Inventory Monthly Checklist

<< Click to Display Table of Contents >>

Navigation:  MLS 2026 Operations & Reference Guide > Inventory >

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outdated retail pricing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.