About Posting Cycle Count Quantities

After performing a cycle count, you must post the results of the count. See "Doing a Cycle Count" for both procedures.

When you run the Cycle Count Posting activity, the system posts and deletes records that have the count quantity within the Cycle Tolerance cutoff quantity and which are not exceptions.

The Cycle Count Posting activity processes the cycle record using the following process:

  1. The system checks to see if the actual count is different from the on-hand count already in the system.
    • If the count is the same, there is nothing for the system to update, and it simply deletes the record.
    • If the count is different, the system updates the location's on-hand quantity and the item's on-hand quantity.
  2. The system creates a material transaction record with the following:
    • Trans Type = B
    • Ref Type = I
    • Qty = The difference between actual (cycle) count and the computer-recorded count for the item.
  3. The system posts the new quantity to the Inventory Control Ledger Distribution journal.

    The Cycle Count Adjustment Journal reference INV CC-A; uses the following account numbers:

    • Product Codes Inventory Adj account
      Note:  If an account number is specified in the Product Codes Cycle Inventory Adj account field, the system uses that account instead.
    • Item Location Inv Acct
  4. Last, the system deletes the cycle count records and sets the Last Count field to today's date.

    If no other cycle count records exist for this item, the Cycle Triggered and Count in Process options are cleared.

Exception Records

When it encounters an exception condition, the Cycle Count Posting activity changes the status of a record from Counted to Exception. The activity then proceeds to the next cycle count record.

Exception conditions include:

  • The item is not in the Items form.
  • The stockroom location is not found for the item.
  • The reserved quantity is greater than the count quantity.
  • The location on-hand quantity is not equal to the on-hand quantity when the cycle count record was generated.
  • The reserved quantity is not equal to the on-hand quantity when the cycle count record was generated.
  • The quantity counted exceeds the location on-hand quantity plus the Product Code General cycle tolerance.
  • The lot number is invalid.
  • The product code on the item is invalid.
  • The serial number is invalid.
  • The account is invalid.
  • The unit code is invalid.
  • The item denoted as tax-free does not have an Import Document ID.

If the activity encounters one of these conditions, the system changes the status from Counted to Exception and does not post the cycle record.

If the Cycle Count Record setting is changed to Exception because the current location's on-hand quantity is now different from the on-hand quantity when the count started or because the quantity counted exceeds the location on-hand quantity plus the Product Code General cycle tolerance, you can post the record using this activity. Make sure you change the Cycle Status field from Counted to Exception.

If the Cycle Count Record setting is changed to Exception for any other reason, you must correct the error condition in order to post the cycle count record. You can also delete the cycle count record from the cycle count.

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