Inventory Count (ICS) - Format

  1. Specify this information:
    Inventory Count Method
    Options are:
    • Full - this processes all the items defined in the ranges for the Inventory Count.
    • Cyclic - this uses the count frequency, number of items to be included in the count and a random item selection mechanism to define what appears in the count.
    Open Batches Only
    If this box is checked only batches with the status of Open will be included in the count. Otherwise, all batches are included regardless of status.
    Discrepancy Entry Only
    If this box is checked, only count lines where the expected quantity is different to the counted quantity need to be entered. A count can then be closed when only these items have been entered. For example, a count may have 20 lines; if only five items are found to have counted quantities which differ from the expected quantities, then only these five quantities need to be entered and the count can be closed.
    If this box is not checked, all quantities need to be entered even if the expected quantities and the counted quantities are the same.
    Include Locked Locations
    If this box is checked any locations which have been marked as locked are included in the inventory count. For example, stock in a location awaiting Customs clearance, or impounded and under investigation, would be locked and unavailable for issue.
    Optional Docket Page Number
    Check this box if docket page numbers are not to be produced. Therefore, if it is not checked, docket page numbers and docket line numbers are generated when the Inventory Count Generate (ICG) function is run. The function uses the Number of Docket Lines to calculate the docket page numbers. After physically counting the inventory, the docket page and line numbers are used to enter counted quantities.
    If docket page numbers are optional, then the page numbers created during generating the count is page number one. Docket line numbers are still produced, but are all for page number one. The user does not, therefore, need to know about the existence of the docket page and line numbers.
    Generate Empty Count
    If selected, you can generate an empty count.
    For example, you may carry out a physical count of a location without first producing a count listing, then need to record what is found and update the system. Using this functionality, you can create an empty count and input the actual counted quantities.
    Because there are no count lines, the system calculates the expected quantity, compares this to the counted quantity you have input and posts any discrepancies. The field Recalculate Expected Quantity must also be set in order to do this.
    Recalculate Expected Quantity
    Select to recalculate the expected quantity when the counted quantity is entered. You may need to do this because:
    You may count a physical location such as a rack or aisle, without a count or count listing, then need to record what is found and update the system. You can create a count, possibly with no lines, and input the actual counted quantities. Because there are no count lines, the system calculates the expected quantity, compares this to the counted quantity you have input and posts any discrepancies.
    A count may have been created and a listing printed, but the count may have been delayed for a number of weeks. At the point of updating the system, you would want the system to recalculate the expected quantities and compare this to the actual quantities. In this instance, it would be advisable to clear the count and create a new one.
    For example, in conjunction with the Generate Empty Count field above; or when a count has been generated and the listing has been printed, but the physical count has been delayed - you may want the system to recalculate the expected quantity and compare this to the actual counted quantity.
    Print Original Quantity
    If selected, the inventory count listing includes the expected quantity for each count line. If this box is not checked, the expected quantity is not printed on the listing. In this case, the person performing the physical count is not shown the expected quantity on the listing.
    Positive Adjustment Movement
    The movement type to be applied if a positive adjustment is required for the inventory count. That is, using the write-on process. When processing a positive adjustment, a movement order based on this movement type is created. Any ledger postings, formulae, costing updates and so on, associated with this movement type are processed. The movement type must be of a receipt type and not issue or both. A positive adjustment always creates a receipt.
    Uwaga: You can create a movement type especially for inventory count positive adjustments.
    Negative Adjustment Movement
    The movement type to be applied if a negative adjustment is required for the inventory count. That is, using the write-off process. When processing a negative adjustment, a movement order based on this movement type is created. Any ledger postings, formulae, costing updates and so on., associated with this movement type are processed. The movement type must be of an issue type and not receipt or both. A negative adjustment always creates an issue.
    Uwaga: You may want to create a movement type especially for inventory count negative adjustments.
    Apply Tolerance Values
    If this box is checked the figures specified in the Tolerance Percentage, Quantity, or Value fields are applied to any discrepancies which result from the inventory count. If the discrepancy is outside any of these tolerances then authorization is required before the line can be processed and the adjustment made to the inventory.
