Inventory reconciliation includes two parts. The first part necessitates counting what you have in your stock. The second part deals with reconciling that count with your records. Different establishments might use differences of this method, but the principle is the same. The final result is a clear accounting of your inventory and a result that shows the value of those assets. The other result is that you'll know if there's a difference among what your records show and what you think you have. That difference might be essential for any examining or similar accounting checks. You can also use this data to track loss, breakage or information tracking insufficiencies.
Inventory adjustments need a physical inventory count to take place so that the accountant can equate it to the inventory balance recorded in the system. All activity should cease during the physical inventory count to maintain the reliability of the count. Company employees manually count and record each unit confined in the warehouse during the physical inventory.
