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The goal is to confirm that what you received matches what you paid for, that transfers between entities are recorded on both sides, and that clearing accounts net to zero as expected.",[],{"_key":508,"_type":424,"children":509,"markDefs":513,"style":432},"fdbeba5b9d03",[510],{"_type":428,"marks":511,"text":512},[],"Common scenarios include:",[],{"_key":515,"_type":424,"children":516,"markDefs":523},"cb8ac363c6e4",[517,520],{"_type":428,"marks":518,"text":519},[],"Receipts to invoices:",{"_type":428,"marks":521,"text":522},[]," Matching goods received against vendor invoices to catch timing gaps and price variances.",[],{"_key":525,"_type":424,"children":526,"markDefs":533},"3c7f98ce1282",[527,530],{"_type":428,"marks":528,"text":529},[],"Intercompany transfers: ",{"_type":428,"marks":531,"text":532},[],"Matching outbound transfers from one entity against inbound postings in another.",[],{"_key":535,"_type":424,"children":536,"markDefs":543},"e95cecb7a31b",[537,540],{"_type":428,"marks":538,"text":539},[],"Clearing accounts: ",{"_type":428,"marks":541,"text":542},[],"Matching transactions within the same account, such as the payment for inventory against the receipt of goods, to confirm the account clears as expected.",[],{"_key":545,"_type":424,"children":546,"markDefs":553},"58f6a80be14d",[547,550],{"_type":428,"marks":548,"text":549},[],"Cross-system validation:",{"_type":428,"marks":551,"text":552},[]," Matching ERP inventory transactions against records from procurement, warehouse, or other source systems.",[],{"_key":555,"_type":424,"children":556,"markDefs":560,"style":432},"f8e0387ac3c8",[557],{"_type":428,"marks":558,"text":559},[],"The outcome is a clean, documented process that management and auditors can trust.",[],{"_key":562,"_type":424,"children":563,"markDefs":567,"style":499},"80549af080b8",[564],{"_type":428,"marks":565,"text":566},[],"Why is inventory reconciliation important for finance teams?",[],{"_key":569,"_type":424,"children":570,"markDefs":574,"style":432},"05bcfa9dc22d",[571],{"_type":428,"marks":572,"text":573},[],"This work is not just about ticking boxes at month-end. 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When transactions do not match, errors compound and surface at the worst times.",[],{"_key":576,"_type":424,"children":577,"markDefs":584},"22090e4a92f1",[578,581],{"_type":428,"marks":579,"text":580},[],"Margin integrity:",{"_type":428,"marks":582,"text":583},[]," Unmatched receipts or missed invoices flow directly into COGS and gross margin.",[],{"_key":586,"_type":424,"children":587,"markDefs":594},"031589eb2298",[588,591],{"_type":428,"marks":589,"text":590},[],"Working capital accuracy: ",{"_type":428,"marks":592,"text":593},[],"Clearing accounts that do not clear signal errors in what you have paid versus what you have received.",[],{"_key":596,"_type":424,"children":597,"markDefs":611},"62ba86e2cc20",[598,601,605,608],{"_type":428,"marks":599,"text":600},[],"Compliance and ",{"_type":428,"marks":602,"text":604},[603],"bdbef0c9-80e4-44ed-b390-1f8bec0f2ba8","audit readiness",{"_type":428,"marks":606,"text":607},[],":",{"_type":428,"marks":609,"text":610},[]," Documented processes