From: Abdullah Bin Omer, Graduate Accountant, Finance team
To: Jasmine, Manager, Finance team
Date: 5th July 2023
Subject: Vehicle Stock Reconciliation Report - June 2023
Hi Jasmine,
I hope that you are doing well, I have reconciled the differences between the physical stock
count and the book stock count for the North region branches covering Glasgow, Edinburgh,
Birmingham and Manchester branches as of 30th June’23. This reconciliation involved
comparing the physical count of vehicles with the book stock count, supplemented by the
information provided in the Accounting Discrepancy Report produced by our Senior
Accountant.
Overall, there were 90 cars physically present on site while the book stock tally account is 100/
The difference between these counted are explained below.
1. Vehicles located in another region:
During the initial physical count, it was noted that 2 Austins registered at the
Manchester branch were present at the Southampton store.
2. Vehicles in Transport compound:
4 Nissans are currently present in transport compounds. Vehicles temporarily stored in
Transport Compound were reported physically missing from the store. This situation
often occurs when vehicles are in transit, awaiting delivery to their designated stores.
3. Cancelled Purchase:
The purchase of a Land Rover from the Edinburgh branch was cancelled because the
customer failed a credit check. While the vehicle will be returning to Edinburgh’s
branch, it has been correctly accounted for in the Book Stock count.
4. Vehicles in transit:
McLaren acquired by the Glasgow branch is currently in transit. We will closely monitor
its transit status to ensure accurate stock counts upon arrival.
5. Vehicles sent for auction:
A Honda Car from the Manchester branch was sent for an auction. This vehicle is
technically off-site but should remain in our stock records until sold otherwise.
6. Vehicles off site:
Three Vauxhalls (1 from Glasgow and 2 from Manchester branches) are temporarily offsite for reasons not covered by the categories. These vehicles that are off site out with
Arnold Clark premises represent the biggest risk to the Group as the Group has much
less control over their physical existence.
7. Vehicles away for staff demo:
A Nissan from the Glasgow branch is with a staff member for demonstration purposes
and is temporarily off-site.
8. Vehicles loaned to 3rd party:
8. Loaned to Third Party (+1) A Vauxhall from the Glasgow branch is provided as a
courtesy car and is temporarily off-site but included in the book stock count.
9. Customer vehicles:
Three customer vehicles (Vauxhall, Honda SUV, and Honda Car) are parked on our
premises, while physically on-site, and these should not be included in our physical stock
count.
10. Staff vehicles:
Similarly, one Nissan in Birmingham branch belongs to our staff and should be excluded
from our physical count tally.
I have also summarized the above findings in a reconciliation table included in the attached
spreadsheet. Based on the above, I can confirm that the differences between the physical stock
count and book stock count for North region branches are now
Please feel free to reach out if you require any further information or clarity about anything
mentioned above.
Best regards,
Abdullah Bin Omer,
Graduate Accountant