--- title: Backbar Help Center - Inventory variance report description: The variance report in Backbar compares item sales to inventory counts so you can track theoretical inventory and prevent loss. --- [![Backbar help center](https://www.getbackbar.com/hubfs/Web%20Design%20Assets%20/Backbar%20Logos/Backbar%20help%20center.svg) ](https://www.getbackbar.com/support) [![Backbar logomark white](https://www.getbackbar.com/hubfs/Web%20Design%20Assets%20/Backbar%20Logos/Backbar%20logomark%20white.svg "Backbar logomark white")](https://www.getbackbar.com) [Submit support ticket](https://www.getbackbar.com/support/ticket) [Sign up](https://backbar.app/signup) # Inventory variance tracking ### Overview #### Who can use this feature? All users with point-of-sale integration Professional plan (full reporting), Essential plan (limited reporting-top 5 items in each category) **The variance report in Backbar compares item sales to inventory counts so you can track theoretical inventory and prevent loss.** #### **Reviewing the Variance Report** This report uses both sales data and inventory session data. You must have completed two inventory sessions for the variance report to populate. Report views are based on session dates and will include sales logged between the two session dates.    #### Inventory data used This report utlizes item usage rate to compare against sales. Usage in Backbar is calculated with the following data   - Inventory counts entered during an inventory session - Quanties received in orders logged in Backbar - Inventory quantity adjustments - Inventory transfers We calculate item usage rate based on this and compare it to sales during the same time period. Usage Rate on the Variance report is the same information contained within the Inventory>Usage details report. Usage calculation formula and info is [linked here](https://www.getbackbar.com/support/why-dont-my-items-show-on-usage-reports).   ![Variance report_not expanded](https://www.getbackbar.com/hs-fs/hubfs/Variance%20report_not%20expanded.png?width=800&height=330&name=Variance%20report_not%20expanded.png) #### How to see variance Variance is the difference between the total sales and usage rate of an item (Actual vs theoretical usage). The right column of the report shows variance by: - Item count - Dollar value - Variance percentage High variance is marked in red to flag when the usage rate is significantly higher than the item sales.  It's not uncommon for their to be slight variance, so it's important to be familiar with your acceptable range of variance.   ![Variance report_expanded](https://www.getbackbar.com/hs-fs/hubfs/Variance%20report_expanded.png?width=800&height=330&name=Variance%20report_expanded.png)   #### Common reasons for variance   **No orders**: One of the most common reasons for variance is if you are not logging orders in Backbar. Without tracking orders, it's likely the variance report will be skewed due to negative usage rates. Having the order received on the wrong date can also lead to incorrect usage reporting and in turn variance. **Inventory counts: **If inventory counts aren't entered properly, or inventory sessions are set to the correct close date, this can throw off your usage rate. **Point-of-sale workflow: **If your point-of-sale isn't set up properly, like missing items, for example, then sales won't be tracked properly in Backbar. Similiarly, if your the item mapping in Backbar isn't accurate, then sales will be incomplete in Backbar. **In-house issues:** Other reasons for high variance include theft, overpouring, and improper tracking by employee.  # Still have questions or want to report an issue? 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