Physical Inventory Processing

The Physical Inventory module provides a simple way to reconcile your inventory.

Navigate to the Inventory Control menu and select Physical Inventory Processing from the Activities section.

Before performing a Physical Inventory, make sure all outstanding transactions have been closed and posted.

1. All registers have been closed and z’d out
2. All orders have been posted
3. All Adjust, Receive and Transfer documents have been entered and posted.

Steps to performing a Physical Inventory

1. Print Physical Inventory Worksheet
2. Take Snapshot of the inventory location being counted
3. Count the Inventory and record counts on worksheet
4. Back out counts of Paid, Not Fulfilled inventory
5. Enter counts into the Physical Inventory module
6. Verify/recount any items with large discrepancies
7. Post the counts to Inventory
8. Print the Physical Inventory report

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Step-by-Step

Print Physical Inventory Worksheet

Navigate to the Inventory Control menu and select Physical Inventory Worksheet from the Reports section.

Choose the location you will be counting and optionally, filter to the item group(s) you will be counting.

Print the report.

Take a Snapshot of the Location you are counting

The snapshot takes a picture of the inventory levels for the location being counted.

Counts entered will be compared against the snapshot to determine over/shorts.

Inventory will be adjusted by the over/short amounts when posted.

Navigate to the Inventory Control menu and choose Physical Inventory Processing from the Activities menu.

Click the New button on the toolbar.

Select the Location you are counting.

Make sure the Expense-to has the Physical Inventory GL Account selected.

Click the Camera button on the toolbar to take the snapshot.

Count the Inventory

You must count the inventory and take a snapshot at the same point in time so that they compare against the same period.

It is best to record your counts on the Physical Inventory Worksheet as this will streamline the data entry when recording the counts in the system.

Count the inventory and record the counts on the Physical Inventory Worksheet.

Back out counts of Paid, Not Fulfilled inventory

The next step in reconciling is to back out counts of paid orders that have not been fulfilled. Paid orders have already been depleted from inventory and since these items are still in inventory (for example, wine club orders that are paid but not picked up), you do not want to count them back in as this will throw off your reconciliation.

Using Order Management, you can print a report identifying counts of “Paid Not Picked Up” and “Paid Not Shipped” items.

• Open Order Management from the Sales & Fulfillment menu
• Click New on the toolbar to clear selections
• Select Paid Orders from the Paid/Unpaid drop-down
• Choose Warehouse Pull Order from the Report Selection drop-down
• Click Select All to highlight all batches listed
• Click Preview on the toolbar to get see the report - print it

Using the Warehouse Pull Order, subtract the quantities of correlating items from the counts on your Physical Inventory Worksheet. The resulting counts are what you will enter in the next step.

Enter your Counts

Open the Physical Inventory Processing screen. If your snapshot is not in view, use the search tool on the toolbar to find your snapshot. It should be listed at the top. Double click to open.

Using the Physical Inventory Worksheet that has the counts recorded, enter counts into the Cnt column.

Notice the check mark in the ? column as you enter counts. This signifies that you have counted this item.

Make sure to enter counts for ALL items so that all checkboxes are checked – very important! If you have inactive items, or out of stock items listed that did not get counted, place a 0 in the count column. This tells the system to adjust the items quantity to 0.

Tip - You can work by item group by using the Item Group filter on the Physical Inventory screen. This makes it easier to enter counts since the worksheet with the counts is also organized by item group.

Verify / Recount items with large discrepancies

If you have items with large discrepancies, you may need to re-count or find out where the discrepancy is. You can update the counts previously entered with new counts if needed as long as this is done before the final step of posting the physical inventory.

Post Physical Inventory

Once you have verified your counts and are happy with your entries, you can Post Physical Inventory using the button at the top of the page. This will post any adjustments to inventory by the amount that was over/short.

Print the Physical Inventory report

Navigate to the Inventory Control menu and select Physical Inventory from the Reports section.

Choose a Document ID from the pull-down to select the inventory snapshot to be printed.

Tip - You can set the Counted (y/n) and/or the Variance (y/n) filters to get a list of items not counted, or items that had a variance (discrepancy).