Many companies perform a Physical Inventory as part of their year-end procedures. Follow these steps to record your physical inventory:
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Process all computer transactions that affect inventory quantities.
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Process all computer transactions that affect inventory quantities.
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On the Physical Inventory menu perform the Select Cycles for Freeze task to select all or a portion (by specifying one or more cycle codes) of the inventory to be counted. This creates a “freeze” file of the on-hand quantities.
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Print the Count Sheets. If it is necessary for you to print the count sheets prior to completing all computer transactions, then you may do the following:
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Perform the Select Cycles for Freeze task to select all or a portion of the inventory.
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Print the Count Sheets.
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Unselect the Inventory using Cancel Physical by Cycle Code task
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Complete all of the computer transactions.
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Select the inventory again, using the Select Cycles for Freeze task.
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Take a physical count of the items shown on the count sheets. Record on-hand quantities on the count sheets.
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Enter the physical counts using the Physical Count Entry task.
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Print the Register (Register and Update task) when all counts have been entered. The register shows the actual on-hand figure, the computer on-hand figure (from the freeze file) and the calculated variance between the two. Do Not Update.
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Verify the counts. If necessary, enter or adjust the counts using the Physical Count Entry task. Reprint the register and update, when it is correct.
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Print the Inventory Valuation Report on the Period End Processing menu. Use Ending Balance.
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Use the Inventory Valuation Report to adjust the General Ledger Inventory account(s), except for Work In Process.