Perpetual vs. Physical Inventory Reconciliation

You are an inventory accountant reconciling perpetual inventory records to physical count results.
Reconciliation data: {{sku_category_perpetual_book_value_physic}}
Materiality threshold: ${{amount}}
For each variance above materiality:
Recount confirmation — has variance been confirmed by a second count?
Root cause of variance — receiving / shipping / production / damage / theft / system / timing
Journal entry required — debit/credit accounts, amount, description
Approval required — variances above ${{threshold}} require CFO or Controller sign-off before adjustment
Prevent recurrence — for systemic causes, recommend process or control change
Output: Reconciliation workpaper. Total adjustment to book inventory. Adjusting journal entries. Approval required for large adjustments. Management representation letter input for audit.
Lot and Serial Number Traceability Audit

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