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<< Click to Display Table of Contents >> Navigation: MLS 2026 Operations & Reference Guide > Inventory > Inventory Stock Balancing & Recconcilliation |
No inventory system remains accurate forever without:
👉 physical verification.
Over time:
•inventory discrepancies occur
•quantities drift from actual stock
•items become misplaced
•parts are entered incorrectly
•inventory is consumed without billing
•stock is damaged or lost
during normal operations.
MLS 2026 includes:
👉 Stock Balancing utilities
to help reconcile:
👉 actual physical inventory
with:
👉 computer inventory records.
Regular balancing helps maintain:
•accurate inventory valuation
•reliable purchasing data
•proper stocking levels
•dependable financial reporting
•inventory accountability
throughout the business.
Inventory differences can occur for many reasons, including:
•incorrect workorder entry
•missed invoice items
•damaged inventory
•misplaced parts
•theft or shrinkage
•receiving errors
•counting mistakes
•unprocessed returns
•stock entered incorrectly
•unrecorded shop usage
Even well-managed businesses experience:
👉 some inventory variance.
The goal of stock balancing is to:
👉 identify
and
👉 correct
those differences regularly.
Accurate stock counts are critical for:
•purchasing decisions
•inventory valuation
•profitability analysis
•tax reporting
•inventory turnover analysis
•reorder calculations
Without balancing:
👉 inventory reports become unreliable.
This can lead to:
•unnecessary purchases
•stock shortages
•overstated inventory value
•inaccurate accounting
•poor purchasing decisions
throughout operations.
Before beginning:
👉 print an inventory report
for:
👉 the locations being reviewed.
The report should include:
•part numbers
•descriptions
•current stock quantities
•location assignments
This creates a working document for:
👉 physical comparison.
Because inventory systems may contain:
•thousands of parts
MLS 2026 recommends balancing:
👉 by inventory location sections
rather than attempting:
👉 full inventory reconciliation at once.
Examples include:
•shelving rows
•stock rooms
•cabinets
•warehouse sections
•parts bins
This makes balancing:
•faster
•more manageable
•more accurate
for employees performing the count.
To begin:
👉 select:
•Inventory
→
•Utilities
→
•Balance
from the menu system.
MLS 2026 then asks for:
👉 a beginning and ending location range.
This allows the system to display:
👉 only the inventory sections being reviewed.
The balancing screen displays:
•part numbers
•descriptions
•current quantities on hand
for all matching inventory items.
The operator then compares:
👉 computer quantities
against:
👉 actual physical counts
from:
•shelf inventory
•storage locations
•warehouse bins
•printed reports
during reconciliation.
If differences are discovered:
👉 quantities may be edited directly
within the balancing screen.
Adjustments should reflect:
👉 actual physical inventory
currently available.
This process corrects:
•shortages
•overages
•inventory discrepancies
•inaccurate stock counts
throughout the system.
After making changes:
👉 select:
•Save
to retain the corrected inventory quantities.
If Save is not selected:
👉 the changes will not be processed.
Once balancing is complete:
👉 select:
•Report
to generate:
👉 a printed summary
of:
•quantity changes
•inventory adjustments
•inventory value differences
This report is extremely valuable for:
•auditing
•management review
•accounting adjustments
•inventory control analysis
within the business.
Inventory discrepancies often represent:
👉 depletion.
This may include:
•loss
•damage
•shrinkage
•unbilled usage
•handling errors
Regular balancing allows the business to:
👉 properly account for these losses
within:
•inventory valuation
•accounting records
•tax reporting
when appropriate.
Without regular reconciliation:
👉 inventory systems gradually become inaccurate.
This causes:
•unreliable stock counts
•poor purchasing decisions
•excess inventory
•unavailable parts
•incorrect financial reporting
throughout operations.
Regular balancing helps maintain:
•inventory integrity
•accurate valuation
•operational efficiency
•financial reliability
throughout MLS 2026.
•Balance inventory regularly
•Reconcile inventory by location sections
•Print inventory reports before counting
•Use organized counting procedures
•Verify discrepancies before adjusting counts
•Investigate repeated shortages or overages
•Perform balancing during slower business periods
•Review high-value inventory more frequently
•Maintain accurate location codes
•Audit fast-moving parts regularly
•Retain balancing reports for accounting review
•Train employees on proper inventory handling procedures
This section works closely with:
•Inventory Editor
•Stocking Parts
•Inventory Utilities
•Purchase Orders
•Stock Input
•Inventory Reports
•Vendor Management
•Inventory Costing
•Pricing Management
•Returns Processing
•Core Processing
•Accounting Integration
Together, these sections provide a complete inventory control and reconciliation system within MLS 2026.