INVENTORY CONTROL - PHYSICAL INVENTORY

Overview

• Physical inventory is the process of physically counting products to determine an accurate total for accounting and operations needs. It is typically performed once or twice a year during which time all order processing is stopped in order to get a "snap shot" of the totals. As products in a location are counted, Count Sheets are written-up. These sheets are then used to compare the counted quantities to the system perpetual inventory quantities. Variance reports are used to assist in the comparison of differences between the perpetual quantities and the counted quantities.
• The Physical Inventory Tab can be accessed by going to the Inventory Control tab, then click Physical Inventory.

Tabs

• Adjust Inventory Screen
• Apply Counts Screen
• Cycle Counts Screen
• Lock Bins Screen
  
  
  

How To Do

• Physical Inventory Counts
  • Operators print Inventory Count forms containing areas for recording location, product number, quantity, description, lot/batch number, and unit of measure.
    
  • One Inventory Count Form is physically attached to each location.
    
  • Orders in the warehouse that have been selected (inventory allocated to them) for picking are picked, and confirmed.
    
  • Inventory items being counted are "frozen" by setting the Inventory Freeze flag on all products. (This automatically stops inventory from being allocated to orders during counting.)
    
  • As items are counted, the operator records the location, product number, description, quantity counted, and the unit of measure (case, each, drum, etc). This is done until all items
  • have been physically counted and recorded on the count sheets.
    
  • Using the COREflex™ product lookup screen and the count sheet, the operator looks up the quantities on COREflex™ and compares it to the counted quantity.
    
  • If quantities match, the count sheet is approved and no adjustments are made.
    
  • If the counts do not match, a recount can be performed or if the variance is acceptable, an Inventory Count adjustment is made using the Physical Inventory Adjustment screen.
    
  • COREflex™ inventory reduces or increases inventory to the adjusted location as requested and history records are updated to reflect the activity for tracking purposes.
    
  • After all adjustments are completed, all inventory items are "un-frozen" and inventory allocations for order picking automatically resume.