Inventory systems define when a physical inventory takes place. This can be:
• on the balance sheet date,
• close to the balance sheet date (± ten days),
• before or after the balance sheet date (up to three months before/two months after), or
• on a rolling basis (spread across the fiscal year).
Inventory methods describe how the inventory positions are verified (complete count, sampling, document-based).
The legislator permits the use of different inventory simplification methods that combine one inventory system with one inventory method.
Statistical inventory sampling is most commonly used in combination with the time-shifted cut-off date inventory (so-called time-shifted cut-off date statistical inventory sampling). In this case, the statistical inventory is carried out on a date before the balance sheet date, and the accuracy of the warehouse records is confirmed as of that date. From this point onward, a regular update of inventory balances to the balance sheet date takes place. The updated target quantities on the balance sheet date then form the contents of the inventory record.
If the entire warehouse does not meet the requirements for reliable inventory records necessary to apply statistical inventory sampling, it is possible to divide the warehouse into different inventory zones and apply different inventory systems and/or methods to each. Thus, statistical inventory sampling can be used only for the zones with reliable records, while zones without reliable inventory records must be inventoried completely and in close proximity to the balance sheet date