What is the process to reconcile my Inventory?

Do your physical count:

1. Take a physical inventory count
   • Count up the quantity of raw ingredients and finished goods (everything that you have categorized to the Inventory Asset account in Pocket) that you have on hand 
2. Assign the cost to each of raw materials and finished goods. (How much did it cost you?)
3. Multiply the quantity (step 1) by the cost (step 2)
4. You now have the total value, in terms of cost, of your inventory - we'll call this the "value per physical inventory count"

Finish categorizing your transactions in Pocket:

1. Ensure that you have categorized all transactions in Pocket for all months through the month that you're performing this physical count
   • For example: if you've done a physical inventory count as of 12/31/23, then make sure you have categorized all transactions in Pocket through 12/31/23.
2. There should be no transactions remaining with an account that is blank 

Perform the inventory adjustment in Pocket:

1. Follow this guide to process an adjustment of your Inventory balance comparing the value of inventory on your balance sheet to the value per physical inventory count: How do I adjust (or reconcile) my inventory?