Physical Inventory Counting Process

The Physical Inventory Count allows you to take a stock check on a specific
physical inventory. The system allows you to take a snapshot of the on-hand
figures at a point in time to allow the company to continue processing
transactions without those transaction affecting the results of the stock
take. Later when the stock take figures are entered the program compares the
count figures entered with these 'snapshot' values NOT the current on hand
figures. Adjustments are then entered, approved (if necessary) and posted

Transaction flow

1. Define Physical Inventory 

Allows a physical inventory to be defined and a snapshot of the qty on hand to be taken. The Approval Options
allows the following options:
a. Required for all adjustments - ALL adjustments entered need to be approved
(could be very time consuming!)
b. Not required for adjustments - adjustments do not need approval
c. Required for adjustments out of tolerance - adjustments out of the range of
the approval tolerances need to be approved (the norm!). The Approval
adjustments are also entered on this form and are in the form of quantity

variance % and adjustment value.

2. Generate Physical Inventory Tags ( optional )

Many companies use physical tags normally showing a tag number, qty counted and the person who did the count to provide an audit. This form allows the creation of blank tags
and/or default numbered tags for every combination of item, subinventory,
revision, locator, lot and serial number that exists in the stock take.
NB. note the way the digit increments works eg. A001 with a digit increment of
0112 generates tags of: A001, A003, A005 etc a digit increment of 0111 would
create tags of A001, A002, A003 etc.

3. Void Physical Inventory Tags - only relevant if using tags (see step 2).

Allows missing or spoilt tags to be discarded.

4. Enter Physical Inventory Counts 

Enter the count information. If using tags (see step 2) a lot of this information can be defaulted by
querying up the tags and entering the count qty. If not using predefined tags enter a unique tag number, item and count.

5. Approve Physical Inventory Adjustments 

Not required if the Approval option for the stock take was set to Not required for adjustments,
otherwise shows ALL adjustments which need approval. The action field allows
you to approve or reject each adjustment in the list, the stock take
adjustments cannot be posted until ALL of the adjustments on the list have
been approved or rejected.

6. Perform Physical Inventory Adjustments 

This is the batch process which creates the adjustment transactions and distributions. The process forces entry of the GL Inventory Adjustment account this is the other side of
the material account for the item defined at the subinventory. This process
will fail in error if ALL adjustments requiring approval haven't been approved
or rejected (see step 5).

7. Purge Physical Inventory 

Allows either ALL data regarding a stocktake (apart from the original definition) to be deleted or only the Inventory tag information to be deleted. This does not affect the adjustment transactions in anyway