IA Process and Cycle Counting Refresher Training v5 Pro… · · 2018-02-16Microsoft PowerPoint - IA Process and Cycle Counting Refresher Training v5.pptm

Inventory Adjustment Processes &

Inventory Cycle Count

Refresher Training

1IA Process and Cycle Counting Refresher Training_v5

Agenda

• Inventory Adjustment (IA) Processes

• Inventory Cycle Count Process • Count Journals

• Counting Inventory – RF Scanner• Resolving Count Variances• Finalizing Inventory Cycle Counts

Today’s Webinar will cover the inventory adjustment and the inventory cycle counting processes and procedures.


Inventory Adjustment Process

Delivery arrives at Agency

Process complete

Receive order in system with truck

driver present

Transfer short shipped or

damaged items to Quarantine

Print 2 copies of Inventory

Adjustment form in Enterprise Portal

Sign IA form and keep a copy

(Both agent and truck driver)

Order Issues? No Process

complete

Yes

The process begins when the truck driver arrives at the Agency with a delivery. 1. The agent receives the order in the system via the RF scan gun while the truck driver is present. 2. If there are no short shipped or damaged items the truck driver can leave once all items have

been received.3. If there are short shipped or damaged items, the agent performs an Inventory Transfer of the

items to Quarantine while the driver is present.4. The agent then prints 2 copies of the Inventory Adjustment (IA) form from the Enterprise Portal.5. Both the agent and the truck driver sign each of the IA forms and keep a copy.


Short Shipment IA Process

• Transfer Orders must be received while the truck driver is present• Receive all products in full, including short shipped or

damaged items • Note the short shipped items on the carrier’s paperwork• Transfer items into Quarantine while truck driver is

present• Transfers to Quarantine for short shipped product

should be in full case quantities• Print the Inventory Adjustment form from the Enterprise

Portal• Both agent and driver sign• Both agent and driver keep a copy

IA Process and Cycle Counting Refresher Training_v5 4

Short Shipment IA Process (Cont.)

• Should the truck driver leave before transfer order is received, call the LESC immediately

• When a transfer order is received after the truck driver leaves and a short shipment is later identified, if that product cannot be found at the Distribution Warehouse and is not discovered at the Agency by the Auditor, the Agency will be charged for the product


Damaged Product IA Process

• If damages are noted during receiving:• Receive the damaged product in full using the RF

scanner• Note the damages on the carrier’s paperwork• Transfer damaged product(s) to Quarantine• Print out the Inventory Adjustment Form (before the

truck driver leaves)• Both agent and driver sign• Both agent and driver keep a copy


Damaged Product IA Process (Cont.)• If damages are identified after receiving:

• Transfer damaged product(s) to Quarantine• Print out the Inventory Adjustment Form

• Retain the form to provide to the Auditor• Set aside damaged product for Auditor

• If bottle is thoroughly broken, retain the bottle neck


Damage/Loss by Agency

• When an Agency is responsible for damage or loss, a cycle count adjustment must be performed:• For example, if there are 40 bottles in stock and 2

get broken, enter cycle count quantity of 38 (this will transfer 2 bottles to Quarantine automatically)

• No Inventory Adjustment Form is created


Damage/Loss by Customer

• When a customer is responsible for loss or damage, an Item Transfer needs to be performed in the RF Scanner

• Once items are transferred to Quarantine:• Run and print the Inventory Adjustment Form on the

Enterprise Portal• Have the customer sign the report • Give a signed copy to the customer• Keep a signed copy at the Agency for audits

The completed Inventory Adjustment Form is reviewed by the DOLC External Auditors to ensure the correct party is held financially responsible.


Overages

• If an item shows up that is not ordered or shipped on the transfer order, it needs to be refused

• Document the overages on the carrier’s OS&D form prior to the driver leaving:• Detail the product that was over and refused (item # and

quantity)• Driver and Agency both sign the form• Keep a copy of the signed form at the Agency • Driver takes a copy of the signed form along with the refused

product back to DHL

The completed Inventory Adjustment Form is reviewed by the DOLC External Auditors to ensure the correct party is held financially responsible.


ANY QUESTIONS

?

Questions


Inventory Cycle Count Process

Start

End

Create Count Journal in the

Enterprise Portal

Agency

Perform Inventory

Counts on the RF Scanner

Agency

Modify Counts in the

Enterprise Portal

Agency

Post Count Journal

Agency

Run Inventory Audit Report

Agency

Modify Counts on the RF Scanner

Agency

The Inventory Cycle Count process is pictured in this diagram:1. Create Count Journal in the Enterprise Portal – To begin the inventory cycle count process, you must

create a count journal in the Enterprise Portal. The count journal is an electronic document for capturing inventory counts. It is recommended that items are not added to the count journal when created – the items will be automatically added as the count is done with the RF Scanner.

2. Perform Inventory Counts on the RF Scanner – The counter must go to the item to be counted, select the appropriate count journal for the counts, scan the item and enter the quantity. This can be done in bottles or cases. Also, the same item can be counted in different locations and entered with the RF scanner. They system will add the quantities together.

