Stock count, or simply audit, is the process of physically counting each product in the warehouse. By performing regular stock counts, you can identify pilferage and protect your inventory while ensuring that there are no stock-outs and spills.
In Zenoti, you need to do stock counts for the following reasons:
- To set starting quantities to set up Zenoti Inventory for the first time.
Note: When you conduct stock count, you set only starting quantity, not value. To get stock value, you must create and receive orders.
- To know your on-hand inventory at any point in time.
Actual, Expected, & Deviation
When you add a product in Zenoti and make it active in one or more centers, Zenoti records each transaction on the product: purchase, transfer, consumption to provide service, convert, check out, bundle/unbundle, return, and restock/discard. Based on these transactions, Zenoti updates the stock level and stock value of the product.
- Actual: Physical quantity of the product in the center.
- Expected or Projected: Quantity of the product as per Zenoti, based on the transactions recorded on it.
- Deviation: Difference between Actual and Expected. Zenoti color codes these deviations based on the severity. Missing products are coded in Red, while missing orders for products, are coded in Green. The red coded deviations are critical.
When you conduct a stock count, you may find that there’s a deviation in quantity, which also leads to deviation in the stock value. In Zenoti, the stock count process varies based on whether your center decides to review reconciles that have a value deviation or not.
Stock Count Process
The stock count process involves an Auditor, a Reconciler, and an Approver.
- The process starts with an Auditor physically counting each product in the warehouse using Zenoti Mobile or a barcode scanner. These products are considered as Manually Audited.
While the Auditor is counting the products, there might be few products that are out of stock, inactive, or not tracked in Zenoti. These products are considered as Unaudited Products.
The Auditor can use Zenoti projections for the unaudited products and choose to submit a full stock count or a partial stock count:-
- Full Stock Count
Use zero stock values for unaudited products
Do not consider the projected quantities and set the stock quantity of the unaudited products to zero.
- Partial Stock Count
a. Use projected stock values for unaudited products - negative stock would be considered as no stock
Consider the projected quantities for zero stock and positive stock. Do not consider the projections for the negative stock.
b. Use projected stock values for unaudited products - negative stock would be maintained
Consider the projections for zero stock, positive stock, and negative stock.
- Based on the product actuals and projections, the Reconciler can reconcile the stock count or submit it to the Approver if your organization has enforced approval for reconciles with value deviation.
- The reconcile is either approved or rejected based on whether the Approver accepts the value deviation or not.
a. If the reconcile is approved, the stock quantities and values are updated accordingly.
b. If the reconcile is rejected, the Auditor must resubmit the audit to the Reconciler.
Roles & Permissions
The Admin must enable the following roles and permissions for the Auditor, Reconciler, and Approver:
- Auditor - Counts the stock and submits the audit.
Navigate to Admin > Role Permissions > Role > Inventory Manager and enable the following permissions:-
- Add: To conduct stock count
- Edit: To edit stock count data in the Audit History report
- Audit Back Date: To back date stock count date to a past date
- Reconciler - Verifies the stock count to identify any deviations between actual and expected values.
Permission: Admin > Role Permissions > Owner > Inventory Manager > Reconcile
- Approver - Approves a reconcile that qualifies the minimum value difference set by the organization.
Permissions: Admin > Role Permissions > Owner > Inventory Manager- Approve Reconcile
In addition to this permission, the following center-level setting must be enabled:
Admin > Centers > Settings > Enforce approval for reconciliation for difference between expected and audited stock value
Recommendations & Tips
- Conduct a separate stock count every 3 months for retail products and for professional supplies. If you do not conduct a stock count for more than 3 months, you cannot view the Current Stock report.
- Use Zenoti Mobile to conduct stock count on the go.
- Use the Import/Export option if you want your staff to enter stock count data for you and save time.
- If you are waiting for orders from a vendor or another center, enter the data of the available stock and save your stock count. After you receive the orders in Zenoti, you can enter data for the received products and submit your full stock count.
- For inactive products or out-of-stock products, use Zenoti projections and perform a partial stock count.