Inventory control in the hospitality industry is incredibly important. Some studies suggest that hotel theft and losses are at $100 million a year!
The main objective of stocktaking is to ascertain the actual value of goods in hand as distinct from the book value of the stock. It is the process physical counting of all stock items in the storerooms and kitchen. It is carried out by F& B control department of the hotel. In case of food stores, it is done once in a month, for housekeeping item once in two months and for alcoholic beverage and Bar once in 24 hours. It solves the following purpose
- To determine the value of goods held in stock (to check total value of stock held is in accordance with the financial policy the establishments)
- To compare the value of goods actually in stores with the book value of the stock at the particular time.
- To list slow-moving items.
- To compare usage with sales to assess food percentage as a deterrent against loss of pilferage.
- To determine the rate of stock turnover.
- It provides variance between actual quantities and calculated quantities on hand.
Some senior staff or account personnel aided by concerned department staff carries the physical stock. All the goods are recorded on the printed stock sheet. Stocking taking should be done on the end of one trading period & when it carried out the movement of goods should not take place.
There are two ways of carrying it.
1. Perpetual Inventory
2. Monthly Inventory