Understanding Stock Counts

This document provides an overview of how stock counts work in Zoho ERP. It explains the purpose of stock counts, key benefits, and their lifecycle.

What are Stock Counts?

A stock count is a transaction that an organization records to verify whether the quantity of items available in its inventory matches the quantity recorded in the system. It involves physically counting items at a specific location and comparing the counted quantity with system records to identify any differences.

Stock counts help organizations detect discrepancies caused by damages, losses, incorrect receipts, or data entry errors and ensure that inventory records accurately reflect actual stock levels.

Key Benefits of Using Stock Counts

• Ensures inventory records match the physical stock available at each location.
• Helps identify shortages, excess stock, damages, or recording errors.
• Supports accurate inventory valuation and reporting.
• Enables periodic and recurring verification of inventory through scheduled counts.
• Improves inventory reliability for purchasing, sales, and compliance decisions.

Lifecycle of a Stock Count

The lifecycle of a stock count represents the stages a stock count goes through from creation to adjustment.

A stock count is first created and assigned to a user, who is responsible for counting the items. The assigned user then records the counted quantities, typically using the mobile app or web application. Once counting is completed, the stock count is submitted for approval.

The approver reviews the submitted stock count in the web application. If the counted items are approved, an adjustment reason is recorded for items with differences, and inventory adjustments are automatically created to update stock levels. If the items are rejected, no inventory adjustments are made for those items.

Once approved and adjusted, the stock count is completed, ensuring that the system inventory accurately reflects the physical stock.

Configure Preferences

You can configure the preferences of the Stock Counts module based on business requirements. Read our help document on Stock Counts Preferences to learn more.