with matched transactions.",[612],{"_key":603,"_type":467,"linkPageModule":6,"newTab":12,"page":6,"type":14,"url":613},"https:\u002F\u002Fwww.nominal.so\u002Fblog\u002Fai-in-audit",{"_key":615,"_type":424,"children":616,"markDefs":623},"ac9bea6ea221",[617,620],{"_type":428,"marks":618,"text":619},[],"Close speed: ",{"_type":428,"marks":621,"text":622},[],"Teams that automate matching and focus on real exceptions close faster and spend more time on analysis.",[],{"_key":625,"_type":424,"children":626,"markDefs":634,"style":432},"7f97a2c8b00d",[627,630],{"_type":428,"marks":628,"text":629},[],"Recommended read: Intercompany Reconciliation: ",{"_type":428,"marks":631,"text":633},[632],"08fbdb48-3d71-47ca-90d4-b6ed82cfa49c","How to Eliminate Backlogs and Speed Up Month-End Close",[635],{"_key":632,"_type":467,"linkPageModule":6,"newTab":12,"page":6,"type":14,"url":636},"http:\u002F\u002Fwww.nominal.so\u002Fblog\u002Fintercompany-reconciliation",{"_key":638,"_type":424,"children":639,"markDefs":643,"style":499},"710e74a8ab0e",[640],{"_type":428,"marks":641,"text":642},[],"What is the inventory reconciliation process?",[],{"_key":645,"_type":424,"children":646,"markDefs":650,"style":432},"621b361da591",[647],{"_type":428,"marks":648,"text":649},[],"Think of resolution as a structured workflow, not a one‑time task. Each stage should build on the last, moving from raw data collection through matching and investigation to adjustments and final approval.",[],{"_key":652,"_type":424,"children":653,"markDefs":657,"style":432},"10c885c8fe11",[654],{"_type":428,"marks":655,"text":656},[],"These stages break the reconciliation process into practical steps: gathering source data, standardizing formats, matching records, investigating discrepancies, posting adjustments, documenting the work, and monitoring results.",[],{"_key":659,"_type":424,"children":660,"markDefs":664,"style":432},"f2f7d68753e6",[661],{"_type":428,"marks":662,"text":663},[],"Each one builds on the last, turning what could be a chaotic exercise into a clear, repeatable workflow that scales and produces reliable evidence.",[],{"_key":666,"_type":667,"data":668,"image":678,"markDefs":6,"type":679},"79ca61eb3ec1","media",{"altText":6,"asset":669,"bgColor":671,"caption":6,"dimensions":672,"lqip":676,"originalFilename":677},{"_ref":670,"_type":40},"image-8f778e993d2aaa3f10e340adf3bc0e7fbe7a032a-1124x1766-png","#53a58e",{"_type":43,"aspectRatio":673,"height":674,"width":675},0.636466591166478,1766,1124,"data:image\u002Fpng;base64,iVBORw0KGgoAAAANSUhEUgAAABQAAAAfCAYAAADnTu3OAAAACXBIWXMAAAsTAAALEwEAmpwYAAAFfUlEQVR4nI2WWVfTZxDG+QwQdrITErISIIGQSCKEELL9s4Fgq1Xr6QJuLV4VFamVeupVRfYdEbQ31aPiCgrigls\u002F0tMz8yaAPdr24jnzEv55Mr+ZeSfJyc\u002FLw6dUUlSESoMeZpMR5VoNNCoV1Col5KWlKCoo2H7GUVODRDKJrq4uVs6nzGS5uVCUlcHjaUBroAUetwuu+jrU1zthNhpRWlzMz\u002FwvwwKZjFVWUgKL2YTaajusZhNnStJptWxEz1Cs\u002FS9DeojwyjUafrNep0NFeTmfKYpzOdQKBRSlpXDU1iL5OUOqjVathtViQZXVyiIkUo3djprqajaoczj4f2TudDg+b0iYRoMBVTYbi0zoDWRSbbezyLzO6WRzi8kEl8v17xmq5HJG1ihV0KrUKFeroaUOK5RQyRXQKJX8N0elij8gFo1i3759wpBqVliQj3xZHgqLC1GmU0Nh1kNpMUBpNkBp0UNh0UNp1kNhNkBBr1tEVNuMqGp0wRtqRWs4hHg8jpxqexUqzJXQOGzQt3pgP5qGq+9buM\u002F3oKG\u002FW+h8NxoGeuC+cAKewVPb2vPrKfh+64W79wiq\u002FY3c8ZxQqA11wSY4urvgHjgG\u002F+g5xFZGkHg2g8TTGcSfTovz+iySmwtIvb6O1NYSUm+WkH67jNTbZbTM\u002FQJ9iwclJcXIkSQJzmYvLMkAanq+QNPQT4iujEBanYL0ZBLS6iTidF6dEubrs0hsziP5cgGpV4tIvl6Ef\u002Fpn6JrquWxsWOtxocJbB0tXGN7LpxG5PYTo\u002FVE23okjiD4YEx\u002FydBrxZ6QZPjeNnEG5tw75MpkwrA\u002F5UftdJ9z9PWgZ64f0cBzJ53NIbMwhuSFiYmMWyRcLSG1dZ9T02yWk3y0j\u002Ff4GAguD0PkbdgwZORVE7fEv0TTUxxkRZvzJlIi7kCmr+LNZEQn\u002F+Tz80wPQNbmEYSwWQ427HhWNTlg6BXL41pUMagaXUB9PiLquTu6Kk1yCvcN9O8herxfVTXtQ802HQB7vR+zB2Day6O480lnUN6LDostL\u002FFrL3EVGpoWRo9WoobWZYEoG4Dh5AM1X+3hs4mvTAndNKDs6pPg64c5wXROb8\u002FBPDUDXnEEukOWhRKWApqF6u8uEHFkZQWRlmJEj90SMPRqH9GQCsYwIN7Y6ib1X+1DucwpDusMKayXsX6f5dvjHCHkciXWBS1lw8TfmkHp5jZEZ\u002Fd0NtL+\u002FifSHm2hZGERFtsu8ZQw6mFKtcP5wEM3DZxC7P4Y43RLCps5SXMvcGBofGuxXi+LGbF2Hf\u002FbCDjIZFmeRO0PwXu5F+NbvorsZ1Oi9nXPsYWa4qdNr0xwZ2fsP5Kqju5HHthvAhc8O9\u002FM5pF4vMi4NdPuHm0j\u002FRcgXP85QXqmDuT0IZ+9hNI+cFcg0uIRNmDzMmfPmPGNml0P6nVgOVMPC\u002FPwdZC13OQTvb70I\u002F7mDnO3w7hLEHlK3JyGtiQVCdbcGfTBWVu7ucgru\u002Fm74x84JZELdfcVI2TX2YkF0+\u002F0NzjJ47RI8+xMIBAJkKIPcqIO5ow11pw9nujwqMLNd5p04y\u002FuRXqcu017kW7O1iODCIHwH2yHRxhbIcu6yuTOExt3Id4cRuXt1G5NFw033OtPp2OMJ+EfPonF\u002FApKUMVRYDag6kkTDue\u002FhH++H9GhCzFp2hdGm3qJ1JRB5bdFgf\u002FiDY3Dx0scZyo0VvGmcPx7iq9e2fJlnMcK6gsjtK4jeGUKUsr0zzJnTfZcejXO9\u002FSNn4KUMs4aFRYUo0SihsBmhD3i4ntb9ETiPpNHYfQC+YwdZ3l3yHf8KvpOH4TtxCHsOtWNvtI2\u002FnzPfy7nIz838tiksYJWUlsJWZUNzIIBgOPRpRcIc28IhxCQJHR0d+BuQJ\u002F6lXeYowgAAAABJRU5ErkJggg==","69b1b11baa89d0ad4adeab46_The%207-Step%20Inventory%20Reconciliation%20Workflow.png",{"_type":679,"asset":680},"image",{"_ref":670,"_type":40},{"_key":682,"_type":424,"children":683,"markDefs":687,"style":688},"ba38a30f2367",[684],{"_type":428,"marks":685,"text":686},[],"1. Gather and align sources",[],"h4",{"_key":690,"_type":424,"children":691,"markDefs":695,"style":432},"1abfc687118c",[692],{"_type":428,"marks":693,"text":694},[],"Pull data from the systems involved, like ERP, procurement, AP, and warehouse management. Capture the dimensions you will reconcile against, such as account, entity, date, amount, vendor, and PO number.",[],{"_key":697,"_type":424,"children":698,"markDefs":702,"style":688},"8339dcb6fccd",[699],{"_type":428,"marks":700,"text":701},[],"2. Normalize and standardize",[],{"_key":704,"_type":424,"children":705,"markDefs":709,"style":432},"539431af48d4",[706],{"_type":428,"marks":707,"text":708},[],"Unify identifiers, date formats, and account codes across sources. Map vendor names, PO references, and entity codes so transactions can be compared accurately.",[],{"_key":711,"_type":424,"children":712,"markDefs":716,"style":688},"554fc5872085",[713],{"_type":428,"marks":714,"text":715},[],"3. Match transactions",[],{"_key":718,"_type":424,"children":719,"markDefs":723,"style":432},"033c0741d7bd",[720],{"_type":428,"marks":721,"text":722},[],"Compare transactions across sources to identify what ties and what does not. This is where automation makes the biggest difference, applying consistent logic at scale and surfacing only the exceptions that need human judgment.",[],{"_key":725,"_type":424,"children":726,"markDefs":730,"style":688},"4a8068f4b54f",[727],{"_type":428,"marks":728,"text":729},[],"4. Investigate