Stock Take/Count and Reconciliation involves physically counting the inventory on hand and comparing it to the recorded stock in the system. This process helps identify discrepancies, such as missing, excess, or misrecorded items, ensuring accurate inventory records and effective stock management.

A clothing store’s system shows 100 pairs of jeans in stock. During a physical stock take, the team finds only 95 pairs on the shelves. After reconciliation, they discover that:

Five pairs were sold but not recorded in the system.
One pair was damaged and removed from inventory but not updated in the records.
By identifying these discrepancies, the store updates the system to reflect accurate inventory, preventing future stock errors.