Before creating a stock adjustment list, there are certain rules for things that must have been done before creating the list.

These rules are as follows:

1] Suppliers.
                a] If any goods have been received from suppliers and placed into stock, the delivery note for those goods must have been processed.(i.e. the computer system must “know” the items are in stock)
                b] If any goods have been returned to suppliers the GRN must have been processed. (i.e. the computer system must "know" the items have been taken out of stock)

2] Customers
                a] If delivery notes have been generated for customers, the stock for all those delivery notes must be physically removed from the shelves. (i.o.w. the computer system thinks the stock has gone, so the stock must be physically removed)
                b] If stock has been returned by customers and has been replaced into your stock the credit note for that stock must have been processed. (i.o.w. the computer must be told that the stock has been returned.)

3] Manufacturing.
                a] Any unused raw materials that were taken for batches that have been cancelled must be returned to physical stock.
                b] All batches that have been completed and packed must be processed through the Goods Finished module into finished goods. This includes partially updated batches.
                c] The raw materials and packaging items on any printed batch sheets THAT HAVE NOT BEEN MANUFACTURED but may have been removed from the main stock locations must be counted with the rest of the stock. (These items are listed in the Work in Progress report.)

If the above rules are adhered to you should never have a problem with your stock levels, however, the opposite applies if you break the rules.

Programme restrictions

Because logistical problems may prevent strict compliance with all of the restrictions imposed by our system, we have introduced some new, user selectable programme restriction settings in the [System Control][Maintenance][Global Settings][Stock], as shown in the screen-shot marked Fig1.

In the left block outlined in red, you will see that you may elect to:

1) disallow stock movements that are entered with a date earlier than the most recent stock take,

2)be warned of such an event, but allow it, or

3) allow such an event without warning.

Fig 1.

If either of the latter two choices [2) Warning or 3) Allowed, above] is selected, then the warning below appears:

The Yellow section shown on the right has to do with stock adjustments.
By default, when you generate a Stock Adjustment list, ALCHEMIST will check all of the items on the list and warn you if there are transactions in these items with a date that is later than the date upon which you wish to create the stock adjustment.
By default you will not be able to create a stock-take record for a date earlier than the last transaction date for any one item; however you may prevent this check facility at your peril.
You really need to know exactly what you are doing if you wish to disable this feature.
BE WARNED  WE TRACK CHANGES TO THE TWO FACILITIES ABOVE, AND IF YOU ELECT TO OPERATE IN A NON-RECOMMENDED MODE AND MESS UP YOUR STOCK, WE WILL DETECT THIS, AND, IF YOU ASK US TO INVESTIGATE AND EXPLAIN THE MESS, WE WILL CHARGE YOU FOR OUR TIME.

Stock take Procedure

1] Make sure the above rules have been attended to.

2] Create a Stock Adjustment List.
(Also go to http://www.technisoft-online.com/manuals/manualmenu.htm and download and unzip the Stock Adjustment help file).

3] Count the stock and enter the figures into the computer.

4] Print a Provisional variance report and check the counted stock against the computers stock.

5] Investigate any anomalies.
If any variances are found that have been caused because one or more of the rules, above, have not been complied with, leave the stock-count figures for the correct items, but delete the figures for the items where there are anomalies. DO NOT ENTER ZERO (0) IN THE COUNTED COLUMN FOR THESE ITEMS R11; LEAVE IT BLANK. If you have entered anything in this field, go to the field and backspace or delete the figure.

6] Update the list but DO NOT MARK IT AS HAVING BEEN COMPLETED (i.e. do not select the list and click the [Update of Selected list complete] button.

7] Remove the items that have not been updated from the list by selecting the items (Ctrl click for multiple items) and clicking the [Delete non-updated item rows] button.

8] Carry out the procedures required to correct the anomalies discovered in 5], above.

9] Create a new (secondary) list for the non-updated items that had anomalies using the same date and parameters used for the original list created in 2], above.

10] Enter the counted stock, process and update this list in the normal manner.

11] Select the original list and the secondary list and complete them by clicking the [Update of Selected list complete] button.

(Let me give you an example of this:
Say, on the 30^th of the month you make a stock-take list and, when you count the stock,you discover a stock item where the stock, according to the computer, is 100, but you count 250.
You investigate and see that a Goods Received Document for 150, dated the 29^th has not been processed.
You will need to proceed from point 5], above: delete the 100 you had entered for this item, delete it from the list, process the GR Document with the correct date, make a new stock list for this item with a date of the 30^th, and enter 250 as the stock count for this item.
The lists may then be completed.

If the original rules are adhered to, there should be no anomalies unless someone has stolen or mis-handled your stock.

The reason for the programme restrictions and why these actions need to be performed is that Alchemist and Exact calculate the stock levels from the last stock take, applying all transactions that are newer than the time and date when you produce the stock adjustment list to the figures that you updated for that list.
If you insert a transaction before a stock take, then your stock transactions will not make sense to you.

The following table is designed to explain the various effects on the stock during the manufacture processes.

Sequence of stock events in the computer files during manufacturing.

EVENT	Effect on RAW MATERIAL Stock	Effect on PACKAGING Stock	Effect on FINISHED GOODS Stock
Products are scheduled for production	Nil	Nil	Nil
Batch sheets are printed	Committed. Quantities are now in WIP	Committed Quantities are now in WIP	Nil
Batch Finished Partially	All committed raw materials and Lab additions are drawn from stock and removed from WIP	Quantities for items actually made are drawn from stock and removed from WIP	Quantities for items actually made are added to stock
Batch Finished Complete	Unless drawn down from a previous partial update, All raw materials and Lab additions are drawn down	Quantities for items actually made are drawn down	Quantities for items actually made are added to stock

 

Stock valuation

Once a stock take has been performed, in order to obtain a valuation of your stock, you will need to print a valuation report plus the valuation report for work in progress on the same date.

The total stock valuation is the sum of these two reports.

It is highly recommended that, whenever you do a stock valuation, you produce a .pdf file and save it as a backup in case you need the figures in the future. This should be a detailed file so that changes may be explained.