Today I want to talk to you about SAV stock evaluation and annual valuation of stock. What they are and what’s the difference?

Stock at valuation (SAV)  is usually done when a premise is changing, we usually work for either the outgoing or the incoming, or we can work for both.

What we do on of the day is we value the stock, that is of a saveable quality, so with the bar stock we’re looking at best before dates, is everything in date? Has it got a reasonable shelf life, for the incoming client? With the food, we look at sell by dates, we tend not to count stuff that’s made on the premises because we have no way of knowing its provenance. So it has to be stuff where we can guarantee the provenance, guaranteed its been kept kept right and it’s all within a saveable date.

As well as the stock, for an SAV we will also count glassware. What we don’t do is we don’t count the branded glassware, unless you can prove to us by way of an invoice that you’ve actually brought that glassware, because most branded glass is given to you free by the breweries or your pub company.

We would also look at sundry, so you might want us to value, count the cleaning equipment, products it might be the logs for an open fire, you might be bulk gas that’s outside, because your not on mains gas.

We also take all the utility readings, so at the end of it we will work out what the value of everything is, we will give you valuations certificate which says, breaks it down per section, it doesn’t itemise it but breaks it down per section. It would have all the meter readings on that certificate, both both parties will agree the valuation or we will agree with the other parties stock taking with us if two of us working, and then we present that and the incoming landlord will pay the outgoing landlord.

With a end of year valuation, what we’re doing is really similar but we will look at the last three months invoices, to get your cost prices, we’re not so interested in whether it’s a saveable quality, we will count food that is made on the premises. We will give it a fair market valuation so that you can then submit that valuation to your accountant so he can do your end of year accounts.

So the difference is SAV stock evaluation is for a handover of premises, and your valuations are for you, your business owner to give to your accountant for your end of your accounts.