Using the Inventory Transactions Report to … the...4 using the inventory transactions report to reconcile inventory variances_rev 0.pptm Resolving Inventory Variances After Cycle

Using the Inventory Transactions Report to Reconcile Inventory

Variances

1using the inventory transactions report to reconcile inventory variances_rev 0.pptm

Inventory Accuracy

Liquor Agencies are responsible for maintaining inventory accuracy. This is accomplished by doing the following:

• Reporting sales timely and accurately

• Receiving orders timely and accurately

• Transferring damages and shortages to Quarantine, as required

• Accurately keying and checking wholesale orders

• Cycle counting all inventory at your agency every quarter

Failure to do so may result in charges to your agency for inventory discrepancies

Cycle counts of all inventory is required quarterly, at a minimum. However, it is recommended to do a cycle count once a month on high-velocity or high value items.


Reconciling Cycle Count Variances

All attempts should be made to resolve cycle count variances before processing the stock count journal

• If you are short bottles, check the following:• Did all of the bottles get counted? Are there additional

storage areas where bottles could be located?

• Did you count product located in displays?

• Do you have a wholesale order picked and staged that contains the missing product? Was this inventory included in your count?

• In the case of “F” items, do you have a partial case sitting back in storage that was missed?

• Did you key the quantity correctly? NOTE: you should NEVER have a partial bottle quantity


Reconciling Cycle Count Variances (Cont.)

• If you counted more than the system shows you should have on hand, check the following:• Did you key the correct item (scanned one item but counted

another)?

• If you counted the inventory in your storage area in cases, were all of the cases full?

• Once again, check for keying errors. Large quantity variances will stick out –make sure what you entered as the counted quantity is correct

• Do you see any “swaps” between similar items, i.e., 0326H vs 0326M? This may have been a previous keying or UPC issue

All inventory of a specific item on hand must be counted on the same count journal, on the same day prior to any sales taking place


Resolving Inventory Variances After Cycle CountsIf you were unable to resolve inventory variances during a cycle count, further research is needed. You will need to look at all of the transactions for the item in question during a specific time period. The main tool that you will use is the Inventory Transactions Report.

Click on the Inventory

Transactions link under

Reports on the Retail tab

to access the report.


Inventory Transactions Report

To run the Inventory Transactions report, you can:

• Specify a date range (required – 31 day maximum date range. If a longer period is needed, you will need to run multiple reports)

• Specify item number(s) (optional)

• Click to run the report

It is recommended that you run the inventory transactions report for one or two

items at a time. If you leave the field blank and run the report for all items at once,

the report will take a long time to run and may time out.

To run the report for a couple of items, enter the desired item numbers in the Item

number field, separated by commas, no spaces.


Inventory Transactions Report (Cont.)

The report can be exported to Excel for further filtering

and sorting.



• The date/time the report was run as well as the specified date

range for the report are displayed in the top right corner of the

report



• The Date field displays the date of the transaction• The Brand field displays the item number for that specific transaction

The report sorts by transaction date, then by product code. Exporting to Excel will

allow you to change the sort sequence



• The Receipts field displays the quantity of bottles received on a transfer order. Receipts add product to your inventory.



• The Wholesale Sales field displays the quantity of bottles sold for an item number

on that specific Wholesale order. Sales deduct product from inventory.

NOTE: For wholesale agencies, mis-keying items on an order is a common source of

inventory errors. If the only transaction that exists for an item is a wholesale order

(no product was ever received for that item number), that variance was most likely a

keying error on that wholesale order.

Sometimes you will see on-hand inventory show as a negative number. This means you sold something that you did not have on-hand in the system. This is the case when you have mis-keyed a wholesale order and included an item on the order that you do not stock. You physically pick and ship the intended item, but you systematically ship an item for which you do not have inventory. You start your cycle count with a negative on hand balance. When you enter the on-hand quantity of “0” during a cycle count, the result is an overage (or positive variance). The item you actually shipped would then show up as a shortage (negative variance) because the product was physically shipped but never removed from on-hand inventory.



• The Retail Sales field shows the total quantity of bottles sold for retail sales on that date, for that item number. Sales deduct product from your inventory.

Retail sales are batched and posted as a total or the date. These lines show the

total bottles sold for the day, not individual sales.



• The Transfer In field shows product received into your agency from Agency to Agency transfer orders. These add product to your inventory.

• The Transfer Out field displays product shipped out of your agency on Agency to Agency transfer orders. These deduct product from your

inventory.



• The Inventory Adjustment field displays damaged product and short shipments that were transferred to Quarantine. These are shown as negative numbers. If an Auditor needed to move product back from Quarantine to Stock, it will be displayed in this field as a positive number.



• The Counting Adjustment field displays the results from cycle counts prior to September 22, 2018 and all audits


Inventory Transactions Report (Cont.)• The Authorization field displays the specific transaction number for that line

on the report

Authorization numbers have the following prefixes:

• DSO - Sales orders (wholesale and retail)

• TO - Receipts (transfer orders)

• D - Adjustments (cycle counts and transfers to Quarantine)


Steps for Resolving Inventory Variances• Determine the time period for reconciliation. For any new variances, you

will need to look at transactions since the last cycle count or Full Audit on that item. If the cycle count variance was known from a previous cycle count and the reconciliation was previously performed, no further

research is needed.• View current cycle count results to see if any of the following scenarios

exist:• What was the result of the last cycle count on this item? Is this

variance a correction to a previous counting error?

• Are there any similar items that have offsetting variances?• Run the Inventory Transactions Report for the appropriate items and time

period(s)• Review all transactions to see if you can determine the cause of the

current variance

• If determined to be counting errors, repeat cycle counts on those items to correct the errors


Questions?

Contact the Liquor Enterprise Service Center

• email: [email protected]

• phone: 877-812-0013


Documents

Using the Inventory Transactions Report to … the...4 using the inventory transactions report to reconcile inventory variances_rev 0.pptm Resolving Inventory Variances After Cycle