Inventory Reconciliation Procedures Examples

When having inventory, conduct your very best to reconcile variations involving the actual physical inventory along with the documented inventory.

One particular important factor associated with making certain your company operates efficiently would be to regularly compare your inventory data with the physical inventory available.

 



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When there is difference amongst the quantity of products your data demonstrate and true inventory, you must reconcile this variation by locating the source of mistake. This can improve your current inventory monitoring process which will help prevent fraud.

Evaluate your current inventory data with physical stock. Count the products all over again. Check you have not mislooked at supply number in the stock report, and your stock document displays the number of inventory within the proper measurement units. Ensure items are not misplaced or stored in a wrong area.

Look for mistakes within your stock data. Very simple numbers mistakes may help clarify the reason why items seem to be incomplete, as well as the reason you have more inventory compared to what the data suggest you need to have. If the physical inventory and inventory data coordinate following correcting the mistake, you are able to attribute the original difference towards the mistake in data tracking.

Look for lacking records. In case you are lacking specific inventory products, make sure all product sales are already accounted for plus submitted in the process. If the inventory is actually higher, ensure that invoices are entered.

Interview workers having access to the actual warehouse and the ones who are working on the sales floor to discover prospective causes of any kind of difference among documented inventory and actual inventory.

Modify your current stock data so they match up your current actual count, despite the fact that haven’t had the opportunity to clarify the difference. You have to have a precise idea of the number of products of inventory you will have available. Make sure to inform your accountant concerning the difference in inventory data thus he could properly indicate this within your future reports.

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