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How To Fix On-Hand Inventory for Products Without Locations

  • Updated

 

Available in:  Agile |  Aware  | Analyzer | Multi-Outlet

 

Running a report after finishing an inventory count can be frustrating, especially when the figures don’t align with the count sheet. This article will teach you how to:

  • Identify the different inventory components
  • Understand how they interconnect
  • And uncover the reasons behind inaccuracies in inventory reports.

In reciProfity, ingredients do not hold on-hand inventory quantities— products do. Accurate inventory reporting depends on properly assigning products to locations. If a product lacks a location, its on-hand value cannot be adjusted, which leads to discrepancies across reports.

Products can be modified through:

  • Count Sheets
  • Transfers between reciProfity Units
  • Waste Sheets (Shrink Sheets)
  • Prep Builds
  • Prep Recipes
  • Invoice or Sales Mix imports

This article focuses on resolving inventory inaccuracies using the Count Sheet method.

Inventory Components Overview

  • Ingredient: Used in recipes.
  • Product: Purchased inventory item. Multiple products can exist within one ingredient.
  • Location: Storage area for products. A product can be stored in multiple locations.
  • Count Sheet: Used to count and adjust end-of-period inventory quantities.

Example Scenario: Unsalted Butter

We’ll use “unsalted butter” sourced from two vendors—UNFI and Sysco. Both products are identical but come from different suppliers, as shown below.

 

Clicking the Show Details button in the ingredient view opens the product history screen, as shown below.

On this screen, you can see:

  • There are two entries dated 3/31/25, where both products were reset to a zero on‑hand count. 
  • On 4/2/25, invoices were received from each vendor, with each vendor shipping two cases at $49.00 per case. 
  • By the end of the day on 4/2/25, the total inventory value was $196.00.

Note: A warning icon may appear next to Current Unit Price or Transaction Price when required yield data is missing from a prep recipe, as shown below.

Hovering over the icon explains which values are missing. Warnings next to Current Unit Price indicate that pricing cannot be calculated until a yield is added.

Warnings next to Transaction Price indicate that the yield was missing at the time of the transaction and will remain on historical records, even after the yield is corrected.

Next, looking at the On Hand Inventory Report, the total inventory value is confirmed. It shows:

  • Four cases at $49.00 each
  • Total inventory value: $196.00, as shown below.

 

The Actual Usage Report, as shown below, also aligns:

  • Opening balance: $0.00
  • Additions: $196.00
  • Closing balance: $196.00

These reports confirm that the inventory counts and monetary values match the physical inventory as expected. To keep this demonstration straightforward, no production activities occurred during the date range, so there was no inventory decrease due to usage or shrinkage.

 

Confirming Inventory Accuracy and Understanding Location Assignments

The earlier steps confirmed that the inventory counts and monetary values matched the physical inventory as expected. To keep this demonstration straightforward and avoid confusion, no production activities occurred within the date range provided. This means there was no inventory decrease due to usage or shrinkage.

Before creating a count sheet, it’s important to examine the product locations:

  • The UNFI product is assigned to the Refrigerated Location.
  • The Sysco product was intentionally left unassigned to demonstrate a common user error.

Please note: All products must be assigned to a location. Inventory counts cannot be modified unless the product has a designated location.

The image below shows:

  • The Refrigerated Location with the UNFI product listed in the right pane.
  • The Sysco product listed in the left pane under “Products without Locations.”

 

Creating a New Count Sheet

  1. Click the +New Count button.
  2. From the Locations drop-down menu, select Refrigerated Location.
  3. The UNFI product will automatically populate in the count sheet.
  4. Enter the counted quantity as four cases.
  5. The extended price will automatically update to $196.00.
  6. The left pane will show a summary by Group and Location.
  7. Click Save & Close to finish.

Since both products are identical, you don’t need to assign a count to each product separately. Just combine the total and apply it to the preferred vendor—in this case, UNFI.

 

Unexpected Discrepancy in Inventory Reports

Although the count sheet displayed all expected data, the other inventory reports may not match. Let’s take a closer look at the unsalted butter ingredient in the Show Details report.

  • The inventory has increased by $98.00, which equals two extra cases.
  • The On Hand Report reflects the same discrepancy.

 

Why the Inventory Doesn’t Reconcile

Let’s assume your physical count sheet is correct. You counted four cases, and the process was accurate. However, there are three common reasons why inventory counts may not reconcile:

  1. The Sysco product is not linked to a location.
  2. The location is not included in the count template.
  3. The Enabled Zero Counts feature is disabled.

When vendors supply identical items, only one product should retain the total on-hand value. If the items are from distinct brands, inventorying them separately is straightforward.

In this example, the root cause of the overstated inventory is points 1 and 2:

  • The Sysco product was never assigned to a location.
  • Its on-hand value could not be reset to zero.
  • This led to a duplication of the product’s on-hand value.

 

How To Fix It

To resolve the issue with the Sysco unsalted butter:

  1. Activate the Enabled Zero Counts feature (if not already active).
  2. Assign the Sysco product to a ghost location—a storage area for inactive products.
  3. Create a second count sheet to set all ghost location products to zero.

For future inventory counts, include the ghost location in your end-of-period location template. This allows you to use a single count sheet that includes both refrigerated and ghost locations.

 

 

Verifying the Fix

Once the ghost location count sheet is complete:

  • The Show Details and On Hand Report return to expected values.
  • The count sheets reset the on-hand values for each product.
  • Invoice information is no longer displayed in the Show Details screen.

The Show Details screen now reflects:

  • Current on-hand activity values
  • A “total value” at the bottom representing the sum of all activities
  • The count sheet marks the opening balance for the cycle
  • New line entries are added for each activity (e.g., Prep Builds reduce inventory, invoices increase it)

All activities are tracked until a new count sheet concludes the period and resets the cycle.

Invoices are still stored in the database and can be accessed via the Invoice Journal. They also impact the Actual Usage and Ideal Usage reports.

 

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