Reading and interpreting the Inventory Reconciliation report
Understand what each column means and how to spot inventory issues.
Reading and Interpreting the Inventory Reconciliation Report
The Inventory Reconciliation report displays a row for each product in your selected filters. Understanding what each column represents helps you identify discrepancies and assess inventory health.
What it is
The report is a side-by-side comparison: for each product, it shows the quantity Usystems believes you have (system quantity), the quantity your warehouse team counted physically, and the difference (variance).
Why it matters
Inventory discrepancies are costly—they can mask shrinkage (theft, spillage, expiry), lead to incorrect pricing, or cause stockouts when system records are wrong. Regular reconciliation keeps your inventory accurate and ensures your financial statements reflect real stock value.
How it works in Usystems
Each row contains:
| Column | Meaning |
|---|---|
| Product Name / Code | The product being reconciled |
| System Quantity | What Usystems records as on-hand before any physical count |
| Physical Count | The quantity your team counted (if entered; may be blank if not yet counted) |
| Variance | Physical Count minus System Quantity. Positive = extra stock found; Negative = stock missing from system |
| Unit | The unit of measure (pieces, kg, litres, etc.) |
| Warehouse (if shown) | Which warehouse location holds the stock |
Interpreting variance:
- Variance = 0: System matches physical count. No adjustment needed.
- Variance > 0 (e.g., +5): You found 5 units more than the system expected. Could indicate data entry errors in prior transactions or unrecorded receipts.
- Variance < 0 (e.g., -3): You found 3 units fewer than expected. Common causes: shrinkage, expiry, damage, or errors in prior sales/returns.
Where you see it
The report appears in the Reports section of Usystems. After physical counting, your warehouse manager runs the report and shares it with accounting or the inventory controller for review and adjustment decisions.
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