discrepancies",[],{"_key":732,"_type":424,"children":733,"markDefs":737,"style":432},"b6cce5acf5cc",[734],{"_type":428,"marks":735,"text":736},[],"Group exceptions by type so you can route and resolve them efficiently:",[],{"_key":739,"_type":424,"children":740,"markDefs":744},"a811b0fcf827",[741],{"_type":428,"marks":742,"text":743},[],"Timing differences: Receipts posted in one period, invoices in another; goods in transit at cut-off",[],{"_key":746,"_type":424,"children":747,"markDefs":751},"649f7f244a97",[748],{"_type":428,"marks":749,"text":750},[],"Missing counterparts: A transfer posted on one side but not the other; a receipt without an invoice",[],{"_key":753,"_type":424,"children":754,"markDefs":758},"9b9482996bef",[755],{"_type":428,"marks":756,"text":757},[],"Price variances: Invoice amount differs from the receipt or PO",[],{"_key":760,"_type":424,"children":761,"markDefs":765},"f1c3b1a882df",[762],{"_type":428,"marks":763,"text":764},[],"Uncleared items: Transactions in a clearing account that should have offset but didn't",[],{"_key":767,"_type":424,"children":768,"markDefs":772,"style":688},"c63f4e2b6a42",[769],{"_type":428,"marks":770,"text":771},[],"5. Post adjustments and tie out",[],{"_key":774,"_type":424,"children":775,"markDefs":779,"style":432},"970ed47b786d",[776],{"_type":428,"marks":777,"text":778},[],"After identifying the root cause, post the appropriate adjustment. Recalculate affected metrics and confirm the reconciliation ties.",[],{"_key":781,"_type":424,"children":782,"markDefs":786,"style":688},"aaebbc0e478b",[783],{"_type":428,"marks":784,"text":785},[],"6. Document evidence and approvals",[],{"_key":788,"_type":424,"children":789,"markDefs":793,"style":432},"005e0e109a9f",[790],{"_type":428,"marks":791,"text":792},[],"Attach supporting documents like invoices, receipts, transfer records, and investigation notes. Capture preparer and reviewer approvals to support audit sampling.",[],{"_key":795,"_type":424,"children":796,"markDefs":800,"style":688},"69dece135dae",[797],{"_type":428,"marks":798,"text":799},[],"7. Re-run and monitor",[],{"_key":802,"_type":424,"children":803,"markDefs":807,"style":432},"56032d14720b",[804],{"_type":428,"marks":805,"text":806},[],"Rerun the reconciliation after adjustments to confirm everything ties. Track aged exceptions and accuracy over time to spot systemic issues.",[],{"_key":809,"_type":424,"children":810,"markDefs":814,"style":499},"e406d7edb44d",[811],{"_type":428,"marks":812,"text":813},[],"How to resolve common inventory reconciliation discrepancies",[],{"_key":816,"_type":424,"children":817,"markDefs":821,"style":432},"1d56444ad36c",[818],{"_type":428,"marks":819,"text":820},[],"Discrepancies arise for many reasons, from timing gaps to missing transactions, and each has a different fix. Understanding these categories helps teams move faster when exceptions appear and prevents small mismatches from snowballing into large write-offs.",[],{"_key":823,"_type":424,"children":824,"markDefs":828,"style":688},"6e14e2114018",[825],{"_type":428,"marks":826,"text":827},[],"Timing differences",[],{"_key":830,"_type":424,"children":831,"markDefs":838},"2800de7cc8d8",[832,835],{"_type":428,"marks":833,"text":834},[],"Symptoms:",{"_type":428,"marks":836,"text":837},[]," Goods