It’s Year-End and most all of you have just finished off physical inventory and reconciliation.

An easy way to think about the reconciliation of Accounting, and physical Parts Inventory, is that there are two parts inventories. One, physically, in the Parts Department, and another in Accounting. If you think about the physical and the virtual numeric world of accounting like another parts inventory, it’s an easy way to comprehend physical inventory reconciliation, and understand the correlations.