Insights

Vehicle stock audit: a step-by-step guide

A vehicle stock audit step by step: stock list extract, VIN checks, cars off site, resolving discrepancies and the final audit report.

Key findings

Carry out a full stock count at least at the accounting year-end and for stocking finance audits. In day-to-day operations, it pays to reconcile the entire stock once a month and cars off site once a week.
The starting point is an extract from the stock records frozen at a single point in time. Vehicle movements during the audit are recorded separately.
Identify each car by the VIN on the vehicle itself. For each car, record the location, the odometer reading with a photo, damage, keys and documents.
Record cars in transit, in the workshop, on a test drive or at another branch as not present and attach evidence of their location. Keep consignment cars separate from your own stock.
Every discrepancy gets an explanation, a person responsible and an approved correction. The original extract and the audit result are both retained. The report is signed by whoever carried out the audit and by whoever is responsible for the stock.

A vehicle stock audit compares the records with the cars the business actually has, where they are and what condition they are in. Counting the cars on the forecourt is not enough. Part of the stock is in reconditioning, at another branch or with a customer on a test drive. Conversely, there are cars on site that do not belong to the business. An error in the stock list shows up in the annual accounts, in the stocking finance audit and at the moment a salesperson cannot find a car promised to a customer.

When and how often to carry out a vehicle stock audit

The minimum is set by legal and contractual deadlines. In Germany, Section 240(2) of the German Commercial Code (HGB) requires an inventory to be drawn up at the end of each financial year. The accounting rules of other countries also generally tie the stocktake to the annual accounts, with tangible assets verified by a physical count.

In addition to accounting rules, stocking finance agreements apply. In Germany, for example, Stellantis Financial Services states that it carries out regular checks of financed stock vehicles directly at dealerships. The stock list therefore also identifies the cars covered by stocking finance.

One check a year is too few for day-to-day operations, though. An incorrectly recorded transfer between branches can still be explained after a week, but not after several months. A proven internal routine looks like this:

Situation	Recommended routine	What the check should capture
A car is received, released or transferred	At every movement	VIN, location, time and the person who took over the car
Cars away from their usual location	Targeted check once a week	Cars in the workshop, on test drives, at external car parks and between branches
Entire stock	Full reconciliation once a month	Agreement of the list with the physical stock and evidence for cars not present
Accounting year-end	According to the rules of the country concerned	Supporting documents for the asset inventory and settlement of discrepancies
Stocking finance audit	According to the agreement with the finance provider	Existence and location of financed cars
Change of stock manager or suspected loss	Extraordinary audit of the affected part of the stock	Status at the handover of responsibility or at the time of the incident

Step 1: define the scope and responsibilities

The audit brief covers all branches, outdoor areas, rented car parks and external sites where stock vehicles are kept. Assign each location a person who will provide access to the cars, keys and documents.

Role	Responsibility
Audit lead	Sets the scope, the cut-off point and how discrepancies will be closed
Physical check staff	Record the condition found and attach photos and documents
Stock or branch manager	Provides access to the cars and explains their movements
Sales and workshop	Supply records of test drives, reconditioning, repairs and releases
Accounts	Compare the stock list with the accounting records and post approved corrections

Entrust the physical check to someone other than the person who normally records stock movements. In a small site where this is not possible, the manager approves discrepancies afterwards.

Step 2: prepare an extract from the records at a single point in time

The starting list captures the position at a specified date and time. Keep it in its original form and do not replace it during the audit with a continuously updated export. Otherwise you will not be able to tell whether a discrepancy arose from an error in the records or from a later vehicle movement.

Prepare at least the following data for each car:

Area	Data in the extract
Identification	VIN, internal stock number, make and model
Ownership and financing	Own or consigned car, link to stocking finance
Location	Branch, car park, zone or external site
Operational status	In transit, in reconditioning, in the workshop, on a test drive, ready for sale, reserved, awaiting handover
Last movement	Date, location and the related goods-in note, release note or other record
Accessories and documentation	Recorded keys, documents and equipment assigned to the car
Linked records	Purchase or consignment agreement, workshop job, sales documents

In Omnetic DMS Core, all modules work on a single shared record of the vehicle, customer, jobs and money. Data is therefore not re-keyed between sales, the workshop and accounts. The audit extract comes from a single source, and there is no need to merge separate lists.

