Understanding Operational Reconciliations

Operational reconciliation updates inventory and general ledger tables. Using all inbound and outbound transactions since the previous reconciliation, the system calculates the amount that should be in physical inventory and compares it with the actual amount in the tanks (from the final physical tank dip). In other words, it measures and compares the physical inventory levels with the book inventory levels so that you can reconcile any differences and record operational gains or losses. The system then updates inventory tables to reflect the current physical stock levels. Although most companies perform operational reconciliations daily, some companies perform them monthly.

During operational reconciliation, the system can include the throughput gains and losses with the operational gains and losses and update the general ledger.

Operational reconciliation updates these tables:

• Gain/Loss Transactions File (F41512)

• Account Ledger (F0911)

• Item Location File (F41021)

• Bulk Depot/Product Information (F41022)

• Item Ledger File (F4111)

• Bulk Product Transaction File (F41511)

This flowchart illustrates operational reconciliation: