About Cycle Counting

Cycle counting is a method of taking stock of what is in your inventory. Cycle counting is accomplished by taking periodic counts of what is in stockrooms.

Note: An alternate way to take stock is with a physical inventory.

Periodic reconciliation of your inventory balances is important for the correct control of inventory levels. This control leads to improved customer service combined with an overall reduction of inventory.

Accurate counts:

Help you know precisely how much is in stock.
Give you a better ability to promise quantities to customers.
Help prevent keeping too much in stock.

If you record all receipts and disbursements, the physical count should match the On Hand field on the Items form. If the physical count does not match the On Hand field on the Items form, a portion of the system needs to correct its procedures for tracking inventory. You can establish cycle counting data to allow more frequent counting of important items. Variance reports help spot large discrepancies.

Counts are taken at regular intervals. Some items may be counted at different intervals. You may want to keep a closer watch on the level A items, so it may be necessary to count them every 2 months. But it may only be necessary to count level C items every 12 months.

Cycle counting allows you to count a limited range of items at a time, instead of having to shut down the entire factory.

Note: During cycle counting, if the actual count in a specific location/lot is less than what the system has reserved in that location/lot, it is flagged as an exception and is not posted. This is displayed on the Variance Report.

These options are available for Cycle Counting Inventory Control activities.

Cycle Count Setup
Generate Count Sheets
Reprint Count Sheets (via Cycle Count Sheet Report)
Entering Cycle Counts
Variance Report
Error Processing
Posting
Purging Records

Cycle counting takes place for the current warehouse. Cycle counting can take place simultaneously for multiple warehouses.