Inventory - Physical Inventory Count Procedures Physical Inventory Count Procedures
Accurate inventory adjustments are reliant on accurate inventory counts and good system info in order to be recorded accurately in the system. To facilitate that, you need to clean up the following reports prior to your physical counts.
Review your PO Receiving Report (not Inv) by Product Type. There are 2 reasons cleaning up this report is important:
You need an accurate valuation of this to do the final inventory reconciliation adjustment posting.
You may very well locate inventory with duplicate receipt records, or other errors in cleaning up this report.
Clean up your Open PO Report. Make sure that ALL inventory is received that has come in to the warehouse.
Review your Open Job Report. Double check that all inventory that has left your warehouse has been work ordered, or invoiced.
You may very well want to take a look at all inventory that will be needed while you are in the process of inventory counts, and reconciliations, to be pre-staged.
Find out all that is needed, pre-stage it (make sure it is away from the rest), and work order it. Then be sure it is not counted in the physical inventory counts. You will need to gauge how many days inventory counting and making the adjusting entries for that will take, to see how many days need to be pre-staged. You cannot have inventory arriving and leaving in this process.
Set aside all inventory that comes in while you are in this process, to be received when done.
Now, run your Inventory Listing. Be sure to not choose the parameter of only available inventory. You want to see all of it. It may be assigned to a job, but not work ordered, and so would not show as available, but should be included in physical on hand!!
Run one listing of your entire inventory. You may want to run it by product code after this, and have individuals or teams work on the inventory in groupings. Having more than one person count everything is vital, it assures accuracy. You will want a count on every roll #, for roll goods, not just the style as a whole.
The inventory listing is a great place to list out the count style by style. That causes the user to search for a product, if they do not see it in the warehouse. They need to list a definite count on every style of the report. Zero counts should be checked and double checked, especially if recent inventory.
When counts are verified:
When the count needs to be adjusted, you will want only a CAREFUL associate to make these adjustments in Inventory Maintenance, making sure to add notes. Adjustments can also be used on the Barcode Handheld device where this software and equipment has been installed in your system--you will find a separate KBA on this process titled "Inventory Cycle Counts with Handheld Scanner." If you need to add an inventory record into inventory maintenance, primarily because it was a part of beginning inventory, you will need to input accurate counts, costs, a roll number that you decide on (the date is good), and a vendor invoice #, to keep it off of the PO not received report.
Also make a journal posting to account for the inventory adjustments posted directly to inventory maintenance using the Inventory Audit Report.
RollMaster