Appendix C- Physical Inventory Counting Suggestions

 

Process Computer Transactions First

When items are selected for physical count processing, it is important that the balance-on-hand in the computer is as near as possible to the balance-on-hand for the warehouse. For instance:

  1. All receipts that have been put on the shelf should be entered and updated through Purchase Order Receipt Entry. Any last minute receipts to inventory that were not put away should not be entered.

  2. All orders that have been picked should be completely invoiced. The Sales Register must be updated for any orders that were picked prior to the physical count. Any orders to be shipped after the physical count should not be on the Sales Register until after the freeze.

  3. Any materials released to a work order should be completely issued. If an order has been picked, it should be issued prior to the freeze. Any work orders completed and included in as finished goods in the physical count should be closed and received.

 

Print Physical Count Sheets

With a large inventory, it may not be possible to complete all computer transactions and still have time to print count sheets. Follow these procedures if count sheets are to be printed prior to the appropriate ‘freeze’ time.

  1. Select the appropriate cycle codes using the Physical Inventory Cycle Code task. Enter the date of the physical count as the Cut-Off Date.

  2. Use the Print Count Sheets task to print count sheets for all cycle codes selected. When the system prompts for Print Computer Quantities? <Y/N>, enter N (computer quantities are not current).

  3. Unselect cycle codes using the Cancel Physical by Cycle Code task.

  4. Complete all transactions. This can continue while the count is being taken. Post all receipts, sales registers, and other transactions that affected the on-the-shelf balance prior to the physical count.

  5. When the computer has ‘caught up’ and all transactions are current, select the appropriate cycle codes using the Select Cycles for Freeze task and freeze the inventory.

  6. Continue with the Physical Inventory Count Entry task. It is not necessary to reprint the count sheets.

 

Adding New Item Numbers During a Physical Count

During the initial physical count, it is not atypical to find inventory items not entered into the Inventory Item Master File. Once a cycle is frozen, the system does not allow additions to that cycle. The following procedures will allow entry of those items during a physical count.

  1. Determine a cycle code to identify found inventory. ‘ZZ’ could be an example. This cycle code should not be used for normal cycle count processing.

  2. As items are found, maintain a manual list reflecting the part number, description and physical count of each.

  3. Enter pertinent information using the Inventory Item Maintenance task. Enter the cycle code listed above. Do not enter a bin location at this time.

  4. Accumulate all found items on the manual count list and in the Item Master File until the count is complete.

  5. When all items have been found and entered, select the found inventory cycle code ZZ using the Physical Inventory Selection task. The cut off date should be the physical inventory date.

  6. Print count sheets for cycle ZZ. This will allow verification that all items have been entered and are included. Since bin location was not entered, the count sheets will print in item number sequence.

  7. Enter physical count amounts through the Physical Inventory Count Entry  task.

  8. After the Register and Update is run, enter the correct cycle code and bin location for each of the found (ZZ) items.

 

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