Stock Taking
The main objective of stocktaking is to ascertain the actual value of goods in hand as distinguished from the book value of the stock. It is the process of physical counting of all stock items in the storerooms and kitchen. It is carried out by F& B control department of the hotel. In case of food stores, it has done once in the month, for housekeeping item once in two months and for alcoholic beverage and Bar once in 24 hours. It solves the following purpose
- To determine the value of goods held in stock (to check the total value of stock held is in accordance with a financial policy the establishments)
- To compare the value of goods actually in stores with the book value of the stock at a particular time.
- To list slow-moving items.
- To compare usage with sales to assess food percentage as a deterrent against loss of pilferage.
- To determine the rate of stock turnover.
FORMULA: Opening stock + Purchase during that period – Requisition made in the same period = Value of closing stock
Cost of food consumed= Rs. 3000/-
Opening stock = Rs 800/-
Closing stock = Rs 700/-
Average of O.S + C.S = 800 + 700/2=750/-
Rate of stock turnover = cost of food consumedaverage stock
= 3000750
= 4
This means the total value of the stock has turnover four times. Some senior staff or account personnel aided by concerned department staff caries the physical stock. All the goods are recorded on printed stock sheet. Stocking taking should be done on the end of one trading period & when it carried out the movement of goods should not take place.
There are two types of stock taking-
1. Perpetual Stock Taking – it is the stock registered in the storeroom register or the book stock.
2. Physical Stock Taking – it is stock taking by physically counting all goods in the storeroom and noting them on a physical inventory sheet.
1. Perpetual stock taking/perpetual inventory procedure-
It is also known as continuous stock taking. The essential features of this type of stock taking is that the number of items of ingredients and materials which are used over the past period of few days or fortnight are counted and checked at frequent intervals and physical balance of stock is compared with the balance shown by bin cards and stock books. Thus, a perpetual inventory is an up to date record of all purchases and store room issues along with their balance for each commodities.
2. Physical Stock Taking / Physical Inventory Procedure –
It is generally done on the last day of the trading period (a trading period is of 28 days – thus there are 13 trading periods in a year) or it can be done once a month. It is generally done by two persons – one from the accounts department and the other from F&B Controls or Purchase, one of them count the goods and other note it on the physical inventory sheet. This is done to ascertain the actual value of goods and compare with its book value. A report is generated and sent to GM, F&B Manager, Accounts, Purchase, Executive Chef and Storekeeper.
