STANDARD OPERATING PROCEDURE (SOP) MANUAL FOR WAREHOUSING OPERATIONS TITLE : PHYSICAL VERIFICATION PROCESS Reference No:.

Revision No : WH/SOP/11 00 Issue No:. Effective Date: 00 01/01/2006 Page 1 of 2

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Subject Purpose Terminology Responsibility Procedure Process

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Physical Verification Process To define the physical verification process to be carried at the warehouses. As per SOP/WH/03. Circle SCM Head

Step No 1

Responsible Circle SCM & Finance Heads Warehouse Team Circle SCM Circle SCM, 3PL and Circle Finance Circle SCM, 3 PL and Circle Finance Circle SCM, 3 PL and Circle Finance Warehouse Team Circle SCM, 3 PL and Circle Finance Circle SCM, 3 PL and Circle Finance Circle SCM, 3 PL and Circle Finance Circle SCM, 3 PL and Circle Finance Circle SCM, 3 PL and Circle Finance Circle SCM, 3 PL and Circle Finance Circle SCM, 3 PL and Circle Finance Corporate SCM Corporate finance Corporate

Cut off date for Inventory Verification

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Ensure that all transactional data entries are completed in SAP as on cut off date for inventory verifications. Cut off document numbers viz., last document numbers to be tracked and maintained. Stock verification to be undertaken

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Generate controlled Physical verification sheets in case of multiple persons performing verification multiple sheets with different names of verifiers to be generated Use tabulation sheet for physical verification incorporate item codes and item description for completing physical count. Carry out physical ESN / Serial No scanning for certain SKUs identified. Generate ESN / Serial no dump from SAP for the identified SKUs. Go to location where items are stored and complete physical count and incorporate same in the tabulation sheet against specific item Incorporate the physical stocks in the system (not overwriting the SAP system stocks) item code wise Generate statement giving comparison between physical and SAP book stocks with variance details and discuss with 3PL WM Compare dump of SKU wise ESN wise received from ERP team with physical stocks and identify items to be uploaded and items to be issued out Identify discrepancies and reconcile

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Send complete physical vs SAP stock statement to Corporate Team. Also, escalate reconciliation and variance details to Corporate Team. Obtain approval of Management for write off/incorporating entries into the system. Obtain approval from other signatories as per chart of authority on Note for Approval

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Receipt of Approved Note for Approval from the Management

STANDARD OPERATING PROCEDURE (SOP) MANUAL FOR WAREHOUSING OPERATIONS TITLE : PHYSICAL VERIFICATION PROCESS Reference No:. Revision No : WH/SOP/11 00 Issue No:. Effective Date: 00 01/01/2006 Page 2 of 1 SCM Corporate finance Corp Finance ERP Team

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Communicate to SAP Core team for uploading of differential stocks / resolving the discrepancies in the system. Complete transactions in the SAP based on the Note for Approval for carrying out rectifications..

RECORDS S. No. 1 2 3 Records Physical Stock Take Records Reconciliation Records Approval Note Records Stor Location WH WH WH Retention Period 8 years 8 years 8 Years