Using stock reconciliation, you can update the number of specific items in a warehouse as of a specific time, according to ERPNext.
Key takeaways
- Match each serial or batch number to the product and warehouse before you type a quantity.
- Keep the adjustment on the warehouse and time you counted.
- Disable the reconcile-all checkbox when only some batches need a new valuation rate.
- Select a reason for a Zoho quantity adjustment, and attribute a reason in Square.
- Choose the Finish action so Microsoft transfers the recorded quantities.
Physical inventory reconciliation: the steps for tracked stock
Enter the counted item quantities for the relevant warehouse and counting time, then follow the selected tool's tracking and adjustment instructions. This update ties the count to a named location and a point in time, which is essential for serial and batch tracked merchandise where individual units or lots must be matched to records. When you begin the process, identify the product code, the warehouse location, and any applicable serial or batch numbers before entering figures. The software documentation indicates that the reconciliation feature allows you to adjust these specific counts rather than performing a blanket update across all inventory types without distinction. For shops tracking high-value or regulated goods, this specificity prevents accidental overwrites of uncounted batches or serials. You should verify that the warehouse field matches the physical location where the count occurred, ensuring the records reflect the actual movement of stock at that moment. The timing aspect is critical because inventory values may change due to incoming shipments or sales between the start and end of your counting session. By anchoring the adjustment to a specific time, you align the digital record with the physical reality observed by your counters. If you are using a system that supports batch selection, ensure you have isolated the correct scope before submitting the new quantities. The goal is to make the recorded quantity match the physical count for those specific items within that warehouse at that defined time. Do not assume that selecting an item automatically adjusts all associated batches; check the tool's specific controls for scope limitation. Keep your focus on the identified items and the precise timestamp provided by the system during the count entry phase. This approach ensures that only the intended stock levels are modified, preserving the integrity of other tracked units in the database.
| Step | Action | Source Documented Behavior |
|---|---|---|
| 1 | Identify the counted stock | Select Item Code, Warehouse, Quantity, and Valuation Rate according to ERPNext |
| 2 | Limit selected batches | Disable the "Reconcile All Serial Nos / Batches" checkbox and create a bundle for 2 of 10 batches with the new valuation rate according to ERPNext |
| 3 | Enter the physical quantities | Select Item Code, Warehouse, Quantity, and Valuation Rate according to ERPNext |
| 4 | Select a Zoho reason | Select a reason for making this adjustment according to Zoho |
| 5 | Use the Finish action | Choose the Finish action to transfer the quantities to the Physical Inventory Order page according to Microsoft |
This field set links the physical count to the specific product and location being adjusted. In version 15, the serial and batch bundle feature has been introduced to make stock transactions against the serial no/batch items according to ERPNext. This feature change affects how batch scopes are handled during reconciliation processes.
When preparing for a count, verify that the Item Code matches the physical merchandise. Confirm the Warehouse field reflects the location where the count was taken. Ensure the Quantity column contains the actual number of units observed on the floor or shelf. Check the Valuation Rate to confirm it aligns with your current costing method. These fields form the basis for the adjustment record.
Identify one counted product and its warehouse and tracking number, then check the documented batch scope before entering its adjustment. If you use other tools for broader stock management, see Count shop stock: 4 apps compared for small retailers. Understanding these core fields prevents errors when moving from manual counts to digital records.
Identify the product, warehouse and tracking number
Before entering any counted quantities for serial or batch tracked stock, you must link the physical count to the specific item and location within your software. The documentation provided outlines distinct fields required by different platforms to ensure the adjustment applies to the correct merchandise. For ERPNext, the Stock Reconciliation process requires you to select Item Code, Warehouse, Quantity, and Valuation Rate according to ERPNext. These four fields define the scope of the entry before you proceed to batch-specific details.
In Odoo's Inventory adjustments documentation, identification relies on a different set of line items. The Product field is defined as the product whose quantity is listed on the inventory adjustment line according to Odoo. This ensures the system knows which general item is being counted. Additionally, the Lot/Serial Number field serves as the tracking identifier assigned to the specific product listed according to Odoo. This distinction between the general product and its specific tracking identifier is critical for serial and batch managed items.
When preparing to enter counts, verify that your software displays these specific identification fields. If you are using ERPNext, confirm that the Item Code and Warehouse are selected correctly. If you are using Odoo, check that the Product and Lot/Serial Number columns are populated on each adjustment line. Do not assume that selecting a product automatically selects the correct batch or serial number; the tracking identifier must be explicitly present or selected as documented.
Recommendation: Before counting, print or display the list of expected Lot/Serial Numbers for the items in your current warehouse zone. Match each physical tag to the digital record's tracking identifier before typing the counted quantity. This prevents applying a count to the wrong batch if multiple versions of the same product exist in the warehouse.
Set which batches change and enter the counted quantities
When adjusting stock tracked by batch or serial number, the specific method for selecting which units to modify depends on the software documentation. ERPNext provides a distinct workflow for changing valuation rates on a subset of batches compared with reconciling all associated serial numbers. If a user has 10 batches and wants to change the valuation rate of only 2 batches, they should disable the "Reconcile All Serial Nos / Batches" checkbox according to ERPNext. After disabling this checkbox, the user must create the serial and batch bundle for those 2 batches with the new valuation rate according to ERPNext. This process isolates the adjustment to the selected units rather than applying changes across the entire tracked inventory group.
For quantity entry, Odoo uses a specific column within its inventory adjustment interface to capture physical counts. The Counted column is used for the product that must be adjusted according to Odoo. Shop owners should verify that the product identification matches the physical item before entering the quantity in the Counted column according to Odoo.
