How to correct Non Perpetual inventory discrepancies
Correcting Inventory Weight Discrepancies (Non-Perpetual Inventory)
If inventory quantities appear unusually high, unusually low, or negative, the Bulk Inventory Report can be used to identify the source of the discrepancy.
Common causes include:
- Incorrect units of measure (Tons entered instead of Pounds)
- Product sold under a different grade than it was received
- Missing grade allocations
- Data entry errors on receiving or shipping worksheets
Step 1: Review Inventory Balances
Navigate to:
Reports → Warehouse Reports → Bulk Inventory Report
Report Settings
- Select the warehouse to review.
- Choose Open Period when investigating the month you are trying to close.
- Click Go.
Open Period displays activity for the month being closed.
Current displays activity from the first day of the month through today.
Step 2: Review Quantity Columns
Scroll right to the quantity section of the report.
Key columns:
- Beginning Quantity
- Purchased Quantity
- Sold Quantity
- Ending Quantity
Look for:
- Large negative balances
- Unusually large purchase quantities
- Unusually large sales quantities
- Grades with activity that does not match expected inventory levels
Example:
| Grade | Purchased | Sold |
|---|---|---|
| OCC #12 | 2,900,000 lbs | 83,000,000 lbs |
This would indicate a likely data entry issue.
Step 3: Identify the Source Transaction
Locate the grade showing abnormal quantities.
Click the quantity value to drill into the underlying transactions.
Review:
- Receiving Worksheets
- Shipping Worksheets
- Inventory Transfers
- Grade Allocations
Look for transactions that are significantly larger than normal.
Step 4: Check Units of Measure
One of the most common causes of inventory discrepancies is an incorrect Unit of Measure.
Example:
A user intended to enter:
41,820 Pounds
but entered:
41,820 Tons
This can inflate inventory activity by millions of pounds.
How to Verify
Open the worksheet and review:
- Weight Quantity
- Unit of Measure
Confirm that:
- Pounds are entered as Pounds
- Tons are entered as Tons
Correct any incorrect unit selections and repost or re-invoice the worksheet if necessary.
Step 5: Verify Grade Allocations
Inventory may appear negative when material is:
- Received into one grade
- Sold from another grade
Example:
Received as:
- OCC
Sold as:
- OCC #12
In this situation, inventory must be allocated from OCC to OCC #12.
Navigate to:
Inventory → Grade Allocation
Review grades with:
- Positive inventory balances
- Corresponding negative inventory balances
Create the appropriate allocation to move inventory between grades.
Step 6: Re-Run the Bulk Inventory Report
After corrections are made:
- Return to the Bulk Inventory Report.
- Run the report again for the same warehouse and period.
- Confirm that:
- Negative balances are resolved.
- Purchase and sales quantities appear reasonable.
- Ending inventory reflects expected physical inventory.
Troubleshooting Tips
Inventory Is Extremely Negative
Check for:
- Tons entered instead of Pounds
- Duplicate shipments
- Incorrect shipping quantities
Inventory Is Negative in One Grade but Positive in Another
Check:
- Grade Allocations
- Receiving grade versus shipping grade
Inventory Does Not Match Physical Counts
Review:
- Recent receiving worksheets
- Recent shipping worksheets
- Inventory adjustments
- Grade allocations
Best Practice
When investigating inventory issues, always begin with the Bulk Inventory Report.
The Bulk Inventory Report provides a complete view of inventory movement and is the fastest way to identify the transaction causing a discrepancy before making grade allocations or other corrections.