Stock Reconciliation
Go to: Inventory → Stock Entry → Stock Reconciliation
A Stock Reconciliation makes the system agree with reality. You state what the physical count actually is, and ERPX posts the difference — up or down — as an adjustment.
It is the only document where you set a quantity absolutely (“there are 94 pieces”) rather than as a movement (“12 pieces went out”).
When to use it
| Use a reconciliation for… | Use something else for… |
|---|---|
| Periodic or cycle-count differences | A known consumption → Stock Entry Issue |
| Shrinkage and unexplained loss | A known receipt → Stock Entry Receipt |
| Correcting a wrong opening balance after transactions exist | A location change → Stock Transfer |
| Revaluing stock to a corrected cost rate | Adding freight to a purchase → Landed Cost Voucher |
Header fields
| Field | What it means |
|---|---|
| Number | Auto-generated document number |
| Posting Date | The date the count was taken. Cannot be in the future |
| Warehouse | Required. The warehouse being counted — one warehouse per document |
| Description / Remark | Why the difference exists. Fill this in |
| Currency / Exchange Rate | Organization currency by default |
Accounts
| Field | Posting |
|---|---|
| Stock In Hand Account | The inventory asset account |
| Stock Adjustment Account | Where the gain or loss lands |
The direction depends on the difference: a shortage debits the adjustment account and credits stock; a surplus does the reverse.
Item rows
| Column | What it means |
|---|---|
| Item | The item being counted |
| UOM | Unit the count is expressed in |
| Quantity | The new, counted quantity — not the difference |
| Valuation Rate | The new rate. Leave as-is to keep the current rate, or override to revalue |
| Batch Number | Shown when the item is batch- or serial-tracked |
ERPX also records, per row, what the system believed before you counted:
| Captured automatically | Meaning |
|---|---|
| Previous Quantity | System quantity at the posting date |
| Previous Valuation Rate | System rate at the posting date |
| Reconciled Qty | New quantity minus previous quantity |
| Reconciled Rate | New rate minus previous rate |
You enter the absolute counted figure. ERPX works out the difference. This is why the document is safe to use for a physical count — you never have to compute a delta by hand.
Doing a reconciliation
Count first
Do the physical count and write it down. A reconciliation built from guesses is worse than no reconciliation.
Open the screen
Navigate to Inventory → Stock Entry → Stock Reconciliation and click New.
Set the posting date and warehouse
Use the date of the count. Pick the leaf warehouse you counted.
Add the items you counted
Add a row per item. As you pick an item, ERPX loads the current system quantity and valuation rate for that item in that warehouse.
Enter the counted quantity
Type the new quantity in the row UOM. If the count matches the system, you can leave the row out entirely — only differences need posting.
Adjust the valuation rate only if you mean to
Leave the rate untouched to keep the current cost. Change it only when you are deliberately revaluing.
Add batch or serial detail where required
Batch-tracked and serial-tracked items need their identity on the row.
Set the accounts, save, then approve
Save keeps it in Draft with no effect. Approve posts the adjustment.
What approval does
The entry is posted with purpose Stock Adjustment Positive or Stock Adjustment Negative, so adjustments are easy to isolate in the Stock Ledger.
A reconciliation posts a gain or loss to your accounts. Get it approved by someone who owns that number — this is not a routine store-keeper action, and the adjustment account is where auditors look first.
Revaluing without recounting
You can use a reconciliation purely to correct a cost rate: keep the quantity as the system has it and change only the Valuation Rate. The quantity difference is zero, so only value moves. Typical reasons:
- An opening balance was loaded at the wrong rate.
- A receipt was posted at a wrong rate and later movements make unapproving impossible.
- Stock has been written down.
Correcting a reconciliation
| State | How to correct |
|---|---|
| Draft / Pending | Edit the document directly |
| Approved | Post another reconciliation with the correct counted figures |
Do not chain reconciliations to fix arithmetic — recount, then post one clean document.
Before you count
| Do this first | Why |
|---|---|
| Approve or cancel every pending stock document | Draft documents are invisible to the balance, so the “system quantity” you compare against would be wrong |
| Freeze movement in the warehouse during the count | Stock moving mid-count guarantees a mismatch |
| Print the Stock Balance report as your count sheet | It is the exact figure the reconciliation will compare against |
| Note the count date | It becomes the posting date |
Tips
- Count by warehouse, one document per warehouse.
- Only include rows that actually differ. A 400-row document where 6 rows differ hides the 6.
- Write the reason per row in Remarks — “damaged in handling”, “count error”, “found in bin 4”.
- Investigate repeated differences on the same item. A persistent gap is usually a UOM or conversion-factor problem, not shrinkage.
- Do cycle counts on high-value items more often than the full count. Small, frequent reconciliations are far easier to explain than one big annual one.