Accounting for stock variance

Type of variance

Possible cause

Suggested action

Negative

Wastage or other negative adjustment has not been recorded

Create a stock adjustment to record the decrease.

Negative

Somebody has undercounted the item

Recount the stock, and if necessary enter new counts against the stocktake, or create a stock adjustment.

Negative

Theft

Report the loss to your manager.

Negative

An incorrect recipe in which less of the component item is recorded than is actually used

Update the recipe item in Maintenance to accurately reflect the quantity of the component that's used, and create a stock adjustment to record the decrease.

Positive

Somebody has overcounted the item

Recount the stock, and if necessary reverse lines on the stock receipt, enter new counts against the stocktake, or create a stock adjustment.

Positive

No stock receipt has been entered for this item

Create a stock receipt.

Positive

No transfer in or increase adjustment has been entered for this item

Create a stock adjustment to record the increase.

Positive

An incorrect recipe in which more of the component item is recorded than is actually used

Update the recipe item in Maintenance to accurately reflect the quantity of the component that's used, and create a stock adjustment to record the increase.