Stock Ledger Variance
Overview
Below is a business‑focused explanation of the Stock Ledger Variance report, written for practical use in Dafater.
Stock Ledger Variance
Module: Stock
Report Type: Script Report
Based On: Stock Ledger Entry
1. What Business Information This Report Provides
The Stock Ledger Variance report highlights differences between expected stock balances and actual stock movements recorded in Dafater. It helps the business identify stock quantity or value mismatches that may arise due to timing issues, incorrect postings, valuation problems, or process gaps.
In simple terms, this report answers: - Where does the stock balance not align as expected? - Which items, warehouses, or transactions show inconsistencies?
This makes it a critical tool for inventory accuracy, financial integrity, and operational control.
2. When and Why to Use This Report
When to Use
- During period-end inventory review (month-end, quarter-end, year-end)
- Before financial closing to ensure stock values are accurate
- After bulk stock transactions such as stock reconciliation, imports, or transfers
- When there are unexpected stock shortages or excesses
- During audit preparation or internal stock checks
Why to Use
- To detect and correct stock posting issues early
- To ensure inventory valuation matches business reality
- To prevent financial misstatements caused by stock errors
- To improve warehouse and transaction discipline
3. Key Columns and Their Business Meaning
(Column names may vary slightly based on configuration, but the business intent remains the same.)
Item
- Identifies the product where a variance is detected
- Helps pinpoint problematic SKUs
Warehouse
- Shows where the stock discrepancy exists
- Useful for location-level accountability
Posting Date / Time
- Indicates when the transaction causing variance was recorded
- Helps trace timing or backdated entry issues
Expected Quantity
- The stock balance that should exist based on prior records
- Represents the theoretical stock position
Actual Quantity
- The quantity resulting from recorded stock ledger entries
- Represents the system-calculated stock
Quantity Variance
- Difference between expected and actual quantity
- A non-zero value signals stock inconsistency
Stock Value / Valuation Rate (if applicable)
- Shows the financial impact of the variance
- Critical for assessing profit and inventory valuation risks
4. Available Filters and Their Business Purpose
Company
- Focuses the report on a specific legal entity
- Useful for multi-company setups
Item or Item Group
- Helps analyze variances for:
- High-value items
- Fast-moving products
- Specific product categories
Warehouse
- Isolates issues to a specific location
- Useful for warehouse-level performance reviews
Date Range
- Limits analysis to a specific period
- Commonly used for month-end or audit reviews
Voucher Type / Voucher No (if available)
- Allows tracing variances back to specific transactions
- Useful for root cause analysis
5. How to Interpret the Results for Business Decisions
Zero Variance
- Indicates healthy stock processes
- No immediate action required
Small, Occasional Variances
- May be due to timing or minor adjustments
- Monitor trends rather than reacting immediately
Large or Repeated Variances
- Signals:
- Incorrect stock postings
- Improper backdated entries
- Missing or duplicated transactions
- Process gaps in receiving, issuing, or transferring stock
- Requires immediate investigation
High-Value Variances
- Even small quantity differences can have a large financial impact
- Prioritize review and correction
6. Common Use Cases and Scenarios
Month-End Inventory Review
Finance and operations teams use this report to confirm that stock balances and values are reliable before closing books.
Warehouse Performance Monitoring
Operations managers identify warehouses with frequent variances and address process or training issues.
Audit and Compliance
Auditors rely on this report to verify that inventory records are consistent and traceable.
Investigation of Stock Issues
Used to investigate: - Negative stock situations - Unexpected stock shortages - Valuation differences affecting cost and margin
Data Cleanup After Migration or Bulk Entries
After importing historical data or making mass adjustments, this report validates data integrity.
7. Business Value Summary
The Stock Ledger Variance report is a control and assurance tool. It helps Dafater users:
- Maintain accurate inventory records
- Protect financial accuracy
- Strengthen warehouse accountability
- Detect and resolve stock issues before they impact the business
Used regularly, it plays a key role in strong inventory governance and reliable financial reporting.
Report Information
- Module: Stock
- Related DocType: Stock Ledger Entry
- Report Type: Script Report
- Standard: Yes