise transfers, discrepancies, and sales to wholesalers), 9. Ship all Mail Orders that are complete and verify mail/web sales are posted. —10-Print an Inventory Value report from the Physical Inventory module to ensure that the current margins, costs, retails, and stock on hand are within reasonable expectations. Fix any values that are noticeably incorrect (i.e, a $1,000,000 pencil or SOH of 9782343295234 of a book). —!1. Troubleshoot items with negative SOH and, if possible, correct any issues that caused it to become negative. The Inventory Value Report in the Physical Inventory module can show the negative SOH items by DCC. 12. There should be no items with SOH that have a cost or retail of $0.00. 13. If referencing reports in the Stock Ledger reports module, run a spreadsheet report(s) for all DCCs to be counted. Verify the margins and/or totals look normal and correct anything that is obviously incorrect. —4. Run the elevated cost and retail user lists and correct any problems, AS. Run the duplicate barcode user list and correct any duplicates. 16, Ifthe store is open while you are doing the physical inventory, you must make sure that you have a plan to deal with the sales that occur during inventory and ‘Whether or not to post those sales before or after posting the inventory. —17. Discuss with your auditors/business office the expectations they have for the store before, during, and after your inventory, including what reporting they need. Page 2Preparation of hardware and store ted, 9. Setup, program and test the inventory hardware (PDTs, EDAS, or PDAS) at least a month prior to your physical inventory. Each separate handheld device to be used in the inventory count should be tested. If there are any bad cords, batteries, scanners, or other inventory hardware issues, contact WinPRISM Support or System Sales as soon as possible. fusing an external company to count your inventory, contact Support in advance. An inventory validation report can be added to your WinPRISM system to be given to your inventory company. The file that is given from the inventory company of your inventory counts has to be compatible with our physical inventory import. Call Support for details Prior to counting your inventory, ensure that the Physical Inventory and PDT Data Maintenance modules do not have any records for the locations to be counted. Delete any old or test fixture/area records that are no longer valid or needed. Map a fixture/area Jayout of the store and prominently display fixture and area labels in the store prior to counting. Familiarize the inventory staff with the fixture and areas, Ensuring that fixture/area locations are used while counting makes it easier to find items in situations requiring a recount or verification of an item before posting. Every spot in the bookstore needs BOTH a fixture and an area, even if one of the fields is a placeholder (i.e. a store may set up their map so the fixture changes but the area is always ‘I"). All counting devices should be set to the same batch number (i. everything set to batch 1) for every fixture, area, and location, . If there is more than one store location doing an inventory in the same timeframe, make each location’s fixture/area record names unique. . Have a plan for items not recognized by WinPRISM during the inventory (Not Found” items), Set guidelines for the inventory staff in consistent inventory practices. This would include counting shelves from top to bottorn and left to right. Items that are not to be counted during the inventory (ie. consignment or store use items) should be prominently labeled as such, Check the WinPRISM Server data backups to ensure the nightly backup and the tape backup are running without errors or problems. Page 3