Waterfall Chart for Inventory Variance — Supply Chain Stock Walk
An inventory variance waterfall chart reconciles physical warehouse stock ($Inv_{end} = Inv_{start} + Receipts + Returns - Shipments - Scrap - Shrinkage$) across supply chain movements.
Tip: Paste Excel or Google Sheets rows (Ctrl+V / ⌘V) directly into any cell.
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Ending Book Inventory = Opening + Receipts + RMAs - Shipments - Scrap - RTV. Inventory Shrinkage % = (|Audit Shrinkage| / Opening Stock) * 100%.
Chart Design & Use-Case Tips
- 01Ending Book Inventory = Opening + Receipts + RMAs - Shipments - Scrap - RTV. Inventory Shrinkage % = (|Audit Shrinkage| / Opening Stock) * 100%.
- 02Use during monthly ERP-to-WMS physical inventory reconciliations to explain stock balance shifts to operations and audit teams.
- 03Shipments, scrap, RTV, and shrinkage are entered as negative values; receipts and restocked customer returns are positive.
- 04The final Net Total pillar shows verified Ending Inventory on hand.
Frequently Asked Questions
What is inventory shrinkage in a warehouse waterfall?+
Shrinkage is the unexplained discrepancy between book inventory in the ERP and physical cycle counts caused by mis-picks, unreported damage, or pilferage.
Can I plot inventory value ($K) instead of physical unit counts?+
Yes, enter inventory valuation at standard cost ($K) to reconcile balance sheet inventory accounts.
How do I pair this with SKU prioritization?+
Pair with the Pareto Chart for Inventory ABC Analysis to identify which SKUs represent 80% of warehouse dollar value.