Intro To Stock Accuracy

0:05
Hello everyone. Welcome and thank you for joining us today for today's webinar on stock accuracy.

0:13
I have the pleasure of introducing Charlene and today's webinar.

0:18
For those of you that don't know me, my name is Peter Tompkinson.

0:21
I'm the manager of sales here at Windward Software and yeah, pleasure to be joining today's webinar and Charlene Gillespie is our director of professional Services, and she's going to take us through today's topic on stock accuracy.

0:36
Now this webinar, of course, it's the tip of the iceberg on this topic.

0:40
So if you find value in today's webinar, make sure you sign up for the stock accuracy workshop in two weeks.

0:45
There'll be a self-serve link that we'll share at the end of today's presentation.

0:49
And of course, you can always reach out to your account manager or myself.

0:53
Now I'll hand it over to Charlene to speak a little bit more about our 2026 webinar and initiative and of course stock accuracy. Charlene. Awesome thanks Peter.

1:04
Peter and I work closely in professional services and now he's moved on to the sales team but yeah thank you everyone for joining us today.

1:12
I am Charlene and if you've attended some of the previous webinars or workshops you'll know my name and my voice but I do work in professional services here and really our focus is around helping customers get the most out of system five in their day-to-day operations.

1:29
And today's focus is on stock accuracy, but we're not really talking about just from a system perspective.

1:39
It's really about what happens behind the scenes in your business that impacts whether your inventory can be trusted.

1:47
So certainly system five is buying and selling of stock, but what about those outliers?

1:54
What are those things that happen in your business that can affect your stock and how do we deal with them?

2:01
So, for many businesses, stock issues don't show up as a big problem.

2:06
It's kind of those little things that are ongoing, like the little frustrations like, well, my system says I have it, but I actually don't.

2:15
um maybe your inventory values don't match the financials um you know like maybe you're doing frequent stock adjustments and you know the need to stay on track is real and so these things aren't always just about buying and selling there they could be small gaps in your process and you know those disconnects with the workflow is what we want to talk about today.

2:43
So, we're going to take a step back and walk through, like, why is stock accuracy so important?

2:49
What are the consequences of not having good stock accuracy?

2:54
And really, where do things typically go wrong in system five?

2:59
And how do we improve that so that you have confidence in your inventory?

3:06
Just like Peter said, this is an introductory session.

3:09
It's designed to build some awareness.

3:11
And if you're feeling like the things that you see today are important to you and your business, then I think the upcoming workshop makes sense.

3:22
So this is really an intro and I think we get started.

3:31
Okay, so just a bit of on the virtual events.

3:34
We, this is a new thing for us this year.

3:37
And through 2026, we are building out a customer engagement sessions that kind of build upon themselves.

3:47
So as an example, you know, earlier this year, we covered cost accuracy, ensuring that your inventory costs are accurate. This month, we're talking about accuracy of your stock.

3:58
This all flows into physical inventory count, which is happening in June.

4:01
So, really what we're trying to do is build some expertise and awareness around the system and how you can use it better.

4:11
So the whole training program is available at winniversetalker.com slash training.

4:17
But what we're focused on is just giving more, more deep awareness into the system and how you can use it better.

4:30
Okay, so who is this webinar for?

4:33
Well, I think thank you for all of you that are signed up, but really, let's start by grounding this around, there are always going to be challenges with stocks.

4:45
And you know, this is really designed for teams that are dealing with frustrating disconnects.

4:51
You know, like, what if the system says that you have it, but you don't?

4:55
And maybe the inventory value doesn't line up with your financials.

5:01
reconciling the gap is challenging you know in many cases you might be doing cycle counts and that's caused by something that's happening within your business and it's easy to say that within system five you just buy product you sell product and everything should be fine but we know that that's not always the case.

5:24
A lot of the inventory issues that what I've experienced in my time dealing with customers is not caused by that buying and selling activity.

5:33
It's really around the gaps in internal process, like internal data entry.

5:43
So let's say you have a product that is broken or damaged and it doesn't get entered into the system.

5:53
That can cause problems.

5:55
There's RMAs that can cause problems.

5:57
there's all kinds of things that happen with your stock and there's so much product that yeah that can really compound over time and you know later in the year we're going to be talking about reconciling that inventory but you know really today we're talking about what are the things that we can do in the day-to-day that help with making sure that the inventory is accurate.

6:28
Okay, so what we're going to talk about today is why does stock accuracy break?

6:34
What is the cost to you?

6:37
Where does it break in system five?

6:40
And what can you do about it at a high level?

6:45
So it's not just the financial piece that impacts the challenges of stock accuracy.

6:54
it's really about you know we've got customer experience um you know we've if we have inaccurate stock what does that mean to you as a business so we've got customer satisfaction so because i know that the so i left this image up intentionally because i generated it with ai i know the guy looks funny. So I thought it would be funny to share.

7:21
But really, it is around customer satisfaction.

7:26
Like what is the customer experience if you're looking for a specific item, and the customer has it in their hands, yet you don't have it in your system to sell, then you're faced with overselling.

7:42
What about the customer that's looking for the item and it is in your system, but you can't find it physically.

7:51
So that as well as like wasted capital, you know, like if you're understating your stock levels, that can lead to, let's say, not so much the customer experience, but if you're looking at your highs and lows, you're looking at what you need to repurchase, and if your stock levels are not accurate, well, what does that mean?

8:19
Then you could be over-purchasing and tying up cash in inventory that you actually have.

8:27
That can also lead to, you know, like GMROI consequences as you're holding on to goods that really aren't returning a value.

8:39
We talked a bit earlier about the financial statement consequences, like if your financial statement and that asset of your inventory is inaccurate, well, that can have consequences in itself.

8:56
So really around what is the value of your assets and, you know, what does that look like for your stakeholders?

9:06
And lastly, unnecessary markdowns, like what if you have stock that, and this might be the lesser of the most, but if you have stock that is not, well, it's lost in the system, and then you actually have it understanding afterwards, then it's kind of too late.

9:31
and then you're having to mark down and see a lesser profit.

9:39
So these are the things that we see as the consequences of not having accurate stock.

9:54
So where can stock accuracy break in System 5?

9:57
So that's the things that we can control with the system, and there are four places.

10:02
There's inventory adjustments, and we're going to quickly step into a demo, but there is adjustments of inventory.

10:11
So is there too many, like why are we adjusting inventory and how should we be doing it?

10:19
Overselling is also a thing.

10:22
And then mismatching POs with bills.

10:27
So when you receive inventory, is it actually accurate?

10:33
And then lastly, the tracking of RMAs or damaged products.

10:38
So those are the top things and I'm sure that you all may have different things that come into to play for you in tracking your inventory.

10:48
But those are the things that rise to the top on things that we can control within the software.

11:00
OK, so now we will shift over into a live demo and we're going to cover off three things.

11:08
We're going to talk about inventory adjustments.

11:15
We're going to talk about overselling and we're also going to talk about the physical inventory count.

11:24
So just on the surface, when we look at an inventory item, and I'm sure you're all familiar with this screen, what we're looking at here is on the right hand side, we have our stock quantities.

11:36
So one thing to note is that we have the in stock quantity.

11:41
And in this example, we have something that is on work order and we have an available of three because we have something allocated to a work order.

11:51
The financial quantity is still four.

11:54
And I think that's something that in my experience has been overlooked by users, is that they don't realize that that financial quantity is actually what you have in stock because you haven't released it to the customer.

12:09
Once you release it to the customer and sell it, then it becomes the transfer of ownership from you as a business to the customer.

12:18
And that would be the completion of this work order into a completed sale.

12:22
And then that becomes the financial transfer of ownership and then this financial quantity will decrease.

12:32
So that's just something of note.

12:36
And then if we're talking about the cost and stock levels, this is where we want to look at what our stock levels are.

12:47
And we have this magic button over here that is to create a stock adjustment.

12:53
So when we create a stock adjustment, that adjusts our stock and we can do that.

13:02
And when we choose that button, We can adjust the stock and we can choose to do this like a reduction of stock.

13:11
We can add a comment, but I'm going to reflect back on the financial consequence of that.

13:20
So there's two parts to system five.

13:23
There is the quantity that we have and that value of the quantity per item is the stock value.

13:34
But there is also the financial part.

13:37
And if we look at the general ledger, it has the inventory value, and that is the financial part.

13:48
If we do this and we adjust the stock here, this is not affecting our financial ledger.

13:59
So it needs to be followed up by a journal entry or some kind of entry to be able to affect the financials.

14:06
And that's something that is often missed by users because it's so easy to create a stock adjustment.

14:14
I think it comes down to the reason behind why we're creating a stock adjustment.

14:21
Is it based on the fact that a product is damaged or we're just doing a reset on the inventory because this will not affect the financial value.

14:38
So there is a different way to do it.

14:40
As I mentioned, there are multiple ways to be able to adjust stock.

14:44
And I think that in running a retail business or any type of business, you're going to have challenges with stock.

14:52
And there's going to be reasons why you need to adjust the stock.

14:56
This is one way of doing it.

15:00
There are other ways of doing it that also keep the system more tight.

15:06
And that would be doing what we call a transfer invoice.

15:12
Some of you on the call, if you've been exposed to that, I think that that is a preferred method.

15:20
And it's something that we can deep dive into in the workshop, but that would be the method where you're also affecting stock, but also the financial value.

15:31
So takeaway for that is if you're doing stock adjustments, yes, this is a method, but note that it's not affecting your financial value.

15:47
Okay, the second is the oversolds.

15:49
So oversolds are also something that affects our inventory stock value.

15:55
And I think in a number of industries, we could have the situation where your stock is being received and it's being sold before it actually can be realized in the system.

16:14
So my example is I worked with the garden center and, you know, during the season it's like stuff is coming in like crazy in the warehouse and customers want it and you're going to deny them because you can't get it into the system in time so that's the ideal situation where you're going to oversell and overselling it certainly does provide the like system five does provide the opportunity for overselling but what it does is that then we have the receiving after fact and that can impact your stock accuracy.

16:57
So let's take a look at an item and let's go with okay so this particular item if we were to oversell it which actually perhaps I should have started there okay so we have nothing in stock so then if we were to use this item and actually sell it.

17:45
You can do the work order and oversell.

17:50
I'm not sure how many of you are actually overselling, but overselling is a thing that the system can correct, but can also cause challenges with stock valuation.

18:12
So here we don't have any in stock, so we're going to oversell.

18:16
And let's say we're overselling two.

18:17
So, once we oversell, then at the time of receiving, we have an option that I will share where the system will automatically, actually it won't automatically, it will populate.

18:51
It will suggest that you fill here, prompt to clear oversold quantity when receiving stock.

19:23
So if you are in a position where you are receiving stock but not in the system but you're selling first, then this makes sense.

19:34
Then it's going to prompt to oversell or sorry to clear the oversold.

20:10
So in this situation we have the item. It's been allocated.

20:15
And then if we look at the inventory, we can see that nothing in stock, zero on or two items on work order.

20:34
So available is negative two.

20:37
So if we were to do a receiving order, then it can fulfill that quantity.

21:40
So if we receive two, actually my apologies, I think that, okay, so it received it, but I think what happened is that it was on a work order, so not fulfilled.

22:53
So my apologies. It was not a good demonstration of that.

23:16
So I believe what happened is that the oversold was not technically an oversold because it was a work order, but at the same time I think that it would fulfill it.

23:51
Okay, so the The last piece as far as stock accuracy would be around the physical inventory count, and I think that for some they are using physical inventory count as a method to be able to do stock checking.

24:13
When we do the physical inventory count.

24:19
In here, if we're doing it based on like cycle counts that are perhaps based on like a certain category, maybe we're doing just a specific section of your business, these are very effective to be able to do throughout your workday.

24:53
When we do these, the other point is that when we do these, these are also not affecting the financial quantity.

25:05
So when we make changes in the physical inventory count, this also needs to be backed up by a journal entry to affect the financial value.

25:18
and that as well helps with the stock accuracy.

25:28
So when we make changes here, we can process the count, it's going to give us a variance and that value needs to be accounted for financially with a journal entry.

25:51
Okay, so lastly, before we close up today, I did want to talk about just a bit of a value add on the inventory and allocation of stock and that is with what we call the display stock.

26:15
Now, this does require that you're up to date with system five, but we do have this display stock option.

26:22
I'm not sure if any of you are used to or have a like a showroom where you want to be able to allocate the stock differently.

26:30
but this display stock option is a nice option to be able to reallocate stock in this case we have two in stock of this item and what we want to do is allocate this item as display stock meaning that you have a separate item for the display So, you know, like you think about it when I go into a furniture store, there is a couch that's on display and that couch may be sold differently because it's on display.

27:17
This allows for that ability.

27:20
So this item, I can choose to create this as a separate item on display.

27:33
So now if we search the item, now we can see if there's one regular item, one that's on display.

27:49
You have the ability to choose what that suffix is, but now we can see separately that those items are there.

27:57
And that is a feature within the item and yeah kind of a fun way of being able to allocate stock and know what you have on display or just regular stock.

28:18
Okay, so we're almost out of time.

28:21
I appreciate your time today.

28:22
I'm just gonna move on to, okay, that was the tip of the month.

28:28
And then anything that you want to try, I always encourage you to do it in training, not in production.

28:36
You all have a training environment, so that's the best place to make any changes just to try them out.

28:41
And then, as usual, our free resources are the Wynwood Self-Help, our Knowledge Base, all the links are there, and our Learning Academy.

28:56
And with that, we do have the Workshop Registration.

29:01
So that is May 28th, where we will take stock accuracy and do a deep dive into significant workflows and all of the things that we talked about today.

29:11
And we have the link at the bottom where you can self-serve access or I'll pass it over to Peter, you wanna talk about.

29:20
Yeah, no, you nailed it, Charlene.

29:23
If you wanna sign up for the workshops, we'd love to see you there.

29:26
There's the self-serve virtual event site where you can purchase either individual workshops.

29:34
And I think on the next slide, if I'm not mistaken, Charlene, And of course, reach out to your account manager or your sales rep, myself.

29:41
We're happy to help you out with that as well.

29:45
You can buy the individual package, I think it's $79 on the site.

29:48
Or if you want the full 10 workshops, as Charlene said, they really are building off of one another, culminating with the physical inventory count.

29:59
So if you wanna be able to have access to all those workshops, you can get it all as a bundled package for the $4.99 as you see on the screen.

30:09
Again, that's on our website, or you can reach out to your account manager or sales rep for that purchase.

30:22
And lastly, as always, we do professional services, one-on-one training.

30:29
We have a host of professional services catalogs, which you can find on our website, or again, talk to your account manager, our professional services team, our experts in the software, and approach it consultatively on your problems or your challenges, and really work with you to understand your business and the right solution for you, as not all businesses are the same.

30:54
And certainly in Windward, there's more than one way to do the same or similar things.

31:01
Thank you everyone for joining us today.

31:03
And I know there was a number of questions that we just didn't have time to get to.

31:08
We can reach out to some individuals and try to answer those, or of course, come to the workshop.

31:13
You'll be able to discuss things at the workshop as well and really dig into maybe not all the examples for everyone, but some examples, certainly.

31:23
Thank you again for joining us and look forward to seeing you in the next webinar or workshop.

31:29
Awesome.

31:29
Thanks everyone.