There are two methods to control the inventory of stores:
1. Physical inventory system
2. Perpetual inventory system
Physical inventory system
A physical inventory system is a periodic actual counting of all the products in the storage areas. Usually store items are counted once in a month and usually, the physical counting is done either before the normal opening timings of stores or after the normal closing hours as otherwise, it may disturb the normal issuing schedules to various departments. In large organizations, a complete inventory may not be taken at one time. Instead, inventories can be taken in parts on weekly basis. The inventory process should involve at least two people out of which one is from control department and is not directly involved with the storeroom operations. And the other should be from the accounts department. One person counts the food which is arranged systematically in the storeroom. The store’s items are either stored in the form of groups; like all pulses are stored at one place and all bottled and canned items are stored at one place, or they are stored alphabetically. Usually, the items which are issued more frequently are stored near the delivery window and others can be stored at different place. The other person records the data on a physical inventory from which is designed according to the physical arrangement of foods on shelves. This helps in taking the physical inventory of all the items in the shortest possible time. The expensive items should be physically counted / weighed more frequently.
Perpetual Inventory
The process of maintaining a continuous record of all purchases and items being issued is called perpetual inventory system. This process provides a continuous record of goods available at hand at any given time as well as the value of supplies at hand. Generally, a perpetual record is used to restrict the products in dry stores and frozen stores. Perpetual inventory requires a considerable amount of labour to maintain and is maintained only for selected items, usually, very expensive ones. A perpetual inventory record is not sufficient for accurate accounting and control of food and supplies. Therefore, it becomes necessary that a perpetual inventory is tallied with the physical inventory.
