First steps when a shortage is found

The revision is over and the statement shows a shortage. The first reaction is usually familiar: "Somebody stole it!" or "Let the storekeeper answer for it!" But a hasty decision taken at this very moment often costs the most later. It is far from rare for an accusation to be made and a storekeeper to leave, and only then does it turn out that the shortage came from one wrongly written delivery note. Below are the steps to take, in order, when a shortage is found.

First, check yourself

1. Re-check the count

Have the short positions recounted by a different person and, if possible, by a different method. A counting error is the simplest and most common cause: boxes stood two layers deep, part of the goods stayed on another rack, a number was copied wrongly onto the count sheet. A recount takes an hour or two, but often most of the difference disappears at this stage.

2. Check the article and the unit

The records may say "pieces" while the warehouse counted "boxes". Or two similar articles were mixed up: a shortage on one, a surplus on its neighbour. So look at the neighbouring positions with similar names too. If a shortage is found in one place and an equal surplus in another, it is usually not theft but confusion.

Check documents for the most recent dates

Most causes lie in the paperwork. Go through the movement of the last two or three weeks:

• an issue document was not entered on time, or was entered twice;
• returned goods were not booked in;
• a transfer between branches was recorded on one side but not the other;
• goods in transit were taken off the books but the customer has not yet accepted them;
• the supplier sent less than ordered and no acceptance report was drawn up.

At this stage you work with delivery notes, till rolls and transfer documents. In many cases the shortage is "closed" right here and nothing in the records has to be changed.

An example: the storekeeper shipped 30 boxes on Monday and the bookkeeper entered the document on Wednesday. A count done on Tuesday would show exactly those 30 boxes as a "shortage", though nothing was lost and the document was simply two days late.

The fact, the amount and the explanation

4. Record the fact and the amount

If the shortage remains, record it exactly: the position, quantity, amount at cost, date found, and who found it. Do not yet write guesses about the cause, only facts. For example: "Product X: records show 120 pieces, actual 111, shortage 9 pieces, 270,000 so'm." This note becomes the basis for the work that follows.

5. Get an explanation from the responsible person

Show the person responsible for the stock the list of differences and ask for their view in writing. Start with a question, not an accusation: "What documents are there for this position?", "When did you last see it?" The explanation should rely on documents. Quite often the storekeeper names a detail that helps to find the cause. Hold the conversation calmly, with a witness if possible, and have the written explanation dated and signed.

To call a shortage "theft" straight away is to stop looking for the cause.

What to avoid

• writing off the shortage at once without finding the cause, which hides the problem;
• accusing or dismissing the storekeeper in public, which can lose you evidence;
• "covering" a shortage with a surplus on another position;
• altering data or moving goods around at night;
• arbitrary acts such as withholding wages until the check is complete.

A timetable of steps

• day one: recount, check of articles and units, recording the fact;
• days two and three: studying documents, the responsible person's explanation;
• within a week: the cause is established and a decision is taken.

If the shortage is large or its cause cannot be established, it makes sense to bring in an outside specialist.

Conclusion

A shortage is a signal to investigate, not grounds for accusation. First review the count and the documents, then record the fact, and only after that talk to the responsible person. If you need help finding the cause, the Reviziya team can compare the documents carefully and help work out where the shortage came from.