Freeze Inventory (PI10)

This program is used by the Tag Full, Tag Partial, Sheet Full, and Sheet Partial count methods (see Using Physical Inventory).

PI10 works with warehouse restrictions. Upon first entry to PI10, the operator's default warehouse is selected. In multi-warehouse environments, you may use the Options Menu to change your warehouse selection.

This program is not mandatory but we strongly recommended that you run it.

This program makes a copy of quantity on hand and the average cost of all products as of the time of running this freeze program. The count quantity is compared to the frozen quantity to calculate the count variance quantity. The GL adjustment amount is calculated by multiplying the variance quantity by the frozen average cost. This information is reported on the Variance Report produced by PI18 File vs Physical Listing. Program PI19 Transfer Physical to Book posts an inventory adjustment to adjust the live quantity on hand up or down by the variance quantity and posts the interfacing journal entries to the General Ledger.

If inventory is frozen then invoicing and receiving functions may resume once the physical counting is completed but before the counts have actually been entered and reconciled. Once that is complete and the final Variance Report has been printed, then the transfer can be run. It doesn't matter that the live quantity on hand might have changed in the meantime because the variance quantity is being transferred to live inventory, not the count quantity itself.

If balances are not frozen, the variance quantity is calculated by comparing the count quantities to the live inventory balances in WinSol™ at the time of transferring physical to book via program PI19. If you don't freeze the balances you must make absolutely sure that nothing is processed in WinSol™ that changes the quantity on hand until after the transfer has occurred.

While the actual counting is in progress, new orders may still be entered (and printed, if desired) since they do not affect quantity on hand. However no picking or stocking should take place. Once the counting is complete then all activities that affect inventory on hand balances may resume if inventory was frozen.

It is also important to note that while this program records the on hand balances upon execution, you must ensure that all transactions affecting the on hand quantities are completed prior to freezing inventory. Therefore make sure that prior to running PI10, you have:

• Posted all stock receipts and inventory adjustments for each affected warehouse.
• Invoiced all shipments.
• Received and posted all warehouse in-transits.
• Accounted for and posted all credit returns.

Movement records for physical count variances (posted by PI19 Transfer Physical to Book) are dated using the freeze date entered in PI10. As well, the freeze date is used as the posting date for variances posted to the GL. If possible, you should use a unique date, different from other normal movement records (Invoices, PO Receiving etc.) so you can later isolate the inventory status as of your count date without including other postings.