Accurate inventories help you to:
Cycle Counts help you to reconcile the online inventory records and the physical inventory. A cycle count is an item-based method of counting inventory. Using the Cycle Count Process, you select items to be counted at various intervals throughout the year.
Before you complete the tasks in this section, you must verify that the automatic accounting instructions are set up as follows:
- Maintain the AAI table 4152, which provides the inventory account to offset against any count variance
- Maintain the AAI table 4154, which provides the cost of goods, sold account to update
- Maintain the AAI table 4141, which provides the variance account to update (set up only if you use standard costs)
- Maintain the AAI tables 4122, 4124, 4126, and 4128, which provide the accounts for zero balance adjustments
- Run the select Select Items for Count (R41411) batch application
- Set processing options for Select Items for Count (R41411).
- Run the Select Items for Count batch application from Work With Batch Versions - Available Versions (P98305).
- Review the output of R41411, which generates the selected items for the count report. This lets you compare the actual on-hand quantity with the online records.
- Select the items to be counted, based on the data selection.
- Copy the current on-hand balance to the quantity on-hand in the Count field in the F4141 table.
- Review the cycle count status using Cycle Count Review (P41240), which should be 10.
- Click on Row menu Print Cycle Sheets.
- Set processing options for Print Cycle Count Sheets (R41410A).
- On the Work with Cycle Count Review form, refresh your screen and review the status of your cycle count.
- Chose Enter Cycle Count Results from the Row menu.
- Click Find on the Menu option to view all items in the cycle count and enter the counted quantity.
- Click Ok to return to the cycle count review.
- To review cycle count variances, highlight your cycle count and choose Cycle Count Detail from the Row menu.
- Review the quantity counted, which should reflect the numbers that you entered in the previous step.
- To approve the cycle count result, click Approve Cycle Count from the Row menu.
- To update the cycle count result on the Work with Cycle Count Review form, choose Update Cycle Count from the Row menu.
You can cancel a cycle count at any time before you update it. For example, if several days pass between the times that you print cycle count sheets and actually perform the cycle count, you can cancel the cycle count and reprint it later. After you cancel the cycle count number, the status field displays "Cancelled". After you have performed the cycle count and recorded the information on the cycle count sheets, transfer the results to the online inventory records. Even if the result of the count is zero, you must enter the cycle count results. If the count included an item that is found in a new location, you can add the new location on a blank line of the cycle count entry form, unless the location control constant is turned on for the branch/plant. If the location control constant is turned on, you must set up the new location in the F4100 table before you can enter the quantity on the Cycle Count Entry form.
When you run the variance detail report from the Form menu, the system uses the variance criteria that are set up on the form and overrides any processing option defaults. When you run the report from the Inventory Count Alternatives menu, the system uses the processing options for the version.
- Absolute Value specifies whether a variance amount is displayed when it is greater than an absolute value or greater than a percentage of the original
- Quantity Counted is the total quantity that has been counted for the item in all locations, in the primary unit of measure
- Quantity Variance specifies whether a quantity variance is calculated and displayed
- Amount Variance specifies whether an amount variance is calculated and displayed
You can use data selection to group items by cycle count categories (for example, monthly and semiannually—ABC codes for example, count items monthly). You cannot change this sequence for the selected items for count report.