Stock Reconciliation
Overview
The Stock Reconciliation in DIGITZ ERP is used to bring the system-recorded stock in line with the actual physical stock available in a warehouse.
It allows users to directly enter the actual physical quantity of items during stock counting, and upon submission, the system adjusts the stock balance to match the entered quantities.
This tool is essential during periodic stock audits, corrections, physical verification, and when establishing opening stock.
Purpose
The purpose of Stock Reconciliation is to:
- Ensure system stock accurately reflects actual physical stock.
- Correct discrepancies identified during stock counting or inspections.
- Update quantities due to damages, missing stock, shrinkage, or excess.
- Establish or revise opening stock when migrating into the system.
- Provide a controlled and systematic method to bring stock balances to the correct levels.
- Maintain reliable stock levels for operational and reporting accuracy.
How It Works
- Users select a warehouse and list the items counted.
- The Qty field in each line item represents the actual physical quantity available.
- When the Stock Reconciliation is submitted, DIGITZ ERP updates the stock balance of each item to match the quantity entered.
- The required adjustments are posted automatically to reflect the corrected stock.
Key Fields
Posting Date & Time
Indicates when the physical count is considered effective.
Warehouse
Specifies the warehouse where the physical stock count was conducted.
Item Details
Each line item includes:
- Item
- Qty – the actual physical quantity counted in the warehouse
- Valuation Rate (if needed)
- Remarks
Remarks
Optional reference or comment about the reason for reconciliation (e.g., “Quarterly stock count”).
Workflow
- Open Stock Reconciliation.
- Enter Posting Date and Warehouse.
- Add items and enter the Qty field with the physical count.
- Save the document.
- Submit to apply adjustments and update stock totals accordingly.
Impact on Stock & Accounting
- Updates stock quantities in the selected warehouse to match the physical count.
- Creates appropriate Stock Ledger Entries to record the adjustment.
- Valuation changes are handled automatically as required.
- All stock-related reports reflect the updated quantities instantly.
Notes
- Only the Qty field is required to update the actual physical stock.
- Ideal for periodic audits, physical verification, and migration setups.
- Should be performed carefully as it directly influences stock valuation.
- Recommended to be done by authorised personnel.
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