01 / REVIEW
Choose the basis
Use compatible units across starting stock, transfers, adjustments and ending stock. Piece counts cannot be reconciled with volume without an explicit conversion basis. Different dimensions may require separate lines.
02 / REVIEW
Record movements
List outgoing transfers, remaining material and documented adjustments. Describe each adjustment rather than using a balancing number to force the difference to zero. Negative or missing quantities should be investigated, not silently corrected.
03 / REVIEW
Review the residual
The reconciliation tool subtracts accounted quantities from the starting quantity. A zero arithmetic difference is useful, but it does not prove identity, legality or origin. Those questions require separate evidence.
Compare like units before looking for a discrepancy
An invoice, packing list and receiving tally may describe the same shipment differently. One may use pieces, another linear feet and another volume. A mismatch is not meaningful until the units, dimensions and rounding basis are understood.
Start with the original values. Record the conversion separately so another person can repeat it. Do not overwrite an invoice quantity with your converted result. If the supplier's tally uses a contractual or nominal basis, label that basis instead of presenting it as a measured physical volume.
Separate movements from transformations
Moving uncut stock between locations should preserve its defined quantity, apart from documented losses or corrections. Cutting or machining changes what is being counted. A reconciliation for processed material needs inputs, outputs and the reason for the difference.
| Event | Useful quantity record |
|---|---|
| Receive uncut stock | Supplier quantity, observed quantity, unit and discrepancies |
| Transfer to another location | Quantity sent and quantity acknowledged |
| Cut into shorter parts | Input lengths, output parts and recorded offcuts or losses |
| Machine a profile | Input basis, finished output basis and processing loss |
| Return or reject material | Quantity, identity, disposition and linked correction |
For example, 100 boards at 8 feet each represent 800 linear feet before cutting. If the finished parts total 740 linear feet and identified offcuts total 45, the remaining 15 linear feet need explanation through cutting losses, trimming or a counting correction. The table does not prove the source claim; it shows whether the material account is internally coherent.
Investigate a difference without inventing a cause
A discrepancy can arise from a unit error, a short shipment, an unrecorded transfer or a tally made at a different processing stage. List the possibilities and check the underlying records. Do not assign every difference to “waste” merely because that makes the balance close.
Keep the original discrepancy visible until it is resolved. A correction should identify what changed, why, who made the change and which supporting document was used. If the cause remains unknown, say so and preserve the quantity that is actually supported.
Use a consistent cutoff date when reconciling inventory. Comparing yesterday's shipment record with today's stock count can create a false shortage if a transfer occurred between them. The correction history guide explains how to retain a readable audit trail without making the current record difficult to use.
A lot-record scenario
Fictional example: 100 pieces become 60 transferred, 35 remaining and 5 documented offcuts. The arithmetic balances. The reviewer still needs the records linking those pieces to the original lot.
Use the result
Keep the completed review with the relevant project record. Assign unresolved items before relying on a conclusion. If the material, condition or document changes, revisit the affected questions.
Evidence workspaceTechnical references
General background for the subject. Project worksheets and fictional situations are original review aids, not official agency forms.
APHIS: Lacey declaration guidance