Stock Reconciliation is the process of counting and evaluating material/products, periodically at the year end.

This is implemented for the following purposes:

1. Ensuring alignment between the physical stock count and the book stock count.
2. Facilitating accurate stock valuation for the preparation of accounting statements.

The Stock Reconciliation functionality in BizCentric serves the following purposes:

1. Recording the opening stock.
2. Aligning book stock with actual stock through reconciliation.

To access the Stock Reconciliation list, go to:

> Home > Stock > Tools > Stock Reconciliation

1. How to Create a Stock Reconciliation to Post Opening Stock

> Note: Maintain Stock option should be enabled in Item master for this to work.

2. How to Create a Stock Reconciliation to Reconcile Book and Physical Stock Count

Stock Reconciliation involves the systematic process of verifying and assessing the stock-in-trade periodically, including at year-end, to ascertain the total stock value for the preparation of accounting statements. During this procedure, the actual physical inventory is inspected and documented within the system. Ensuring alignment and accuracy between the recorded stock in the system and the physical inventory is essential. In cases of discrepancies, the Stock Reconciliation tool can be utilized to reconcile the stock balance and valuation with the actual inventory.

To conduct stock reconciliation:

1. Navigate to the Stock Reconciliation list and initiate a new entry.
2. Specify the Purpose as ‘Stock Reconciliation’, with the option to adjust the posting Date and Time.
3. Choose the Item Code and Warehouse.
4. The current Quantity and Valuation Rate will be automatically retrieved, allowing for adjustments as necessary.
5. The expense account in the Difference Account will default to ‘Stock Adjustment’. Modify if required.
6. The default Cost Center will be ‘Main’; however, you can make changes as needed.

Finally, save and submit the reconciliation entry.

3. Features

3.1 Upload Data Through Spreadsheet

If you’re dealing with a large number of items, you can streamline the process by uploading the details via a spreadsheet.

1. Download Template: Start by opening a new Stock Reconciliation entry and click on the Download button to retrieve the template in CSV format.
2. Enter Data in CSV Template: When filling out the CSV template, ensure adherence to case sensitivity. Avoid altering the predefined headers within the template. In the Item Code and Warehouse columns, input the exact Item Code and Warehouse names as they appear in your BizCentric account. For the quantity, specify the desired stock level for each item in a particular warehouse.
3. Upload the CSV File: Once you’ve entered the data, upload the CSV file by selecting the ‘Upload’ button.
4. Review, Save, and Submit: Take a moment to review the uploaded data for accuracy. After verifying the information, save and submit the reconciliation entry.
5. Check Stock Ledger Report: To confirm the updated stock balance, refer to the Stock Ledger Report.

3.2 Get Stock Balance and Valuation as of Specific Date and Time

You can import the stock balance and valuation as of specific date and time from a selected Warehouse by clicking on Items button. You can update the Quantity and Valuation Rate as needed.

 

3.3 Using barcode scanner to scan physical inventory 

If you have configured barcodes for your items, you can use a barcode scanner to reconcile physical quantities. To do this follow these steps:

1. Set default warehouse.
2. Enable “Scan Mode” this will disable fetching existing quantity and let you add quantities by incrementally scanning items.
3. Click on “Scan Barcode” field and use your barcode scanner to send input. Reconciliation items table will keep getting updated as you scan items.

 

4. How Stock Reconciliation Works

Once a stock reconciliation is submitted to adjust the quantity of an item in a warehouse at a specific date and time, it remains unchanged by subsequent stock transactions, even if those transactions have a posting date preceding the stock reconciliation date. In essence, once a Stock Reconciliation entry is posted, backdated entries will not alter the stock quantities.

5. Related Topics

1. Stock Entry
2. Accounting Of Inventory Stock