Why stock counts don’t match the system: 8 causes of inventory gaps and fixes

The eight causes

Notice theft comes last: fix the process causes first and theft, if any, becomes visible.

• Receiving without matching quantities to PO or invoice.
• Unit mix-ups: buying by carton, selling by piece without correct conversion.
• Unrecorded damage or expiry.
• Customer returns put back on shelf without entry.
• Branch transfers without a receiving document.
• Duplicate items under different names.
• Selling “misc” items by price without an item.
• Internal or external theft.

The practical fix

• Barcode receiving against the PO
• Defined unit conversions per item
• Approved write-off documents
• Returns linked to the original invoice
• Weekly count of one section instead of yearly
• Voids and discounts report per cashier