The VIN identifies the car. Location, ownership and sales status are separate data. The label "reserved" says neither where the car is nor who owns it.

Step 3: set the rules for movements during the check

The simplest approach is to go through each zone at a time when no cars are being moved out of it. If operations continue, record the VIN, time, origin and destination and the person responsible for every movement.

A car that leaves a branch for the workshop during the audit must not disappear from one list and appear on another without a link. The movement record must make it clear where the car was at the cut-off point.

Record cars received after the cut-off point on a separate list. Treat later releases in the same way. The check can be carried out zone by zone or branch by branch, but the result always refers to the same starting position.

Step 4: physically check every car

Carry out the physical check of a dealership's vehicle stock by parking zone, not in the order of the list. Only then will the team also capture a car that is not in the records at all.

Identify the car by the VIN on the vehicle itself. The number plate, a tag with an internal number or a barcode are no substitute: a wrongly assigned tag would carry the error into the stock list. External stock vehicle audits work the same way. They identify the car by its VIN, assess visible damage, photograph the odometer and, for cars not on site, collect evidence of their location.

What to record for each car

VIN and location: the VIN read from the vehicle and where the car is parked.
Odometer reading: the current reading with a photo.
Condition and damage: new scuffs and damage to the body or interior compared with the last record.
Keys: the number and where they are kept, linked to the VIN. The second set may be in a safe, for example.
Documents: whether they are with the car or where they are kept on record.
Assigned equipment: for example a charging cable, a set of wheels or other accessories recorded against the car.
Check details: date, time and the name of the person carrying out the check.

Recording "documents missing" is wrong if the documents are recorded as stored in the office. A key that is not with the car is not necessarily lost either. The stock list distinguishes a missing item from one stored elsewhere.

In the CarAudit app, staff carry out the check right next to the car, online or offline, so they can complete it even at an external car park with no signal. The app guides them through a configured checklist, reads the VIN from a photo of the label and marks damage on a body diagram with photos. The report is saved to the vehicle record in DMS Core, and findings can be turned into reconditioning tasks.

Step 5: record the cars that are not on site

A car that is not present needs more than a note saying "probably in the workshop". The record states the location, the reason it is not present, the person responsible and the document that explains the situation.

Car status	Supporting evidence for the audit	How to label the status
In transit to the site	Purchase and transport documents, record of handover to the carrier	In transit; accounts determine from the purchase documents whether it already counts as stock
In an external workshop or reconditioning	Job or receipt confirmation with the VIN	Off site, location supported by evidence
On a test drive	Release record with the VIN, the person responsible and the planned return	Temporarily released
At another branch or an external car park	Confirmation from local staff and a transfer record	Other location, not counted twice
On consignment	Link to the owner and the consignment documentation	Consigned car, kept separate from own cars
Sold, awaiting handover	Sales documents and handover status	Physically present; accounts determine from the sales documents whether it counts as stock or as sold

Keep confirmation of the location of a car that is not present separate from the physical inspection record. The document explains why the car is missing. It must not, however, give the impression that the staff member saw it in person.

In a dealer group, use the same status labels at all branches. The status "transferred" at the sending branch and "not received" at the receiving branch must belong to a single traceable transfer.

Step 6: compare the stock list with the records in both directions

The comparison has two parts:

For every car in the records, there is an inspection record or an explanation of why the car is not on site.
For every car found, there is a record in the stock system or an explanation of why it does not belong in the stock records.

The second part reveals an unrecorded receipt, a duplicate vehicle record or a customer car that was mistakenly counted as sales stock.

Finding	What explains the discrepancy	Correction
A car on the list is missing from the car park	Open job in an external workshop	Add the location and the link to the job
The same VIN is recorded at several branches	Incomplete transfer	Correct the branch assignment and keep the history
A car is on site but not in the extract	A receipt not yet recorded	Trace the receipt documents and add the receipt after approval
The odometer shows more than the vehicle record	Test drive or transfer to the workshop	Add the current reading and the link to the movement
The car has new damage	Difference from previous photos	Record the finding and assign the resolution to a responsible person

Record a mismatch as a finding first. A missing car does not yet mean a loss: it may be an unrecorded release or transfer. Correcting the branch on a vehicle record is an operational change, not an accounting stocktake discrepancy.

