Recording Results of Inventory Counting

Accolent ERP’s physical inventory system allows you to take a physical count of your inventory by Cycle Counts or a Full Count by product. The physical inventory system involves a number of sequential steps that must be performed in order. This wiki posting is the sixth of six detailing the Inventory Counting process.

Sequence of Wiki Posts

Inventory Discrepancy Report

  • The Discrepancy report will indicate any differences found between the QOH at the time of the Create Batch/Capture QOH step, and the counted quantities.
  • A review/evaluation of this report will determine if a recount is necessary.
  • Select the batch to process, and the report options for the Display which are: All Items or Discrepancy Only.
  • Normally there is no value in displaying All Items since this will print every product included in the count, even if no change to inventory has been found.
  • Since the discrepancies are what are of concern, it’s normally best to only report these.
  • To report on the Discrepancies Only in Batch 447, click on the Discrepancy button

  • The report shows QOH, Counted Qty, Diff (Qty) and Diff (Amt):
    • QOH is the original quantity at the time of the Create Batch/Capture QOH step,
    • Counted Qty is the quantity entered on the Count Sheets,
    • Diff (Qty) and Diff (Amt) are respectively the difference between the Counted Qty and the expected QOH and the extension of that difference based on Average Cost and Standard Cost.
  • The GL Posting is based only on Average Cost.

Recounting based on Inventory Discrepancy Report

  • If it is determined that a recount for certain items is necessary, these steps should be followed in sequence:
    • First go to the Unprocess Counts screen,
    • Print the count sheets for the products to be recounted, then
    • Reenter the new counts when completed; it is not necessary to reenter counts for count sheets where the counted quantities are correct.
  • Then process the following in order:
    • Enter and Finalize Counts,
    • Discrepancy Report, and
    • Review the Inventory Discrepancy Report again.
  • This process can be repeated as many times as necessary.

Automatic Inventory Adjustments

  • Go to the Adjust Inventory Counts and Close Batches screen.
  • This is the final step in the Physical Inventory process.
  • Do not take this option until the counted quantities have been reviewed and confirmed.
  • This step cannot be easily reversed.

  • Select the appropriate Batch No.
  • Select the GL Accounts to Debit (usually a periodic expense account to record inventory shrinkage, e.g., Inventory Variances) and Credit (usually the Inventory account).
  • Then click on the Adjust button.
  • Note: Batch numbers will only appear on this screen if the Discrepancy Report has been run.
  • When the process completes the following success message will be displayed.

  • An adjustment will have been made for the difference between the QOH at the time of the Create Batch/Capture QOH step and the counted quantity
  • For example, product C5H12O2 the Ledger Card showed the 10 Bags that were found for Lot No 850652.

  • This completes the Physical Inventory process.

Unprocess Counts

  • Use this option if a recount is necessary.
  • This option will not remove the entries from the count sheets; it will clear the stored values and will use the newly updated values when the Finalize Counts option is rerun.

View Batch Status

  • This is a useful utility if processing multiple batches at the same time such as if the Inventory Count is done by the Cycle Count method.
  • Since the physical inventory process must be run in sequential order, the status of each batch can easily be viewed using this menu.

Cancel Batch

  • This option will remove a batch and remove any count sheets associated with the batch.
  • Only use this option if a batch has been started in error, e.g., if there is an unforeseen delay in the counting process, or to clear a test run.
  • A cancelled batch will display on the Physical Inventory – Batch Status screen with a status Count Batch Cancelled.

 

 

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