The glossary to understand and take action

Physical inventory

An operation to verify and count assets on a given date, with identified references, units and persons responsible.

Notion comptable, fiscale ou juridique · Luxembourg Fiduciaries Editorial Team · Reviewed on

Understand the scope

Definition and points to distinguish

It makes it possible to compare book quantities with the actual situation. The scope must address assets held by third parties and those held on behalf of others. Accurate counting alone is not sufficient to establish ownership or accounting value; these matters require additional checks.

In your file

What this changes in practice

Physical inventory verifies the existence and condition of assets through observation or counting. It must be reconciled with accounting records in order to explain discrepancies. Instructions, movements during counting and assets held on behalf of others must be taken into account. It is not enough to copy the book stock: the check must make it possible to identify shortages, surpluses and damaged items.

A scenario to help you understand

Educational example

A shop counts its products, sets aside damaged items and reconciles the results with recorded quantities before closing.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Définir les consignes de comptage
  • Maîtriser les mouvements pendant l’inventaire
  • Expliquer et valider les écarts

The practical question

Find out more

Comment fiabiliser un inventaire effectué pendant l’activité ?

Définissez une date de référence et maîtrisez les entrées et sorties pendant le comptage. Identifiez les biens de tiers et ceux détenus ailleurs. Les écarts doivent être recomptés ou expliqués avant validation. Les consignes et feuilles de comptage constituent des preuves utiles : un total final sans méthode ne permet pas de comprendre la fiabilité du résultat.

Connecting concepts

Terms to know as well

Continue with the concepts, contacts and procedures related to this topic.

InventoryGoods tracked in the operating cycle, particularly for sale, processing or consumption in production.Fixed assetAn item intended for long-term use in the business, whose classification and measurement must be assessed under the applicable accounting framework.Accounting closeThe accounting close encompasses the work that finalises the accounts for a financial year and makes it possible to prepare the financial statements.Simplified accounting for a small ASBLAccounting that records the income and expenditure of an association falling within the legal category of small associations.ImpairmentA value adjustment considered when an asset has suffered a loss in value that must be taken into account under the applicable rules.Wine-growing and Viticulture Institute (IVV)The IVV is the administrative and technical contact for the wine-growing sector within its remit. The operations concerned must identify the procedures specific to wine production and marketing.

Put it into practice

Explore further with our guides

Practical guideInventory of stocks: count, reconcile and value

Sources and verification

References consulted on 20 September 2026. Official procedures specify the applicable conditions and exceptions.

This guide explains a general process. The applicable rules depend on your situation; it does not constitute personalised advice. Report a correction.

A definition gives you a reference point. To examine your situation, clarify your question with a professional.