Reconciling inventory balances

In the Manage Inventory Work Center, you can help ensure accurate balances by reconciling your current inventory balances with your physical counts. This activity ensures that the final current balance includes transactions that occurred between the date and time that you saved the physical count data and the date and time that you reconcile the balances.

About this task

You typically reconcile inventory balances for a storeroom soon after a physical count. Sometimes a delay occurs between counting and reconciling, and during the delay, transactions, such as issues, returns, transfers, and receipts can change the current balances. You want to include these transactions with the physical count updates to get accurate current balances. You can preview balance changes that a reconcile action would cause.

Inventory items can be reconciled if they are associated with control and shrinkage GL accounts. Typically, these accounts are applied to the storeroom and all inventory added to the storeroom becomes associated with those GL accounts. If needed, you can associate inventory with the storeroom GL accounts during reconciliation.

Balances do not include staged, obsolete, or rotating items.

Procedure

  1. In the Manage Inventory Work Center, select a storeroom from the Storerooms page and then select the Reconcile tab.
    You can sort or filter the Reconcile table by multiple criteria, including sorting by the balance change.
  2. Select a group of items to reconcile balances for or select all items.
    The Reconcile table includes a Preview section that shows the physical count balances and calculated new balances. The calculated new balances are from the physical count plus or minus transactions that occur between the date and time of the physical count and the date and time of the table refresh. You can refresh the table to see the latest changes.
    For example, yesterday, a physical count of item ITD357 was 17. Its current balance before the count was 15. Earlier today, 10 of the items were received and stocked in this storeroom. You refresh the table. The Calculated column shows a balance of 27, with an increase to the physical count of 10. When you reconcile the balance, the current balance is updated to 27.
  3. Select Reconcile to accept the new balances as the current balances for the items.
    If one or more of the inventory records is not associated with the control and shrinkage GL account of the storeroom, the row has an alert indicator. Select an alert indicator to update the GL information for that row or for all rows with alert indicators. Rows that still have alert indicators when you reconcile are not updated with new current balances.