← The Ultimate Guide to Inventory Accuracy

How to Reconcile Inventory Discrepancies Post-Count

The physical count is only 50% of the job. The real "magic" happens during reconciliation. This is the process of taking the physical data and comparing it to the system data to find out why they don't match. If you simply overwrite your system numbers with the physical count without investigating the "Variance," you are treating the symptom rather than the disease.

Step 1: Identify "High-Variance" Items

Not every discrepancy is worth a deep dive. If you are missing two screws in a bin of 10,000, that’s a rounding error. However, if you are missing two pallets of laptops, that is a high-variance event. Professional inventory reports highlight these "red flags" automatically, allowing you to focus your investigative energy where the financial impact is highest.

Step 2: The "Double-Check" Count

Before finalizing any adjustments, a "Recount" or "Double-Check" is performed on high-variance items. Sometimes an item was simply missed because it was hidden behind a larger pallet, or perhaps it was counted in the wrong unit of measure (e.g., counting "cases" as "units").

Step 3: Investigating Transaction History

If the physical count is verified and a discrepancy still exists, you must look at the "paper trail." Check the recent shipping and receiving logs. Was a shipment received into the system but not yet put away on the shelf? Was an order shipped out but the "Pick" wasn't confirmed in the WMS? Most discrepancies are found in these "timing gaps."

Step 4: Journaling the Adjustments

Once you’ve done your best to find the missing stock, you must adjust the books. This is done through an Inventory Adjustment Journal. Each adjustment should have a "Reason Code" (e.g., Damaged, Theft, Admin Error). This data is gold for future management decisions, if "Admin Error" is your most common code, it’s time for more staff training.

The Goal: A "Clean" System

Reconciliation isn't just about making the numbers match; it's about restoring trust in your inventory data. When your team knows the computer is accurate, they stop "safety hoarding" or double-checking the shelves manually, which boosts overall warehouse efficiency.