Stocks represent cash. They Should be stored, checked and valued periodically, specially at the end of a given period. The value of a stock is usually very much greater than the cash held at a time. It is, therefore, necessary to verify it from time to time in order to ensure that the materials purchased and stored are infact in the storehouse and their quality and quantity have not deteriorated during the storage process. There is, therefore, a need for physical verification of socks.
Purpose of stock verification
Physical verification is defined as the process for ascertaining the correctness of quality and quantity of goods lying in the store on a given date, wherein emphasis is laid on. The quantity verification by counting, weighing or adopting any other suitable means.
The following are the main purposes of physical verification of materials lying in the stores.
- To examine the correctness of the stock records.
2. To examine the correctness of the value entered therein.
3. To detect the discrepancy, if there is any.
4. To find weaknesses etc., if there is any, and to suggest improvements.
5. To have a moral check on the staff.