Inventory list

What it means

An inventory list is the written output of a physical or documentary count: what was checked, when, who counted, the actual quantity and the signatures of those responsible.

Without it the stocktake formally did not happen. A warehouse may be counted to the last screw, but with no document an inspection treats the duty as unmet.

The list records reality, not the book balance. For each item it gives a description, the quantity in its unit of measure and, for tangible fixed assets, the asset number and location as well. The item’s condition is noted too, such as damage or unusability, because valuation and write-offs are later based on exactly that.

How it works in practice

A reconciliation record goes with it, comparing actual to book quantities and explaining differences. Shortages and surpluses are posted into the period the count relates to.

Counting is not only about inventory. It covers fixed assets, the cash book, receivables and payables, where it takes the form of confirming balances with partners.

For clients with a warehouse we prepare count sheets from the stock records without the book quantity on them. The counters then write down what they actually see rather than what they expect. The sheets are numbered, counting is done in pairs, and items with a difference are recounted straight after the stocktake while the goods are still there.

What to watch out for

A list signed in March for a December count is worthless. The procedure and the dates belong in the internal policy and must be followed, because that is what makes the list credible.

Not everything lying in the warehouse belongs on the list of the company’s own assets, and vice versa. Goods held on consignment, customers’ goods in for repair or goods sold but not yet collected are listed separately and kept in off-balance-sheet records. The company’s own goods in transit or at a processor, on the other hand, have to be backed by a third-party confirmation or they drop off the list.