The Month-End Inventory Verification process helps users review and verify inventory balances and stock movements at the end of each month. It ensures that inventory transactions are complete, accurate, and properly reflected in warehouse stock.
Inventory Verification Process
1. Review Inventory Overview
Review the Inventory Overview to verify the closing stock quantities for all items and warehouses. Check for unusual or unexpected stock balances.
2. Review Inventory Transfers
Review all Inventory Transfers recorded during the month. Verify the source warehouse, destination warehouse, items, quantities, and transfer status to ensure all stock movements are properly recorded.
3. Review Inventory Adjustments
Review Inventory Adjustments made during the month. Verify the adjusted items, quantities, reasons, and related details to ensure all manual stock changes are properly authorized and recorded.
4. Verify Material Issues
Review Material Issues – Production to confirm that all materials issued for production during the month have been recorded correctly. Compare issued quantities with the corresponding production activities and orders.
5. Verify Material Receives
Review Material Receives – Production to confirm that all materials received from production have been recorded correctly. Verify the received quantities and corresponding warehouse balances.
6. Review Job Order Material Movements
Review Material Issues & Receives – Job Order to verify materials issued and received against job orders. Ensure that all job order material movements are accounted for before closing the month.
7. Verify Closing Stock
Compare the closing inventory balances with the recorded inventory transactions for the month. Identify and resolve any discrepancies in quantities, warehouses, or item balances.
Verification Reports
The month-end inventory verification can be supported through:
- Inventory Overview – Provides current inventory balances.
- Inventory Transfers – Displays stock movements between warehouses.
- Inventory Adjustments – Displays manual inventory adjustments.
- Material Issues – Production – Displays materials issued for production.
- Material Receives – Production – Displays materials received from production.
- Material Issues & Receives – Job Order – Displays material movements associated with job orders.