Stocking Inventory and Expired and Damaged Inventory
Excess inventory is stored in the back of the store in the inventory storage room. Each evening, five stockroom employees replenish the store’s shelves. Each employee is assigned two aisles of the store. The employees are responsible for assessing the items that need to be replenished during the evening. The inventory needed is then moved from the back of the store to the designated aisle. The stockroom employee then restocks the shelves, moving previous items on the self to the front and putting the new items in the back. Each evening, the employee is also responsible for identifying any item on the shelf that has gone past the expiration date or any damaged items. These items are removed from the shelf, noted on the expired inventory list, and put in a separate area in the inventory storage room. A journal entry is then prepared by the bookkeeper to adjust the inventory system, which is approved by general manager and subsequently reviewed once recorded.