Count variance
The difference between reported numbers in the freeze file and the
numbers that are attained from the physical inventory assessment is the count
variance.
You can specify count variances that are acceptable for your inventory location by determining a count accuracy percentage. The formula by which the accuracy percentage is calculated in Inventory Control is the number of items with a variance divided by the number of items counted.
Count variances must to be updated in Inventory Control after you conduct the physical inventory count. Either before or after you update count variances, you must explain them. You can generate a count variance report to explain variances by reason code.