Police logbook: the most frequent errors
Most difficulties encountered during an audit stem not from fraud, but from repeated daily errors in record-keeping. Here are the most common ones, and how to avoid them.
- The register is kept day by day, at the time of the operation.
- On paper: no blank, no erasure, no abbreviation.
- The seller and the item must be unambiguously identifiable.
- Each object carries the order number of his line.
1. Fill in the register afterwards
Postponing transactions until the end of the week, or until the end of the day, is the most common mistake. The law requires that records be kept day by day (Penal Code, art. 321-7). A late register no longer corresponds to the stock, which is immediately apparent during an inspection.
2. Leave blanks, cross out, abbreviate
In a paper register, entries are written in indelible ink., without white space, erasures or abbreviations (Art. R. 321-6). A crossed-out line or an in-house abbreviation ("BG OR 18K") compromises the entire register. In software, an error is corrected by a new entry, never by erasing the previous one.
3. Identify an incomplete identity
The name alone is not sufficient. The register must include the seller's surname, first name(s), capacity, and address, as well as the type, number, date of issue, and issuing authority of their identity document (art. R. 321-3). An expired document or a simple proof of address is insufficient to complete this information.
4. Describing the object too vaguely
«"Gold ring" does not allow for the identification of any object. The description must include distinguishing features: brand, serial number for a watch, hallmarks, inscriptions, stones. For precious metals, the weight and title are mandatory.
5. Forgetting the serial number on the item
Each item is assigned a serial number, recorded in the register and marked on the item or its label (art. R. 321-4). Without this number, it is impossible to link a piece of jewelry in the display case to its entry in the register.
6. Forget about deposits and exchanges
The register is not only for buybacks. An item received on consignment or in exchange is also registered, with a estimate of its value instead of the purchase price (art. R. 321-5).
7. Mix the two registers indiscriminately
Second-hand precious metal items may be entered in the register of second-hand goods, but in ink of a different color (Appendix IV of the CGI, art. 56 J sexdecies). Without this distinction, the register does not meet the requirements for the guarantee of precious metals.
8. Keep a single register for multiple shops
The register of second-hand goods is kept by establishment open to the public (art. R. 321-6) and must be located on site. For precious metals, a single register is possible for several stores, but under specific conditions (Annex IV of the CGI, art. 56 J quaterdecies).
9. Getting rid of the register too early
A closed register can be kept for several more years. The retention periods are detailed in our article. How long should you keep your police logbook?
To see these points from the agents' perspective, read Police log check: what officers check. If you are considering moving away from paper, see Transitioning from paper police logbook to software.
A police logbook completed at the source
In Jewely Retail, the police log is completed at the time of each transaction, based on the information entered on the sale, buyback or deposit.
Sources: Penal Code, Articles 321-7 and R. 321-3 to R. 321-6; Appendix IV of the French General Tax Code, Articles 56 J quaterdecies and 56 J sexdecies. This article is for informational purposes only and does not replace applicable laws or legal advice.