DISTRIBUTOR AUDIT GUIDELINES

Items to be carried: Laptop, Marker, Adhesive Tape/ Post-It Notes (To mark the
audited cartons/shelves/racks)

It is advisable but not mandatory for the BDO/BDE to be present during the audit
1-2 personnel are required to assist the auditor during the process
The distributor to be audited should be informed and is expected to arrange the
stock (Saleable and Non-Saleable) according to SPGR and MRP.

Segregation of Unsaleable stock according to SPGR/MRP required to ensure that

audit process is smoothened
SPGR Code
Steps
1. Ask the distributor to share the stock report from the Botree System.
2. Sort the product list in the increasing order of Product codes. This ensures
that similar products are grouped together to ensure ease of auditing
3. Use Text to Columns converter in Excel to separate the first five digits of
from the product code. These 5 digits are SPGR code- Special Product Group
Code
4. Insert two columns i.e. Saleable and Unsaleable Physical stock.
5. Take a printout of the excel sheet and do the physical count of the
distributor stock
6. During the physical count, match SPGR with MRP and take the physical
count.
7. Note down the quantity of physical stock according to SPGR and MRP for
both Saleable and Non Saleable stock.
8. Racks/Cases/Shelves where stock count has been taken should be labelled
properly to avoid double count.
9. In case, there is a mismatch between the MRP on the carton and MRP on
the products inside it, refer to the MRP on the product.
10.Once the count is taken, take 2 more copies of the stock report and get it
signed by the auditor and the distributor(with a seal- stamp)
11.Share one copy with distributor, the other with NIVEA India Commercial
Controlling and retain one(for the auditors records)
12.The auditor should report the physical stock (both saleable and non-
saleable) in the prescribed format shared by NIVEA India so that variance
between system and physical stock can be ascertained.