What Is Inventory Record Accuracy (IRA)?
Also known as: IRA, inventory accuracy, stock accuracy, inventory accuracy percentage
Definition
Inventory record accuracy (IRA) is the percentage of item-location records whose system quantity matches the physical count within an agreed tolerance. It shows how far MRP and order promising can trust the on-hand balances in the ERP.
Inventory Record Accuracy (IRA) Explained
IRA is measured by counting a sample of items or locations and comparing counted quantity to system quantity. A record is accurate if it falls within tolerance, for example exact match for high-value items and plus or minus a few percent for bulk items. IRA is accurate records divided by records counted.
The metric matters more than it looks because MRP, available-to-promise and replenishment all assume on-hand balance is correct. A record that shows 20 when 0 exist will suppress a purchase order, and a plant discovers the shortage at the line. Planning systems commonly aim for 95 percent or better, and many lean programs aim higher.
The usual way to measure and improve IRA is cycle counting. Infor SyteLine has cycle count and physical inventory functions, NetSuite has inventory counts, and Infor LN has inventory counting in warehousing. Counting by ABC class, on transaction triggers (zero balance, negative balance, receipt) and by problem-area frequency finds causes, not just variances.
Root causes are usually process, not people: unrecorded scrap, unit of measure conversion errors, backflush assumptions that differ from reality, mis-picks, receiving to the wrong location, and transactions posted late. Fixing the cause is what moves IRA; recounting alone just resets the error.
Why It Matters
- MRP and available-to-promise outputs are only as good as the on-hand quantities beneath them.
- Low IRA drives hidden costs: expediting, line stoppages, excess safety stock held to compensate.
- It can justify replacing annual wall-to-wall counts with continuous cycle counting.
- Auditors accept strong IRA as support for inventory balances without a full shutdown count.
In Practice
A stockroom counts 400 item-locations in a month. 372 match within tolerance, so IRA is 93 percent. Analysis of the 28 misses shows 14 trace to backflush quantities that ignore scrap, 8 to wrong-location receipts and 6 to unit of measure errors. Correcting the backflush scrap factor and adding a receipt location scan lifts IRA to 97 percent the following quarter.
Frequently Asked Questions
How do you calculate inventory record accuracy?
Divide the number of counted item-locations whose system quantity matches the physical count within tolerance by the total number counted, then multiply by 100.
What is a good IRA target?
MRP-driven plants usually aim for 95 percent or better, and mature lean or high-value operations target 98 percent. The target should be set by class, tighter for A items.
Is value accuracy the same as record accuracy?
No. Value accuracy compares total dollars, where over and under counts can cancel out. Record accuracy compares each item-location, which is what planning actually depends on.
Related Terms
Cycle Counting
Cycle counting is the practice of continuously verifying inventory accuracy by counting a small subset of items each day or week, rather than shutting down for one annual wall-to-wall physical inventory.
ABC Analysis
ABC analysis is an inventory classification method that ranks items by annual consumption value and groups them into A, B, and C classes, so planning attention, counting frequency, and control effort are concentrated where the money is.
MRP (Material Requirements Planning)
MRP (Material Requirements Planning) is the ERP calculation that explodes demand through bills of materials, nets it against on-hand and on-order inventory, and offsets by lead time to produce timed purchase and work order suggestions.
ATP (Available to Promise)
ATP (available to promise) is the portion of inventory and scheduled production not yet committed to existing customer orders, calculated by date so order entry can quote a delivery a customer can rely on.
Backflush
Backflush in SyteLine is the automatic deduction of material and posting of labor when an operation or job is reported complete. Instead of issuing each component manually, the system relieves inventory at standard quantity based on the quantity reported.
Go Deeper
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Build your true annual carrying cost from capital, storage, insurance, and obsolescence components - and see what an inventory reduction target is worth.
Free ToolSafety Stock Calculator
Size statistically defensible safety stock using demand variability, lead time variability, and your target service level, then see what that buffer costs to carry.
SyteLine Physical Inventory Procedures
Execute physical inventory in Infor SyteLine with freeze procedures, count sheet generation, variance reconciliation, and posting workflows for year-end audits.
SyteLine Inventory Adjustment Workflows
Configure inventory adjustment transactions in Infor SyteLine including reason codes, approval workflows, GL posting, and audit controls for corrections.
SyteLine Mobile Inventory Counting Guide
Implement mobile cycle counting and physical inventory in SyteLine. Configure counting workflows, variance handling, and real-time reconciliation on handheld devices.
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