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Reliable and efficient: LFS Random sample cycle count – certified by the Institute of Public Auditors


For many companies, random sample cycle count has become a time- and cost-effective alternative for the annual counting procedure required by law. The Ehrhardt + Partner Group (EPG) has been supplying the ideal module for random sample cycle count for years already, as part of the LFS software suite. Our LFS random sample cycle count module has now also been certified by the Institute of Public Auditors in Germany (IDW).

The Institute has officially confirmed that LFS uses the right mathematical procedures, identifies the correct samples and consistently delivers valid results. For many companies, the PS 880 certificate is a key requirement for the approval of random sample cycle count.

Working in a warehouse with tens of thousands of items, you quickly lose track of annual stocktaking. Random sample cycle count with LFS significantly reduces the effort for counting required by law. LFS uses the so-called »warehouse phenomenon« for this purpose – known as the Pareto principle. This states that 20 percent of the stored goods make up 80 percent of the total value of the warehouse. A small number of high-value items in the warehouse are therefore taken as the basis for the total value of the stock. LFS subdivides the other goods into homogeneous layers, from which the stocktaking module takes random samples. The PS 880 certificate from the Institute of Auditors (IDW) is now official recognition that the underlying calculation methods are valid and reliable for legal purposes. Companies that opt for random sample cycle count with LFS therefore get the benefit of a recognized certificate.

Count less, record everything

For random sample cycle count, LFS uses the procedure to estimate differences. This can be used to derive the total value of the warehouse from sampling at the storage bin level – significantly reducing the counting effort. To get valid results, the inventory must have at least 1000 bins. The value of the individual items – the book value – must also be known.

Accurate, easy and efficient

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