What is the importance of fuel inventory reconciliation?

What is the importance of fuel inventory reconciliation?

Many convenience retailers understand the importance of reconciling their physical inventory in the store but may not fully realize the tools available to help with tracking their wetstock, otherwise known as fuel inventory.

How often should you do a fuel reconciliation?

It is important to do a fuel reconciliation as often as possible, according to Sokolis. “If you only spot check it every few months, there is a good chance you might not be able to figure out any issues that arise,” he said. Having an outside service review fleet fuel processes every few years is also a good practice.

How are internal controls over fuel inventory strengthened?

However, overall internal controls would be strengthened by implementing physical security measures at identified District fuel facilities and performing monthly reconciliations of the fuel general ledger account. These improvements would help to ensure that fuel inventory is secured against misappropriation.

Why is accurate fuel inventory management so important?

Accurate fuel inventory management is just as critical as tracking physical inventory in your store. Why? Fuel sales have notoriously thin margins. Any inaccuracy in your inventory impacts not only your bottom line but your store’s reputation with consumers.

Many convenience retailers understand the importance of reconciling their physical inventory in the store but may not fully realize the tools available to help with tracking their wetstock, otherwise known as fuel inventory.

It is important to do a fuel reconciliation as often as possible, according to Sokolis. “If you only spot check it every few months, there is a good chance you might not be able to figure out any issues that arise,” he said. Having an outside service review fleet fuel processes every few years is also a good practice.

What is the recon date on a fuel invoice?

The recon date is the date that the fuel is actually delivered/reconciled in the ground. It is possible for an invoice to be dated a few days in advance due to either the oil company standard practice or due to the time of station closing and the fuel invoice delivery.

However, overall internal controls would be strengthened by implementing physical security measures at identified District fuel facilities and performing monthly reconciliations of the fuel general ledger account. These improvements would help to ensure that fuel inventory is secured against misappropriation.