Count Variances
Verify inventory quantities in the system actually exist on the shelf.
- Ledger + 2 client documents
- Key analysis in Inventory
How the result is read
Negative variance with no JE is unrecorded shrinkage; positive variance with no receipt is a phantom receipt. Counts are almost never taken on the balance-sheet date, so movements are rolled to a common date before any variance is struck. Coverage is always reported, and coverage is not projection.
The worksheet, on the demo engagement
Count Variances, as the application draws it for Harrow Precision Engineering Ltd, the fictional demo engagement — one row per SKU per location counted.
On the diagonal the count agrees; flagged items are marked.
- Items counted
- 842
- Count variances
- 14
- Gross negative variance
- (658)
- Unadjusted — the misstatement
- (631)
Physical count reconciliation (IAS 2.36), with movements between the count date and period end rolled forward so both sides are as at the same moment. Positive and negative variances are reported gross rather than netted — an overstatement in one bay and an understatement in another are two errors: gross negative (658), gross positive +27. Only Bay 9 carries a correcting entry, so the misstatement is the (631) left unadjusted, not the (1,207) net of everything. Values in thousands. Feeds M-06 alongside NRV and SLOB.
Result grid5 rows
| SKU | Location | System qty | Count qty | Variance | Unit cost |
|---|---|---|---|---|---|
| FG-1201 | Warehouse A — Bay 4 | 400,000 | 372,000 | (28,000) | 12.50 |
| FG-1210 | Warehouse A — Bay 9 | 200,000 | 168,000 | (32,000) | 18.00 |
| HW-4310 | Warehouse B — Bay 2 | 4,000 | 4,000 | 0 | 53.75 |
| RM-0099 | Raw store — Shelf 3 | 1,500,000 | 1,560,000 | +60,000 | 0.45 |
| FG-1220 | Warehouse A — Bay 1 | 300,000 | 286,000 | (14,000) | 22.00 |
In the application
Count Variances is filed under Inventory, index letter E. "Run all analyses" runs it with every other analysis the ledger and the documents loaded can answer. The worksheet states the population it tested on its face — or "Not applicable" with the reason when a column it depends on is empty — and the Excel workbook the engagement exports files it under E, beside an index of the source files with their SHA-256 fingerprints.
Read it with
Run your next audit file test without the Excel crash.
One free engagement to evaluate, valid 60 days. The ledger never leaves the machine.
- 20 minutes
- Runs on a fictional engagement
- No client data required