Inventory Monthly Checklist

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Inventory Monthly Checklist

Proper inventory management is critical to:

•profitability

•cash flow

•purchasing efficiency

•accurate accounting

•technician productivity

•customer satisfaction

This checklist is designed to help maintain:

👉 accurate inventory control

within MLS 2026.

It is strongly recommended that these procedures be performed:

👉 every month

with additional spot checks performed weekly in high-volume operations.


Daily Recommended Practices

Although this is a monthly checklist, the following habits should occur daily:

•Process all received parts through Stock Input

•Use Purchase Orders for all vendor orders

•Verify workorder parts before invoicing

•Return incorrect or damaged parts promptly

•Update retail pricing when vendor costs change

•Monitor low-stock items regularly

•Process core returns consistently

Consistent daily procedures dramatically reduce monthly correction work.


Monthly Inventory Control Checklist

1. Review Below Minimum Report

Run:

👉 Inventory Reports → Below Minimum

Review:

•low-stock items

•critical service parts

•fast-moving inventory

•unexpected shortages

Verify:

•minimum quantities are reasonable

•stocking levels remain appropriate

•backorders are valid

•vendor availability has not changed


2. Review Slow Moving Inventory

Run:

👉 Holdover Report

Review:

•parts not sold recently

•excess stock

•obsolete inventory

•seasonal items

Consider:

•reducing stocking levels

•returning items to vendors

•discontinuing inventory items

•moving excess stock


3. Reconcile Physical Inventory

Select:

👉 Inventory → Utilities → Balance

Perform physical counts for:

•high-value inventory

•fast-moving items

•commonly lost parts

•recently received stock

Verify:

•stock quantities

•location accuracy

•shelf organization

•damaged inventory

Small section-by-section balancing is easier than full annual corrections.


4. Review Purchase Orders

Review:

•open Purchase Orders

•backordered items

•delayed shipments

•cancelled items

Verify:

•on-order quantities are accurate

•completed POs are closed

•vendor deliveries were processed

•duplicate orders were not created


5. Review Vendor Pricing

Compare:

•Last Price Paid

•Average Cost

•Retail Pricing

Verify:

•current profit margins

•vendor increases

•outdated retail pricing

•wholesale pricing accuracy

Recalculate pricing tables if needed.


6. Review Lost Sales

Run:

👉 Lost Sales Report

Review:

•repeatedly requested items

•seasonal demand

•commonly unavailable parts

Determine:

•whether additional items should become stocking inventory

•if minimum quantities should increase

•whether alternate vendors are needed


7. Process Core Activity

Run:

•Outstanding Core Report

•Core To Return Report

Verify:

•customer core returns

•vendor return credits

•outstanding balances

•stored cores awaiting shipment

Prompt core processing improves cash flow.


8. Review Non-Stocking Parts

Run:

👉 Catalog of Non-Stocking Parts

Review:

•frequently purchased non-stock items

•repeated special orders

•common service parts

Consider:

•converting frequently used items into stocking inventory


9. Verify Location Accuracy

Review:

•shelf organization

•storage locations

•mislabeled bins

•recently moved inventory

Confirm:

•location codes still match physical layout

•new inventory has proper assignments

Good organization prevents:

•lost inventory

•duplicate purchases

•technician delays


10. Review Inventory Value

Run:

👉 Complete Inventory Listing

or:

👉 Quick Totals

Review:

•total inventory value

•excessive investment in slow-moving stock

•high-cost aging inventory

Evaluate:

•inventory turnover

•cash flow impact

•reorder strategy


11. Review Returns Processing

Verify:

•all vendor returns were processed

•credits were received

•defective inventory removed

•incorrect shipments resolved


12. Verify Reporting Accuracy

Run comparison reports:

•Inventory Sales Summary

•Parts By Location

•Quick Totals

•Stocking Reports

Look for:

•unusual variances

•negative quantities

•incorrect pricing

•duplicate inventory records


Monthly Management Review

At least once per month, management should review:

Inventory Performance

•inventory investment

•turnover rates

•dead stock

•lost sales

•profit margins

Workflow Compliance

•are employees following procedures?

•are Purchase Orders being used?

•is Stock Input being bypassed?

•are returns processed correctly?

Profitability

•pricing accuracy

•markup consistency

•vendor cost increases

•shrinkage or loss


Recommended Quarterly Procedures

Every quarter, consider:

•deeper inventory balancing

•vendor evaluation

•pricing table review

•warehouse reorganization

•dead stock liquidation

•purchasing pattern analysis


Recommended Annual Procedures

At year end:

•Perform complete physical inventory

•Run Yearly Closing

•Archive reports

•Review annual sales trends

•Review vendor performance

•Recalculate stocking strategies

•Review obsolete inventory

•Reassess pricing structures


Common Warning Signs

The following usually indicate inventory management problems:

•increasing lost sales

•excessive special ordering

•negative inventory counts

•large quantities of dead stock

•inaccurate stock counts

•pricing inconsistencies

•increasing write-offs

•duplicate inventory purchases

•excessive backorders

•parts frequently “missing”

These issues should be corrected quickly before they affect:

👉 profitability and customer service.


Recommended Best Practices

•Use Purchase Orders consistently

•Process all receiving through Stock Input

•Maintain organized location systems

•Perform regular balancing

•Review reports frequently

•Standardize descriptions and coding

•Monitor vendor pricing carefully

•Reconcile cores promptly

•Preserve inventory history

•Train all staff on inventory procedures


Recommended Companion Sections

This checklist works closely with:

•Inventory Editor

•Purchase Orders

•Stock Input

•Returns Processing

•Core Processing

•Inventory Utilities

•Pricing Management

•Inventory Reports

•Stock Balancing

•Vendor Management

Together, these procedures provide a complete inventory management workflow for MLS 2026.