# Reconcile the Stock Ledger to Physical Stock

### How to Reconcile the Stock Ledger to Physical Stock in Muhasib ERP

### Overview

This guide will help you explain and resolve differences between the Muhasib stock ledger and a controlled physical count.

The variance is explained or corrected with a documented transaction trail.

### Who can do this

You need access to Stock Ledger and transaction inquiry access; adjustment rights only for authorized corrections.

### Before you start

Freeze or control movements, define the count cutoff, complete a physical count, and keep system and count evidence.

<div id="bkmrk-%F0%9F%9A%A8-importantmake-sure" style="border-left: 4px solid #dc2626; background: #fef2f2; padding: 12px 16px; margin: 15px 0; border-radius: 4px;">Before saving, check that the correct company is open and that you have permission to complete this task.</div>### Where to find it

Back Office → Items &amp; Advanced Inventory → Stock Ledger Report.

### Reconcile the Stock Ledger to Physical Stock

#### Step 1: Set company, location, item, and cutoff date/time

#### Step 2: Confirm opening quantity

#### Step 3: Trace purchases, sales, returns, transfers, adjustments, and production movements

#### Step 4: Reconcile unit, batch, and serial identities

#### Step 5: Identify timing, duplication, omission, or classification differences

#### Step 6: Correct the source transaction where possible; use an approved adjustment

Correct the source transaction where possible; use an approved adjustment only for a genuine count difference.

### Check your work

Re-run the ledger and confirm calculated closing stock equals the approved physical/control quantity.

<div id="bkmrk-%F0%9F%92%A1-tipcheck-the-saved" style="border-left: 4px solid #2563eb; background: #eff6ff; padding: 12px 16px; margin: 15px 0; border-radius: 4px;">Take a moment to check your work before closing the window. This small check can save time later.</div>### If something goes wrong

- Do not start with an adjustment before investigating source documents.
- Include backdated and in-transit transactions in cutoff analysis.

### Related guides

- [Create an Inventory Adjustment](https://docs.muhasiberp.com/link/291)
- [Review Stock by Location, Batch, and Serial](https://docs.muhasiberp.com/link/298)
- [Review Inventory Movement and Valuation](https://docs.muhasiberp.com/link/301)

### What to do next

<div id="bkmrk-%E2%9C%85-next-actioncontinu" style="border-left: 4px solid #16a34a; background: #f0fdf4; padding: 12px 16px; margin: 15px 0; border-radius: 4px;">[**Create an Inventory Adjustment**](https://docs.muhasiberp.com/link/291).</div>