What Is The Difference Between Variance, Possible Variance and Likely Variance In The Stock Take Variance Report

Here are the explanations for each of the variance references, along with an equation form to simplify this, where <> means not equal to.

• Variance - If only one count of the item was made during the stock take and the original quantity does not match the counted quantity. Original Quantity <> Quantity Counted from a single count

• Possible Variance - If there were multiple separate counts of the same item on the stock take, where the original quantity does not match the sum of the quantity counted plus quantity sold between the first and last count of that item and the quantity counted plus quantity sold between the first and last count of that item equals the current quantity. Original Quantity <> Quantity Counted + Quantity Sold During Counts = Current Quantity

• Likely Variance - If there were multiple separate counts of the same item, where the original quantity does not match the sum of the quantity counted plus quantity sold between the first and last count of that item and the quantity counted plus quantity sold between the first and last count of that item does not equal the current quantity. Original Quantity <> Quantity Counted + Quantity Sold During Counts <> Current Quantity

Trying to simplify this further, the difference between Possible and Likely Variance is, with an original quantity of 12 within the system, but physically 10  in the location (for there to be a variance in the first place), if there is 1 sale in the same location before the last count of 9, 9+1= 10, meaning Possible Variance. Same situation, but there is 1 sale after the location has been counted at 10 but isn't the last (to count this sale in the calculation), 10+1= 11, Likely Variance.