Function: Cycle counting

The function cycle counting ensures that inventory levels in the company are checked on a regular basis. The interval for counting depends on company policy. Often, this policy relates to the ABC coding of the items. Cycle counting is an applicable function to any type warehouse. Regardless of whether a warehouse is complex or simple, the stock levels must be checked periodically. Only the frequency and detailed level of counting can vary.

The objective of this process is to periodically count inventory present in the warehouse, which ensures that the physical inventory corresponds with the inventory registered in LN. Based on ABC rating of items, cycle counting orders can be generated at a higher or lower frequency. You can also force a cycle count on any moment in time, for example, when the physical stock level is down to zero, but administrative stock is still present, or vice versa. After counting takes place, the results of the cycle counting are entered in LN and both physical and system inventory levels are realigned.