Step 7: close discrepancies and approve corrections

Each discrepancy has its own record with the VIN, a description, photos or documents, a person responsible and a deadline for resolution. A discrepancy is closed only when the cause is known and the approved correction has been made.

Separate operational corrections, such as a change of location, from accounting corrections. Accounts receive the list of discrepancies and the related documents, not a new export in which the original mismatch can no longer be seen.

The rules for settling discrepancies vary from country to country. As a rule, stocktake discrepancies are posted to the accounting period whose position the audit verifies. The deadline for passing discrepancies to accounts is therefore tied to the year-end close.

Report any unexplained absence of a car or suspected unauthorised release to management immediately. Leave the original records and documents unchanged.

Step 8: write the final audit report

The report closes the vehicle stock audit as a whole. It contains:

the scope and the cut-off point of the audit;
the extract from the records that was used;
the people who carried out and approved the check;
a list of the cars physically inspected;
a list of cars not present, with supporting documents attached;
the discrepancies found, how they were resolved and any open cases;
the link to corrections in the records and accounting entries.

Signatures establish responsibility for the work carried out. The stocktake list therefore usually includes a signature record of the person responsible for the facts established and of the person responsible for carrying out the audit.

Store the documents so they can be found both by audit and by VIN. After a correction, it must be possible to see what the original data was, what changed and who approved the change.

Watch out

An audit fails mainly where the team works only with what the records show it. The most common mistakes are these:

Consignment cars in the list of own cars. They overstate inventory and the stock value used by accounts and the finance provider. Fill in ownership for every car before comparing the records with reality.
Keys as a head count. "48 keys in the safe" tells you nothing. A missing key then only turns up when the car is handed over to the customer. Record every key against the VIN.
Photos without a date and author. A photo of the odometer or damage without a time and the staff member's name does not prove when it was taken. It then carries no weight in a dispute with a carrier or a customer.
The audit as a technical inspection. The stock list captures the visible condition. Diagnosing a fault is a matter for a separate workshop job; otherwise the audit drags on for days.

Omnetic links the vehicle inspection with operational and accounting records

In many dealerships, the audit looks the same: an export from the DMS, a printed list, photos on phones, a spreadsheet of discrepancies and accounts in yet another system. Every time data is re-keyed, there is more room for error. Omnetic replaces these separate systems, spreadsheets and paperwork with a single cloud platform that also works on tablets and mobile phones. The following parts are used for the audit:

CarAudit runs the inspection right next to the car, online or offline. It reads the VIN from a photo of the label, marks damage on a body diagram with photos and saves the report to the vehicle record. Findings can be turned into reconditioning tasks.
Omnetic DMS Core holds a single shared record of the vehicle, customer, jobs and money. The audit extract, the inspection result and the related documents therefore belong to the same car, and nobody re-keys them between systems.
Accounting links documents from sales, the workshop, the warehouse and the bank to the car, branch and job. For every discrepancy, accounts can see which car and document it belongs to. A business that wants to keep its own accounting system can pass entries to it from Omnetic via an integration agreed for the market concerned.

Book an Omnetic demo and walk through your own stock audit, from the stock extract to settling discrepancies.

FAQ

Does the audit have to be carried out by an external company?

The operational audit is organised by the dealer's own team. External checks come mainly from the stocking finance agreement: the finance provider checks the financed cars according to its own terms, and an internal stock list does not replace that check. A well-run audit makes it easier, though, because the evidence for cars that are not present is already prepared.

Do demonstrators and company cars belong in the audit?

Yes, if the business holds them as its own assets or in stock. Record them as a separate category. For these cars, the current odometer reading is particularly important, because their mileage increases every day and must match the vehicle record before sale.

Do customer cars booked into the workshop belong in the stock list?

When going through the site, record them as a separate category so they are not confused with an unrecorded receipt into sales stock. Keep them linked to the customer and the workshop job, separate from both own and consignment cars intended for sale.