Tech Note: How to Determine the Physical Count Variance During and After an Inventory Physical Count

A physical count variance is the difference between the actual quantity or volume of an inventory item counted during the physical inventory count and the quantity shown in the inventory records. While it is not unusual that in every physical count variances may occur, it is important to obtain physical count variance information by means of a variance report. This variance report is prepared to record and help rectify inventory control problems. Most, if not all, organizations require that variances be kept at an acceptable level; the variance report can be used as the basis for management to demand that unfounded variances be investigated, and the causes are determined and resolved.

Article #1095: How to Determine the Physical Count Variance During and After an Inventory Physical Count assists you in understanding how AccountMate records physical count variances. This article also lists the functions and reports that are available in the system and guides you as to when would be the appropriate time to perform and generate them.