All About Inventory Reconciliation

Inventory reconciliation is an essential process for your products, get to know the five critical stages of inventory reconciliation and howyou can find the best method for your business. Details in this must-read article.

All About Inventory Reconciliation


As a retail entrepreneur, your stock is in a consistent condition of transition. It's practically ensured that your most recent stock records do not generally coordinate with your genuine actual store with 100% exactness. That is the reason you need to accommodate your stock records against your existing inventory intermittently. Doing so assists you with distinguishing the wellspring of disparities, improves your methodology, and forestall misfortune because of robbery.


Inventory reconciliation is the way toward coordinating with your stock records with what you genuinely have in your store. As well as checking things and refreshing your records, this entire cycle additionally allows you to discover stock disparities so that you can address them.

With inventory reconciliation, you can sort out the contrast between your records and what is in your distribution center and afterward make changes so your numbers line up. It is a fundamental interaction to guarantee stock is requested when required and accessible at the retail location.

5 Stages of Inventory Reconciliation and Best Practices for eCommerce Business Owners

The better subtleties of the inventory reconciliation interaction will shift starting with one retailer then onto the next; however, for the most part, this is the thing that happens when a retailer accommodates their stock:

Stage 1: Counting your items

First, the business closes its way to people in general, generally for a couple of days. It tends to be helpful to invest some energy in coordinating your actual retail space to make stock simpler. Legitimate planning can save long periods throughout stock compromise.

A few retailers, specifically substantial retail chains, will fan out stock compromise throughout seven days, compensating representatives double-time to consistently spend an additional couple of hours. This technique keeps the business running. However, it presents different expenses, similar to extra time pay.

Check and relate your actual stock with your group. You will need the most precise numbers conceivable before moving onto the subsequent stage.

Stage 2: Checking (and re-checking) your records

Then, the team contrasts set up stock accounts and the actual presence of everything in stock. The rundowns are checked and re-checked to ensure that no representative misreads a stock number. Non-serialized things may have no stock number and need to contrast with provider solicitations.

When this tedious cycle is finished, you can contrast the outcomes with figuring out what stock inconsistencies exist. These can be because of missing administrative work, terrible math, human mistake, provider misrepresentation, or unlisted items sold on credit.

Stage 3: Tending to the missing things

When stores find these inconsistencies, you need to address the missing things. It requires going through administrative work to recognize whether specific values have been ignored. Regularly, when a straightforward numerical blunder clarifies a stock error, a missing deals receipt can. If there is no missing deals receipt, you are left with theft or provider misrepresentation and fraud.

Stage 4: Looking down on errors

Ideally, you'll track down a specific reason for the error. At the point when you do, you'll make a "stock compromise articulation" that clarifies the misconceptions (on the off chance that you can) and abrogates your records. It should be possible in a record-keeping page, Excel, or a stock global positioning framework.

If you can't track down the immediate reason for the error, you might need to examine it further with your group. On the off chance that you've depleted all techniques and you can't discover the purpose for the disparity, you'll, in any case, need to accommodate your records to coordinate with the actual number of things in your stock, and at last, think of it as a loss.

Stage 5: Reliably accommodate your stock

Inventory reconciliations possibly work in checking your stock on a predictable premise. Doing so will prompt more exact numbers after some time and limit stock shrinkage, helping your business set aside cash over the long haul.

Schedule stock compromises at regular intervals depending on what turns out best for your business. They can be tedious, so you will have to represent any postponements, stops in deals, and representative wages.

Related article: How to Calculate Beginning Inventory

Methods of Inventory Reconciliation

You have three methods with regards to how regularly you lead inventory reconciliation. Two of the choices require checking your stock at ordinary spans. The other alternative includes going in without an arrangement, which is not suggested.

The seasonal method

You might need to zero in on those during their significant deals periods on the off chance you sell occasional merchandise. Rather than including summer garments in December, you commit assets totally to the selling things at present. It offers you the opportunity to fix blunders and make up for

Stock-outs while those things are as yet selling – else, you force the danger of hurrying to leave your blockbusters directly in the center of the period.

The ABC strategy

The ABC strategy includes focusing on compromise dependent on worth and values. This technique guarantees prioritization of the stock that represents a significant share of income. Each organization approaches doing the ABC technique marginally extraordinary, and the level of inventory in every classification can fluctuate.

The ABC technique bunches your items by cost or turnover. Your "A" bunch comprises your top-performing 20% of items while your "B" and "C" bunches comprise of the leftover 60 and base 20%, individually. The key is tallying your most elevated effect things more now and again than your most minor valuable products.

Checking Randomly

The irregular technique is the point at which you accommodate stock at whatever point it turns out best for you. That could be two times each year, when a year, or consistently. Having it on a set timetable guarantees it completes in an ideal way.

Benefits of Inventory Reconciliation

Builds the general effectiveness of the business

Increment ineffectiveness is the craving of all business gatherings. Disposing of the customary strategies for inventory reconciliation, the compromise administrations have introduced efficient and speedier techniques for resources on the board. Likewise, the administrations utilizing new programming for something similar are less expensive, quicker. When the blunders are unimportant, the game plans would have guarantee and certainty, consequently expanding the constructive outcome of the business on the market. Inventory reconciliation lifts deals just as gross profitability.

Less risk of damage and fraud

When you have done inventory reconciliation of your products, you know all about your stock, which helps you lower the risk of getting fraud or any damage.

Good service to customers

When you go through inventory reconciliation, you have an update about your inventory, and you have total stocks that help you deal much better with your customers.

Learn More: The Use of A Perpetual Inventory System for eCommerce Business


Ideal and precise stock compromises are fundamental to the off chance you need to keep steady over your stock numbers. There are numerous advantages to directing stock minds to a customary premise, including setting aside cash, forestalling burglary, and guaranteeing that your clients get the items they need.

Next article: eCommerce Inventory Management Tips & Tricks

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