How barrel reconciliation works
Every period's barrel count balances on one line: what you started with, plus what you made and took in, minus what left and what was lost, is what should be on hand at the end. If the tank and cooler count disagrees, something was missed or mistyped.
| Expected ending inventory | 108 bbl |
| Gap vs your measured ending | balanced |
Runs in your browser; nothing you type is sent anywhere. Arithmetic for your records, not tax advice.
The formula
ending = beginning + produced + received - removed taxpaid - removed without tax - losses
- Beginning inventory: last period's ending figure, carried forward unchanged.
- Produced: beer made this period.
- Received: beer received in bond or returned to the brewery.
- Removed taxpaid: beer that left and is subject to excise (sold). This is the figure the tax is on.
- Removed without tax: for example export or laboratory samples.
- Losses: beer lost or destroyed.
Worked example
| Line | Barrels |
|---|---|
| Beginning inventory | 100 |
| + Produced | 50 |
| + Received | 5 |
| - Removed taxpaid | 40 |
| - Removed without tax | 5 |
| - Losses | 2 |
| = Expected ending | 108 |
Measured ending of 108 means the period is balanced. The calculator above is prefilled with these numbers.
Mixed units
Removals are usually counted in kegs and cases. Convert everything to barrels before adding: 60 half-barrels (30 bbl) plus 60 sixth-barrels (10 bbl) is the 40 barrels removed taxpaid in the example. See keg sizes and cases to barrels.
When it does not balance
A gap usually comes from a carry-forward slip, a unit mixed up, or an unrecorded loss. How to find carry-forward errors walks through each.
Questions
What is the barrel reconciliation formula?
Ending inventory = beginning + produced + received - removed taxpaid - removed without tax - losses.
Where does beginning inventory come from?
It is the previous period's ending figure, carried forward unchanged.