What is physical inventory?

Physical inventory refers to the process of physically counting and verifying the quantity of goods or products that a company has on hand in its warehouse or storage facilities. This process is typically conducted periodically to ensure that the inventory records in the company's system are accurate and up-to-date. Physical inventory helps to identify any discrepancies between the actual physical count and the recorded inventory levels, which can help prevent stockouts, overstocking, and other inventory management issues.

Physical inventory refers to counting and verifying the actual quantity of on-hand inventory present in a warehouse or other storage facility. It involves physically inspecting each item, counting its quantity, and comparing the count to the inventory records. Physical inventory is usually conducted regularly to ensure that the inventory records are accurate and up-to-date. This helps businesses track and manage their inventory effectively, minimize discrepancies, prevent losses, and make informed decisions regarding inventory management.