Physical Inventory

Overview

Periodic Physical Inventory counting and compiling is required in every Company. Utilizing the power of the Physical Inventory (PI) module you can eliminate many of the commonly encountered problems associated with a physical count of Inventory. This module supports both a Tag based method and a Count Sheet method of counting your stock.

• Multi-Warehouse counting - counts can be conducted for any or all of your Warehouses. These counts can take place simultaneously or on their own.
• Tag based count method - Inventory count Tags and a corresponding control list are printed, establishing immediate system control over outstanding Tags. Coded, numbered Tags may be printed in bin location sequence, if desired, or blank Tags can be used.
• Count Sheet based count method - Count Sheets can alternately be used to count Inventory. Count Areas are defined and Count Sheets are prepared for each logical count area. The Count Sheets can be printed in several sequences, including bin location/product or just Product code.
• Balances can be "Frozen"- for either count method, pre-count Inventory balances can be saved or "frozen" for subsequent count reconciliation. If the Inventory balances to be used for physical count reconciliation have been saved, once counting is complete then normal shipping and receiving may resume even though the computer input and final adjustments have not yet been completed in the system. This feature gets you back in production as soon as possible.
• Split Counts - items counted in various locations are accumulated by the system from the individually entered Tags or Count Sheets. If a Product is counted in more than one location, the system automatically consolidates the count records and uses the consolidated total to calculate any variance between count and actual quantities.
• Missing Tags Listing - system controls ensure that all Tags are accounted for during the count.
• Book / Physical Adjustments - adjustments for variances between count and booked quantities are posted to the "live" Inventory once all variances have been reconciled. Variances are calculated by comparing the count quantity against the "frozen" Inventory (if Inventory was frozen) or against the live Inventory (if Inventory was not frozen). The system can optionally update the appropriate Inventory GL control accounts upon final count update.
• Reporting - complete variance reporting is available during your count. These reports include restrictions for percentage and/or dollar variances between physical and book to assist in identifying questionable Count Areas or Products for recount.
• Cycle Counting -the system provides for the entry of one or more Inventory count cycles. A cycle identifies items to be counted as a range of bin locations, Commodity codes or Product codes. When processing a cycle count, the desired cycle is selected and only the Products specified by that cycle are listed for counting. Typically cycles are used to facilitate performing multiple partial counts for selected cycles throughout the year instead of a full count of the entire Warehouse once a year.
• Streamlined count entry - as a by-product of printing Count Sheets or coded, numbered Tags, the system writes a default count record for each Product printed with the count quantity defaulted to zero. This "skeleton" record dramatically streamlines the count entry process. If Count Sheets are printed, the system knows which Products were printed on each Count Sheet. In the count entry program after the operator enters the Count Sheet page number, then all of the Products on that page are displayed and the operator simply works down the quantity column without having to enter the bin location (if applicable) or the Product code. Similarly if coded, numbered Tags are printed, then the system knows which Product is printed on each Tag. The Tag numbers are displayed and the operator again simply fills in the count quantity field. Batch entry controls are available to allow for input validation against the sheet or tag batch totals.
  For any products that are Lot or Serial Controlled from the point of receipt or for multi-bin users, count quantities are entered/reconciled at the Lot/Serial number/bin level.