Stocktake

Stocktakes are essential for balancing the number of items bought and sold since your last stocktake. It ensures your system reflects the actual stock on hand. The goal is to match:

Previous Stock + New Stock – Sales = Current Stock

By performing stocktakes regularly, you can detect and resolve discrepancies in your inventory, identify missing items, and ensure your stock records are accurate.

How Often Should You Conduct a Stocktake?

It's good practice to conduct rolling stocktakes throughout the year, rather than leaving it to a rush at the end of the financial year. This provides ongoing oversight of stock discrepancies and helps keep inventory accurate year-round. Rolling stocktakes also offer a clearer picture of stock on hand, making it easier to manage discrepancies and stock shortages.

Stocktake Responsibilities

Each stocktake session involves four key tasks, each with specific responsibilities:

1. Setup: Performed by a supervisor or manager.
2. Counting: Anyone in the team can do this part.
3. Reporting and Checking: Done by a supervisor or manager.
4. Backup and Applying Variances: Typically done by the owner or manager, as it may involve significant financial adjustments (e.g., writing off lost stock).

Breaking Down the Stocktake into Manageable Sessions

Rather than tackling the entire store at once, break the stocktake into smaller, manageable sessions. These can be based on departments, suppliers, or any logical grouping of items. This will help you complete each session within a day.

Tip: It is usually easier to complete a stocktake on all departments of a Product Type. E.g. all Ring Departments (1,2,3,4,5,21). 
This is a small subset of your entire stock and will also enable you to scan all rings rather than trying to determine if a ring is a part of Department 1 or 3.

Before Starting Each Stocktake Session

Before you begin counting, make sure to:

1. Complete all stock entries for the selected department(s) or supplier(s).
2. Finalise any inter-store transfers for the selected department(s).
3. Ensure that all laybys and special orders have been reviewed.
4. Avoid entering any new stock for the selected department(s) until the stocktake session is complete.

Starting a Stocktake Session

1. In The Edge, go to Stock > Stocktake > Proceed on the left-hand menu. 
   

2. The stocktake screen will appear
   
   

Note: The Stocktake screen has a flow chart and a description, and requirements of each task will appear on the right as you hover over each button

3. Click Create to open a new Stocktake Management Screen
   
   
4. Fill in the Required Details

1. Stocktake Name (Give this a meaningful name, these can only be used once)
2. Select the store for the stocktake.
3. Select the criteria for you stock take this can be achieved by unticking All beside the Criteria type and selecting only the values you wish to include in the Stocktake

• Criteria Options:

• Selection Tab:

1. Store
2. Suppliers
3. Departments

• ID Codes Tab:

1. ID Code 1
2. ID Code 2
3. ID Code 3
4. ID Code 4

• Groups & Catalogues Tab:

1. Groups
2. Catalogues
3. Brands

• Other Tab

1. Locations
2. Stock Types

Note: To understand each field please refer to the Stock Screen Interpretation Manual

Using the above example of completing the stock take for Rings department you would Select the store. On the Selection tab Uncheck the All box next to Departments and only select Departments 1, 2, 3, 4, 5, 21

Counting Stock Items

Once you have set up the session, you can begin counting the stock items.

1. Select the Existing Stocktake you just created.
2. Click Scan

3. Enter your ID and password.

• If you are a multistore you may get the following 2 messages regarding inter-store transfers

1. This Message is an example when an inter-store transfer has not been received in by your store. It is warning you to exclude this stock from your scan or count. Type EXCLUDED in the box and click OK to proceed
   
   
2. This Message is an example when an inter-store transfer has been sent by your store but not received in by the other store. It is warning you to exclude this stock from your scan or count. Type EXCLUDED in the box and click OK to proceed
   
   

Interpreting the Stocktake Screen

The stocktake screen is broken down into 2 sections

• Top Section: This shows the criteria and setup for the stocktake
• Grid Screen: This is a grid screen to track the progress of the scan / count

Top Section:
In this section, there are multiple options available to assist with managing your stocktake session. 

Starting at the top:

• Stocktake Box: This box displays the name of the current stocktake session you are working on.
• Operator (Salesperson) who is completing the stocktake. This is based on the user credentials entered earlier.

