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Inventory management is one of the essential aspects of business, and tracking your inventory can save you work hours.
Physical inventory counts are a time-consuming but necessary corporate operation. This article will provide you with the tools you’ll need to manage a physical inventory count effectively and get you started on a procedure that works for you.
1. Workbook for Inventory Management
This inventory is the best option for merchants and eCommerce company owners to add automation and reporting capability to their physical inventory counting process. It has everything from physical inventory count templates to inventory performance calculators.
We’ll go through how to utilize each part of the worksheet in the sections below.
A. Template for an Inventory List
This workbook’s primary center is this inventory list template. You may do your physical inventory count with the help of this template and a Google Spreadsheet. The built-in functions are intended to calculate stock level and retail pricing while users add product records and set product code, markup, and reorder points for each product.
Customize the option headers with your stock counts, or leave them blank if you don’t need them.
After you’ve set your reorder point, the inventory template’s second half will use data from your purchase order and sales records to calculate your total stock on hand. The workbook will tag this record and include it in your low stock report if the total stock-on-hand falls below your reorder threshold.
This template works with Google Spreadsheets to allow you to view and enter data from your tablet.
B. Supplier Contact Information
Your supplier contact list will assist you in correctly preparing purchase orders. Your purchase order template will create supplier contact information based on this list. This only has to be encoded once, and it should be updated regularly when new information becomes available.
Template for a Supplier Contact List
C. Purchase Orders
This tab keeps track of all your purchases and has two purposes. The inventory list tab first modifies your stock-on-hand total by registering merchandise that has yet to arrive. Second, you may use the floating record filter pallet to produce a set of purchase order reports.
This purchase record template features a drop-down list of your existing items.
D. Sales Statistics
This sales record template is comparable to the purchase record template in functionality. As seen in the inventory list, it changes your on-hand inventory to reflect sales of products that have left and are still on their way out of your business.
Using the floating funnel pallet to produce reports in a specific date range.
E. Low Stock Reporting
The low stock reporting section generates a list of goods below the specified reorder point. All you have to do now is reload the filter to consider any changes in-stock inventory levels. To do so, go to column F and click on the funnel symbol, then scroll down and click twice on the option “Reorder.”
To aid in preparing purchase orders, you may arrange the list by supplier name.
F. Template for Purchase Orders
Like the rest of our templates, this version of our purchase order template is connected to the information you’ve entered elsewhere in the workbook. For goods in your inventory template, a drop-down list is accessible, which auto-populates the cost price for you. After subtracting selected discounts, it will also automatically calculate the total cost per item and order (if any).
Choose your supplier from the drop-down menu, and the template will automatically create contact information for you.
Alternatively, you may obtain a free basic purchase order template at any time. If you’d instead utilize the simple inventory templates than the worksheet, this is the way to go.
G. Calculator for Inventory Performance
Your inventory shrinkage rate indicates how much inventory you’ve lost due to various factors. On the other hand, your inventory turnover ratio informs you how well you turned inventory into sales during a specific period. This inventory shrinkage rate and inventory turnover ratio calculator is a free tool that will assist you in calculating your inventory shrinkage rate and inventory turnover ratio.
You’ll make better purchase selections if you understand how your inventory moves.
2. Templates for Basic Inventory Lists
This workbook includes five distinct templates for counting your on-hand stock in separate tabs. Make a copy of the file to use, print, or alter the templates in the workbook. You may then update the spreadsheet in Google Sheets, export it to Excel, or print it.
The first tab has the most simple design, ideal for firms that want a quick counting list for a few products. The second tab had columns for shelf and stockroom amounts, which is excellent for mom-and-pop shops with limited storage space.
A. Quantity-on-Hand (Simple)
This is the most straightforward inventory count template, and it works for shops that carry a wide range of commodities sold by the piece or by the case unit. The form includes a spot for the counter to enter the quantity-on-hand (QOH) for each item or case unit.
Template for Quantity-On-Hand Inventory
B. Total Quantity-On-Hand
This template is similar to the Simple Quantity-on-Hand template, except it includes columns for a stockroom count and a total. You count items in the stockroom and on the shelves individually, then add them using this inventory form. This is ideal for shops that keep the excess inventory in storage and stock things on retail shelves.
Inventory Template for Total Quantity-On-Hand
C. Inventory List for Case Counting
This inventory template is ideal for businesses that stock things by the case but sell by the piece. This is typical in eCommerce, where products are often placed in packs before being chosen individually to satisfy orders. It’s also beneficial for shops that have a lot of excess inventory. You count cases, noting the claim amounts (12, 24, etc.), and then count any individual items on the shelf using this form. After you’ve finished counting, sum up the entire amount on hand. Counters may keep counting without having to care about arithmetic.
Quantity-On-Hand Inventory Template for Case Count
D: Single Variant
This inventory design works well for items with just one choice, such as size. Cleaning supplies, snacks, and pet food, for example, are divided into sizes based on their availability. If you need extra space, you may extend the design by adding more columns or changing the size choices on the headers.
Inventory Template with Only One Option
E. Options with Multiple Variants
With ease, this inventory template manages counts for goods with two alternatives, such as color and size. T-shirts, jeans, and shoes will be available in various sizes and colors from garment retailers. Stores that offer everything from home things to school supplies would also benefit. You may extend the template headers by adding new columns or customizing the naming conventions if you need extra space.
Inventory Template with Multiple Options
3. Inventory Template for Liquor Stores
Keeping track of supplies for shop or restaurant owners selling beer, wine, spirits, and mixers necessitate a more sophisticated inventory count method. The size of your company will determine the simplicity or difficulty of doing bar inventory. If you have one venue or shop, a spreadsheet will be enough to keep track of inventories.