received but invoice not yet posted, or shipments in transit at period end.",[],{"_key":840,"_type":424,"children":841,"markDefs":848},"4f8f048b9b1e",[842,845],{"_type":428,"marks":843,"text":844},[],"Fix: ",{"_type":428,"marks":846,"text":847},[],"Use clear cut-off rules. Document the timing gap and confirm the invoice posts in the following period, or accrue if material.",[],{"_key":850,"_type":667,"data":851,"image":861,"markDefs":6,"type":679},"330fa02612fe",{"altText":6,"asset":852,"bgColor":854,"caption":6,"dimensions":855,"lqip":859,"originalFilename":860},{"_ref":853,"_type":40},"image-57d6df4fd97a54b32276a20fb4b3fc7d05411871-1600x900-png","#667192",{"_type":43,"aspectRatio":856,"height":857,"width":858},1.7777777777777777,900,1600,"data:image\u002Fpng;base64,iVBORw0KGgoAAAANSUhEUgAAABQAAAALCAYAAAB\u002FCa1DAAAACXBIWXMAAAsTAAALEwEAmpwYAAABzUlEQVR4nGWT2W7mIAyF8\u002F4PWc10\u002FiUbJIGw2Iacyk5VqZoLKwiHj+NjM7zGBLdVhCjYdoLbEo6QkTMhF0FKjJTZ1hpnYgtdV2ogahDpaO2y7zAtBX6rOAJj9RqEI9LPQY2UBal0hLNhD4xw6r7g1P0syLWhUgfzhWFxBauvcLvgvTT8GwWzI2zHfTDawYaQLixbx3tlrJteKpaL3\u002FlULlS6VGHGuGSDPOaGjwfjOekFhBBvYCoN4ewYfcfnRHjNFX5nywdV+w0kA64FsyumcPINn2\u002FGuKgFhGQ+spVTygUXOh6LAgv8Tognmce5NJR6gQUYVL7bGXvscHvHc2JMS8UeqjWGiM1s4gshd0yeMC4F+0GWr5VB3Mw\u002FacCgMH+IAdet4zkyXlPG6gvOs\u002F4Cxtwxb4TZ6VQwisJIwAqUb6A\u002FGrbQsMeG7ehYnFiTbgVsP4toOTdQFS6uIhqQ7ML\u002FgBp7aIip48wduXSU2lH5AokGQIwfhasCzxuoJf8CTq5i9lr23UkdD525QjdQo\u002FCFVDt8bJgcWYdzFivZPCQxH6VdGD6eAQ\u002F1bNP5anjNzZp0pnp7JB1FGnyu+DNV\u002FH0LQuz2QuwlZZ2GglLIXsoXU7BTox0\u002F1VAAAAAASUVORK5CYII=","69308a904880218abb2d014b_Matching%20_%20Unmatched%203.png",{"_type":679,"asset":862},{"_ref":853,"_type":40},{"_key":864,"_type":424,"children":865,"markDefs":869,"style":688},"87e05ac11322",[866],{"_type":428,"marks":867,"text":868},[],"Missing counterparts",[],{"_key":871,"_type":424,"children":872,"markDefs":879},"7bf6a3028c4d",[873,876],{"_type":428,"marks":874,"text":875},[],"Symptoms: ",{"_type":428,"marks":877,"text":878},[],"A transfer posts on one entity but the other side is missing. A receipt exists without a matching invoice.",[],{"_key":881,"_type":424,"children":882,"markDefs":888},"9b978c6cd03e",[883,885],{"_type":428,"marks":884,"text":844},[],{"_type":428,"marks":886,"text":887},[],"Investigate whether the counterpart transaction is delayed, posted incorrectly, or genuinely missing. Post corrections once confirmed.",[],{"_key":890,"_type":424,"children":891,"markDefs":895,"style":688},"c109b64b31ca",[892],{"_type":428,"marks":893,"text":894},[],"Intercompany mismatches",[],{"_key":897,"_type":424,"children":898,"markDefs":904},"80a4ecab1b5f",[899,901],{"_type":428,"marks":900,"text":834},[],{"_type":428,"marks":902,"text":903},[]," One entity shows an outbound transfer while the other shows a different amount, date, or no transaction at all.",[],{"_key":906,"_type":424,"children":907,"markDefs":914},"cb6baff46c14",[908,911],{"_type":428,"marks":909,"text":910},[],"Fix:",{"_type":428,"marks":912,"text":913},[]," Reconcile transfers as matched pairs. Investigate differences and align postings before elimination on consolidation.",[],{"_key":916,"_type":424,"children":917,"markDefs":921,"style":688},"deaf138c9301",[918],{"_type":428,"marks":919,"text":920},[],"Price