• If the Operator is incorrect, change it to the correct user.

• the Store where the stocktake is taking place.

On the second line

• Criteria Line: The second line shows the criteria of the stocktake that was set up in Step 2, including departments, suppliers, or other filters.
• A warning is displayed here to remind you of what to include or exclude from the stocktake scanning session.
• You'll also see the Stock Section and Other Stocktake Options, which provide additional filters and settings for the stocktake. These areas are explained further below.
• There is also the option to print the Grid Screen (See Below) and the Close button

Grid Screen:

This section is to track the scan or entry history of items

On this screen there is multiple columns

• Item #: The item in which The Edge has determined the entered number relates to (This could be different than what you entered. if you are using old stock numbers or design numbers for entry)
• Scanned: What was entered or scanned to match the item
• Quantity: What the Qty that was entered (When scanning this should always display 1)
• Store: What store is the count for
• Item Total: Running total of all counted for the item number
  Note: If an item has been entered more than once the previous entries will not update the item total. The latest entry only shows the current item total
• Description: Description of the stock as per the Stock screen
• RRP: Current RRP of the stock as per the stock screen
• Messages: This is a message box for instructions or information to the person performing the stock take.

• Examples of Messages

1. This Dept not selected for this stocktake. – This is warning you that the stocktake has rejected this item as it is not apart of the criteria set in Step 2
2. Adjustment entry from # to #.  – This is advising you that you or someone has made a stocktake correction. This is explained further below

Setting up to count:

Determine if you are going to be manually entering stock or scanning and adjust the Stock settings as required: See below for different instructions on configuring for stock counting.

Important Note:
Laybys, Custom waiting to be picked up and Appro out to customers are not to be scanned in stocktake.
Special Orders that are waiting to be collected are to be scanned.

Using a Scanner:

• Inside the Stock section at the top of the screen, Tick the Auto Scan box. This will make the system automatically add 1 to the quantity each time an item is scanned.
• Scan your product until all product is scanned and counted

Note: If scanning the same item multiple times, the system will automatically update the quantity.

Manual Entry:

• If you are not using a scanner, manually enter the item code and quantity, then press Go.
• Repeat this process for each item.

Additional Options:

• The System will by default look up by other identifiers

• Old Stock #
• Design #
• Other ID

• If you want to disable adjust in the Also lookup items by: 

• Use the Other Options setting to enable/disable sound alerts when a code is scanned.

Correcting Mistakes:

If you entered the wrong item or quantity:

For small corrections

1. Enter the item code
2. Enter the quantity to adjust by (add or subtract) 
3. click Go to update the current total.
   
   

For large corrections or Re-Scanning items, 

1. Enter the item code
2. Select Reset the stocktake quantity
3. Enter the total quantity of the item
4. click Go to update the current total.
   
   

When you're done:

• Click Close to return to the stocktake main screen.

Note: The stocktake utility in The Edge saves as you go. You can exit out and come back in at any time and it will remember where you left off.

Producing Variance Report

After completing the stock count you will need to produce a variance report to verify stock discrepancies.

1. Click Variance Report.

2. Select the Sort by option that you are wishing to use
3. If you are a multistore and wish to see Qty on Hand at the other stores on the variance report, check Show Store Allocations
4. Click Ok when you have made you selections to produce the Variance Report

Reading Variance Report

The Variance report is broken down into 3 sections

• 
  Top Section: This is a summary of the stocktake criteria set in step 2, What date the report was produced, your store information
• Section 1. Items rejected by the Stocktake Report.: This shows any items that have been rejected by the stocktake and the reason why

• Examples of reasons

• They are not apart of the criteria 
• Recognised by the system

• Section 2. Stocktake variances.: This shows all the stock sorted as per the select set in Step 4 that has a variance of what is scanned or entered vs. what the system believes you should have

Understanding Section 2

It is essential to thoroughly read and understand Section 2, as it provides critical information about your stocktake session.

At the top of Section 2, you'll see a section that highlights if any items need to be re-scanned or re-checked before proceeding with the stocktake. This is an important step to ensure accuracy:

• Look in the Messages column to identify which items require re-scanning.
• Items that have been sold, transferred, refunded, or had invoice or adjustment entries since the last scan must be re-checked and re-entered before you can apply the stocktake.

