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TPAMM9204 - TP AMM GFI 2.04: Cycle Counting Completion
Requirements: Stock situation has to be represented correctly in the system; all stock movements have to be recorded in the system. All stock items have to be counted at least once per year. Results have to be entered, recounts requested when necessary and differences posted promptly in the system. It is recommended to minimize the workload by using cycle counting.
Definition: Percentage Counted = Number of Storage Units Counted On Time / Total Number of Storage Units
Total number of storage units definition: Number of active material-storage location combinations for a plant:
Material type: ERSA only
Material created for the storage location and deletion flag not set
Creation date at storage location is more than 12 months in the past
Spare parts counted on time definition: Number of the above fulfilling the following criteria:
Non Consignment Materials: Own Stock counted and adjusted within the last 12 months
Consignment Materials: Consignment and Own Stock counted and adjusted within the last 12 months
Note that all differences, even zeros, have to be posted in the same period as the stock count.
Impact
Penalties as result of incompliance with local legislation
Unsatisfactory internal audit results
Unavailability of spare parts in case of plant breakdown
Relevant Best Practices
Principles of Tech Store Management
Nestlé Accounting Standards
Audit Manual - E2E Asset & Maintenance Management - Section: Technical Store
Risk A - Internal Controls
Risk B - Stock Management
NSAT 08-1.11 Stock counts and adjustments
Various local legislation acts
Corrective Actions
Follow Principles of Tech Store Management, Nestlé Accounting Standards and local legislation requirements
Review the list of spare parts not counted on time, request inventory count for them
Ensure that all active spare parts are counted at least once a year, including spare parts under discontinuation and spare part with zero stock. Ensure that differences all adjustments are posted on time, within the same fiscal period, even in case of actual zero difference.
Review all active spare parts' master data, set correct material status and deletion flag, as necessary. Make sure that deletion flag is set for unused storage locations and plants with plant-specific status Z6.
Avoid using stock material types (ERSA) for spare parts that are normally not held on stock and are purchased only on demand, use non-stock (NLAG) material type instead