How often should inventory adjustments be reviewed according to best practices?

The recommended practice for reviewing inventory adjustments on a monthly basis aligns with the need to maintain accurate inventory records and ensure operational efficiency. Monthly reviews allow for timely identification and resolution of discrepancies that may arise, such as theft, loss, or data entry errors.

Frequent checks, such as daily or weekly, may create unnecessary operational burdens, especially for organizations with stable inventory levels. On the other hand, an annual review could lead to significant discrepancies accumulating over time, making it more challenging to address issues effectively. Therefore, a monthly review strikes a balance between oversight and practical management, facilitating better inventory control without overwhelming the staff with excessive workloads.