• For detailed instructions on how to address these corrections, refer to Section 3: For Large Corrections or Re-Scanning Items.

Stock Variance Grid

At the bottom of Section 2, you will find a grid showing a list of stock variances. This grid contains multiple columns that provide detailed information about each item:

• Stock #: The Edge SKU number for the stock item.
• Description: The stock description, as seen on the Stock screen.
• Supp: The supplier short code used to identify the item's supplier.
• Design #: The design number of the stock item, as displayed in the system.
• Old Stock #: The previous stock number for the item, if applicable.
• Barcode: The barcode for the stock item, according to The Edge.
• Store: The store associated with the stocktake session.
• S/Take: The quantity of the item that was scanned or entered during the stocktake.
• QoH#: The quantity on hand that The Edge currently believes is in stock.
• Adj.#: The number of items that will be adjusted once the stocktake is applied.
• Message: Any important notes or messages regarding the item, such as "Item MUST be re-scanned – entries made since last scanned.".

Reviewing and Adjusting Variances

Continue reviewing and adjusting the stocktake until the Variance Report matches your physical stock. 

The key columns to focus on during the variance review process are S/Take, QoH#, and Adj.#. The S/Take column shows the quantity of each item that was physically scanned or entered during the stocktake. The QoH# column reflects the system’s current inventory count. The Adj.# column indicates the number of items that will be adjusted based on the stocktake results. By comparing these columns, you can identify discrepancies between the physical count and the system’s inventory, helping to highlight variances that need to be addressed.

Important: Do NOT manually adjust stock quantities to correct them. Once you apply the stocktake, The Edge will automatically update and correct these quantities.

When you're confident that the Variance Report is accurate and reflects the correct stock quantities, proceed to the next step in the process.

Finalising the Stocktake

Once you are satisfied with the stocktake results, it is time to apply the stocktake:

1. On the Stocktake Flow Chart Click on 'Variance Report OK?'

• You may encounter a screen that prompts you to check boxes
  
  

WARNING: If you are unsure about any of the questions or do not agree to any of the questions, do not proceed further. Instead, contact Retail Edge Consultants' Customer Success Team for advice before continuing.

This screen serves as a final confirmation that you have completed the stocktake correctly. Carefully read each question and check the boxes to proceed.

2. After acknowledging and checking all the boxes, click OK

• This will then unlock the next steps on the Flow Chart

3. (Optional) On the Stocktake Flow Chart Click Backup Database to save a backup of your current database before applying the stocktake.

• Creating a backup ensures that you can roll back or restore your data in case any issues arise during the stocktake application.

4. On the Stocktake Flow Chart Click Update to apply the stocktake adjustments to the system.

• This will finalise the stocktake, adjust the stock quantities in The Edge and unlock the final Step in the Stocktake Flow Chart.

After updating, The Edge will generate another Variance Report to verify what adjustments have been applied

Important: Ensure you print the final variance report, as it will no longer be available after the update is applied. This report will serve as a record of the stock adjustments made during the stocktake.

5. On the Stocktake Flow Chart click the Bottom Variance Report (It will be the only button that the text is Green)
6. Click Ok on the Variance Report criteria screen.

• This should produce a blank Variance Report, confirming that the stocktake has successfully applied all necessary adjustments and there is no longer any variance between the scanned/entered items and The Edge. If there are any items in the Stock Variance Grid, Call Retail Edge Consultants’ Customer Success Team immediately

Post-Stocktake Considerations

Once the stocktake is complete, review the results for important insights. When reviewing variances, consider the following:

• Missing Stock: Look for any items that are unaccounted for, which may indicate theft, misplacement, or inventory errors.
• Mislabelled or Incorrectly Entered Items: Review items that show variances to check for possible data entry or labelling mistakes.
• Stock Transfers or Sales During Stocktake: Ensure any variances weren’t caused by items sold or transferred during the stocktake period.
• Supplier Errors: Investigate whether supplier discrepancies, such as incorrect deliveries, might be the cause of variances.
• Stock Shrinkage: If variances indicate shrinkage, consider reviewing store security or stock handling procedures.