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 Bloom & Grow Holdings Limited Stock Take Instruction for Financial Year Ended
 31-Dec-2022
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Stock Audit Instruction Manual

The financial year of the Group is following the fiscal year from 1st  January 2022 to 31st December 2022.  Stock Audit will be carried out in late December 2022 or early January 2023.

Stock Audit is required for all locations record in NS including : -

All self owned / 3PL warehouses
All offices
All Consignment locations

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Self owned / 3PL Warehouse

Closing stock report, internal physical stock count and stock shrinkage report should be submitted by the warehouse at the end of December before the auditor check.  Physical stock audit will be carried out with auditor at the 1st working day in January or an agreed stock take date with auditor.
 Warehouses will be closed for internal stock count for around 3 working days (depend on the warehouse size and inventory level) conducted by the warehouse staff, exact cut off date will be set up between warehouse & B\&G first.  During the internal in-house count period, any new inbound arrival or outbound orders not transacted in the warehouse, will be parking at the pending zone.

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Office

Internal Stock count will be carried in the last week of December by the counting team and record the physical stock quantity on the Physical Inventory Worksheet.
Report Internal Discrepancy (against the NS records) and submit to Finance for approval on inventory adjustment.

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Consignment Locations

Sales team is required to remind their consignee to submit their sales report before the physical stock count. Invoice is required to be issued within 24 hours after sales report is received.
Physical stock take for individual consignee location will be arranged. It usually carries out on the following day after the invoice is billed.
Closing stock balance report and discrepancy summary should be submitted to customers within 14 working days after physical stock take.
 Photocopies the proof of delivery or any other supporting document may be requested by the customer.
Invoice/credit memo will be issued after consignee confirms the discrepancy figures if the lost if borne by the consignee.
Inventory Adjustment will be made when any loss caused by consignee is borne by B\&G. The inventory adjustment must be approved by Chief Operating Officer (COO) for Operations to do the adjustment.
 File all closing stock balance report and opening stock balance report in all consignee box file for record.

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Records & Transactions Check

Hard copies in box files & NetSuite transaction checking for all locations will be taken. It is required to start checking 3 months ahead before the financial year end, i.e. October to December. All necessary modification should be made within the checking period to ensure all activity transactions are correct in Netsuite.

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After Stock Take Treatment

Prepare the Closing Stock Discrepancy Report for each location showing the closing balance quantity, physical count quantity and discrepancy quantity with valuation.

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Please use "INVENTORY VALUATION SUMMARY WITH BRANDS" report in Netsuite (Path : Report > Saved Report > Inventory Valuation Summary with Brands) for working on the closing stock discrepancy for all locations.
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Inventory Adjustment will be made when B\&G agrees the discrepancy from the warehouses/offices as well as any loss caused by consignee is borne by B\&G.  The inventory adjustment must be approved by COO for Operations to do the adjustment.
Submit the closing stock balance report to COO for auditing purpose.
File all closing stock balance report and opening stock balance report in all audit box file.

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Proposed Warehouse Stock Take Schedule 2022

Stock Take Schedule for each warehouse locations and proposed headcount

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Please refer to the appendix 1 for details.
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Notes

VA job will not be affected during the stock take period.  Receiving Report will be provided after the stock take.
Inbound will resume normal after the stock take is completed.
Delivery can be made during the in-house count period.

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Data Reconciliation :

Operations resumes normal in the afternoon of the stock take date for order placement in case stock take can be completed on/before 1400 hours.
Local delivery can be resumed as normal on the next working date after the order placement is resumed normal before 1400 hours on auditor count date.

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Supporting Document Requirement

1. Closing stock list (current stock in warehouse and temporary storage zone) as at 31/12/2022 and also one day before the stock count.
2. Last five warehouse inbound record unto 31/12/2022 night and also one day before the stock count
3. Last five warehouse outbound delivery notes (both local and oversea) unto 31/12/2022 and also one day before the stock count
4. For the temporary storage zone, please provide a summary, if any.
5. Delivery order for the goods are incomplete on delivery and now keeping in the warehouse.

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After stock take :

6. First five warehouse inbound records in January 2023.
7. First five warehouse outbound delivery notes (inclusive local & oversea) in January 2023.

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Consignment Location Stock Take Procedures

A stock audit location list will be provided by Operations team to Sales team to plan the stock take schedule with their consignment customers after the latest sales report is billed.

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Processes for stock take:

1. B\&G counting team are responsible for the stock take activities and to ensure 100% stock take is done.
2.  B\&G COO or GOM assigns one of the staff member in counting team as the controller for the stock take.

The counting team is provided with the Physical Inventory Worksheet per locations for counting.
The team responsible for counting the stocks in a sub-location available within a particular location need to sign the start sheet and proceed for counting and the counting must be 100% completed in 1 day.
This process is followed if the stocks are physically counted on the shop floor, consignee’s store area, storeroom & warehouse.  Direction for counting or scanning of stocks during stock take is “TOP-TO-BOTTOM AND LEFT-TO-RIGHT”.  This direction of counting the stocks needs to be followed religiously.  This activity needs to be done with utmost care and with full concentration. The entire team responsible for stock take need to get the activity done very religiously.
The counting team need to ask the customer to provide the sales report between the last sales report and the stock take to allow us to roll back the sold items into the inventory.
Once the location is counted completely, B\&G counting team and consignee’s store manager need to sign the physical count figures on the Physical Inventory Worksheet and write the stock take date for confirmation and record.
Any discrepancy found during this activity is brought to the notice of the controller and the auditor (if any) who then rectifies the same in the counting sheet. Ones this activity also is completed and the controller confirms the same through the control sheet he/she announces the completion of the stock take process at the front end level.
If the discrepancy is found to be in a big way the entire stock take may be repeated subject to the decision of COO. Small discrepancies found are re-looked at and if the errors are found the same is mentioned in the investigation report and handed over to the COO for further comments.
All the counted and physical inventory worksheet are tally with the system stocks.  B\&G notes all the discrepancies and submit the final closing stock balance report and do the alternate inventory adjustment in Netsuite approved by COO.