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

Thread: Stock Control - Shortages

  1. #1
    Platinum Member
    Join Date
    Oct 2008
    Location
    SA
    Posts
    1,520
    Thanks
    207
    Thanked 84 Times in 80 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
    3,475
    Thanks
    134
    Thanked 694 Times in 592 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 pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za

  3. #3
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,646
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 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.

  4. #4
    Diamond Member Neville Bailey's Avatar
    Join Date
    Nov 2010
    Location
    Westville, Durban
    Posts
    2,760
    Thanks
    44
    Thanked 451 Times in 396 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 - Sage Pastel Accounting Consultant
    www.accountingsoftwaresupport.co.za
    neville@accountingsoftwaresupport.co.za
    IronTree Online Solutions

    "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
    4,624
    Thanks
    1,884
    Thanked 463 Times in 410 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
    Join Date
    Mar 2010
    Location
    Cape Town
    Posts
    6,329
    Thanks
    426
    Thanked 978 Times in 795 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.

  7. #7
    Diamond Member tec0's Avatar
    Join Date
    Jun 2009
    Location
    South Africa
    Posts
    4,624
    Thanks
    1,884
    Thanked 463 Times in 410 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
    Platinum Member
    Join Date
    Oct 2008
    Location
    SA
    Posts
    1,520
    Thanks
    207
    Thanked 84 Times in 80 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
    Platinum Member
    Join Date
    Oct 2008
    Location
    SA
    Posts
    1,520
    Thanks
    207
    Thanked 84 Times in 80 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

Page 1 of 2 12 LastLast

Similar Threads

  1. [Question] POS\Stock Control Software
    By AmithS 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
  •