According to § 15 (3) of the Accounting Act, assets and liabilities must be inventoried at least once a year, before the end of the financial year. This also means you must physically check the inventory items. The goods in the warehouse must be counted to verify whether the actual data correspond to the stock records in the software.

● First, it is advisable to check the balances of the stock accounts in the balance sheet and compare them with the inventory.

In the balance sheet, check the category “Inventories” and in Warehouse -> Inventory. Make sure you are viewing the balance sheet and the report as of the same date.
If multiple warehouses are used, each warehouse has its own financial account. This means that you can compare either the total balance of all warehouses or the balance of each warehouse separately.

If the amounts do not match:

• Is a negative stock allowed? If yes, make sure that all purchase invoices for goods are entered within the period being checked. By the end of the reporting period, no stock balance for any item should be negative.
• If negative stock level is not allowed, check the account movements in the main ledger. Are there any transactions that should not be there? For example, separate financial transactions generally should not be present. The source documents for stock movements are purchase invoices, sales invoices, write-offs, stocktaking counts and inter-warehouse transfers. These documents ensure proper data flow.

● The first step in stocktaking is to prepare a counting sheet (or sheets), which can be either on paper or digital.
Once the inventory has been counted and the actual quantities recorded, it is time to enter the stocktaking data into the program. If multiple warehouses are used, a separate stocktaking must be done for each warehouse. More information can be found in the guide Stocktaking.