Can anyone give an idea of how to do stock audit for jewellery ?
Balasubramanian
(Proprietor)
(117 Points)
Replied 09 January 2016
Ascertain the network of Branches.
Also list out the controlling Regional offices / purchase centre for Gold,Bullion, Platinum .,
Branchwise
obtain barcode wise printout of individual items of Jewellery with no of items in each with descriptttion and Gross and net weight.
The individual weight summary (barcode wise) can be tallied with daily stock summary with total weight.
Obtain a category wise list of inventory at the day end and visit the showroom to check the physical items before they are taken for display from the strong room.Ensure the possession of keys and control of movement therof are with authorised persons .
Check no. Of pieces on an overall basis before the stocks are released for display for the day.
After display you can ask them to scan ( with a scanner) to check the no of items in each category mentioned viz., Bangles, Rings,necklaces .You can select say gold pieces at random and ask them to value the item and match it with the quantity (gross and net) as per tag attached with each item.You can weigh the selected items at random for accuracy.Look for Hallmark logo engraved in the jewellery items. Ensure the balances and weights are calibrated and bear the validity period of certification .
In case of Diamond jewellery look for quality certificate from an accredited agency viz. Indian Gemology institute.
Obtain purchase bill of items to ascertain the cost as in the shop the billing is on the basis of current market price.
Reconcile the quantity as per last stock statement with in and out movement to arrive at the quantity on the date of stock audit,.
You may select a time suitable for the shop so that customers are not disturbed.
Check for the purchase old jewellery at the shop level from customers and the exchange of new jewellery in lieu thereof.
Check for pure gold lying with smiths ( gold and silver) and verify the movement records and confirmation from smiths.
Check the manual register generally maintained section wise with the system printout .
check VAT returns for say 3 months to validate purchase and sales quantities and movement in and out of Branches ,ROs and Smiths.
check the Branch registration certificate and address proof with adequacy of coverage of "Jewllers' Block Policy ".
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