Managing & Completing Physical Counts

Step by Step:

1. Open the Physical Counts Search screen (Administration > Inventory > Utilities > Physical Count).

2. Highlight the Physical Count and click [Update].

3.  Select the Adjust Quantities menu option.

4. Enter the Transaction Number in the field provided. (The transaction number can be obtained from the printed count list for manual counts OR the Exceptions menu for scanned items).

5. Hit the Tab key on the keyboard to move to the next field. Item Details will appear in the box to the right. Information such as Product Line, Item Code, Item Quantity and Quantity On Hand will appear. Use this information to verify transaction numbers and quantities.

6. Enter the first exception Transaction Number in the field provided. Hit the Tab key on the keyboard to move to the next field.  Once you hit Tab the Item Details will appear in the box to the right. Information such as Product Line, Item Code, Item Quantity and Quantity On Hand will appear. Use this information to verify transaction numbers and quantities.

7. Enter the "Change to Quantity" in the field provided. If the Actual Count has been changed before (either through manual adjustments or a scanner import) a blue message will appear indicating the count was previously changed and the Add Quantity to Current Actual Count check box will be available

• Check this box if you wish to ADD the new quantity to existing count amounts. Uncheck this box if you want the new quantity to OVERRIDE any existing count amount. After entering a quantity and tabbing off the field, the text will appear below the Save Adjustment button which displays the NEW count figure based on the value of the checkbox (checked or unchecked) and the quantity entered.

- It is recommended to check the box if you are combining a manual paper count and P360 scanner count. This will add the manual count quantities to the scanner import quantities for like items.

- It is recommended to uncheck the box if you are editing previously entered manual adjustments or scanner imports. This will override the current actual count for manual and scanner import counts for that item. 

1. All adjustments - Click Save Adjustment OR hit Enter on the keyboard.

Repeat Steps 3 – 7 until all adjustments have been entered.
**Note: If you need to save the current adjustments and add later, go to the Complete Count menu option and click Exit and Come Back Later. This will save your changes and allow you to continue the entries at a later time.

To view a list of exceptions at any time during the adjustment process go to the Exceptions menu option and click Print Exception Items List OR go to the Reports menu option and click Exception Items List.  This will show you a list of all adjustments that have been made to this Physical Count.
 

1. Once you have completed all adjustments, go to the Trxs Since menu option to review any inventory activity that occurred during the counting process. Trxs Since lists all counted items where inventory has taken place since the start of the count. If items are listed, check all items that you wish to include in the count. You will have two options for dealing with the remaining unchecked items.

• Option 1 “Exclude all unchecked items from the count” which means all unchecked items will be excluded from the final count and no physical count adjustments will be made.

• Option 2 “Roll unchecked items into New Physical Count” which means all unchecked items will be excluded from the final count and no adjustments will be made; however, a new physical count including ONLY the unchecked items will be created.  This allows you to continue working with the items after the physical count is posted.

1. Once you’re done, go to the Complete Tab and click Post Quantity Adjustments. All quantity adjustments will be made to inventory.

Once A Year VS Cycle Counts - Advantages & Disadvantages:

Disadvantages of the once a year count
Many businesses implement a once-a-year count that takes place shortly prior to year-end. This counting process generally entails closing the store and counting all inventory items in one sweep. While this may ensure you have the most up-to-date inventory count possible prior to year-end, it is not necessarily the most efficient or accurate way to perform a physical count. Employees get bored, the pizza from lunch fails to motivate, and you're left making adjustments simply because you want to go home.

Advantages of cycle counts
An alternative to a single year-end count is cycle counts. Cycle counts allow you to count smaller sections of inventory over a period of time rather than grouping everything together in one day. By keeping the counts small, you're able to avoid closing the store for an entire day or weekend. If the counts are sectioned properly, you should be able to complete each count within a couple of hours. Rather than closing the store for a whole day, and bringing in loads of employees to count, you can break your year-end count up into different categories and spread the counting process out over a couple of weeks. You're still counting everything at the end of the year, but you're not forced to do it all in one day. Instead, a couple of employees can come in early or stay after each day to complete the counts. 

• Another cycle count option is to continuously count specific subsets of inventory throughout the year to ensure consistent and accurate inventory levels.

- For instance, you could schedule your BBQ Accessories to be counted on the 5th of every month while BBQ's are counted on the 10th. Cycle counts can be performed at any frequency you determine, such as monthly or quarterly. This type of cycle count does not substitute an end-of-year comprehensive count but rather supplements this count by keeping inventory accurate throughout the year. Cycle counts allow you to keep your valuation and general ledger values in sync through the year which will generally make your accounting staff happy!

For instance:

Related Video Content:
In this video you will learn how to: make adjustments to entries, complete the count, review available reports, and how to fill out the count sheet to make the Adjusting Entries process more efficient.