Rate of Inventory Items with Incorrect Stock Balances
Percentage
Calculates the rate at which the recorded stock balance does not match the actual physical count. This helps identify potential issues with stock tracking or instances of shrinkage, enabling better inventory control and financial reporting.
Formula
(Number of Items with Incorrect Stock Balances / Total Items Checked) x 100
Example
If 15 out of 300 items have an incorrect balance, the rate is 5%.