Inventory Backward Reconciliation

Inventory Backward Reconciliation

This concept is related to stock valuation .if for some technical reason stock was counted at the end of year it is counted at some other date and backward reconciled. The backward reconciliation of stock is basically two things i.e. less the purchases and adds the sales made during the period.

Example of Inventory Backward Reconciliation

Stock (units ) 30 Sep,2014	50,000
July Sales (Units)	5,000
Aug Purchased ( Units)	8,000
What was the stock units in 30 June,2014

Solution

Stock (units ) 30 Sep,2014	50,000
Less Aug Purchased ( Units)	(8,000)
Add :July Sales (Units)	5,000
Closing Stock 30 Jun ,2014	47,000

The above solution can be better understood as following

Stock (units ) 30 Jun,2014	47,000
Add Aug Purchased ( Units)	8,000
Less July Sales (Units)	(5,000)
Closing Stock 30 September,2014	50,000