Inventory Reconciliations Sample Clauses
The Inventory Reconciliations clause establishes the process by which the parties compare and verify inventory records to ensure accuracy and consistency. Typically, this involves periodic checks where physical inventory counts are matched against recorded figures, and any discrepancies are investigated and resolved, such as through adjustments or reporting. The core function of this clause is to maintain accurate inventory records, prevent losses or errors, and ensure both parties have a clear and agreed-upon understanding of inventory levels.
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Inventory Reconciliations. The Seller shall prepare, and deliver to the Buyer at Closing, with respect to each of the Terminals, a true, correct and complete month-end reconciliation report (such reports, the “Inventory Reconciliations”) of such Terminal’s book inventory to its physical inventory of refined products as of the close of business on the last day of the month that precedes the Closing Date, provided that, to the extent the Closing occurs before the 15th calendar day of a month, then such inventory shall be provided as of the close of business on the last day of the month that is two months prior to the Closing Date (the “Inventory Date). The Inventory Reconciliations shall include, for each refined product at the applicable Terminal, the beginning physical inventory shown on such month-end report regularly prepared by the Seller or its Affiliates (the “Starting Inventory”), receipts into inventory, deliveries from inventory, the ending book inventory, the ending physical inventory and any gain or loss in inventory for the period between the date of the Starting Inventory and the Inventory Date. The Seller shall be solely liable for any discrepancy between book inventory and physical inventory of refined products at each of the Terminals as of the Inventory Date (whether such discrepancy is based upon the inventory records of the Terminals or the inventory records of customers of the Terminals). For illustrative purposes, Section 6.20 of the Seller Disclosure Schedule sets forth the Inventory Reconciliations as if the Closing occurred on January 31, 2018.