Closing the Shop's Year: Get the Year-End Stock Count Right, Step by Step Before 31 December

Why year-end stock must be right

Cost of sales comes from year-end stock. The simple formula is opening stock plus everything bought during the year, minus the stock left at year end, which gives the cost of what was sold. For example, opening stock is 200,000 baht, purchases for the year are 1,000,000 baht and 250,000 baht is left at year end, so cost of sales is 950,000 baht. If the year-end count misses 50,000 baht, cost of sales rises by 50,000 baht and profit is understated by the same amount.

This year-end figure carries forward as next year's opening balance. Revenue Code Section 65 bis (6) requires companies and juristic partnerships to value inventory on the last day of the accounting period at cost or market price, whichever is lower, and to use that value as the opening balance of the new year. A wrong figure this year therefore makes next year wrong too.

VAT-registered shops already have to keep a stock report. Section 87 (3) requires registered operators that sell goods to keep a goods and raw materials report for each place of business and record entries within three working days. If a count finds less stock than the report shows, the Revenue Department treats the shortfall as a sale, VAT is due, and a surcharge may apply (Revenue Department Order No. Por.81/2542, clause 15).

Year-end stock count steps for small shops

• Step 1 Pick the count time. Count after closing on the last day of the year, or in the morning before opening. Do not sell or receive goods while counting, or the figures will move during the count.
• Step 2 Clear pending documents first. Purchase bills for goods that have arrived, customer returns, and transfers to other branches must all be recorded before count day.
• Step 3 Separate goods that are not the shop's. Consignment goods and items customers have paid for but not collected should be set apart, labelled, and left out of the count.
• Step 4 Split by zone and by person. One person counts and another writes it down. The counter should not see the system figure first, and high-value items should be recounted by someone else.
• Step 5 Review differences item by item. Recount items with large differences before adjusting, then note the cause, such as damage, expiry or a wrongly recorded sale. Tell your accountant about outdated stock that can no longer sell at the original price.
• Step 6 Finish the adjustment the same day so it is dated in the old year, then open for sales in the new year.

Common mistakes

• Selling during the count. Items sold mid-count mean the counted figure and the system figure are not from the same moment.
• Forgetting stock outside the shop floor. Goods in the warehouse, the back room or a delivery vehicle go uncounted, so the total comes up short even though the goods are still there.
• Mismatched units. The system counts pieces but the counter writes down packs, so the figures are off by a multiple.
• Adjusting without noting the reason. Next year nobody can look back to see why stock went missing, so the root cause cannot be fixed.

How GORINY helps close year-end stock

Count every item without typing product names. On the stock count page, create a count sheet, then add all products or only items running low. Enter the counted quantities and the screen shows the difference from the system figure right away. If you cannot finish, save it as a draft and continue later, and count each branch separately.

Confirm once and stock matches the books. When you confirm the count sheet, the software issues the stock adjustment for you, sets the balance to the counted quantity, records the reason as a stock count, and posts the difference to the accounts at average cost. The adjustment is dated on the day you confirm, so confirm before midnight on 31 December and before you start selling again.

The report VAT shops need is there. The goods and raw materials report shows monthly receipts and issues by branch and can be printed. The full product list exports to Excel so you can print it as a count sheet.

Close the fiscal year from one page. The fiscal year closing page summarises the year's income and expenses and shows net profit before it moves to retained earnings. If draft journal entries are still pending, the software will not let you close. If you need to fix something after closing, you can reopen the year, but you must write a reason every time.

The software values stock at average cost. Writing damaged or outdated stock down below cost, and annual financial statements that need an auditor's sign-off, still need your shop's accountant. GORINY gets your stock figures ready to hand over.

Frequently asked questions

Does a small shop that is not VAT-registered need a year-end stock count?

It should, because year-end stock is used to work out the shop's cost of sales and profit. The goods and raw materials report under Section 87 (3) is a duty of VAT-registered shops that sell goods.

Can I count on 2 January instead?

You can, but you must first reverse what was sold and received on 1 to 2 January to get the 31 December figure. Counting on the last day of the year is easier and less error-prone.

Sources

Checked against official announcements on 3 November 2026

• Revenue Department: Revenue Code Section 65 bis
• Revenue Department: Revenue Code Section 87
• Revenue Department: Order No. Por.81/2542

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