Description/Definition:
Purpose of this process is the commercial adjustment of stock postings in order to reflect differences in physical inventory.
Scope:
Once the inventory differences has been adjusted by the Warehouse management, there needs to be an accompanying settlement of this difference commercially. This commercial settlement is reflected by the settlement to the inventory differences clearing account which will subsequently be written off as an expense within the Trading, Profit and Loss account to the value of the amount settled.
Outcome:
Stock is adjusted commercially to reflect actual inventory.
Business rules:
Advisory notes:
Remark/Example:
Prerequisite: