Stock-taking or inventory checking is the physical verification of the quantities and condition of items held in an inventory or warehouse. This may be done to provide an audit of existing stock valuation. It is also the source of stock discrepancy information.Stock-taking may be performed as an intensive annual check or may be done continuously by means of a cycle count.The above is also referred to periodic count. Periodic counting is usually undertaken for regular, inexpensive items.The term periodic generally refers to annual stock count.his may be done to provide an audit of existing stock valuation. It is also the source of stock discrepancy information. Stock-taking may be performed as an intensive annual check or may be done continuously by means of a cycle count.