A report that documents the results of a physical inventory count and lists all of the adjustments that need to be made to this figure to obtain the Inventory figure in the company's accounts.
An inventory reconciliation report provides a comparison between the written inventory records of the business and the actual physical stock held in storage. To the extent that these figures do not match, the report can help to identify the source of the error.
If the source of the discrepancy cannot be found, the written inventory records should then be amended to reflect the actual inventory level and the appropriate accounting entries made.
Performing an inventory reconciliation helps your business today through the following benefits:
An inventory reconciliation report is one of a number of reports that provide investors with confidence that:
In addition, the inventory reconciliation report allows potential investors to compare the performance of the business in terms of stock-loss rates against industry benchmarks to determine whether this may be an area of future improvement and a potential source of future value.