Inventory Variance Report

Inventory > Reports > Status, Other > Variance

Variance Report Sample.

Stock # 100-A

Monday
10 Units In Stock – Do Freeze

Tuesday
Invoice 2 Units, Net Stock is 8

Wednesday
Receive PO 5 Units, Net Stock is 13

Activity = In minus Out = 5 – 2 = +3

Thursday
Take Physical Inventory (Adjust PHY)
Count is 11
Enter Adjust PHY -13 to Zero out the 13 the computer says we have.
Enter Adjust PHY +11 to record Physical Count
Current Physical count is 11

Friday
Run Variance Report

Freeze is 10 Units
Computer says 11 = current PHYsical count
Do not count PHY when calculating Variance
Activity is +3
Compare to Freeze by removing Activity from current PHYsical count.
Net Stock minus Activity = 11 – 3 = 8 =  Current adjusted Physical Count

Variance:
Freeze: 10
Current adjusted Physical Count: 8
Variance = -2

If the Variance report is run on Thursday Morning BEFORE the Physical Adjustments, what does the formal look like? Nothing, cannot run Variance if Actuals have not been entered.

Inserted by SH 1/6/21