For what reasons does an organization hold stock records?

To use the data in these records to determine the reasons for increase or stock shortage during the year and use this data to correct demand forecasting and opportunities lost sales due to the stockout

For keep track of the positions, location and ownership of the securities it is holding.

Confirming of responsibilities, and transparency.

Best regards

Stock records are kept by an organisation mainly for Financial control, Inventory management and planning purposes.

Efficient stock control allows you to have the right amount of stock in the right place at the right time. It ensures that capital is not tied up unnecessarily, and at the same time helps the supply chain to meet the customer requirements.

Thus keeping accurate inventory records helps the organisation to keep track of its resources, meet sales requirements, avoid stock outs, avoid excessive stocking, prevent pilferage and to control costs.

For Financials Reports, For Audit Purpose