Stock register

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Stock register
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Stock register is a record of all goods bought and stored in company's warehouse. Stock register shows which wares are in transit, and shows their value of buying and selling, actualizing the inventory helps company to keep reserves high enough to be aware of surprise of not having goods on stock. Usually there is a set kind how that protocol should look like, and it can be various depending on company.

Format of stock register

As mentioned before, the protocol appearance is depending on type of activity, and can be different for miscellaneous companies. Easiest format of stock register to imagine is for trading company. Cost layering methods used to value goods sold should be mentioned in instruction for stock maintaining, it will be LIFO or FIFO method. It's highly recommended to keep stock register as precise as possible.

Importance of detailed stock register

Highly detailed reports are necessary to achieve following purposes [1]:

  • To keep accurate and up-to-date record of assets to share informations with management,
  • To enable those assets which are capitalized to be properly accounted for in the company's annual accounts,
  • To make management reports possible to prepare,
  • To make accountability easier and keep eye on goods quantity,
  • For easier planning depending on inventory exchange,
  • To ensure quick delivery to contractors,
  • To prevent warehouse of emptying.


Register of stock is necessary to prepare profit and loss account, for companies trading or producing goods. Cost of goods sold is the cost of the stuff sold to customers, it is concluded on the income statement when the goods are sold, and it is reported by certain document (invoice or receipt).

Retail cost of merchandise includes all costs invested in bringing goods to the inventory making it possible and ready for sale, all additional costs are known as side cost of purchase. Those costs can be shipping cost, preparation of the material (cost of cutting wood), additional fees.

For example, let's pretend that we are selling T-shirts. If we buy single T-shirt for $10 but the cost of shipping is $2, we have to report $12 as cost in inventory account till the moment we find customer who will buy our T-shirt. When it is sold the whole amount of $12 is removed from inventory and is reported as cost of goods sold.

It's simple to calculate profit we got for selling goods, let's adopt that price of one T-shirt is $15, we have to put all values into quick calculations telling us that we just earned $3.

The inventory that has not been used or sold during accounting period (may be month), has to be calculated and moved to next period.

Ending inventory = Beginning inventory (which is ending inventory of previous month) + Goods purchases - cost of goods sold [2]


  1. Inventory register guide - A Guide for School & Department Managers, 2008
  2. Mustafa Bakir, 2008


Author: Michał Rogóż