Parts Inventory Reconciliation – Variance Guide Part

1: After a Parts inventory physical count, the inventory reconciliation should be within +/- 1-3% of each other. Anything much further beyond this needs to be investigated and corrected. This includes having a major surplus in Parts Physical vs Accounting.
Any accountant will tell you that parts inventory and accounting inventory match dollar for dollar in and out. So to have a large surplus means there is an underlying problem where accounting isn’t matching parts physical. Concrete doesn’t grow parts – I assure you.