Performing a physical inventory count is a multi-step process. You have the ability to count your entire inventory or selected locations. Companies that prefer to do cycle counts might choose an Aisle at a time to count and update. You want to be sure that all in process transactions are updated before performing a physical count. If you have shipped products and they are allocated but not updated they will show in your On-Hand Quantities. This could be very misleading and cause incorrect counts.
This Physical Count system is designed to enable you to count your entire warehouse or specific ranges of locations. With that in mind when you print the Physical Count worksheet in the menu below, all locations that you have selected are printed on a separate page. Therefore, if you have a location that is empty a blank page will be printed for that location. There are additional reports provided if you would like to use a different report type format. You can find additional formats in the Physical Inventory Worksheet menu or you can create your own by exporting Inventory information. Below is the menu pathway.
Inventory System
Inventory File Maintenance,
Location System,
Physical Inventory System
The first step is to Clear the Physical Worksheet, this is only done once per Physical Count. This will remove any Products that were selected in a prior Physical Count. If you run this program at any time before you update you counts you will lose all of your counts.
Inventory System
Inventory File Maintenance
Location System
Physical Inventory System
Clear Physical Worksheet
The next step is to create a Add Products to Worksheet. This menu selection will select the Products that you have chosen by location so that they will be included in the Count Sheet and Entry screen. The system is taking a snapshot of the quantity on hand at that moment to be used for comparison to actual counts.
Inventory System
Inventory File Maintenance
Location System
Physical Inventory System
Add Products to Worksheet
The system will automatically default to the Current Date. If you are using the optional Branch System, the branch that you are in will also come up as your Branch. If you would like to change the Branch, you can so in User Flags – General
Next you can print the Physical Count worksheets. The logic behind the Physical Count worksheets is to provide at least one page per location selected. This way each location can be tagged. If there is nothing in the location according to The Business Edge then there will just be a heading. If the Product is found in the location it can be entered through Enter Found Inventory in the Physical Count Menu.
Inventory System
Inventory File Maintenance
Location System
Physical Inventory System
Print Physical Inventory Worksheet
What could happen is if a product is in the wrong location so while doing the Physical Count it will be taken out of Inventory when the location it is supposed to be in is counted. You will then be adding it back when you find it in another location.
Once you have started counting the Inventory, the correct counts can be entered in the System through Enter Physical Counts. You have the ability to select individual locations or a range of locations when entering your counts.
Inventory System
Inventory File Maintenance
Location System
Physical Inventory System
Enter Physical Counts
You will see a screen similar to the screen below. Each Product will be presented in order by Location and Product Code. Options here are to Enter the current Count, Skip the item by hitting Ok/ Esc to go to the next page or to go back a page just simply select Previous Page and hit esc. Your goal should be to enter all of the counts and not skip any Products. If the count is correct you can simply enter the quantity on hand as the counted quantity.
The next screen is a sample screen where “found” inventory can be entered. This is used when inventory is found that is not in the system. By entering the count here, the quantities will be included in your variance report and updating of the Physical Inventory.
The cost that will be used when adding found inventory to the system is the Default P.O. cost.
After you have entered all of you physical Counts you will next print a Variance Report. You can print a detailed Variance Report that will list each Product by Location and Lot Separately which will give you a summary by Product.
Inventory System
Inventory File Maintenance
Location System
Physical Inventory System
Physical Variance Report
The screen below illustrates a more detailed report you can run a Physical Variance Report by Product. You can select to include items with a count variance or dollar value that is greater or equal to some number. That way you can view only items with large variances and skip items that have a change of less than a dollar or couple of pieces.
You can also choose a range of locations to include and you have the option to skip items that were not counted. Items that were not counted will not be changed when the Physical is updated. If this report is presented to the screen, you can export it to Excel or to a Text file where you can sort and do comparisons. You can scroll through the information or export it to Excel or a Text file where it can be sorted and evaluated.
