Page 1 of 2 12 LastLast
Results 1 to 10 of 18

Thread: Stock Control - Shortages

  1. #1
    Gold Member Singhms's Avatar
    Join Date
    Oct 2008
    Location
    Pretoria (National)
    Posts
    976
    Thanks
    161
    Thanked 52 Times in 48 Posts

    Stock Control - Shortages

    So we do stock control and count all our stock...

    Now the question is, we find 1 sausage or 1 fish or 1 can short??? What do we do?

    Do we deduct a portion from each staff member or is stock take merely to scare staff and keep shrinkage to a minimum?

  2. #2
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    2,671
    Thanks
    88
    Thanked 544 Times in 460 Posts
    Blog Entries
    1
    I thought part of stock taking is a requirement in your balance sheet, as your profit could be lying in stock and not in the bank. With out a stock take you have no idea.

    With reference to deduct from staff is something which I believe you can not do, but I stand to be corrected here.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar and LED lighting solutions - www.microsolve.co.za

  3. #3
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,979
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    If you deduct from staff for petty shrinkages, do you pay them out when you're over too?
    Quote Originally Posted by JWalker View Post
    Now the question is, we find 1 sausage or 1 fish or 1 can short???
    Over what sort of period?

    I suggest you set a budget for shrinkage and consider it a business expense. If the shrinkage seems unreasonable, time to think about improving your control systems or installing cameras.
    The trouble with opportunity is it normally comes dressed up as work.

  4. #4
    Platinum Member Neville Bailey's Avatar
    Join Date
    Nov 2010
    Location
    Morningside, Durban
    Posts
    2,376
    Thanks
    35
    Thanked 393 Times in 340 Posts
    Quote Originally Posted by Justloadit View Post
    I thought part of stock taking is a requirement in your balance sheet, as your profit could be lying in stock and not in the bank. With out a stock take you have no idea.
    That's assuming you are running a periodic stock system as apposed to a perpetual stock system.

    A periodic stock system only reflects your true stock quantities and valuation when and if you perform a physical stock count periodically.

    A perpetual stock system (which many accounting software systems run, like Pastel) keeps a running, or perpetual, record of your stock quantities and valuation, as and when you purchase and sell items. Obviously these are theoretical figures, which need to be physically verified from time to time, by means of a physical stock count.
    Neville Bailey - Pastel Accounting Consultant and Photographer
    neville@accountingsoftwaresupport.co.za
    www.accountingsoftwaresupport.co.za
    View Neville Bailey Photography

    *** 20% DISCOUNT ON PASTEL XPRESS / PARTNER SOFTWARE UNTIL 15 DECEMBER 2017 ***

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

  5. #5
    Diamond Member tec0's Avatar
    Join Date
    Jun 2009
    Location
    South Africa
    Posts
    4,270
    Thanks
    1,656
    Thanked 439 Times in 386 Posts
    Blog Entries
    3
    Access control and security camera’s is almost the only way to go here. You will have a horrible time proving that there wasn’t just an error in stock tacking itself. Or that you yourself didn’t take whatever is missing.

    I know of a situation that existed about 6 years ago now. The company I worked for said I stole a CPU and people where absolutely positive it was me. I had a BS disciplinary hearing and was fired. Not too long after my dismissal my senior was found red handed stealing a GPU and a few strips of memory. As I understand it, the secretary spotted him and alerted the boss.

    Now if there was a proper security camera and proper access control things would have been different... I could have been a senior myself by now. It was a good company and it was a good job...
    peace is a state of mind
    Disclaimer: everything written by me can be considered as fictional.

  6. #6
    Diamond Member adrianh's Avatar
    Join Date
    Mar 2010
    Location
    Cape Town
    Posts
    5,089
    Thanks
    336
    Thanked 808 Times in 642 Posts
    I've spent a lot of time in restaurant kitchens. They steal anything that isn't bolted down. Cutlery is a favourite, they just "forget" it in the front pocket of the apron. Another thing that they do is to cook more food than required and simply snack off the plate. Most of the restaurants have serious video cameras - they mean nothing - there is simply too much hustle and bustle and who is going to sit for 8 hours straight and monitor multiple video cameras on the off chance that a cook eats a steak that "as he might say- wasn't cooked properly". Many of the cameras are "accidentally" wetted during washdowns, with obvious results.

    I agree with Dave, its a part of life in a kitchen and unless you have a head chef with a very strong fist you will not stop it.
    How easily someone is offended is directly proportional to how stupid they are.
    ~GS Elevator

  7. #7
    Diamond Member tec0's Avatar
    Join Date
    Jun 2009
    Location
    South Africa
    Posts
    4,270
    Thanks
    1,656
    Thanked 439 Times in 386 Posts
    Blog Entries
    3
    I don’t know, Casino security is expensive but you can take tips from them. Search your employees before they leave. Implement the bonus system. If nothing gets stolen a small but adequate bonus can help with motivation. “if 1 person steels from you and the other 5 knows about it and they lose money because of him/her you can safely bet they will rat him/her out eventually” Camera’s can be useless if not properly used but honestly I rather have Camera’s and access control it does help a bit.

    Rotation and monitoring is a very intelligent way to figure out who is steeling what, and more importantly work small losses into your budget “Everybody that ever owned a business will tell you one thing; you will always have them regardless. It can be theft or a power failure or just bad luck but you will suffer those losses eventually."
    peace is a state of mind
    Disclaimer: everything written by me can be considered as fictional.

  8. #8
    Gold Member Singhms's Avatar
    Join Date
    Oct 2008
    Location
    Pretoria (National)
    Posts
    976
    Thanks
    161
    Thanked 52 Times in 48 Posts
    Thanks guys for all the input, some food for taught here.

    I want to install cameras in my store soon.

    I was also thinking about a small bonus system like tec0 mentioned i like this idea.

    Thanks again

  9. #9
    Gold Member Singhms's Avatar
    Join Date
    Oct 2008
    Location
    Pretoria (National)
    Posts
    976
    Thanks
    161
    Thanked 52 Times in 48 Posts
    Hi Everyone,

    I have started a serious stock control system in my store where stock is counted on a daily basis and down to the last item.

    The problem is that i am now picking up big problems with packs of items going missing!!!!

    The latest is today when our calculator was actually stolen

    So my question is to those who can give some advise what things can i implement to get this problem down to a minimal level like,

    Cameras (Waiting for some funds)
    Lockers and bags at work? are these a requirement that i provide lockers and can i implement a rule of no bags at work ?
    Should staff just be charged for shortages ?

    Thanks in advance...

  10. #10
    Bronze Member bjsteyn's Avatar
    Join Date
    Jul 2010
    Location
    east lndon
    Posts
    189
    Thanks
    4
    Thanked 10 Times in 7 Posts
    Hey JWalker, I am just wondering what system are using for tracking stock, Pastel or just books?
    EARN UP TO 50c PER MINUTE FROM YOUR BUSINESS LANDLINE
    Monetize your business landline! Visit www.itbserved.paytel.co.za to find out more!


    OR Need a Free Fax2Email number! Get it here www.itbserved.faxmachine.co.za!

Page 1 of 2 12 LastLast

Similar Threads

  1. [Question] POS\Stock Control Software
    By Singhms in forum Technology Forum
    Replies: 6
    Last Post: 29-Aug-10, 04:55 PM
  2. [Question] Skill Shortages
    By rbuxton in forum General Business Forum
    Replies: 8
    Last Post: 26-Nov-08, 07:56 PM
  3. Skills shortages affect everyone.
    By Dave A in forum General Business Forum
    Replies: 2
    Last Post: 09-Mar-07, 09:56 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •