The guide
Guide to the physical stocktake in Switzerland
The physical stocktake is a legal obligation, the basis of the stock value on the balance sheet and a moment of truth for warehouse organisation. This guide explains what the Code of Obligations requires, how to organise the count and how to handle variances so the auditor accepts them.
Is a physical stocktake mandatory in Switzerland?
Yes, in one form or another. Art. 958c para. 2 CO requires the existence of every balance sheet item to be evidenced by an inventory or in another way. For merchandise, raw materials or finished goods, the usual evidence is the inventory list drawn up at the balance sheet date: items, quantities, unit prices and total value. It is kept for ten years with the other accounting records (art. 958f CO).
The law does not require you to count all stock on 31 December. A company that keeps reliable perpetual inventory can spread counts over the year, provided every item is counted at least once per financial year and variances are corrected. The statutory auditor, where there is one, often attends a count and checks the method. Your fiduciary will tell you which approach suits the size and risk of your stock.
How do you prepare a year-end stocktake?
A good year-end stocktake is prepared three to four weeks in advance. Set the cut-off date and time, usually after the last delivery on 31 December or on the first working day of January. Tidy the locations, regroup scattered items, separate third-party and consignment goods, and label whatever is not labelled.
Then split zones between teams of two, prepare count sheets per location and decide who recounts and who approves. On the day, freeze movements in the zone being counted and handle late receipts and deliveries separately, so they fall on the right side of the cut-off. In Numezis, the stocktake campaign brings all of this together: scope, teams, sheets, live progress, recounts and approvals, then the valued list and the correcting entry at the end of the day.
Cycle counting: how do you count all year round?
Cycle counting means counting part of the stock at regular intervals instead of everything at once. The most common method is ABC classification: A items, which make up most of the value, are counted every month or quarter; B items twice a year; C items once a year.
This approach has three advantages. The warehouse never closes for a whole day, variances are discovered a few weeks after their cause rather than eleven months later, and the year-end stocktake shrinks to a check. It requires reliable perpetual inventory, which Numezis provides by recording every movement as it happens. Cycle count plans are generated automatically from each item's class, and the agent tells you which items have not yet been counted in the financial year.
How are stock variances handled in accounting?
A stock variance is the difference between the counted quantity and the theoretical quantity. Before correcting it, you need to explain it: a counting error, a receipt or delivery entered wrongly, undeclared breakage, theft, a unit-of-measure mistake. A recount by another person eliminates most counting errors.
The confirmed variance is then valued at the item's cost, using the chosen valuation method, and posted. With perpetual inventory, the correction goes to the stock account (class 1, for example 1200) against a stock differences account within cost of goods. Numezis produces this entry automatically on approval, with the count sheet and the reason as supporting documents. Recurring variances on the same item or location are flagged, because they usually point to a process problem rather than chance.
What must a compliant inventory list contain?
A compliant inventory list states the reference date, the company and, for every item: its description, its number, the location or warehouse, the quantity, the unit, the unit price used and the total value. For items tracked by batch or serial number, the detail per batch is useful, especially when a write-down applies to a batch nearing expiry.
The list must also show how the value was obtained: valuation method, write-downs under art. 960c CO for items whose market value is below cost, and any flat-rate reserve accepted for tax purposes. It is signed by the people responsible and kept for ten years. Numezis generates this list as a PDF from the approved stock data, with a summary per category and per warehouse and the reconciliation with the stock account balance.