Inventory in jewelry stores: the method for an accurate count

In the jewelry industry, a missing piece can represent thousands of euros. Inventory is not just a year-end accounting formality: it's the moment to verify that the recorded stock corresponds to what is actually in the display case, in the safe, and at the retailers' premises.

The essentials in 30 seconds

• The inventory is mandatory at least once every 12 months for a merchant.
• Only the parts that belong to you items entering stock do not include consignment sales or customer items under warranty.
• A count by zone and by scanning, Using legible labels avoids most errors.
• Each gap must be explained and corrected before valuing the stock.

An annual obligation

Every business owner must verify the existence and value of their assets through an inventory at least once every twelve months (French Commercial Code, art. L. 123-12). For a jewelry store, the core of this inventory is counting the stock, generally carried out at the end of the fiscal year. The stock is then valued at its purchase cost and depreciated if an item is worth less today than it cost to acquire.

What goes into stock, and what doesn't

Prepare the inventory

1. Fix the date and the perimeter: the whole store at once, or zone by zone.
2. Divide the shop into areas : each display case, the safe, the storage room, the workshop.
3. Check that each piece has a legible label, and set aside those that don't have any.
4. Update the list of Consignments, consignment sales and after-sales service before we begin.
5. For high-value items, expect to pay two.

Count without making a mistake

Count area by area, scanning each label rather than copying references. A counted item must not be moved until its area has been fully counted. If the store remains open, each sale during the inventory count must be recorded normally so that the software can take it into account.

Analyze the discrepancies

The comparison between the theoretical stock and the counted stock reveals two types of discrepancies:

• a missing piece : unregistered sale, unrecorded inter-shop transfer, item entrusted to a customer, or disappearance;
• a extra piece : forgotten stock entry, duplicate label, supplier return not recorded.

Every discrepancy must be explained before it is corrected. Correcting without understanding is to allow the same error to be repeated in the next inventory.

The rolling inventory

Rather than a single large count, many jewelry stores count one brand, category, or display case at a time throughout the year. Discrepancies are spotted earlier, and the year-end inventory becomes much shorter.

The inventory in Jewely Retail

In Jewely Retail, An inventory is initiated by point of sale, brand, product type, or category, with an end date. Items are counted using barcode scanning or manual entry, and the software calculates the discrepancies between theoretical and actual stock. Reserved, consignment, or ordered items remain identified, and the stock is organized by location (safe, display cases). All stock functions are presented on the page inventory management software for jewelry stores. The step-by-step instructions are in our tutorial. How to conduct an inventory. For stock availability as soon as parts arrive, see also the’AI stock entry.

Frequently Asked Questions

Is an inventory mandatory for a jewelry store?

Yes. Every trader must check the existence and value of their assets by inventory at least once every twelve months (Commercial Code, art. L. 123-12).

Should consignment sales be included in the inventory?

No. An item on consignment belongs to the consignor and is not part of your stock. However, it must be located and listed separately, like customer items under warranty.

How to reduce inventory time?

By practicing rolling inventory (one brand, one category or one display case at a time, throughout the year) and by scanning and counting from barcoded labels.

Sources: Commercial Code, article L. 123-12. This article is for informational purposes only and does not replace the advice of your chartered accountant.