Inventory cut-off mistakes that show up every busy season
Goods in transit, consignment stock, and weekend shipments — where cut-off testing finds trouble.
Cut-off testing is rarely dramatic, but it is where many Taiwan manufacturers lose a week of fieldwork. Goods shipped on the last day of the period without matching sales invoices are a frequent finding.
Consignment arrangements need clear ownership notes. If stock sits at a customer warehouse but title has not passed, including it in year-end inventory without documentation invites adjustment.
Weekend production runs complicate counts. If the physical count happens on a Saturday and the books close on Sunday night, the bridge schedule must show what moved between those points.
Auditors will sample shipping documents around the period end. Having the warehouse log and the sales ledger reconciled before the count observation shortens questions on site.
If you use third-party logistics, request their cut-off confirmation early. Waiting until the auditor asks often means chasing a logistics clerk who is already in peak season.