An inventory discrepancy is a location whose counted quantity does not match what the system expected. It is the most common finding of a cycle count and the most commonly mishandled, because the quick response is to adjust the system to the shelf and move on, which fixes the number and leaves the cause in place to produce the same discrepancy next cycle. In a 3PL a discrepancy is also a client conversation, since the stock is theirs and the accuracy figure is on their report. This page sets out where discrepancies usually come from, the order in which to look, when adjusting is the right answer and how the accuracy figure is calculated and reported honestly.
The six usual causes
A receipt keyed rather than scanned, so the quantity in the system is what the paperwork said, not what arrived. A putaway to a different location than the one confirmed, usually a neighbouring bay. A pick from the wrong location, which shows as a surplus in one place and a shortage in another. A replenishment moved but not scanned. A return put back to stock without a transaction. And a unit of measure mistake, a case recorded as an each or the reverse. Five of the six are an unscanned or mis-scanned move, which is why the barcode is the accuracy program and the count is only its test.
The investigation, in order
Recount the location. Check the neighbouring locations for the missing or surplus quantity. Read the location's transaction history in the WMS for the last receipt, pick and replenishment and check each against its paperwork. Check open orders that may have been picked but not yet confirmed. Only when those four are exhausted is the discrepancy unexplained, and only then is an adjustment the right action, recorded with a reason code so the pattern can be read later. A warehouse that adjusts first learns nothing from its counts; one that investigates first finds the unscanned move and fixes the procedure.
Accuracy on the client's report
Inventory accuracy is the share of counted locations that agreed with the system, and it is reported per client per week. The free reports worksheet on this site computes it from the locations counted and the locations found clean that you enter, alongside throughput, dock-to-stock and cost per order. Report the discrepancies as well as the rate, with their causes, because a client who sees a slipping accuracy figure with the reasons attached trusts the operator more than one who sees a steady figure and finds a shortage at their customer. Pickpathly Pro keeps the weekly figure and its history against the client.
Questions people ask about inventory discrepancy
What causes an inventory discrepancy?
Most often an unscanned or mis-scanned move: a keyed receipt, a putaway to the wrong bay, a pick from the wrong location, an unrecorded replenishment or return, or a unit of measure error. The count finds it; the scan log explains it.
When should a discrepancy be adjusted?
After the recount, the neighbouring locations, the transaction history and the open orders have all been checked and the difference is still unexplained. Record the adjustment with a reason code so the pattern is visible later.
How is inventory accuracy calculated?
Locations counted that matched the system, divided by locations counted, for the period, per client. This site publishes no target rate; the operator sets one from its own history and reports movement against it.