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Inventory Reconciliation Checklist
Physical Inventory Count
Assemble the inventory count team and assign specific areas or items to each member
Gather necessary materials, such as inventory sheets, clipboards, calculators, and pens
Count all physical inventory, recording the quantities of each item on the inventory count sheets
Inventory Records Review
Collect the most recent inventory records and purchase invoices
Check for any discrepancies between the recorded inventory and the actual physical count
Investigate any missing items or significant variances and note reasons for discrepancies
Reconciliation Process
Update the inventory management system with the actual counts from the physical inventory
Adjust the inventory records to reflect any write-offs, losses, or errors found during the count
Generate a reconciliation report detailing the outcomes of the inventory count and any adjustments made
Financial Reconciliation
Review the cost of goods sold and ensure it reflects the updated inventory levels
Reconcile the inventory accounts in the general ledger with the updated inventory records
Confirm that adjustments made to inventory are accurately reflected in the financial statements
Action Plan Development
Develop an action plan to address the root causes of inventory discrepancies
Schedule the next inventory count and establish regular inventory auditing procedures
Implement changes to inventory control policies to improve accuracy and prevent future discrepancies
