How Sensitive is Your Stock Counting?

Q4 started recently, and we can see the year-end is approaching quickly. Sales people are doing above and beyond to break sales records, accountants review carefully any open transactions, and special attention is allocated to inventory levels at the various warehouses and storage locations. Inventory is an asset: it's value is recorded in the financial reports, it influences insurance costs, storage rates, and much more. Considering it's high importance, businesses conduct periodical inventory counting to ensure the actual inventory fits the records. Depends on the business and nature of goods, it might be reasonable to expect some gaps between the quantities calculated throughout the year and the actual inventory. To support identifying unusual gaps, SAP Business One enables you to set a threshold for acceptable variance rate:?

When higher variance rate is calculated, the respected rows in the Inventory Counting document are highlighted:

You can set different variance rates for single counter and multiple counters use cases, as well as define a threshold for differences found between counters.

Available from SAP Business One, version for SAP HANA and SAP Business One.?This tip and all the other tips are available on the?Tip of the week community page. You can also?visit the?Implementation Arena?for useful implementation?tips.?