    If the Apply Tolerance Values field is checked the tolerance amount to be applied can be specified in one or more of the following fields. The first tolerance level reached is applied. The use of all three fields ensures that all discrepancies are found for low cost, high volume items, as well as for high cost, low volume items.
    Uwaga: If the Apply Tolerance Values field is checked and these values are left as 0, then zero tolerance applies. That is, all discrepancies require manual authorization. It does not mean that no tolerance checking is applied.
    Tolerance Percentage
    The tolerance to be applied as a percentage of the count line expected quantity.
    For example, bottles of cordial are being counted. If a tolerance percentage of 10% is set, and 100 bottles is the expected quantity on the count line, then the tolerance range is between 90 and 110. If 93 bottles are counted, the tolerance is not exceeded and no approval of the adjustment is required. However, if 115 bottles are counted, the tolerance is exceeded and the line must be approved before the adjustment can be made.
    Tolerance Quantity
    The tolerance to be applied as a quantity to the count line expected quantity. This is only applied in the base, or stocking, unit of measure.
    For example, bottles of lemonade are being counted. If a tolerance quantity of 5 is set, and 100 bottles is the expected quantity on the count line, then the tolerance range is between 95 and 105. If 97 bottles are counted, the tolerance is not exceeded and no approval of the adjustment is required. However, if 107 bottles are counted, the tolerance is exceeded and the line must be approved before the adjustment can be made.
    Tolerance Value
    The tolerance to be applied to the value being adjusted. This value is calculated as value to adjust = (expected quantity minus counted quantity) multiplied by item costs.
    For example, a tolerance could be set to only allow 100 GBP to be adjusted automatically before approval is required. If on a count line the expected quantity is ten, the counted quantity is nine, and the item cost is 75 GBP, then the value is calculated as value to adjust is (10 minus 9) multiplied by 75 GBP, which equals 75 GBP. The value to adjust is below the tolerance value of 100 GBP and does not require approval.
    However, if eight were counted then the value is calculated as value to adjust is (10 minus 8) multiplied by 75 GBP, which equals 150 GBP. The value to adjust is above the tolerance value of 100 GBP and therefore requires approval.
    The item cost is the cost of the item, not the receipt cost. The Tolerance Cost Indicator field indicates which item cost is to be used.
    Tolerance Cost Indicator
    This is used to specify which cost is to be used for tolerance checking by value. Options are:
    • Standard Cost
    • Defined Average Cost
    • Weighted Average Cost
    • Latest/Actual Cost
    • Not Applicable
    The cost type is that marked as inventory on the Inventory Cost Types (ICT).
    Automatic Lock
    If this box is checked the location is automatically marked as locked, thus not allowing any processing if a discrepancy outside of any tolerances applied is found.
    Uwaga: The count must be subject to tolerances and the count line must fail tolerance checking and have the status of discrepancy for the location to be locked.
    Care must be taken if more than one item is held in a location because all items within that location are locked, not just the item that may have the discrepancy. The reason code explaining why the location is locked will be transferred to the inventory location record.
    If count lines are added to the count via the Add Line action in Inventory Count Entry, and the count is subjected to tolerances and the flag set accordingly, the location is locked automatically. This is because any added line has an expected quantity of zero and so is already outside of tolerances, and is given the status of discrepancy immediately. If tolerances are not used, the added line is not locked.
    The location is unlocked automatically when the count is closed and all lines are posted, or, an individual count line is posted and the reason code on the location matches the reason code on this count, and the location does not appear on another count line with the status of discrepancy.
    This ensures that inventory count does not unlock a location that has been locked manually for a reason other than for inventory count purposes. Also, the location may be part of another count (for a different item) and so may have the location locked due to a discrepancy. For this reason, the count must remain locked.
    Reason Code
    If the Automatic Lock field is checked, the Reason Code field contains the reason code to explain why the location is locked. This code is transferred to the inventory location record.
    This field is also used when trying to automatically unlock a location in order to determine if it has been locked due to an inventory count discrepancy or for another reason. It is recommended that all inventory count records contain the same reason code so that if two or more counts are in progress, the system can unlock the location when the second count is closed.
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