Reporting Inventory Accuracy, Both Over and Short

1

I need to report my inventory cycle count accuracy for both over and short counts.

The short count I am good with that, as it will be a value less then 100%.

But what about over counting? How do I show is as a percentage when it is over 100%.

I would think, I would need to show this as a value less then 100% also.

Keep in mind it is just as bad to be over as it is to be short.

As an example

  • On-Hand Quantity is 200 pieces
  • Counted Quantity is 230 pieces
  • The accuracy percentage comes in at 115%

Wouldn’t I want to show this as a value less than 115%?

In my head, I want to subtract the 30 pieces that were overcounted.

This would make the adjusted-counted-quantity 170, and the accuracy percentage 87%.

What is a good best practice to follow in this instance?

Thanks
Gregg

2

This is not a question for this forum, as it has nothing whatsoever to do with Manager. This is an example of an operational metric desired by management of a given enterprise. Such reports need to be generated outside your accounting system. They are defined however the management of a business wants to define them.

3

And the value of the inventory items will matter as well

Inventory differences on items costing pennies will not be as important as items costing thousands