Keeping Physical and Book Stock in Sync
Overview
This article will guide you through the importance of Stock Reconciliation, how to perform it in iVendNext, and best practices for effective reconciliation.
What is Stock Reconciliation?
Stock Reconciliation is the process of comparing the physical stock count with the stock recorded in the system (book stock) and making adjustments to align the two. This process is typically performed at the end of an accounting period or during audits to ensure that the inventory records are accurate.
Why is Stock Reconciliation Important?
Accurate Financial Reporting: Stock values are a key component of financial statements. Reconciliation ensures that the stock valuation is accurate.
Prevent Stockouts and Overstocking: By identifying discrepancies, businesses can avoid situations where they run out of stock or hold excess inventory.
Improve Operational Efficiency: Accurate stock records help businesses plan purchases, production, and sales more effectively.
Compliance: Regular stock reconciliation is often required for statutory audits and compliance with accounting standards.
How to Perform Stock Reconciliation in iVendNext
iVendNext simplifies the Stock Reconciliation process with its user-friendly interface and powerful features. Below is a step-by-step guide to performing Stock Reconciliation in iVendNext.
1. Accessing Stock Reconciliation
Go to Home > Stock > Tools > Stock Reconciliation.
Click on New to create a new Stock Reconciliation entry.
2. Creating a Stock Reconciliation for Opening Stock
If you need to set the opening stock for a new accounting period, follow these steps:
Select the Purpose as Opening Stock.
Enter the Posting Date and Time.
Select the Item Code, Warehouse, Quantity, and Valuation Rate.
For items with Serial Numbers or Batch Numbers, enter the relevant details.
If you want to auto-generate Serial or Batch Numbers, leave those fields blank (ensure the settings are configured in the Item Master).
The Difference Account will be set as Temporary Opening by default.
Click Save and Submit.
3. Reconciling Book and Physical Stock
To reconcile the book stock with the physical stock count:
Select the Purpose as Stock Reconciliation.
Enter the Posting Date and Time.
Select the Item Code and Warehouse.
The system will fetch the current Quantity and Valuation Rate.
Adjust the Quantity to match the physical count.
The Difference Account will be set as Stock Adjustment by default.
The Cost Center will default to Main (change if needed).
Click Save and Submit.
Key Features of Stock Reconciliation in iVendNext
1. Upload Data via Spreadsheet
For businesses with a large number of items, iVendNext allows you to upload stock reconciliation data via a spreadsheet:
Download the CSV template from the Stock Reconciliation screen.
Enter the Item Code, Warehouse, and Quantity in the template.
Upload the CSV file, and the system will update the stock levels automatically.
2. Barcode Scanning
iVendNext supports barcode scanning for physical stock counts:
Enable Scan Mode in the Stock Reconciliation screen.
Use a barcode scanner to scan items, and the system will update the quantities in real-time.
3. Stock Balance and Valuation
You can import the stock balance and valuation as of a specific date and time:
Click on the Items button to fetch the stock balance for a selected warehouse.
Update the Quantity and Valuation Rate as needed.
How Stock Reconciliation Works?
Once a Stock Reconciliation entry is posted, it updates the stock balance for the specified date and time. Subsequent stock transactions with earlier posting dates will not affect the reconciled stock balance. This ensures that the reconciled stock levels remain accurate, even if backdated entries are made.
Example: Non-Serialized Items
Scenario: An item has a stock balance of 100 units on January 10th. A Stock Reconciliation on January 12th sets the balance to 150 units.
Result: If a backdated Purchase Receipt is made on January 5th, the stock balance on January 10th will update, but the reconciled balance on January 12th will remain unchanged.
Example: Serialized Items
Scenario: An item has 6 serial numbers with a valuation rate of $530 each. After reconciliation, only 3 serial numbers remain with a new valuation rate of $620.
Result: The system adjusts the stock value and creates accounting entries to reflect the change.
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