How to Conduct a Physical Inventory in FlowPath
Conducting a physical inventory is an essential task to ensure that your recorded inventory matches the actual quantities on hand. With FlowPath, you can efficiently manage this process, identify discrepancies, and make necessary adjustments to keep your inventory accurate.
Step 1: Prepare for the Physical Inventory
Plan the Inventory Count:
Determine the scope of the inventory count (e.g., all items, specific categories, or locations).
Assign team members to specific areas or items to count.
Schedule the physical inventory during a low-activity period to minimize disruptions.
Generate an Inventory List:
In FlowPath, navigate to the Inventory Module.
Use the Filters to narrow down the items you need to count (by location, category, etc.).
Export the inventory list as a printable document or a digital reference for your team.
Step 2: Perform the Physical Count
Count Items:
Physically count the inventory items based on the prepared list.
Record the actual quantities counted directly on the printed list or into a digital spreadsheet.
Note Discrepancies:
As you count, note any discrepancies between the counted quantities and what’s listed in FlowPath.
Pay special attention to items with high discrepancies or frequently fluctuating counts.
Step 3: Update FlowPath with Physical Counts
Enter Count Data:
After completing the physical count, return to the Inventory Module in FlowPath.
Locate the items in the system and update the quantities to reflect the actual counts.
If you have multiple locations, ensure that the correct location is selected before updating quantities.
Adjust Inventory Levels:
For items with discrepancies, use the Inventory Adjustment feature to reconcile the differences.
Navigate to the Adjustments tab, select the relevant inventory item, and enter the new quantity.
Provide a reason for the adjustment (e.g., “physical inventory adjustment”) for tracking purposes.
Save Adjustments:
Once all quantities have been updated, save the adjustments.
FlowPath will automatically update your inventory levels and log the changes in the system.
Step 4: Review and Report
Review Adjustments:
Go to the Procurement Tab to review the inventory transactions and adjustments.
Ensure that all updates have been correctly applied and there are no outstanding discrepancies.
Generate a Report:
Create an Inventory Adjustment Report to document the changes made during the physical inventory.
Use the filters to generate a report by location, category, or specific items, if needed.
Export the report for record-keeping or to share with your accounting team.
Archive Inventory Data:
Archive the physical count records, including the list of counted items and the adjustment reports, for future reference.
Best Practices for Conducting Physical Inventory
Consistency: Conduct regular physical inventories (e.g., quarterly or annually) to maintain accuracy.
Team Coordination: Clearly communicate the plan and procedures to all team members involved in the inventory count.
Documentation: Keep detailed records of all counts and adjustments for audit purposes.
By following these steps, you can ensure that your inventory data in FlowPath is accurate and up-to-date, helping you maintain control over your stock levels and improve overall inventory management.