Using Physical Inventory
- In the Physical Inventory (PI) module, programs must be executed in a prescribed sequence to obtain accurate and favourable results. To assist with this process, this section provides links to step-by-step instructions on preparing for and actually performing your physical count. In addition, the Help for each program lists the count methods applicable to that program.
- The PI module offers you two methods for counting your inventory: Tags and Count Sheets. Both methods offer:
- Full or Partial (cycle) counts
- Great flexibility and control during the preparation and actual counting of Inventory.
- Since the PI module controls each count by Warehouse, you can assign different methods to different Warehouses.
- Note: The PI system does allow you to perform counts in multiple Warehouses simultaneously. However, not all programs in the PI system prompt for selection of a Warehouse when you enter the program. Instead, many programs use the Warehouse that is currently set as the default Warehouse for the Operator. Take caution to ensure that you are in the correct Warehouse if you have been flipping back and forth between Warehouses, particularly in PI19, as PI19 transfers count variances to book and erases the PI count files.
- A Physical Count is configured based on the following decisions:
- Count Sheet method vs. Tags method
- Full Count vs. Partial Count
- Skeleton Record Written - Yes or No
- Single Bin Only (no Lot or Serial Control) vs. Multi-Bin/Lot/Serial Control
- Prior to working with the PI system, you must determine the Count method and options you will use. To assist you in these decisions, see Allowable Combinations and Example Count Scenarios for more information.
- For a list of questions intended to help you decide which is the most suitable method to use to record and analyze the count, see Recording & Reconciling the Count.
- Preparing for a successful Physical Count also involves preparing the Physical Count areas in advance of the count. For a list of points to consider, see Count Planning & Whse Preparation.
- Regardless of the Count Method selected, in order to achieve an accurate count, decisions must be made regarding cutoffs that largely involve Shipping, Invoicing and Receiving. A critical step in the count process is to get the stock in the Warehouse in sync with booked Quantity On Hand in the system so that the calculated variances are as accurate as possible. For a list of considerations, see Physical Inventory Cutoffs
- Although you may enter new Sales Orders and Purchase Orders while the count is in process, the following things may not be done until the counting is physically completed in the Warehouse:
- No picking slips should be issued to the Warehouse.
- New receipts may not be shelved until counting is complete.
- If you decide to freeze your Inventory, then once the counting is complete you may resume the following processes that affect Quantity on Hand even if the counts have not yet been entered/reconciled:
- Invoicing cycle
- Transfer of stock in/out of a Warehouse being counted
- Computer processing of stock receipts
- Inventory Adjustments in IC50
- Building of new Products or Purchasing records
- If you do not freeze your Inventory, then you may not perform any of the above processes until the count variances (which compare the count quantity to the 'live' Quantity on Hand) have been posted by PI19.
- If you Ship or Receive stock during the physical count, you must have a manual procedure in place to account for all movement in order to reach the final count quantity for a Product.
- If at any point during the count you deem it necessary to re-initialize the PI files and start over, there is an ABORT option in PI19 that will cause the process to end. For example, you may need to use the abort functionality if you initialize a Partial Count instead of a Full Count. For more information on this situation and other 'what if' situations, see Troubleshooting Physical Inventory.