An Exception report identifies events outside of the normal range and is used in inventory reconciliation, project management, and employee evaluations. It helps to identify discrepancies, minimize exceptions, and increase efficiency. It can also help to maintain accurate inventory and identify theft of supplies.
An Exception report is a type of summary report that identifies all events that fall outside what is considered a normal range. Reports of this type are employed in a number of contexts, including the inventory reconciliation process, the project management survey, and even employee evaluations. The goal of the report is to identify all factors that are not considered within acceptable parameters, making it possible to take actions that help minimize or eliminate exceptions and increase overall efficiency.
As far as inventory reconciliation is concerned, the exception report is often essential to the task of identifying differences between a physical inventory and the inventory presented in inventory databases. Over time, errors can creep into any type of inventory, making it necessary to make adjustments that reflect the actual amount of stock on hand. Not only does this make it easier to adjust ordering of new items to keep an adequate amount of supplies on hand, but you can also maintain accurate inventory for tax assessment.
For example, many manufacturing plants maintain what is known as a company store which is responsible for issuing parts and other components necessary to operate plant-wide machinery. The managers of that shop typically conduct what’s known as cycle counting, physically inventing everything from the smallest screw to the high-cost engine components used to maintain and repair production equipment. When it is found that the number of units displayed in the inventory database does not match this physical count, an entry is made in an exception report. This allows you to go back and determine if a received shipment of that part has not been added to the database or if some disbursements from physical inventory have not been recorded correctly. In some cases, the exception report may also expose the theft of supplies, prompting increased security measures that help minimize loss to the business.
Besides helping to reconcile different types of inventories, an exception report can also be helpful in the project management task. In this scenario, the report highlights pending tasks that are still pending, even though the expected completion date for that task has passed. By noticing the exception, you can re-plan the activities for the project to compensate for the discrepancy and get the project back on track.
Even as part of employee evaluations, an exception report can be helpful. Here, the idea is to identify all employee-related events that fall outside the scope of the baseline expectations associated with the job position. Exceptions may involve performance failures or performance that goes beyond the normal job position. For example, exception report details may indicate that the employee needs additional training in certain areas or identify situations where the employee was able to take on extra duties while a colleague was ill, effectively helping the business continue with little to no change in productivity. Depending on the nature of the issues documented in the exception report, the employee may be recommended for remedial training or may receive a commendation for providing additional services to an employer while continuing to perform effectively in their assigned duties.
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