Stocktaking (physical inventory)
Quick answer
The process of physically verifying inventory and reconciling it with book records to establish the real asset position.
Key takeaways
- Annually - general inventory required before preparing the balance sheet (per Romanian Law 82/1991 and OMFP 2861/2009)
- On change of custodian, merger, liquidation, or when losses are found
What stocktaking is
Stocktaking is the process of physically checking (counting, weighing, measuring) all asset items and reconciling them with book records (accounting/WMS balances). The goal: establish the real position and correct differences (surpluses/shortages).
When it is mandatory
- Annually - general inventory required before preparing the balance sheet (per Romanian Law 82/1991 and OMFP 2861/2009)
- On change of custodian, merger, liquidation, or when losses are found
Process stages
- Stocktaking decision and committee
- Physical count (inventory list)
- Physical vs book reconciliation
- Determining differences (inventory surplus/shortage)
- Booking results in accounting
Periodic inventory vs cycle counting
The annual general inventory halts operations and is laborious. Cycle counting continuously verifies SKU subsets, maintaining accuracy without stopping the warehouse - operationally recommended.
How CRMconnect helps
With a WMS using barcode/batch scanning and real-time sync to accounting, CRMconnect keeps book stock close to physical at all times. The annual inventory becomes a quick confirmation, not a difference hunt.
Real-world example
A 4,000-SKU warehouse allocated 3 full shutdown days for the annual inventory, with ~5% discrepancies. After deploying CRMconnect WMS with daily cycle counting, stock accuracy reached 99.3%, and the annual inventory runs in a single shift without stopping shipments.
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Frequently asked
How often is stocktaking mandatory?+
The general inventory is required at least once a year, before annual financial statements, plus at special events (custodian change, liquidation, disasters).
Difference between stocktaking and cycle counting?+
General stocktaking counts all stock at a point in time (usually halting operations). Cycle counting continuously counts small SKU subsets, maintaining accuracy without shutdown.
What do I do with inventory differences?+
Surpluses and shortages are booked in accounting. Non-attributable shortages may be an expense; attributable ones are recovered from the custodian. Causes should be analysed to prevent recurrence.
Where CRMconnect fits
Related terms
Cycle counting
Continuous small-batch counting with no activity stops - modern alternative to annual physical inventory.
OperationsNIR / Goods Receipt Note (GRN)
Internal document confirming the physical receipt of goods in the warehouse - the pivot between supplier delivery note and invoice.
LogisticsWMS (Warehouse Management System)
The system orchestrating physical warehouse operations: receiving, putaway, picking, packing, shipping.
LogisticsInventory valuation methods (FIFO, LIFO, WAC)
Accounting rules to determine the cost of goods leaving stock: first-in-first-out, last-in-first-out, or weighted average cost.