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Physical Inventory vs System Inventory: Causes of Mismatch and Financial Impact

Explains causes of inventory mismatch and its financial impact

Inventory is often one of the largest assets on an Indian company’s balance sheet. Yet in many businesses, one uncomfortable question lingers: Does the stock in the system actually exist on the floor? The ERP says ₹48 crore. The warehouse supervisor says, “approximately.” The auditor says, “let’s verify.” The bank says, “this determines your drawing […]