variances",[],{"_key":923,"_type":424,"children":924,"markDefs":931},"fbb24e75aa74",[925,928],{"_type":428,"marks":926,"text":927},[],"Symptoms",{"_type":428,"marks":929,"text":930},[],": Invoice cost differs from receipt or purchase order.",[],{"_key":933,"_type":424,"children":934,"markDefs":940},"e142e44e0bda",[935,937],{"_type":428,"marks":936,"text":844},[],{"_type":428,"marks":938,"text":939},[],"Match invoice to receipt, flag variances that exceed tolerance, and post variance adjustments with documentation.",[],{"_key":942,"_type":424,"children":943,"markDefs":951,"style":432},"0c6a63fca023",[944,947],{"_type":428,"marks":945,"text":946},[],"Recommended read: ",{"_type":428,"marks":948,"text":950},[949],"ff5cb3ec-28b2-432b-a815-e1ee51a17dfa","Smarter Variance Analysis: Automate Insights, Skip the Spreadsheets",[952],{"_key":949,"_type":467,"linkPageModule":6,"newTab":12,"page":6,"type":14,"url":953},"http:\u002F\u002Fwww.nominal.so\u002Fblog\u002Fvariance-analysis",{"_key":955,"_type":424,"children":956,"markDefs":960,"style":688},"415e5618d18a",[957],{"_type":428,"marks":958,"text":959},[],"Uncleared items in clearing accounts",[],{"_key":962,"_type":424,"children":963,"markDefs":969},"d5c4e3ed5854",[964,966],{"_type":428,"marks":965,"text":875},[],{"_type":428,"marks":967,"text":968},[],"A clearing account has aged items that should have offset, like payment without a receipt or a receipt without a payment.",[],{"_key":971,"_type":424,"children":972,"markDefs":978},"9f5f45840ac0",[973,975],{"_type":428,"marks":974,"text":844},[],{"_type":428,"marks":976,"text":977},[],"Investigate the open items. Match where possible, post corrections for errors, and escalate unresolved items.",[],{"_key":980,"_type":424,"children":981,"markDefs":985,"style":499},"78f109f62d8c",[982],{"_type":428,"marks":983,"text":984},[],"How Nominal automates inventory reconciliation",[],{"_key":987,"_type":424,"children":988,"markDefs":992,"style":432},"4a1a9cbf773b",[989],{"_type":428,"marks":990,"text":991},[],"Most inventory issues are matching problems. You have transactions on one side, like receipts, payments, and outbound transfers, and transactions on the other like invoices, inbound transfers, and offsetting entries. The work is determining what ties, what does not, and why.",[],{"_key":994,"_type":424,"children":995,"markDefs":999,"style":688},"99cf47eb3635",[996],{"_type":428,"marks":997,"text":998},[],"Set up matching groups",[],{"_key":1001,"_type":424,"children":1002,"markDefs":1016,"style":432},"ff305d912b39",[1003,1007,1010,1014],{"_type":428,"marks":1004,"text":1006},[1005],"ee818dba-4a46-4b79-9aad-a7583be6e398","Nominal's",{"_type":428,"marks":1008,"text":1009},[]," transaction matching engine automates this process. Start by setting up matching groups that define what you are reconciling, the data sources, the fields to compare, like amount, date, account, entity, and reference, and the scope. 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With over a decade of experience across SaaS, fintech, and accounting automation, Katherine brings a consultative, strategic lens to every conversation. 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