Bar & Cellar Management
WORKING OUT YOUR STOCKHOLDING.
It is handy to know what your stockholding
is for a number of reasons, the main ones are;
How long it takes you to sell your stock.
If you have items that donít sell very well.
To a certain extent to tell if staff are
stealing from you.
To see how much you are wasting.
Before we go into working out your
stockholding we want to point out how you can use your stock levels to
determine if you are wasting too much or if you have a thief in your
If you havenít sold as much of an item as
your stock level suggests then it has either been wasted or someone has
If your stock level for an item suddenly
drops when you conduct a count then you have too much wastage or
somebody has nicked it. (We will go into wastage and dealing with
thieves later on in the manual).
Back to calculating your stockholding.
Your stockholding can be worked out using
the mathematical ratio
Stockholding = (End Stocks /
Total Cost Of Goods Sold) x N
This means the total count you just did
divided by how much it cost you to sell, multiplied by the number of
days you are calculating, either month or year.
In order for you to do this ratio you would
need to have your profit and loss account handy, as this has the cost of
goods sold information on it.
(To find out more about profit and loss
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