Stock Reconciliation
Overview
Stock Reconciliation — Business Overview
Stock Reconciliation is a business control document used to align the stock quantities and stock values recorded in Dafater with the actual physical stock available in your warehouses.
It is typically used when there are differences between what the system shows and what is physically counted, ensuring accurate inventory records and reliable financial reporting.
Purpose in Business Operations
In day-to-day operations, inventory levels can become inaccurate due to reasons such as counting errors, damage, theft, expired goods, or process gaps. Stock Reconciliation allows the business to:
- Correct stock quantities after a physical stock count
- Adjust stock valuation to reflect the true cost or value of inventory
- Maintain accurate inventory and cost figures for decision-making
- Ensure financial statements reflect the real value of stock
This document acts as the official record that explains and authorizes stock corrections.
Prerequisites and Setup Requirements
Before using Stock Reconciliation, the following should be in place:
- Warehouses must be properly defined and active
- Items should already exist in the system
- A physical stock count (cycle count or full stock take) should be completed
- Users responsible for inventory control should be authorized to perform reconciliations
- A clear internal policy on when and how stock corrections are allowed
Typical Workflow and Business Process Fit
Physical Stock Count
- The warehouse or store team counts actual quantities on hand.
Review Differences
- Differences between physical stock and system stock are identified.
Create Stock Reconciliation
- The user enters the correct quantities and, if required, the correct valuation for each item and warehouse.
Approval and Posting
- Once reviewed and confirmed, the document is submitted to officially update inventory records.
Reporting and Audit
- The reconciliation serves as an audit trail for internal controls and external audits.
This process ensures inventory accuracy and strengthens operational discipline.
Key Business Scenarios Where It Is Essential
- Periodic stock takes (monthly, quarterly, or yearly)
- Before financial closing to ensure correct inventory valuation
- After discovering discrepancies during audits or inspections
- Following warehouse relocation or restructuring
- When correcting historical stock errors
- After incidents such as damage, spoilage, or loss
In retail, manufacturing, distribution, and trading businesses, this document is critical for inventory accuracy.
Important Considerations for Users
- Use Stock Reconciliation only after physical verification, not as a routine adjustment tool
- Frequent reconciliations may indicate process or control issues that need investigation
- Ensure valuation changes are justified, as they directly impact profitability
- Maintain proper documentation for audit and compliance purposes
- Restrict access to trained and authorized personnel to avoid misuse
- Perform reconciliations during low-activity periods to minimize operational disruption
Summary
Stock Reconciliation is a vital business tool that ensures your inventory records reflect reality. By formally correcting stock quantities and values, it protects the integrity of warehouse operations, financial reporting, and business decisions within Dafater.
This tool helps you to update or fix the quantity and valuation of stock in the system. It is typically used to synchronise the system values and what actually exists in your warehouses.
Basic Information
- Module: Stock
- Document Type: Document
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| naming_series | Series | Select | ✓ | MAT-RECO-.YYYY.- | Auto-generated Dafater document series for stock reconciliation records |
| company | Company | Link | ✓ | Company | Company under which stock reconciliation is recorded in Dafater |
| purpose | Purpose | Select | ✓ | , Opening Stock, Stock Reconciliation | Business purpose for performing stock reconciliation in Dafater |
| posting_date | Posting Date | Date | ✓ | - | Date when stock adjustments are posted in Dafater |
| posting_time | Posting Time | Time | ✓ | - | Exact time when stock adjustments are posted in Dafater |
| setpostingtime | Edit Posting Date and Time | Check | - | Allow manual editing of posting date and time in Dafater | |
| set_warehouse | Default Warehouse | Link | Warehouse | Default warehouse applied to all reconciliation items in Dafater | |
| scan_barcode | Scan Barcode | Data | Barcode | Scan item barcode to quickly add items in Dafater | |
| scan_mode | Scan Mode | Check | - | Enable continuous barcode scanning mode for faster entry | |
| items | Items | Table | ✓ | Stock Reconciliation Item | Line items showing reconciled quantities and values in Dafater |
| expense_account | Difference Account | Link | Account | Account used to book stock difference value in Dafater | |
| difference_amount | Difference Amount | Currency | Company:company:default_currency | Total value difference arising from stock reconciliation in Dafater | |
| amended_from | Amended From | Link | Stock Reconciliation | Reference to original stock reconciliation amended in Dafater | |
| cost_center | Cost Center | Link | Cost Center | Cost center impacted by stock reconciliation differences in Dafater |
Child Tables
Items (Stock Reconciliation Item)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| barcode | Barcode | Data | - | Scanned barcode identifying the item during Dafater stock reconciliation | |
| hasitemscanned | Has Item Scanned | Data | - | Indicates whether the item was scanned during reconciliation | |
| item_code | Item Code | Link | ✓ | Item | Unique Dafater item identifier for stock reconciliation |
| item_name | Item Name | Data | - | Descriptive name of the item being reconciled | |
| item_group | Item Group | Link | Item Group | Item category used for reporting and inventory classification | |
| warehouse | Warehouse | Link | ✓ | Warehouse | Dafater warehouse where stock is physically counted |
| qty | Quantity | Float | - | Counted quantity during stock reconciliation | |
| valuation_rate | Valuation Rate | Currency | Company:company:default_currency | Valuation rate applied for stock value calculation | |
| amount | Amount | Currency | Company:company:default_currency | Total stock value based on quantity and valuation rate | |
| allowzerovaluation_rate | Allow Zero Valuation Rate | Check | - | Allows reconciliation with zero valuation rate if required | |
| addserialbatch_bundle | Add Serial / Batch No | Button | - | Button to add serial or batch details | |
| useserialbatch_fields | Use Serial No / Batch Fields | Check | - | Enable serial and batch specific reconciliation fields | |
| reconcileallserial_batch | Reconcile All Serial Nos / Batches | Check | - | Reconcile all serial numbers or batches automatically | |
| serialandbatch_bundle | Serial / Batch Bundle | Link | Serial and Batch Bundle | Selected serial and batch bundle for reconciliation | |
| currentserialandbatchbundle | Current Serial / Batch Bundle | Link | Serial and Batch Bundle | Existing serial and batch bundle before reconciliation | |
| serial_no | Serial No | Long Text | - | List of serial numbers counted during reconciliation | |
| batch_no | Batch No | Link | Batch | Batch number associated with the reconciled item | |
| current_qty | Current Qty | Float | - | System-recorded quantity before reconciliation | |
| current_amount | Current Amount | Currency | Company:company:default_currency | System-recorded stock value before reconciliation | |
| currentvaluationrate | Current Valuation Rate | Currency | Company:company:default_currency | Existing valuation rate before reconciliation | |
| currentserialno | Current Serial No | Long Text | - | System-recorded serial numbers before reconciliation | |
| quantity_difference | Quantity Difference | Read Only | - | Difference between counted and system quantity | |
| amount_difference | Amount Difference | Currency | Company:company:default_currency | Difference between counted and system stock value |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| Stock Manager | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Account | Links to | Accounts |
| Company | Links to | Setup |
| Cost Center | Links to | Accounts |
| Stock Reconciliation | Links to | Stock |
| Warehouse | Links to | Stock |