thread What is the difference between inventory recount and loss in terms of how each effects profit? in Archived Discussions (Read Only)

What is the difference between inventory recount and loss in terms of how each effects profit?

cbi_farm — Mon, 19 Jul 2021 15:47:24 GMT

Hello!

Wondering about the difference between recording an item ‘loss’ vs ‘inventory recount’ in terms of the effect on profit in the COG report. From what I can tell, the effect of the profit is the same. Am I correct? thanks!

Re: What is the difference between inventory recount and loss in terms of how each effects profit?

Donnie-M — Mon, 19 Jul 2021 20:17:58 GMT

@cbi_farm Inventory recount is going to still record a change in inventory but you may or may not know the reason. Think "shrinkage" could be multiple factors. But a recount resets the inventory amount on hand. It could also be you find you have more on hand than you thought. When you record a theft or damage you are entering the amount that is stolen or damaged and it reduces your inventory.

A loss is more of a definite term where you know the product is gone and why. The recount is used to reset the amount on hand and could be a gain or loss.

Re: What is the difference between inventory recount and loss in terms of how each effects profit?

cbi_farm — Mon, 26 Jul 2021 15:39:28 GMT

Thank you for your reply. I understand the different between ‘inventory recount’ and ‘loss’ in terms of what it means for inventory numbers.

My question was about how each of these categories effects the profit reported on the COG report. I see when I recount down or mark a loss I end up with negative profit, but there does not seem to be any difference between recounted stock and loss on the COG report.

Thanks!