FAQ: Inventory Reconciliation Report

FAQ: Inventory Reconciliation Report

What's the difference between the reconciliation report and an inventory adjustment?

The reconciliation report is read-only—it shows you the comparison between system and physical counts. An inventory adjustment is a document you create to correct the system records based on what you found. You use the reconciliation report to decide what adjustments are needed.

Can I edit the numbers in the reconciliation report directly?

No. The reconciliation report is a view-only report. To correct inventory, you create a separate Inventory Adjustment document referencing the variances found. This maintains an audit trail of why the inventory changed.

Why does the system quantity shown in the report differ from what I saw yesterday?

The system quantity reflects all transactions (sales, purchases, returns, transfers) that occurred since your last count. If goods were sold or moved between warehouses after your physical count, the system quantity will have changed. Always run the reconciliation as soon as possible after completing your physical count to minimize the time between the count and the report.

My variance column is blank. What does that mean?

A blank variance usually means your team has not yet entered the physical count for that product. You may be looking at an incomplete reconciliation. Ensure all count forms are filled in before reviewing the variance column.

Should I reconcile my entire warehouse at once or in sections?

Both methods are valid. Full reconciliation is simpler and gives you a complete picture but is time-consuming for large warehouses. Cycle counting by section spreads the work out and is easier to manage, but you must reconcile each section as of the same date to compare apples to apples. Choose based on your operational capacity and how often you count.

If the variance is large, does that mean fraud or loss is happening?

Large variances often have innocent explanations: data entry errors in counts, unrecorded receipts or sales, expired goods removed from shelves without paperwork, or rounding issues with bulk items. Investigate before jumping to conclusions. Ask your warehouse team if they noticed any problems (spillage, damaged goods, unlabeled shipments) in that area.

Can I generate a trend report showing variances over time?

The reconciliation report shows a snapshot as of one date. To track trends, you would run the report at regular intervals (monthly, quarterly) and compare the variance patterns over time. Some Usystems configurations may offer a separate historical or trend report—check with your administrator.

What happens if I don't make adjustments after finding variances?

Your system records remain out of sync with physical reality. This affects financial reporting (inventory asset value), sales forecasting, and operational decisions. It also makes future reconciliations harder because new variances accumulate. Best practice is to investigate and adjust promptly.