Use Inventory Reconciliation to Perform and Record Inventory Adjustments in Bulk

DISTILL x 5 includes tools to help you perform a physical inventory (also known as a cycle count or stock take) of your Finished Products (Bottled/Canned), VAPs, Raw Materials, and Supplies.

For Finished Products and VAPs, you can count and adjust both Bonded and Tax Paid inventory.

The first version of this tool has some limitations which we intend to remove in a future iteration.

Using Inventory Reconciliation

Before you can enter the results of your physical inventory, you have to physically count the inventory on hand. DISTILL x 5 includes a printable PDF inventory sheet to help you with this process.

Navigate to Inventory > Overview and then choose the "Reconcile" button, top right:

You'll be prompted to choose the type of inventory that you are counting - Finished Products, Raw Materials, Supplies or VAPs. Choose the appropriate category to continue (we'll use Finished Products in this example):

Once you've chosen your category, a button to "Download Tracking PDF" will appear. Click that button:

DISTILL x 5 will generate a Physical Inventory PDF based on your current inventory levels in the system. This PDF is intended to be printed out and taken to your storage area, to drive the physical inventory process:

Simply write your Blind Count of bottles for each item, then return to the Reconciliation page on DISTILL x 5. In this example, we have one product (Bourbon Cask Strength) and a one-bottle discrepancy. You can look at this as a Book Overage or an Inventory Shortage. Either way, you simply enter in the new count, and adjust the overall inventory lot value (if necessary):

In this example, I wanted to preserve the Average Unit Cost of $157.48. To accomplish this, I took the Current Total Value ($60,000) and subtracted the value of one bottle ($157.48). The result ($59,842.52) is entered into the "New Total Valuation" field. Once entered, you will see the "New Average Unit Cost" value populate, along with the "Change in Quan" and "Change in Value" fields.

TTB Compliance Considerations

For distilleries in the US, the printable tracking PDF includes the fields required by 27 CFR 19.623.

Per 27 CFR 19.372, you are required:

• To take physical inventory of cased goods twice a year, on June 30th and December 31st
• To notify TTB at least 5 days ahead of the planned inventory-taking day (use TTB NRC contact form)

Regulations allow you to perform Cased Good inventory a few days before or after the dates specified above, however, backdating or forward-dating inventory adjustments is not supported by this tool. We therefore recommend both performing and recording the results of your physical inventory on the exact day specified in the regulations (i.e. June 30th & December 31st).