The 10 days after a count: sorting differences into four baskets

Count day is over, the sheets are signed and the team has gone home. Now the riskiest stretch begins: the results sit on someone's desk, the list of differences is long, and everyone is back to their normal job. Two weeks later the causes of many differences can no longer be traced: the documents have gone to the archive, and the storekeeper no longer remembers what was moved where. That is why working through the results needs a day-by-day plan, just like the count itself. Below is a 10-day plan and the method at its centre: sorting differences into four baskets.

Days 1–2: a list of differences you can trust

The goal of the first two days is a reliable list. Count sheets are collected, page counts and signatures checked, and the data entered in Excel or 1C. A second person spot-checks the entry, because one mistyped figure spoils the whole analysis. The counted stock is then compared with the books and the differences sorted by value. The 20 largest items are flagged separately and recounted before the goods have moved too much. The recount is done by a different pair, not the one that counted first.

Days 3–5: the four-basket method

Put each difference into one of four baskets according to its cause:

1. The document basket: the goods moved, but the document was not posted or was posted late. For example, a receipt entered after the cut-off date, or a return never processed.
2. The mix-up basket: a surplus on one item and a shortage of the same size on a similar one. For example, 0.5-litre and 1-litre bottles swapped.
3. The unit basket: the difference is a multiple of a carton's contents or the number of pieces in a set, such as 12, 24 or 48.
4. The real-difference basket: a shortage or surplus that none of the above explains.

The value of the method is that differences in the first three baskets usually turn out to be recording errors and are fixed with a document. Management's attention then goes only to the fourth basket. A hypothetical example: of 140 differences, 55 went into the document basket, 30 into mix-ups and 15 into units. The real difference is 40 items, less than a third of the original list (55 + 30 + 15 + 40 = 140).

During these days you also collect written explanations from the people accountable for the stock and go through the preliminary result with the chief accountant. In doubtful cases, walking to the location with the storekeeper is quicker than a long exchange of messages.

Days 6–8: decisions and documents

Now the variance statement is finalised and signed. The committee minutes record the causes of differences and the proposals: what to write off, what to recover from those responsible, what to bring onto the books. Management takes its decision on the basis of the minutes. A list of fixed assets that were not found, and of assets found on site but not in the books, is approved separately, because the decisions on them are usually different.

Days 9–10: correcting the books and closing

Correcting entries are posted in 1C and spot-checked: after posting, the book balance must equal the counted balance. The fixed asset register is updated with location, custodian and condition. Then comes the most important step: preventing a repeat. Each action gets an owner and a deadline, and the date of the next sample count is set. The actions follow from the baskets: for documents, a rule to post receipts and issues on the same day; for mix-ups, separate shelves for similar items and larger labels; for units, the carton quantity written on the item card. All the documents go into one folder, so that if an auditor arrives a few months later, the whole story is in one place.

So that no step gets lost, download the 10-day checklist. It has 19 points in four stages, with space for an owner and a date against each. There is an Excel version too, which calculates the completion percentage automatically.

Conclusion

If the result of a count stays on paper, the same differences come back next year. The four-basket method turns a long list into a short list of real problems, and the 10-day plan carries it through to book entries and concrete actions. Inventory delivers count results together with an analysis of the differences, in Excel or 1C format.