First time doing stock reconciliation in Nory? Checkout this quick video 👇
What the stock reconciliation report is
The stock reconciliation report compares what your team actually used, worked out from stock counts and stock movements, with what Nory expected you to use, worked out from point of sale (POS) sales and your recipes.
Actual means what physically happened: opening count, deliveries, transfers, waste, batches and closing count.
Theoretical means what should have been used if every recipe was followed exactly and every sale was rung through the POS correctly.
The difference between the two is your variance. Nory shows that difference in more than one way, so check which figure you are looking at before deciding something is wrong.
Nory creates a reconciliation report each time you finish a stock count. The report covers the period from the previous completed count of the same type (weekly or monthly) up to this count.
Variance, gap and unaccounted waste compared
Several different figures get called "variance" across Nory. They use the same stock movements but treat logged waste differently, and some are shown as a cost and some as a profit. This table is the one set of definitions to use.
Figure | Where you see it | How it is calculated | Includes logged waste in the figure? | What it tells you |
Gap Quantity | Reconciliation report, Variance section | Sold quantity minus (Opening + Deliveries + Transfers in + Produced minus Closing minus Transfers out minus Used in batches) | Yes. Logged waste is not taken off, so it sits inside the gap. | The total quantity that went missing, whether it was logged as waste or not. |
Gap Value | Reconciliation report, Variance section | Sold value minus (Opening value minus Closing value + Delivered value + net transfers value + batch balance value) | Yes, same as Gap Quantity. | The value version of Gap Quantity. This column is named to match the Gap card on Insights > Inventory. |
Variance (including logged waste) | Reconciliation report, Variance section | Sold value minus (Opening value minus Closing value + Delivered value minus Logged waste value + net transfers value + batch balance value) | No. Logged waste is taken off first, so it explains part of the loss. | The value of stock that is still unexplained after your logged waste is accounted for. |
Variance (batch items) | Reconciliation report deep dive for batches | Sold quantity minus (Opening + Deliveries + Transfers in + Batches created minus Closing minus Transfers out minus Waste minus Used in other batches) | No. Same treatment as Variance (including logged waste). | The quantity version of Variance (including logged waste), for batches and their ingredients. |
Total Variance | Management Report | Gross profit (GP) actual minus GP theoretical | Yes: Cost of Sales (actual) deducts logged waste, so Total Variance equals Variance (including logged waste). | The variance shown as a profit figure. A negative number means you made less profit than expected. |
Gap | Insights > Inventory, Gap card | Target (theoretical) GP minus Actual GP | Yes. Split into accounted waste, surplus and unaccounted waste. | The same total loss as Gap Value, broken into its parts. |
Unaccounted waste | Insights > Inventory, part of the Gap | The Gap minus accounted (logged) waste, shown separately from surplus | No. This is what is left once logged waste is removed. | Stock that went missing and nobody logged. |
Why Tracking Variance Between Actual & Theoretical Matters (And How It Boosts Profits)
Find Hidden Profit Leaks
Every point of variance between what you should have used (theoretical) and what you actually used is either waste, theft, over-portioning, or a training issue. Even a 2% variance can mean thousands of dollars in lost profit every month.
Turn Guesswork Into Actionable Data
Without tracking variance, you’re flying blind. With it, you know exactly which ingredients or menu items are costing you more than they should- and why. You can’t fix what you don’t measure.
Train Smarter, Not Harder
Variance reports show where your team might need support- maybe they’re over-portioning the chicken breast or not following drink recipes. Use the data to coach, not punish.
Optimize Your Recipes
Seeing consistent overuse on certain items? That might be a signal that your recipes, portion sizes, or plating standards need to change. This makes your menu more efficient and more profitable.
Reduce Waste Without Killing Creativity
Chefs and bartenders still get room to innovate- but within a framework that protects margins. Variance tracking keeps quality high and costs in line.
Protect Your Bottom Line
You work too hard to let cash slip away unnoticed. Tight variance control means tighter margins, better bonuses, and more money to reinvest in the team and the guest experience.
📌 If you’re not tracking actual vs. theoretical, you’re leaving money on the table- plain and simple. It’s not about micromanaging; it’s about making smarter, faster, more profitable decisions every day.
How opening and closing stock are valued
Nory values stock using a weighted average of the prices you actually paid on deliveries, not the supplier list price. This is the one definition of opening value that applies to the reconciliation report.
Closing value is the closing quantity multiplied by the weighted average delivered price for that count period.
Weighted average delivered price is the total delivered cost divided by the total delivered quantity for the item at that location in the period.
Opening value is the opening quantity multiplied by the weighted average price carried over from the previous period, so the opening value of this period matches the closing value of the previous period.
If an item has no deliveries in a period, Nory keeps using the last weighted average price it calculated for that item.
Weighted average prices are worked out per location. A wrong invoice at one site does not change stock values at your other sites.
Worked example: opening value
In one stock period you receive two deliveries of the same item.
Delivery 1: 10 units at £5 each = £50
Delivery 2: 20 units at £6 each = £120
Total delivered: 30 units costing £170
Weighted average delivered price: £170 divided by 30 = £5.67 per unit (rounded)
You count 12 units at the end of the period. Closing value = 12 × £5.67 = £68.04. The next period opens with the same 12 units valued at £68.04.
Why an item can show 0 variance quantity but a variance value
An item can balance perfectly on quantity and still show a variance value when its price changes during the period. The opening stock is valued at last period's average price, while deliveries and closing stock are valued at this period's prices, so the values do not cancel out even though the quantities do. This is a costing difference, not a counting error. Check that the price change matches what your supplier actually charged you.
Every column in the report
These are the columns you can show in the reconciliation report, grouped the same way as the report. Hover over a column title in Nory to see its definition.
Actual columns
Actual columns describe what physically happened to the stock during the period.
Column | What it means | Formula |
Opening Qty | Stock at the start of the period, taken from the closing count of the previous count of the same type. | Previous closing count |
Deliveries | Stock received from suppliers in the period, based on the invoice received-on date. | Sum of delivered quantities |
Net Transferred Qty | Stock moved between your locations. A transfer only counts once it is completed at both the sending and receiving location. | Transferred in minus Transferred out |
Closing Quantity | Stock counted at the end of the period. | This count |
Used Qty | Stock used, based on all inputs and outputs, with logged waste taken off. | Opening minus Closing + Deliveries + Transfers minus Waste + Batch balance |
Opening Value | Value of opening stock. | Opening quantity × weighted average price carried from the previous period |
Received Value | Value of deliveries in the period. | Delivered quantity × delivered price |
CPU Received Value | Only for central production unit (CPU) locations. Value of deliveries from CPU suppliers, priced at ordering or delivery note adjustment. | Delivered quantity × price |
Transferred Value | Net accepted value of transfers. | (Transferred in minus Transferred out) × current price |
Closing Value | Value of closing stock. | Closing quantity × weighted average delivered price for the period |
Used Value | Value of stock used. | Opening value + Delivered value + Transferred value minus Waste value + Batch balance value minus Closing value |
Theoretical columns
Theoretical columns describe what Nory expected you to use, based on sales and recipes.
Column | What it means | Formula |
Sales Qty | Expected usage based on POS sales and the recipes linked to each POS item. A sale with no recipe linked does not appear here. | Sum of ingredient quantities in linked sales |
Sales Value | Value of the items sold through the POS, covering both batches and supplied items. | Sales Qty × price |
Batch Balance | Batches created minus the quantity of the batch used as an ingredient in other batches. | Batch created minus Used as batch ingredient |
Batch Value | Cost of the batch balance. Whether batches are created manually or automatically depends on your location's setup. | Batch balance × current price |
Accounted waste columns
Accounted waste columns show the waste your team logged in Nory for the period.
Column | What it means | Formula |
Waste Qty | Waste logged with a date inside the period. | Sum of logged waste quantities |
Waste Value | Value of that waste. | Waste quantity × the average price you paid on deliveries during the period. If the item had no deliveries in the period, Nory uses the price from your opening stock instead. |
Item information and other columns
These columns help you filter and sort the report.
Item: the stock item name, as used in counting, purchasing and recipes.
Category: the category assigned to the item, for example Dairy or Dry Goods.
Type: Food, Beverage or Miscellaneous.
Unit: the unit of measurement, for example kg, L or each.
Is Estimated: True when the closing quantity was estimated because the item was not counted and the count used "Use estimates". Estimated lines need checking before you trust their variance.
When the report updates
Different changes reach the reconciliation report in different ways. The report shows the time it was last refreshed when you hover over the date at the top.
Changes you make | What happens to the reconciliation report |
Add or edit an invoice in a period that already has a report | Nory refreshes the report automatically and recalculates the weighted average price. |
Edit the count itself | The report recalculates when you save the edited count. |
Log or edit waste, complete a transfer, change a recipe or link a POS item after the count | Refresh the report yourself: open the report, select the menu (⋮), select Edit Count, then save the count again. |
Any change in a locked period | The locked report does not change. The change appears in the next open period instead. |
The KPI cards at the top of Insights > Inventory update automatically and more often than the reconciliation report, so small differences between the two are expected.
Why is my variance wrong?
Most variances that look wrong come from one of the causes below. Sort the report by variance value to find the items driving the total, then work through this list for each one.
Check the closing count. A missed storage area or an item counted in the wrong unit (a case instead of a bottle) is the most common cause. Fix it by editing the count.
Check deliveries. An invoice only counts in the period that contains its received-on date. If you count on Monday morning before sales, invoices need a received-on date no later than Sunday.
Check transfers. A transfer only registers once it is completed at both the sending and receiving location.
Check waste. Waste must be logged with a date inside the period and at the right location. Stock that was binned but not logged shows as unaccounted waste.
Check sales. If Sales Qty is 0 but you know you sold dishes using the item, the POS item is not linked to a recipe. When you link a recipe, Nory reprocesses the last 7 days of sales automatically. For older sales, ask support to re-ingest them.
Check the recipe and units. A recipe that deducts a whole loaf when it should deduct two slices creates a large positive variance.
Check the price. A delivered price entered against the wrong pack size, for example a carton price against 1 ml, inflates value figures without changing quantities.
Check estimated lines. If the count used "Use estimates", uncounted items are estimated. If you have none of an item, enter 0 so Nory does not estimate it.
Refresh the report. If you changed anything after finishing the count, check the refresh time and refresh the report using Edit Count, then save the count again.
If you would like to learn more on common investigation scenarios, check out this article on how to identify and fix common variance scenarios.
If you are looking for a walkthrough on how to navigate the reconciliation report, this article provides a step-by-step.
How do I delete a reconciliation report?
You cannot delete a reconciliation report on its own, because it is generated from a stock count. To remove the report, delete the underlying stock count: open the count, select Edit Count, open Settings and select Delete Count. Deleting a count changes the opening stock of the next count, so read Can I edit, reopen, delete or change the date of a submitted stock count? first.
Still need help?
If you have worked through the variance checks in this article and the numbers still look wrong, contact support and include the following so we can investigate without going back and forth:
The location and the count date, and whether the count was before sales or after sales
The item or items with the unexpected variance
Which figure you are looking at (Gap Value, Variance including logged waste, Management Report Total Variance or the Insights Gap card) and the value you expected
Any invoices, waste, transfers or recipe changes you made after finishing the count
Whether the period is locked