Record adjustment reasons, finish recordings and keep the count details
Documenting why stock levels change is required for a Zoho quantity adjustment. In Zoho Inventory, you select Quantity Adjustment as your mode of adjustment on the New Adjustment page according to Zoho. After selecting the mode, you must select a reason for making this adjustment according to Zoho. This requirement ensures that a Zoho quantity adjustment has a selected reason. Square provides similar functionality through its retail POS app, where you can adjust stock levels and attribute reasons according to Square. By attributing reasons at the time of adjustment, shop owners maintain a clear audit trail for inventory changes.
Microsoft Business Central handles the finalization of counts through specific recording actions. The Inventory Recording page captures and communicates the actual count of items according to Microsoft. Once the physical count is entered, you choose the Finish action on the Inventory Recording page according to Microsoft. Choosing Finish transfers the quantities to the related lines on the Physical Inventory Order page according to Microsoft. This transfer moves the counted data from the recording stage to the order document for further processing.
Keeping these count details accurate is essential for independent shops managing serial or batch tracked merchandise. The documentation shows that each tool requires specific inputs to complete the cycle: Zoho requires a selected reason, Square allows reason attribution during stock adjustments, and Microsoft uses the Finish action to move quantities to the Physical Inventory Order. These steps ensure that the physical count is properly linked to the system records. When entering counts for tracked stock, verify that you select a reason in Zoho and attribute a reason in Square, and confirm that the Finish action is used in Microsoft to transfer the quantities. This practice maintains consistency across different software environments and supports accurate stock reconciliation. For more information on comparing tools for small retailers, see Count shop stock: 4 apps compared for small retailers. See Low-stock warnings compared across 4 retail apps.
Account for ERPNext version and bundle changes
ERPNext documentation states that from version 13 onwards, an immutable record has been introduced which changes the rules for cancellation of stock entries and posting backdated stock transactions in ERPNext source. This rule applies where these mechanics are documented. The immutable record means that once stock entries are posted, the process for cancelling them or posting transactions with past dates follows specific constraints defined by this version update. Shop owners using ERPNext should be aware that their ability to modify historical stock records is governed by these rules established in version 13.
The introduction of serial and batch bundles provides a mechanism for handling transactions involving items tracked by serial number or batch number. When performing physical inventory reconciliation for such items, users must account for how these bundles interact with the stock transaction process.
Stock reconciliation reference table by publisher
The following table summarizes how each named platform handles batch and serial number adjustments based on their official documentation.
| Publisher | Documented Reconciliation Behavior | Specific Example or Constraint |
|---|---|---|
| ERPNext | Automatically consumes batches when a user reconciles down to a single retained batch. | If a user has 10 batches and wants to keep only one, the system consumes 9 batches automatically according to ERPNext. |
| ERPNext | Requires enabling a specific checkbox to trigger automatic consumption and addition of batches on submission. | The user must enable the "Reconcile All Serial Nos / Batches" checkbox; the system then consumes 9 batches and adds one batch on submission according to ERPNext. |
| ERPNext | Allows changing valuation rates for selected batches without affecting all existing batches. | To change the valuation rate of only 2 batches out of 10, the user disables the "Reconcile All Serial Nos / Batches" checkbox and creates a bundle for those 2 batches with the new rate according to ERPNext. |
| Zoho | Supports recording stock adjustments for items tracked by serial number or batch number alongside basic inventory. | In Zoho Inventory, you'll be able to record stock adjustments for basic inventory-tracked items as well as those which are serial and batch-tracked according to Zoho. |
Illustrative example of ten batches
One item has 10 batches. Keeping 1 batch consumes 9 batches and adds 1 batch. Changing the valuation rate of only 2 batches leaves the other batches unchanged.
Today, note one item's warehouse and serial or batch number, then enter its counted quantity for that counting time.
Related guides: Check 4 refund fields before stock goes back on shelf · Food date words: read 4 labels before you clear stock.
FAQ: reconciling serial and batch tracked merchandise
How does physical inventory reconciliation handle batch tracked stock?
Zoho Inventory allows users to record stock adjustments for items that are basic, serial, or batch-tracked source. ERPNext documentation describes using specific bundles to manage these transactions during the reconciliation process source. The system distinguishes between general quantity changes and specific serial number tracking.
Can I change the valuation of only two batches in ERPNext?
Yes, if you have 10 batches and want to change the valuation rate of only 2 batches, you must disable the "Reconcile All Serial Nos / Batches" checkbox source. You then create a serial and batch bundle specifically for those 2 batches with the new valuation rate source. This method isolates the valuation change to the selected batches.
What happens when I reconcile ten batches and retain only one?
If you have 10 batches and want to keep only one, you enable the "Reconcile All Serial Nos / Batches" checkbox source. Upon submission, the system automatically consumes 9 batches and adds one batch source. This action retains a single batch while removing the others from the active count.
Does Zoho support adjustments for my serial tracked items?
In Zoho Inventory, you can record stock adjustments for basic inventory-tracked items as well as those which are serial and batch-tracked source. The platform supports these specific tracking methods within its adjustment features. This ensures that serial numbers are accounted for during inventory updates.
What does Finish do to a Microsoft physical inventory recording?
Choosing the Finish action transfers the recorded quantities to the related lines on the Physical Inventory Order page source. This moves the data from the recording interface to the order document. It finalizes the count entry within the Microsoft Business Central workflow.