To perform cycle counts

Use cycle counts to check the registered inventory against the actual inventory at a certain moment in time. Use cycle-count orders to manually count the inventory by stock point and subsequently enter the counted quantities into the system.

Cycle count parameters

Before you can carry out cycle counts, you must specify the cycle count parameters in the Inventory Handling Parameters (whinh0100m000) details session. In the Inventory Handling Parameters (whinh0100m000) details session, you can specify:

  • The cycle count order numbering.
  • Whether stock points must be blocked during cycle counts. Blocking stock points during cycle counting help prevent miscounts.
  • Whether cycle counts must be performed for consignment inventory.
  • The cycle count intervals for the various item classes (ABC classification).
  • The number of recounts that are allowed.
  • The maximum allowed shortage or surplus of the counted inventory, measured against the item's system inventory, and expressed as a percentage of the system inventory.
  • The amount indicating how much the total standard cost of the counted inventory can deviate from the cost-price of the system inventory.

To overrule the cycle count intervals as specified in the Inventory Handling Parameters (whinh0100m000) details session, you can force cycle counts. You can force cycle counts:

  • For a new stock point. To do so, you must select the On New Stock Point check box in the Inventory Handling Parameters (whinh0100m000) session.
  • For a stock point if its system inventory becomes zero. To do so, you must select the required option in the If Inventory becomes Zero field in the Inventory Handling Parameters (whinh0100m000) session.
  • For a specific stock point. To do so, you must create a new record in the Cycle Counting Data (whinh5140m000) details session with the Force Cycle Count check box selected, or change an existing cycle count order in this session.
  • For a range of stock points that you can specify in the Generate Cycle Counting Orders (whinh5200m000) session. To do so, you must select the Force Cycle Count check box in the Generate Cycle Counting Orders (whinh5200m000) session.
To generate cycle count orders

Use the Generate Cycle Counting Orders (whinh5200m000) session to generate cycle count orders. LN generates:

  • Cycle count orders for each warehouse in the selection range.
  • Cycle count order lines for each inventory structure level of each stock point in the selection range. LN retrieves the inventory structure levels from the Item - Inventory Structure (whinr1550m000) session.

If the Maximum Number of Order Lines per Order as specified in the Generate Cycle Counting Orders (whinh5200m000) session is exceeded, LN creates a new cycle count order for the warehouse.

LN generates a cycle count order line for a stock point:

  • If it is the stock point's turn to be counted, which is based on:

    • The item's ABC classification
    • The stock point's last counting date.
    • The counting interval that is assigned to the ABC classification

      A cycle count order line is generated if:

      the last counting date of the stock point + the counting 
      interval = < the current date and time.

      If no counting date is filled for the stock point, the creation date of the stock point from the Stock Point Inventory (whinr1540m000) session is taken.

  • If the stock point is forced to be counted, regardless of whether it is the stock point's turn to be counted.

    A stock point is forced to be counted if the Force Cycle Count check box is selected in the Generate Cycle Counting Orders (whinh5200m000) session or the Cycle Counting Data (whinh5140m000) session.

LN retrieves:

  • The item's ABC Code from the Item Data by Warehouse (whwmd2110s000) session. If no ABC code is specified in this session, LN retrieves the item's ABC Code from the Item - Warehousing (whwmd4600m000) session.
  • The stock point's last counting date from the Cycle Counting Data (whinh5140m000) session.
  • The ABC code's counting interval from the Inventory Handling Parameters (whinh0100m000) session.
Note

If the ABC code is not filled for the item in the Item Data by Warehouse (whwmd2110s000) session or the Item - Warehousing (whwmd4600m000) session, the counting interval of C class items is taken from the Inventory Handling Parameters (whinh0100m000) session.

To print cycle count orders and count inventory

You can print a cycle count list:

  • While cycle count orders are generated in the Generate Cycle Counting Orders (whinh5200m000) session.
  • With the Print Cycle Counting List (whinh5400m000) session.

If you print a cycle count list, you can indicate whether the stock point's system inventory and serial numbers must be printed on the cycle count list.

Employees can enter for each stock point the counted quantity on the printed cycle count list.

