Performing a Physical Inventory
A physical inventory is the process of manually counting all inventory for a specific warehouse or location. Upon completion of the actual physical inventory, all numbers are then recorded, and discrepancies are identified and explained. This process provides a factual valuation of inventory.
Note: If you only need to do a partial inventory of selected items, or
you cannot afford to have your entire system frozen while you perform
inventory, you can do a cycle count instead.
For a description of the differences between a cycle count and a physical inventory, see Differences Between Cycle Counts and Physical Inventories.
To perform a physical inventory, use the following procedures: