Physical counting

Physical counts, which include all warehouse products, are usually performed once or twice a year. You can also perform a physical count for a limited number of products. This partial physical count can be used in place of, or in addition to, cycle counts.

Physical count systems use criteria other than bin location to select items to count, such as these values:

• Vendor
• Product line
• Product class

Physical counting is not a true shelf-to-sheet count. It is better described as a sheet-to-shelf process. The next product on the count sheet is probably not the next product on the shelf. Misplaced or forgotten inventory can be overlooked when you perform a physical count.

A physical count is performed in bin location order. If a bin contains several products, they are sorted and displayed on the count sheets in product order. Build on demand kits, labor, inactive, direct order, and special order products with zero quantity are excluded from the selection.

You can perform a physical count and cycle count simultaneously to count a portion of your inventory daily. Use cycle counting for true shelf-to-sheet accuracy. Use physical counting to count fast-moving products or products from a major vendor.

After you enter counts, run the reconciliation report to reconcile the expected quantity to the counted quantity. Updating the count is the final step after completing reconciliation.