How often is stocktaking mandatory?

The general inventory is required at least once a year, before annual financial statements, plus at special events (custodian change, liquidation, disasters).

Difference between stocktaking and cycle counting?

General stocktaking counts all stock at a point in time (usually halting operations). Cycle counting continuously counts small SKU subsets, maintaining accuracy without shutdown.

What do I do with inventory differences?

Surpluses and shortages are booked in accounting. Non-attributable shortages may be an expense; attributable ones are recovered from the custodian. Causes should be analysed to prevent recurrence.

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Operations Glossary
Stocktaking (physical inventory)

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Category: Operațional

Stocktaking (physical inventory)

Quick answer: The process of physically verifying inventory and reconciling it with book records to establish the real asset position.

Key takeaways

Annually — general inventory required before preparing the balance sheet (per Romanian Law 82/1991 and OMFP 2861/2009)
On change of custodian, merger, liquidation, or when losses are found

What stocktaking is

Stocktaking is the process of physically checking (counting, weighing, measuring) all asset items and reconciling them with book records (accounting/WMS balances). The goal: establish the real position and correct differences (surpluses/shortages).

When it is mandatory

Annually — general inventory required before preparing the balance sheet (per Romanian Law 82/1991 and OMFP 2861/2009)

On change of custodian, merger, liquidation, or when losses are found

Process stages

Stocktaking decision and committee

Physical count (inventory list)

Physical vs book reconciliation

Determining differences (inventory surplus/shortage)

Booking results in accounting

Periodic inventory vs cycle counting

The annual general inventory halts operations and is laborious. Cycle counting continuously verifies SKU subsets, maintaining accuracy without stopping the warehouse — operationally recommended.

How Azuvio helps

With a WMS using barcode/batch scanning and real-time sync to accounting, Azuvio keeps book stock close to physical at all times. The annual inventory becomes a quick confirmation, not a difference hunt.

Frequently asked

How often is stocktaking mandatory?: The general inventory is required at least once a year, before annual financial statements, plus at special events (custodian change, liquidation, disasters).
Difference between stocktaking and cycle counting?: General stocktaking counts all stock at a point in time (usually halting operations). Cycle counting continuously counts small SKU subsets, maintaining accuracy without shutdown.
What do I do with inventory differences?: Surpluses and shortages are booked in accounting. Non-attributable shortages may be an expense; attributable ones are recovered from the custodian. Causes should be analysed to prevent recurrence.

Where Azuvio fits

Related terms

Cycle counting — Continuous small-batch counting with no activity stops — modern alternative to annual physical inventory.
NIR / Goods Receipt Note (GRN) — Internal document confirming the physical receipt of goods in the warehouse — the pivot between supplier delivery note and invoice.
WMS (Warehouse Management System) — The system orchestrating physical warehouse operations: receiving, putaway, picking, packing, shipping.
Inventory valuation methods (FIFO, LIFO, WAC) — Accounting rules to determine the cost of goods leaving stock: first-in-first-out, last-in-first-out, or weighted average cost.

Last updated: 2026-07-06