Cycle Counts

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General Description

Physical counts are usually performed by a company once a year, or so, when the assumed inventory counts are physically verified against what actually exists in each of the company's inventory locations. ERPlite uses these physical counts plus all transactions that occur starting the day AFTER the recorded physical count date to calculate the actual ON HAND amount for each item (by ON HAND we mean what

is in the inventory location , say STORES).

On the other hand, cycle counts are performed by a company periodically, usually daily, on a subset of items in the ItemMaster in order to ensure that the ON HAND values are indeed correct, and if necessary, are corrected to their proper values.

Once the basic data (Employee and Description) have been entered, you can cycle through all the inventory locations that exist in ERPlite with the Location field and the < > keys. For both physical counts and cycle counts you can specify values for a specific item in as many inventory locations as needed. There should be only one entry per item per location (and sublocation for ERPlitePRO users).

Furthermore, use the Add buttons in the Add Items tab to automatically add all items/non-zero quantity items to the subform for the inventory location specified in the Location field. For users who do not wish to use these buttons, items can be added to the subform manually (one-by-one) for the Location specified by selecting an ItemID from the pull-down list.

Use the Item Lookup drop-down field to find a specific ItemID that is already listed in the subform below for the Location specified. Once you have chosen an ItemID from the drop-down field, click/press on the Go button and the current record in the subform below will be set to the

ItemID specified (if it is found).

Once item(s) are chosen for a specific location, ERPlite will display what the current count is for said item(s) in

that location. Furthermore, use the Refresh Cur Qty/Cost button in the Copy Qty tab to get the most up-to-date inventory counts for all inventory locations.

For convenience, the Copy Cur Qty to New Qty button will copy the values in the Cur Qty field to the New Qty field, which can drastically reduce the amount of data entry required when most of the counts are correct. Note that this button will not over-write any value previously entered in the New Qty field.

The unit of measure and standard cost for each item are also displayed in the subform for reference only. The standard cost is the value that is used in the inventory valuation. If you wish to update standard cost, open the Update Standard Cost form from the ItemMaster/BOMs section of the switchboard. For physical counts, the standard cost becomes the starting value for average cost calculations after the Last Physical Count Date (where Average Cost refers to the average price paid for items on all purchase orders after

the Last Physical Count Date). Again, use the Refresh Cur Qty/Cost button get the most up-to-date cost information.

Once all counts for all items in all inventory locations have been entered, navigate to the Activate tab to finally

receive the count. Be sure to choose the proper count procedure with the radio buttons on this tab BEFORE

receiving, since a cycle count is very different from a physical count, and either action cannot be easily undone

once received. The Effective Date that is specified is also important. For cycle counts, the effective date becomes the transaction date for the cycle count in order to properly correct the counts. On the other hand, the effective date for a physical count becomes the Last Physical Count Date in the My Company Information form, and the actual counts listed in the subform below are given transaction dates a DAY after the effective date.

Finally, ERPlite only allows there to be one active physical count after the effective date specified. If ERPlite does detect an active physical count(s), it will request to delete any active physical count(s) before proceeding. Note that if an item is not listed on a physical count for a specific location, it is assumed that there is zero quantity in said location. If a New Qty is not specified for an item listed in the subform, the Cur Qty is

used in its place for both physical and cycle counts. After all information has been verified and double-checked, click on the Receive button to activate your physical/cycle


Exception (if Products.PhysicalCount field populated)

Before ERPlite release 6, ERPlite stored Physical Counts in the Products table, with a field for each inventory location. This method was cumbersome, as users added inventory location , they had to add fields to store physical counts for each inventory location.. In addition, there was no audit trail of physical count changes. v6 solves this problem, by storing Physical Counts in the Inventory Transactions table.

Importing of Inventory Counts from other databases, like Quickbooks, still stores the quantities temporarily in the Physical Count field for STORES. The first time you use Itemmaster > Physical Count form, these temporarily stored quantities are moved into the Inventory Transactions Table and zerod in the Physical Count field.

The field Products.PhysicalCount is populated with Physical Counts for the location STORES if:

1. Versions of ERPlite older than version 6.0.

2. Import of Physical Counts from Quickbooks.

3. Import of Physical Counts form Barcode > Import Physical Count.

If the Products.PhysicalCount field is populated, then you should do a Physical Count to move those counts into the Inventory Transactions table (and to zero the quantities in Products.PhysicalCount). The barcode data import easily allows updating multiple locations/sublocations. However, the Quickbooks Physical Count update can be cumbersome because Quickbooks has only one inventory location and no sublocations, while ERPlite can have multiple locations/sublocations. Thus, in general, most Quickbooks customers will transfer the Inventory Counts in Quickbooks to ERPlite only once, when they are using the Quickbooks link for the first time. After that, they will update the Inventory Counts in Quickbooks from ERPlite( this process aggregates all the inventory locations in ERPlite to export the grand total to Quickbooks single inventory location).

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