How to Create and Enter the Physical Count
PURPOSE:
To “post to actual” the physical count of manufactured, regular, and GRN manufactured items. For example, if 5-gallons of Roundup chemical is keyed into the amount counted field, it will change the current on-hand quantity to 5-gallons.
...
To maintain the integrity of the physical count and to facilitate re-counts where necessary, stop all movement of merchandise during the physical count process. To prevent transaction entry, the software "locks" all menu options that affect the Quantity On Hand, Average Unit Cost, and Value fields. Importing documents, such as invoices or manufacturing’s, that would affect the above fields should also be stopped until after physical count is completed.
PROCESS:
Determine the cutoff date. (for example:
...
August 31st)
Enter all transactions that affect Quantity on Hand, Average Cost, and Value fields for all transactions up to
...
August 31st
On
...
August 31st, run Cost Adjustment Procedure.
Build Physical Count Work File in INV > Inventory > Physical Count > Build Physical Count Work file
Note that you can limit this work file to several filters.
Any item/ product category/ location code included in the filters will be locked to data entry until AFTER you have updated or deleted the work file.
A
...
one-time report is created when the work file is built.
Save this to the spool, as you will not be given another chance to create this report.
This report will hold all the items to be counted, their book quantity (if you choose to print this) and a blank for the people taking the count to write in their amounts.
Enter Physical Counts in INV > Inventory > Physical Count > Enter item >
...
Enter the count or Import the count file.
Then next inventory item will pop up to count entry in the sequence it is listed by in the count worksheet.
After data is entered or imported, print out the Physical Count Report to
...
verify your data entry in INV > Inventory > Physical Count > Print Physical Count report.
This report can be run at any time to check on the progress of the count entry.
If you have “unlocked” the inventory so that data entry can continue past
...
August 31st, using our example, then a Cost Adjustment will need to be run.
For example, if inventory transactions were keyed for August 1st through the 5th, before you update the count, then a cost adjustment needs to be run
Post the cost adjustment to the current date which in this example would be August 5th.
You can unlock the inventory by navigating to Inventory>Setup Information>General Setup
Generate the Over/Short Report in INV > Inventory > Physical Count > Generate Over/Short Report (update the inventory balances = NO!)
This report can be run without updating the on-hand quantities to see what it will affect, but once you are sure of all your entries, you will run this report to change the quantities and values on hand to match your physical count.
This will create an entry in the detail that will flow to the ledger affecting the inventory asset and cost of goods sold.
...
Once inventory is reviewed and the team is ready to approve the impact of the result of the physical count adjustments. Now proceed to select Generate the Over/Short Report a second time … this time updating the inventory balances = YES
The process will run again and update AGRIS with the changes reported in the report.
This function also deletes the workfile & re-open the inventory for entry.
Post this entry either on your cutoff date or the current accounting date, depending on your desired ledger
...
effect.
Once the over/short entries are posted, another cost adjustment procedure should be run to adjust for any previously negative on-hand item that is now positive. Again, posted to the current accounting date.