Cyclic Counting in Inventory Count

Cyclic counting in the Inventory Count function enables you to count specific items or locations on a periodic basis, and may obviate the need to perform annual counts. For example, a small section of the stock may be counted each month, so within a twelve month period all the stock will be counted at least once.

A cyclic count is similar to full count but differs in its generation, as described below.

On the Inventory Count Setup, the count method must be set to Cyclic. Define the range of items, locations, and so on., to be included in the count. When generating the count, the following is performed:

1. The ranges of items, warehouses, item analysis and so on., to be used in the count are retrieved.
2. The system then selects within that range the items to be included in the cyclic count, as follows:
   Note: These items are defined as a unique combination of item/location.

   1. Find the frequency value, that is, the number of counts per year for an item. This is set up on:

      • Item Master - Inventory Count Cyclic Frequency field. If set to 1000 then look at the Warehouse.
      • Warehouse - Inventory Count Cyclic Frequency field. If set to 1000 then look at the Inventory Business Setup.
      • Inventory Business Setup - Inventory Count Cyclic Frequency field.

   2. Calculate the interval between counts:

      Interval (days) = 365 / frequency.

      Where: frequency = frequency found in step a.

      For example, if two counts per year are required then the frequency equals '2' and the interval is calculated as 182 days.

   3. Calculate the next count date:

      Next count date = Last count date + interval.

      Where: Last Count Date = Date of last count.

      Interval = Interval calculated at step b.

      Note: If this is the first count for an item/location combination then the item is automatically selected to be included in the count by setting the Next Count Date to 1st January 1900.

   4. Carry out the final selection of items to be included and a randomiser.

      • If the next count date is earlier than today's date then include in the count.
      • If the next count date is later than today's date then use a 'randomiser' to create random next count dates.

      This can be overridden by the field Include Randomiser on the inventory count. This stops the randomiser from being included so that only items which are overdue for counting are included.

   5. Sort all item/location combinations in next count date order.

3. Select the number of items to be counted:

   Number of items = sum of frequencies of items / number of Inventory counts per year.

   Where: frequencies = all frequency values found above.

   Inventory counts per year = Inventory Counts Per Year set up on the Warehouse, or if set to 1000, then Inventory Business Setup.

   For example, ten items are counted twice a year and a warehouse is counted four times a year.

   The number of items: (10 * 2) / 4 = 5 items in this count.

   Because the warehouse has four counts, each consisting of five items, all ten items will be counted twice a year.

   This can be overridden by the Maximum Count Lines on the Inventory Count. This determines the maximum number of lines to be included.

   If the check box Include All Locations is checked on the Inventory Count, then all locations are included for the item. Each item/location combination is treated as one item in the number of items to be included.

4. Generate the count lines:

   The number of lines generated is five, from step 3, and then the first five items sorted by the next count date, from step 2, are included. When generating, the last count date for the item/location combination is updated so that it is not included in the next count.