Reconciliation

Inventory Reconciliation Template

Reconcile physical inventory counts to perpetual inventory records and the general ledger control account.

How to use this template

1

Obtain physical count results

Collect the results from the physical inventory count including quantities and locations.

2

Extract perpetual records

Pull the perpetual inventory system records showing quantities on hand for the same locations and items.

3

Reconcile quantities

Compare physical counts to perpetual records and identify variances by item and location.

4

Investigate variances

Determine root causes of variances such as shrinkage, counting errors, or timing differences.

5

Reconcile to GL

Verify that the perpetual inventory balance ties to the GL inventory account at period end.

Why use this template

  • Ensures inventory valuation is accurate for financial reporting
  • Identifies and prevents inventory shrinkage and losses
  • Detects obsolete or slow-moving inventory requiring write-down
  • Provides audit support for significant inventory balances

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