Inventory Template for a Liquor Store
If you’re looking to grow your company in general, we suggest adopting a cloud-based point-of-sale (POS) system like Revel POS to keep track of your booze and bar inventory. Revel allows you to enter and monitor inventory from when it is ordered and modify your inventory count in real-time as goods are rung into the POS.
How Can These Inventory Templates Be Customized or Prefilled?
Here are three strategies to help your inventory counts go quicker by customizing or prefilling these inventory templates:
1. Fill in the blanks in the template with data.
If you wish, you can prefill fields such as product name, SKU number, colors, and so on for any of the above templates. Put this information into the inventory template’s relevant areas.
2. Take data from an existing inventory list spreadsheet and paste it into a new spreadsheet.
Do you already have a spreadsheet with an inventory list? Copy and paste the necessary column data from your master spreadsheet into the inventory template. You may also add additional columns to the template and rename the column headings as you see fit. You won’t have to change your initial inventory list this way.
3. Get data from a warehouse management system.
Do you have an inventory management system and want to develop a customized inventory count form similar to these? Most inventory management systems allow you to download a.csv file of your inventory, which you can then edit in a spreadsheet and adjust by adding the columns you require for your count. Alternatively, you may copy and paste the necessary data into the inventory form from your master spreadsheet.
Now that you know how inventory lists operate for physical counts let’s look at how to approach the inventory counting process.
Inventory Count Processes & Best Practices
Physical inventory counts are done in most establishments in two ways: yearly counts and periodic cycle counts. Here’s the kicker: your yearly count is a no-brainer if you do cycle counts regularly. Annual counts are a significant problem if you don’t perform cycle counts. And, to make matters worse, it’s often a considerable annoyance. Counting physical inventory is a hassle even for the tiniest and most structured shops. But it has to be done, so let’s look at how to make your efforts worthwhile, beginning with how often you should count your inventory.
Annual Counts & Cycle Counts
Annual Counts — This is a comprehensive inventory of everything in stock done once a year for tax reasons, generally immediately at the end of the fiscal year. If you undertake yearly counts, you’re likely to encounter many problems, such as miscounts, missing inventory, shortages, and overages. These inventory annoyances are likely to recur throughout the year, costing you time and money. Cycle counts may be helpful in this situation.
Cycle Count – A cycle count is a partial inventory count done regularly. Because you usually count a few product lines or a single category each week, the work is small and straightforward to fit into your weekly schedule. The fundamental advantage of cycle counting is that it allows you to spot tiny problems, such as supply shortages or lost excess before they turn into big, sales-killing ones. Another advantage is that your whole inventory is cleaned up year-round, so there are few, if any, surprises when yearly counts come around.
Getting Ready for Inventory Counts
The inventory preparation work is the same whether you’re doing an annual or cycle count. If you conduct cycle counts, though, you’ll find that the prep work is quicker since your inventory is monitored regularly. The overall procedure is as follows:
1. Create inventory count forms on your computer.
You’ll need to print an inventory count form from the templates above or use one from your computerized inventory system before you start counting. Some modern designs, such as Lightspeed, even include bar code scanners to speed up the procedure. Depending on what works best for your business, employees, and trust assistants, you may arrange yearly, or big cycle counts by product lines, store location, or product categories.
2. Clean up the inventory that will be tallied.
This entails digging through your shop, stockroom, or warehouse, or wherever your inventory is, for yearly counts. Make sure that everything is in order and in the right place. Make sure that overstock items are visible and countable as well. At this point, some retailers and eCommerce businesses would even pre-count big blocks of surplus merchandise. Do whatever works best for your business.
3. Decide on a cutoff point.
These do not resume until the inventory count is completed and any spreadsheets or electronic systems have been updated with the accurate count figures. This is especially critical for yearly counts, which require your organization to shut down for a day or two to complete correctly.
Inventory Counting & Adjusting Procedures
When it’s time to count, the procedure is relatively straightforward. You, your crew, or a few pals should be able to finish it in a day if you’re in a small store. Larger businesses or warehouses may have a late-night or even two-day stretch of operations.
Begin counting by assigning counters to specific regions or product lines.
I like to count inventory in two-person teams. Counters may undoubtedly work alone, but most firms, big and small, prefer to work in groups.
Check for correctness on the fly.
It’s usually a good idea to have individuals who didn’t count a particular line or category double-check the rest. We routinely double-checked two to five percent of the counts to ensure everyone counted correctly.
Make the necessary modifications and address many counting problems.
If you keep track of your inventory using a digital method, you’ll need to update your spreadsheet or system to reflect the updated physical counts. If you manually manage inventory, you’ll need to alter the counts in your inventory records so you can generate a tax-deductible inventory assessment. Any serious inconsistencies, such as short stock or overages, must also be resolved and accounted for.
How to Computerize Your Inventory to Meet Your Needs and Spending Limits
Using your computer, you may manage inventories in a variety of ways. There are smartphone applications that allow you to track stock counts and inventories. Nothing stops you from choosing a computerized inventory system since many excellent solutions are low-cost and easy to use. Some are designed exclusively for brick-and-mortar shops, while others are designed for online businesses, and yet others blend the two. One will undoubtedly match your company’s requirements and budget.
Conclusion
The first step in producing an accurate inventory list for managing your goods is counting inventory using a POS system or simple-to-use forms. The accompanying inventory forms and techniques will help you get started on the right foot. Use a clean slate for inventory management after having an inventory list with precise numbers. And if you’re not currently using a modern, computerized system to monitor inventory, now is the time to get started.
