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How do the Shrinkage and Differential Reports differ?
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    How do the Shrinkage and Differential Reports differ?

    by RetailEdge Moderator » Wed Jan 25, 2012 9:19 am

    When performing physical inventory adjustments through the RetailEdge Physical Inventory Collection System (PICS) it is very important to run the PICS Reports in RetailEdge before you update/adjust your inventory. The shrinkage and differential reports in RetailEdge can be found in the PICS folder under the Inventory Section of the Report Selector.

    The difference between the Shrinkage Report and the Differential Report is one of the most commonly asked questions about these reports. The difference is simple.

    The shrinkage report is an inventory based report that lists all inventory items that are:

    1. In the PICs list with PICs quantities less than the inventory quantities (potential shrinkage) AND

    2. Not found in the PICs List (to account for shrinkages to 0 that an inventory count would not have found because 0 quantity items would never have been scanned).

    Hint: Sometimes it is useful when running this report to filter for inventory quantities greater than 0 so that the report does not display all the items in your inventory that have a 0 or negative quantity. Over time there will be items in your inventory that you no longer carry and this filter can greatly reduce the reporting of "dead" items and make the report more manageable.

    The differential (Inventory Based) report is an inventory based report that lists all inventory items that are:

    1. In the PICs list with PICs quantities GREATER or less than the inventory quantities.

    2. Not found in the PICs List (to account for shrinkages to 0 that an inventory count would not have found).

    So the only real difference is that the differential lists items that are greater or less than and the Shrinkage report lists only less than. The shrinkage works for most users. But the differential reports were created to help users that were more concerned about actual differences. This can be especially useful to identify where inventory adjustments are not being properly made. For instance, if you find one location is constantly showing inventory overages, this means that some items might not be being removed properly from the inventory. This could be caused by clerks selling the wrong item(s), items being put in inventory as non-stock so that when being sold don't adjust the inventory or transfers from one location to another not being properly done.
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