Physical Inventory

Physical Inventory is the accurate count of the on-hand inventory items.

The reported inventory quantities (QOH) can become inaccurate over time because of the following factors:

  • Incorrect portioning on products sold

  • Spoilage/waste not recorded

  • Incorrect receiving

  • Transfers not posted

Most operations take a Physical Inventory on a scheduled basis to correct or true up item quantity on hand. Reports used after posting Physical Inventory outline variances and valuation issues for further research and possible correction.

Using Packages, Types, and Class as filters when printing count sheets and item count entry, decreases the time required for completing a Physical Inventory. Packages, typically used for Physical Inventory, sort the items listed in the same order on the count sheet and the Physical Inventory Item List panel.

It is recommended to take physical inventory count at the end of the business day or before opening on the next business day. This ensures there is no inventory movement impacting item quantity on hand.

The counts entered in the system are the ending quantity on hand for the post date selected. Users must ensure that the correct post date is selected. If the count is performed immediately in the morning before opening, the previous day’s date must be entered as post date.

The Saved Physical Inventory screen is displayed with the following details:

Field

Description

Transaction ID

Unique identifier for the physical inventory transaction.

Location

Inventory storage location. Auto-populates if the site has only one location.

Post Date

Date of the physical inventory count. Can be adjusted using the date picker.

Reference

Optional field.

Remarks

Optional notes related to the transaction.

Entered On

Date when the transaction was recorded.

Entered By

Name of the user who posted the physical inventory transaction.

Count Method

Displays the method used for inventory count:

  • Physical counts

  • Cycle counts

Last Edited By

Name of the user who last updated the transaction.