Differences Between Cycle Counts and Physical Inventories
There are two basic methods for counting inventory: Cycle counts
and physical inventories. A cycle count and a physical inventory are similar, in that they
both help you track your on-hand inventory. However, there are a few significant
differences that you should be aware of when deciding which process to use.
This table summarizes the differences between these two methods:
| A cycle count: | A physical inventory: |
|---|---|
| Does not require a warehouse inventory freeze. See Freezing/Unfreezing Inventory. | Requires a warehouse inventory freeze. |
| Can be performed for individual items in inventory. | Requires that you do a count of all items in inventory. |
| Can be set up to be triggered in a variety of ways for a variety of reasons. | Can only be initiated in one way. |
| Allows other transactions to be conducted at the time the count is being performed. | Does not allow any other transactions to be conducted at the time the count is being performed. |