To enter the cycle count results in ERP

You can enter the cycle count results in LN in the following two sessions:

  • Enter Cycle Counting Results (whinh5101m100)
  • Cycle Counting Order Lines (whinh5101m000)

If you enter the cycle count result:

  • LN determines the date on which you enter the results as the default Date of Count in the Cycle Counting Order Lines (whinh5101m000) details session.
  • If a variance occurs that falls outside the margins as specified in the Inventory Handling Parameters (whinh0100m000) details session, LN sets the value of the Approval field to To Approve. If such a variance does not occur, the value of the Approval field is Not Required.
  • You can assign a Reason for Variance to the cycle-count order line.
  • If the value of the Approval field is Not Required, you can select the Recount check box in the Cycle Counting Order Lines (whinh5101m000) details session to force a recount of the cycle count order line.
To approve cycle count variances

Use the Approve Cycle Counting Variances (whinh5801m000) session to approve cycle-count order-lines. You can approve cycle count order lines for which one of the following applies:

  • The value of the Approval field is To Approve.
  • The Reason for Variance that is assigned to the cycle count order line requires approval. The Reason for Variance requires approval if the Approval check box is selected in the Reasons (tcmcs0105m000) session.

In the Approve Cycle Counting Variances (whinh5801m000) session, you can approve the cycle count order line or indicate whether the cycle count order line must be recounted. If you:

  • Approve the cycle count order line, the value of the Approval field changes to Approved.
  • Indicate that the cycle count order line must be recounted, the value of the Approval field changes to Recount.
Note

If the Maximum Number of Recounts as specified in the Inventory Handling Parameters (whinh0100m000) details session is reached, you can only approve the cycle count order line in the Approve Cycle Counting Variances (whinh5801m000) session.

To recount the counted stock point

Use the Recount Cycle Counting Orders (whinh5203m000) session to print a cycle count list for the cycle count order lines for which one of the following applies:

  • The Approval field has the value Recount.
  • The Recount check box in the Cycle Counting Order Lines (whinh5101m000) details session is selected.

If you print a cycle count list for a cycle count order line that must be recounted, LN creates a new cycle count order line with a Count Number that is one higher than the Count Number of the cycle count order line that must be recounted. You can enter the results of the recount for the newly created cycle count order line in one of the following sessions:

  • Enter Cycle Counting Results (whinh5101m100)
  • Cycle Counting Order Lines (whinh5101m000)
To process the cycle count orders

You can process cycle count order lines for which the Approval field has the value Not Required or Approved.

If you process a cycle count order line:

  • LN adjusts the system quantities of the stock point according to the quantities as specified on the cycle count order line.
  • LN posts the financial transactions if a variance occurs on the cycle count order line.

    If the variance concerns:

    • A lot, LN creates a lot transaction for a negative variance in the Item - Lots - Issues (whltc3500m000) session and for a positive variance in the Item - Lots - Receipts (whltc3501m000) session.
    • A serialized item, LN creates a serial transaction for a negative variance in the Item - Serials - Issues (whltc5510m000) session and for a positive variance in the Item - Serials - Receipts (whltc5511m000) session.
  • LN lifts the stock point's block if the stock point is blocked during the cycle count.

You can use the following sessions to process cycle count orders:

  • Process Cycle Counting Orders (whinh5201m000)
    Use this session to process a range of cycle count orders.
  • Cycle Counting Orders (whinh5100m000)
    Use this session to process one or more selected cycle count orders.
  • Cycle Counting Order Lines (whinh5101m000)
    Use this session to process one or more selected cycle count order lines.
Note

If a cycle count order line concerns:

  • A project warehouse, you must specify the project data in the Cycle Counting Order Line Peg Distribution (whinh5107m000) session before you can process the cycle count order. You can start the Cycle Counting Order Line Peg Distribution (whinh5107m000) session from the Cycle Counting Order Lines (whinh5101m000) session or from the Enter Cycle Counting Results (whinh5101m100).
  • A serialized item, you must specify the serialized items that are added or subtracted from inventory in the Cycle Counting Order Line Lots and Serials (whinh5106m000) session before you can process the cycle count order. You can start the Cycle Counting Order Line Lots and Serials (whinh5106m000) session from the Cycle Counting Order Lines (whinh5101m000) session or from the Enter Cycle Counting Results (whinh5101m100).