Warehousing and Inventory Documentation
Domain 4 - Warehousing and Inventory Documentation
This domain tests the records that prove what is in the warehouse, how stock is issued and counted, and how discrepancies are reported and adjusted.
Core records
- GRN: date, supplier, PO, invoice, item, batch, quantity received, quantity accepted/rejected, condition and signature.
- Bin card: quantity in/out and balance at a specific location. Stock ledger: item-level record across locations. The two must reconcile.
- Pick list, issue slip, gate pass: authorise and evidence every outward movement.
- Batch and expiry captured at receipt; FIFO (first in, first out) or FEFO (first expiry, first out) applied at issue.
Counting and control
- ABC analysis sets count frequency: A items get frequent cycle counts, C items less often.
- Cycle counting runs during normal operations; annual physical verification covers everything and needs an independent team.
- Discrepancies go on a shortage/excess report with root cause, then an adjustment note approved by the authorised manager - never a silent edit.
Worked example
Opening stock 1,200 units; receipts 800; issues 1,450; damaged and quarantined 30. Book balance = 1,200 + 800 − 1,450 − 30 = 520. Physical count = 505. Shortage = 15 units, about 0.65% of the 2,250 units handled. Action: recount the bin, check for unposted issue slips, then raise an adjustment note for 15 units with a cause code.
Traps
- Updating bin cards monthly instead of at every transaction.
- Issuing the newest stock because it sits nearest the door, breaking FIFO/FEFO.
- Counting quarantined damaged stock as good saleable stock.
- Adjusting the ledger without approval or a cause code.