Count stock and reconcile

When to use

A scheduled quarterly count, or an on-demand count before money.annual-report-lv, money.loan-application or ops.insurance-review. Not for a single item that went missing — record it as a one-off adjustment and investigate; a full count is for proving the whole list. Not for ordering what the count reveals to be low — that is ops.purchase-approval after this playbook closes.

Before you start

• The scope and date are decided by the owner; receiving and shipping are paused or cut off at a stated time.
• The book stock list is exported per location the evening before.
• Counters are named; each location has one counter who does not count a location they alone control, where possible.

What a run requires3

The trail8 steps

1. S1

   Freeze movements and cut offagent

   Note the cut-off time; nothing is received, shipped or moved between locations from that moment until the count closes.

   Done when the cut-off time is written on the count sheet and staff know.

2. S2

   Prepare count sheetsagent

   From the book list, produce sheets per location: item, code, unit, book qty (hidden or on a separate column — blind count), empty column for counted qty.

   Done when every in-scope location has a sheet and the sheets together cover the whole scope.

3. S3

   Countagent

   Physical count, blind (counters do not see book quantities). Two people count high-value items independently.

   Done when every line has a counted quantity and the counter's name.

4. S4

   Compute differencesagent

   Enter counted quantities; produce the difference list with book value per difference and a first-pass cause guess (in transit, unrecorded sale, breakage, theft, unit error).

   Done when the difference list is complete with values.

5. S5

   Decide correctionsownerneeds approval · owner

   Approval · S5 · owner — the run stops until a named person records the decision

   Walk the differences: accepted as explained (e.g. in transit at cut-off), corrected in the books, or written off. Write-offs above a set value need the owner's explicit yes.

   Done when every difference line has a decision: explain · correct · write-off.

6. S6

   Recount disputed linesagent

   Any line the owner questions, or any large difference, is recounted by a different person before books change.

   Done when each recounted line has a second count and a final figure.

7. S7

   Apply correctionsagentneeds approval · ownerirreversible

   Approval · S7 · owner — the run stops until a named person records the decision

   Irreversible · S7 — an agent never closes it alone

   Update book stock per the decisions; write-offs are recorded with reason and value so they land in the right period's accounts.

   Done when book stock equals counted stock for every closed line and the write-off list is dated and signed off.

8. S8

   Record and follow upagent

   Archive the count sheets and the difference list; open a task for each unexplained difference above threshold (bc tasks add "Investigate stock difference: <item>"); note repeat offenders (same item shrinking twice).

   Done when the archive link and the task list are sent to the owner.

Checks — how we know it worked

• Sum of counted value + explained differences = book value before the count (read the totals back, not "it balances").
• Every difference line has a decision and, for write-offs, a reason and value.
• No location in scope has an empty sheet; no counted line lacks a counter name.
• Book stock after S7 matches counted stock line by line for corrected items.

If it goes wrong

What each step leaves behind

1. S1the cut-off time is written on the count sheet and staff know.
2. S2every in-scope location has a sheet and the sheets together cover the whole scope.
3. S3every line has a counted quantity and the counter's name.
4. S4the difference list is complete with values.
5. S5every difference line has a decision: explain · correct · write-off.
6. S6each recounted line has a second count and a final figure.
7. S7book stock equals counted stock for every closed line and the write-off list is dated and signed off.
8. S8the archive link and the task list are sent to the owner.

Evidence to keep

Count sheets per location with counter names and date · the cut-off time · the difference list with values · the owner's decisions in S5 (who, when) · write-off records with reason and value · the archive link.

How this playbook improves

After every 4 runs (one year) ask: did unexplained difference value fall? Which location or item repeats? How long did counting take per location, and would a different cut-off time (e.g. end of day vs mid-morning) remove goods-in-motion noise? A new version changes the step that caused the repeat or the wait, and says so in its change note.