Enter the expected and actual inventory into the calculator to determine the inventory difference. This calculator helps in identifying discrepancies in inventory records.

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## Inventory Difference Formula

The following formula is used to calculate the inventory difference.

ID = AI - EI

Variables:

- ID is the inventory difference (units)
- AI is the actual inventory (units)
- EI is the expected inventory (units)

To calculate the inventory difference, subtract the expected inventory from the actual inventory.

## What is Inventory Difference?

Inventory difference, also known as inventory discrepancy, is the variance between the recorded inventory levels and the actual physical count. This difference can occur due to various reasons such as theft, damage, misplacement, or recording errors. Identifying and analyzing inventory differences is crucial for maintaining accurate inventory records and effective inventory management.

## How to Calculate Inventory Difference?

The following steps outline how to calculate the Inventory Difference.

- First, determine the expected inventory (EI) in units.
- Next, determine the actual inventory (AI) in units.
- Next, gather the formula from above = ID = AI – EI.
- Finally, calculate the Inventory Difference (ID) in units.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

expected inventory (EI) = 500 units

actual inventory (AI) = 485 units