Stock reconciliation is the process of comparing Theoretical Stock with that of Physical Stock available at site, yard or
store. In addition to counting of items and updating book-records, this whole process also helps in finding stock
discrepancies. Doing this helps in identifying the source of discrepancies, improving stacking process, prevent loss
due to theft or mishandling and identifying the surplus items.
Process of reconciliation:
Step 1: Counting your items
Physical counting is much easier when the site-work is stopped for few days. When site-work is ongoing, physical
counting can be done part by part at different location of site. The materials may be on move from one work area to
another, so a chance of miscounting or double counting may be possible, which is to be cautiously taken care. To do
proper counting of every item one have to consider a specific work location and type of item (e.g. Pipe, Cuplok,
R.S.Section, pipe fittings etc) at a time and proceed for physical counting. In this process every store-personnel is
suggested to take help from the civil sectional incharges as it is required.
Physical can be taken for the following:
1. Stock in use at site work
2. Stock lying idle at site or store yard (Excluding repairable and scrap items)
3. Identifying Repairable and Scrap Items
Step 2: Checking of counting details with theoretical records
After physical counting of materials, same shall be compared with theoretical stock recorded in the stock book. Once
this process is complete, one can compare the results and if difference in physical and theoretical quantities arises
reason behind the discrepancies can be worked out.
Step 3: Figuring out the reasons behind any discrepancies
Step 4: Final Reconciliation
Regardless of the motive for discrepancies, you need to reconcile your records to match the actual number of items
you have in your inventory. Doing this requires creating a stock reconciliation statement that overrides your previous
figures and represents your current stock accurately.