Doing a Cycle Count

A cycle count is like a physical inventory, except that it is done only for a specific inventory item or group of items. Usually, inventory items are flagged for a cycle count when a specific action occurs that affects inventory quantities.

For a comparison of the differences between cycle counts and physical inventories, see Differences Between Cycle Counts and Physical Inventories.

To define the selection criteria and create cycle count quantity records for a defined group of inventory items:

  1. Define the cycle count setup.
    • Open the Cycle Count Setup form.
    • Enter the appropriate data in the required fields, specifying the cycle details and associated items.
    • When finished, click Process.
  2. Set up Item/Warehouse cycle counting fields.

    For an item to be able to be cycle counted, specific information must be set up at the inventory level. To set up this cycle count information:

    • Open the Item/Warehouse form.
    • In the Item field, select the item for which you want to enter new cycle count information.
    • In the Warehouse field, select the warehouse for which you want to enter new cycle count information.
    • Click the filter-in-place button.
    • Enter the appropriate information in these fields:
      • Cycle Type: Select check boxes to define which inventory activities trigger a cycle count to occur.
      • Cycle Freq: Enter a numeric value representing the number of days between each cycle count. This field is required only if you selected Day Frequency as the Cycle Type.

    The system updates the following fields automatically:

    • Count in Process: When selected, this field signifies that the item is currently being counted for inventory purposes. If this check box is selected, the item's inventory is unavailable for change until the cycle count is complete.
    • Cycle Triggered: The system updates this field when the defined action in the Cycle Type field takes place. When a cycle count for this item is completed, the system clears this setting.
    • Last Count: The system updates this field automatically and displays the last date that a cycle count was performed for this item. If you want to change the date that the next cycle count is to be done, you can change this field manually.
  3. Generate count sheets. To create the actual printed forms on which your staff is to record the counted quantities:
    • Open the Cycle Count Generation form.
    • Fill in the fields necessary to describe the properties of the count sheets.
    • Click Process.
  4. Distribute the count sheets and have your staff conduct the actual count of the designated items.
  5. Collect the filled-in count sheets.
  6. Record the cycle count quantities. To record the counted quantities from the count sheets into the system:
    • Open the Cycle Count Update form.
    • Filter to the appropriate item for which to generate the counted quantity.
    • Enter the counted quantities for each item.
    • If the item is lot-tracked, specify the lot.
    • If the Item Stockroom Location and Item Lot Location do not exist, create them. The system prompts you for these values if they do not already exist.
  7. Post the results of the cycle count.

    To post the quantities to the Quantity On-Hand field for each inventory item and create entries to the journal for any adjustments:

    Note:  We recommend that you run the Cycle Count Variance Report before posting the cycle counts. This report provides an accounting audit trail for any variances encountered from the original quantities.
    • On the Cycle Count Posting form, click Process.
    • After posting is complete, review any records that have a status of Exception. These are records that did not post due to errors.
    • (Optional) Use the Cycle Count Purge form to purge any records that were not posted.
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