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To ensure your inventory is correct, use these eight internal controls

by , 31 July 2014
Did you know, your company's inventory is vulnerable to fraud? The reason is your employees could pinch your inventory stock and sell it. Then you lose money and they get extra cash in their pocket.

Your inventory is most vulnerable when your employees moves it around your premise or warehouses.

This is where you need to put clear internal controls in place.

If you use these eight controls you can be sure your stock inventory is safe from fraud....

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Use these eight internal controls to track your inventory as it moves around your warehouse

1. Ensure your employees at your warehouse sign a 'Goods Received Note' when the goods arrive at the warehouse.
2. They must use this note to sign the goods into storage at your warehouse. This way you know they're there and who's responsible for them.
3. You must limit your employees' access to your inventory stores. Only allow your employees to remove inventory if they have an 'Inventory release' slip.
4. You must have physical security measures in place, such as security cameras, around your inventory stock rooms.
5. Have other inventory tracking control measures for when your inventory moves around your production process. These can include signed registers to show which employee takes responsibility for the stock at each point. 
6. Your employees must only release goods for delivery if they get an approved 'Picking-up slip'. This slip is also representation of an approved sales order.
7. Your employees must move the inventory stock the delivery service is picking up to the despatch area and they must prepare delivery notes. They must compare these delivery notes to the 'Picking-up slip'.
8. Your security must sign and stamp the delivery note before the delivery service leaves with the goods.
If you use these eight internal inventory control methods you can be sure your inventory stock will be safe from fraud and theft in your company.
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