Physical Inventory Reconciliation

Owned by Former user (Deleted)
Last updated: Jan 29, 2024 by Jesica Avendaño
3 min read


Overview



The inventory reconciliation process is where the warehouse reconciles the physical inventory with what's in Komet's Inventory Summary section.


How does the process work?

The process starts by selecting the "Reset Inventory" option within the  Shipping > Inventory tab, by clicking on the "Actions" button and selecting "Reset Inventory". When this action is performed all the "Physical Inventory" scanned status is cleared from all the inventory boxes in the Shipping > Inventory screen.

The system also offers the option of clearing rack positions (rack numbers or locations). However, this option is not recommended for companies that handle inventory count of 1000 items or more. This option is recommended when the warehouse is condensed and boxes are moved from one rack to another while performing the inventory count. 

After reseting the "Physical Inventory" status in the system, the physical scanning takes place by using the Inventory option, number "3",  from the scanner. Boxes already invoiced with a current or future date but not marked as shipped warehouse (SW) must be scanned, keeping in mind that this process usually takes place at the end of the day.

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Which products are marked as a discrepancy?

Once the process starts, the system will mark the box as Scanned (by placing a green checkmark on the "Physical Inventory" column) or place it as a Discrepancy on the Discrepancies Report, based on certain rules

What does the system do once a box is scanned?
  1. The system will look for the box scanned to see if it exists or not in Komet's inventory. If it doesn't it will mark that box as a discrepancy.
  2. If the box is found, but it is still in the staging area, the box is saved as a discrepancy and shown on the Discrepancies Report as "Staging Area".
  3. If the box found has been invoiced, the system validates the order's date, and will proceed as follows:

    • If it is an order where some boxes were previously shipped (Scanned as shipped warehouse), and the box number shipped wasn't the same as the box number invoiced, the system looks for another box with the same lot number marked as RW (received warehouse) or FS (Farm Shipped). If the system finds an available box with the same lot number, the swap is made in Komet's inventory and the box found will be marked as scanned and a checkmark will appear under the "Physical Inventory" column. If a box with the same lot number is not available it is marked as a discrepancy and it will appear on the Discrepancies Report.

    • If the boxes are in an invoice for a current or future date this will not be a "discrepancy". The system will mark the box as scanned in the "Physical Inventory" column as it would not have been shipped by the warehouse (SW) and should be physically available.

 

When referring to the phrase "...the system looks for another box..." we mean the following:

  • A box with the same lot number that is in Komet's inventory, that has not been scanned and marked within Komet as "Physical Inventory", and has a "farm shipped" (FS) or "received warehouse" (RW) status.
  • A box from an order for the current or future date, that has not been scanned and marked within Komet as "Physical Inventory" and does not have a "shipped warehouse" (SW) status.

Discrepancies Report

Once the scanning process is completed, the Discrepancies Report can be run. The report will show two sections:

  • Inventory Items: Shows the details of all the boxes that are in the system but were not physically scanned during the Physical Inventory Process. 
  • Physical Overage: Shows the details of all the boxes that were scanned physically but were not in Komet's inventory.

After running the report, ideally, there shouldn't be any discrepancies. However, if discrepancies are found, each case must be analyzed and treated separately. To learn more on how to deal with these, please see Discrepancies Report.


Important

  • The Inventory option can only be used when the inventory is being accounted for. If the company needs to update box locations, option 5 "Update Box Location" should be used instead.
  • Please ensure the same box is not scanned more than once, this can cause problems when reconciling the inventory.




A Discrepancy or Physical Overage is the difference between all items recorded as inventory in the system but not appearing on the "Physical Inventory" column as scanned. 

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