Count variance
A count variance is a difference between reported numbers in the freeze file and the numbers attained from the physical inventory assessment.
You can specify count variances that are acceptable for your inventory location by determining a count accuracy percentage. The formula by which the Inventory Control application calculates the accuracy percentage is as follows: the number of items with a variance divided by the number of items counted.
Count variances need to be updated to the Inventory Control application 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 listing to explain variances by reason code.