For firms that manage and sell physical products, stocktake or stock count is a crucial process. It involves counting and verifying the number of items in stock with what you have recorded in your books or information system to ensure accurate inventory records. MYOB Advanced supports stocktakes which are important for several reasons:
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Inventory Accuracy
Stocktake helps maintain accurate inventory records by comparing the physical count of items with the recorded count in the system. Discrepancies can be identified and investigated, leading to improved inventory accuracy, and minimising issues like stockouts or excess inventory.
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Financial Reporting
Accurate inventory records are essential for financial reporting, including balance sheets, income statements, and profit calculations. Stocktake provides the necessary information to calculate the cost of goods sold (COGS) accurately and determine the value of inventory on hand which is regarded as an asset of the business.
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Loss Prevention
Stocktake can help identify and prevent inventory shrinkage due to theft, damage, or other factors. Regular stock counts can deter theft and provide early detection of any discrepancies, enabling businesses to take appropriate actions to minimise losses.
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Supply Chain Management
Accurate inventory information resulting from stocktake allows manufacturing companies to optimize their production and supply chain management processes. It helps in efficient demand forecasting, determining when to place production orders, reorder points, and managing supplier relationships effectively. MYOB Advanced Business, as an enterprise resource planning (ERP) software solution, supports stock-take functionality through its robust inventory management capabilities.
MYOB Advanced Business provides the following features to support stocktake processes:
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Real-time Inventory Visibility
MYOB Advanced Business offers real-time visibility into inventory levels across multiple locations, including warehouses, stores, or distribution centres. This visibility allows businesses to accurately plan and execute stock-take activities. MYOB Advanced Business, a cloud-based system provides real-time data on inventory count. The technology allows you to generate and print the physical inventory count sheet. The sheet will include details such as the inventory ID, the specific warehouse, the location of the items within the warehouse, the serial number of the items if you manufacture or purchase lot/serial tracked goods, and the book quantity, which is the quantity on hand based on what you have recorded in the system.
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Mobile Barcode Scanning
MYOB Advanced Business’s mobile application supports barcode scanning capabilities, making it easier to perform stocktake efficiently. To reduce human mistakes and boost efficiency, employees can utilise portable devices to scan barcodes and update inventory counts directly in the system. Considering that once an item has been scanned, it cannot be scanned again in the same inventory count, scanning helps businesses that store large quantities of stock, such as factories, to avoid human mistakes like duplicate counting or losing count during the stocktake.
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Variance Analysis
Using the physical inventory review process, users of MYOB Advanced Business may identify any anomalies or deviations by comparing actual counts with the recorded inventory levels. This analysis helps identify potential issues and supports investigations into the causes of discrepancies. Once investigations are justified any adjustments to reconcile the inventory are created automatically upon the completion of the stock count.
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Reporting and Analytics
MYOB Advanced Business provides customisable reporting and analytics tools, allowing businesses to generate comprehensive reports on stocktake results. These reports help stakeholders make informed decisions regarding inventory management, procurement, and financial planning.
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Integration with Other Modules
MYOB Advanced Business’s inventory management module integrates with other modules like purchasing, sales, and financials, ensuring a seamless flow of information across the organization. This integration enhances the accuracy and efficiency of stocktake processes by incorporating relevant data from various business functions. All warehouse operations are automatically suspended during a stocktake until the count is finished or cancelled. If you try to receive, transfer, or dispatch inventory during this period, the system will give you an error message. This also adds to the accuracy of the data, imagine that while a stock count is in progress, someone enters and processes a purchase order and a purchase receipt, increasing the stock on hand with amounts that weren’t available when the stock count process started. This would cause data discrepancies.
Overall, MYOB Advanced Business’s inventory management capabilities support efficient and accurate stock-take processes, enabling businesses to maintain optimal inventory levels, reduce costs, and make informed decisions regarding their supply chain and financial operations.
Want to find out more about using MYOB Advanced Business for stocktakes?
For more than 30 years Acacia has provided process management solutions to businesses, delivering ERP systems with a strong understanding of the many facets of the stocktake process. Our focus is on optimising and improving the operations of your business. If you are interested in finding out how Acacia can help your business, please contact us to find out more.
