In this article
Stock control needs to show how much exists, how the balance was formed, which cost was in force, which quantities are reserved and where the record and the physical count disagree.
In an industrial kitchen, expiry date, batch, unit of measure and condition of use also matter. An item can appear in the balance and not be available for production. That is why the record needs to keep events, states and responsible people separate.
The four basic records
Direct answer
Organize receipt, issue, count and adjustment as distinct events. The expected balance comes from the movements; the count observes the physical stock; the adjustment documents the difference after investigation and approval.
A receipt can come from goods received, a return or a controlled return to stock. An issue can be a production requisition, waste, disposal or transfer. A count should not rewrite the balance automatically, because the team first needs to compare, investigate and approve the correction.
A good practices manual from the city of Campinas (Brazil) gives an operational example with records of receipts, issues, meals served and inventory. The specific form works as an institutional reference, while each operation should adapt people responsible and documents to its own context.
Swipe the table to see all the columns.
| Event | Example | Minimum information |
|---|---|---|
| Receipt | Goods received from a purchase | Item, quantity, unit, cost, origin and date |
| Issue | Requisition for production | Item, quantity, destination, cost and person responsible |
| Count | Physical inventory | Item, observed quantity, location, date and counter |
| Adjustment | Correction after a discrepancy | Difference, reason, approval and count reference |
Expected balance and discrepancy
The expected balance is a consequence of the events recorded. The physical count is an observation made at one moment. The difference between the two does not explain the cause; it shows that an investigation needs to start.
Unconfirmed receipts, late issues, wrong conversions, unrecorded waste and counting errors are possible causes. Adjusting without a reason removes the signal and reduces the usefulness of the audit.
Expected balance = opening balance + receipts - issues ± approved adjustments
Inventory discrepancy = physical quantity - expected balanceBase unit and conversions
The same item can be bought by the case, stored in packs and consumed in grams. Stock needs a common base unit to consolidate quantity and cost. Each package should state its net content and conversion factor.
An approximate or missing conversion creates accumulated error. A case with ten packs cannot be treated as ten kilograms if the pack has a different weight. The goods receipt confirmation should show the quantity purchased and its equivalent in the base unit.
- Define a consistent base unit for each ingredient
- Register the net content of packages
- Keep the original unit from the document
- Validate conversions before the first movement
- Do not change the historical conversion of a receipt that has already been confirmed
Moving average cost
Moving average cost combines the value of the previous balance with the value of the new receipt. Later issues use the average cost in force. This is different from picking the most recent supplier price to value all the stock.
CPC 16 (the Brazilian accounting pronouncement on inventories) allows weighted average cost or FIFO for interchangeable items, applied consistently. The accounting policy should be defined with the appropriate people responsible. The system's operational calculation should not be presented as accounting certification.
New average cost = (value of previous balance + value of receipt) / (previous quantity + quantity received)
Cost of the issue = quantity issued × average cost in forceSources for this section: [3]
Batch, expiry date and physical rotation
RDC No. 216/2004 (Anvisa's food safety rule for food services in Brazil) requires organized storage, protection against contaminants, identification and compliance with the applicable conditions. The temperature rule depends on the product, the stage, the labelling and local rules; there is no single temperature for all stock.
Physical rotation and cost method are different concepts. The team can prioritize the batch that expires first and use average cost for valuation. Expiry control should not be replaced by the accounting method.
- Identify product, batch and expiry date where applicable
- Separate blocked items or items that cannot be used
- Prioritize the rotation defined by the operation
- Record losses from expiry with a reason
- Keep storage conditions in line with the product and the applicable rule
Counting and adjustment with approval
The count should state the location, date, person responsible and observed quantity. In larger inventories, it can be useful to freeze movements or set a cut-off time so that a receipt is not counted and recorded twice.
After the comparison, the team investigates relevant discrepancies. The approved adjustment creates a new event and preserves the previous balance. This is safer than editing old movements or replacing the quantity without explanation.
- Define the scope, location and cut-off time.
- Count in the physical unit and convert to the base unit.
- Compare with the expected balance at the same moment.
- Recount relevant differences and look for pending movements.
- Record the reason and evidence for any adjustment needed.
- Submit for approval and only then update the balance.
A routine that keeps the balance usable
Control improves when the event is recorded close to the moment it happens. Receiving today and entering it next week leaves the balance unavailable for purchasing and production. Confirming a requisition without a physical pick also creates a discrepancy.
Management should monitor items with no cost, negative balances, batches close to expiry, pending counts and movements with no document. These alerts are more useful when they lead straight to the record that needs action.
How MEPO handles this topic
MEPO keeps a stock history with receipts, issues, transfers, adjustments, waste, returns and counts. Moving average cost is recalculated on receipts in the base unit. A count only changes the balance after it is submitted and approved. Earlier movements stay in the history.
References
The sources support the general concepts. Specific rules can vary by contract, technical lead and local regulations.
- [1]RDC nº 216/2004 (Brazilian food safety rule for food services). Anvisa.
- [2]Manual de Boas Práticas do Programa de Alimentação Escolar, edição 2024 (good practices manual of the school meals programme, 2024 edition). Prefeitura de Campinas.
- [3]CPC 16 (R1), Estoques (Inventories). Comitê de Pronunciamentos Contábeis.
- [4]Guia orienta sobre prazos de validade de alimentos (guide on food expiry dates). Anvisa.
- [5]How to reduce your food waste. FAO.