An Adjuster’s Guide to Stock Reconciliation
This updated version of the 1990s paper by John Ball is a guide to the stock reconciliation process, including helpful questions to ask and what to consider in claim calculations.
The pros and cons of stock reconciliation are outlined, along with the steps required. The writer suggests preliminary actions to take before progressing to the stock reconciliation calculation. Considerations for establishing the opening stock, purchases, sales and rate of gross profit are discussed, plus the need to focus on tracking stock movements rather than cash. The paper covers adjustments such as obsolete stock, shrinkage, price fluctuations and stock on approval.
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