Stock Reconciliation and Stock Adjustment
Purpose
Stock reconciliation and stock adjustment work together to keep your inventory records accurate.
Understanding the difference between the two helps you know when to check stock accuracy and when to correct stock quantities .
What Is Stock Reconciliation?
Stock Reconciliation is the process of verifying that your system stock records match the actual physical stock you have on hand.
It is a review and validation process, not a correction by itself.
Stock reconciliation typically involves the following steps:
- Physically count all available stock items.
- Compare the physical count with quantities shown in Prokip.
- Identify any differences between the two.
- Investigate the reason for any discrepancies.
- Decide whether a correction (stock adjustment) is required.
Stock reconciliation is usually done on a regular schedule, such as weekly, monthly, or quarterly.
What Is Stock Adjustment?
A Stock Adjustment is the action taken to correct inventory quantities after a discrepancy has been identified.
It is a manual update that brings system stock levels in line with the actual physical stock.
Stock adjustments are used when discrepancies occur due to:
- Data entry errors
- Damaged or expired items
- Lost or stolen goods
- Shrinkage during handling
- Inventory write-offs
A stock adjustment directly increases or decreases product quantities in the system.
How Stock Reconciliation and Stock Adjustment Work Together
Stock reconciliation comes first.
Stock adjustment comes after, only if needed.
The typical flow looks like this:
- You perform stock reconciliation by counting physical inventory.
- You compare the physical count with stock records.
- You identify differences.
- You apply stock adjustments to correct those differences.
- Your inventory records become accurate again.
In short, stock adjustment is part of the stock reconciliation process.
When to Use Each Feature
Use Stock Reconciliation when:
- You are checking inventory accuracy
- You are performing routine stock audits
- You want to detect losses, errors, or operational issues
Use Stock Adjustment when:
- You need to correct stock quantities
- You have confirmed missing, damaged, or excess items
- You are updating the system after reconciliation
Tips
- Perform stock reconciliation regularly.
- Always investigate discrepancies before adjusting stock.
- Use stock adjustments only after physical verification.
- Record clear reasons for every adjustment for audit and reporting purposes.