Common use of Inventory Adjustments Clause in Contracts

Inventory Adjustments. If stock differences are found in any count, Warehouseman and Crown Crafts will list gains as receipts, and losses as deductions, thus reconciling the book record with the actual stock on hand. Those changes will be based upon counts agreed to and signed by Crown Crafts’ representative and Warehouseman’s representative. (A) For purposes of determining the net balance of physical units on Warehouseman’s account, all shortages and overages for the period, after taking account of the shrinkage allowance set forth in Section 5.3, shall be reconciled by stock keeping unit. (B) If there is a shortage for the period covered, after netting across stock keeping units, the dollar amount (number of units of each stock keeping unit multiplied by Crown Crafts’ respective standard costs, less allowances provided for in Section 5.3 above, all of which shall be subject to the provisions of subsection 6.2(D) below) shall be payable to Crown Crafts by Warehouseman. If there is an overage on the account, adjustments will be made to inventory book records and no claim will be filed by Warehouseman. The period covered by the physical inventory will be closed to future netting routines except under the following conditions: (i) proven miscount in physical inventory; (ii) proven clerical error by Crown Crafts; (iii) located or recovered lost shipment; (iv) proven packing or case marking error by Crown Crafts’ supplier; or (v) a shortage in a subsequent inventory matches an overage in a previous inventory. (C) If the net inventory variance calculated during the physical inventory is an overage and Warehouseman paid for a shortage in connection with the preceding physical inventory, Crown Crafts will pay a refund to Warehouseman based on the overage, but only to the extent that it does not exceed the shortage for which Warehouseman has paid. (D) The dollar values used to determine the amounts of money owed by Warehouseman in the event a physical inventory reveals a shortage shall be Crown Crafts’ standard cost of said Products.

Inventory Adjustments. If stock differences are found in any count, Warehouseman APL DIRECT and Crown Crafts EDIGITAL will list gains as receipts, and losses as deductions, thus reconciling correcting the book record to agree with the actual stock on hand. Those changes will be based upon counts agreed to and signed by Crown CraftsEDIGITAL’ representative and Warehouseman’s APL DIRECT’S representative. (A) 6.2.1 For purposes of determining the net balance of physical units on Warehouseman’s APL DIRECT’S account, all shortages and overages for the period, after taking account of the shrinkage allowance set forth in Section 5.3allowance, shall be reconciled by stock keeping unit. (B) 6.2.2 If there is a shortage for the period covered, after netting across stock keeping unitsunits and resolving any outstanding unit of measure issues not previously resolved by EDIGITAL, the dollar amount (number of units of each stock keeping unit multiplied by Crown Crafts’ respective standard costsEDIGITAL’s cost, less allowances provided for in Section 5.3 5.5 above, all of which shall be subject to the provisions of subsection 6.2(D) 6.2 .4 below) shall be payable to Crown Crafts EDIGITAL by WarehousemanAPL DIRECT. If there is an overage on the account, adjustments will be made to inventory book records and no claim will be filed by WarehousemanEDIGITAL. The period covered by the physical inventory will be closed to future netting routines except under the following conditions: (i) i. proven miscount in physical inventory; (ii) . proven clerical error by Crown CraftsEDIGITAL; (iii) . located or recovered lost mis-shipment; (iv) . proven packing or case marking error by Crown Crafts’ an EDIGITAL supplier; or, (v) v. a shortage in a subsequent inventory matches an overage in a previous inventory. (C) 6.2.3 If the net inventory variance calculated during the physical inventory is an overage and Warehouseman APL DIRECT paid for a shortage in connection with the preceding physical inventory, Crown Crafts EDIGITAL will pay a refund to Warehouseman APL DIRECT based on the overage, but only to the extent that it does not exceed the shortage for which Warehouseman APL DIRECT has paid. (D) 6.2.4 The dollar values used to determine establish the amounts of net-money owed by Warehouseman in the event a physical inventory reveals a shortage balance shall be Crown Crafts’ standard EDIGITAL’s cost of said Products, or the amount stipulated in Section 5.4 above, whichever is less.