inventory error

Popular Terms
The difference between quantity and type of items on the warehouse books (or in the database) and what is physically present in inventory. This amount can be expressed as a net error or absolute error. A net error is the mathematical sum of both the loss and the gain written in dollar or percentage form. The absolute error is the sum of all inventory item errors regardless of positive or negative gains. Absolute error should generally be greater than (and should never be less than) net inventory error.

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