3. Modify Counts on the Enterprise Portal – Once the counts have been completed, the user opens the count journal to see the results. The variance between on-hand inventory and counted quantity are displayed. If you are short and find the missing bottles, they can be entered into the count journal in the Count now field. The quantity entered into the Count now field is added to the previous count to display the new variance. This method of resolving a count variance only works if you are short – you cannot reduce the counted number nor can you enter a negative number into the Count now field.

4. Modify Inventory on the RF Scanner – An easier way to modify inventory counts to resolve variances is by using the Modify Inventory option on the RF scanner. The total count for an item is replaced by using this method. This is the only way to reduce the counted quantity for an item to fix an overage variance.

5. Post Count Journal – Once all variances have been resolved, you must post the count journal in the Enterprise Portal. Posting the Count journal will update the inventory to the counted quantities for each product. Once a count journal has been posted, no further changes can be made.

6. Run Inventory Audit Report – The Inventory Audit report shows the results of the inventory cycle count. It should be run once the count journal has been posted and kept on file for the Auditors.


Inventory Cycle Counting

• Agency inventories must be counted every 30 days• All inventory does not have to be counted at the

same time. Cycle counting can be used to complete the inventory in steps

• The previous day’s sales must have successfully posted before cycle counting can begin

• No sales can occur while product is being counted• All products have to be received in the system

before counting can begin on that item

DOLC requires each inventory item to be counted at least once every 30 days.

All inventory of a particular item needs to be counted on the same count journal, on the same day. Don’t forget to include inventory in storage as well as bottles on the shelf.

There can be no sales activity on an item while it is being counted.

All receipts for a particular item must be completed in the system before counting can begin on that item. This includes replenishment orders as well as agency to agency transfers.


Inventory Cycle Counting (Cont.)

• Inventory can be counted in multiple ways:• Individual products• Product categories• Entire product inventory

• All inventory of a specific item on hand must be counted on the same count journal, on the same day• If bottles are counted on the shelves of a particular

item, any cases in inventory in the back stock room must also be counted on that same count journal

DOLC requires each inventory item to be counted at least once every 30 days. The entire inventory does not need to be counted at the same time, there are several options to perform an inventory count:

Individual products – specific items can be selected to countProduct categories – types of liquor can be selected to count (Bourbon, Vodka, Tequila, etc.)Entire Product Inventory – the entire agency inventory can be selected for counting


Inventory Cycle Counting (Cont.)

• The best cycle counting programs have a plan• Decide which day of the week/time is best for

counting• Plan out what items are to be counted every week

so that all items are counted by the end of the 30 day cycle

• Inventory levels are typically lowest the day before your weekly replenishment orders. Consider doing counts on this day each week

Create a plan for cycle counting. It needs to be done as part of regular agency operations.

Divide your items over the 30 day period so that all items are counted at least once within that period.

Contact your Auditor once you have completed your initial cycle counts so they can review your work and help you with any issues you may have encountered.


Count Journals

• Used to conduct a physical inventory or cycle count

• Electronic document for capturing inventory counts

• Created in the Enterprise Portal• Items do not need to be added to the journal

when it is created• Recommended to leave the journal blank when

created and add the items at count time

• Transferred to RF scanner upon saving


Count Journals

Demonstration

Create a Count Journal in the Enterprise Portal


Performing an Inventory Count

• Counts are conducted using the RF scanner

• The entire inventory must be counted every 30 days

• Cycle counting may be utilized to spread out the time

• A full physical inventory is also an option


Performing an Inventory Count (Cont’d)

• All inventory for a specific item must be counted on the same count journal, on the same day• Inventory on the shelves can be counted in bottles• Inventory in back storage rooms can be counted in

cases

• There can be no sales activity on an item while it is being counted


Inventory Cycle Counts

Demonstration

Perform an Inventory Cycle Count - RF Scanner


Resolving Count Variances

• The Count journal is populated from the RF Scanner • The inventory counted is displayed as well as the

on-hand inventory• Variances are calculated and displayed

• Investigate where missing bottles may be:• Additional storage locations• Product displays• Open wholesale orders

The count journal gets populated by the counts done on the RF scanner. The variances between on-hand inventory and counted quantities are shown in the count journal. Variances must be investigated and resolved before posting the count journal.


Resolving Count Variances (Cont.)

• Investigate overages as well as shortages• Was the correct item scanned?• If entering inventory in the storage room in bottle

quantities, was the correct case count (i.e., 6 bottles/case) used?

• Recount if necessary• Use the RF Scanner Modify Count option to enter

a new count• The quantity entered overwrites previous counts• Use the Modify Count option on the RF Scanner if

a counted quantity needs to be adjusted up or down

Resolve overages as well as shortage variances.

Perform recounts on the RF scanner using the Modify Count option.


3


• For example, on the count journal in the Enterprise Portal, the RF scanner count shows 15, but On hand inventory shows 18. The item has a variance of -3 bottles.


3


• After a recount on the RF scanner, the count total shows 17. The count variance is now -1 bottle.


Modifying Inventory Counts

Demonstration

Modify Inventory Cycle Count –RF Scanner


Posting Count Journals

• Posting the Count journal updates the inventory to the counted quantities for each product

• Once a count journal has been posted, no further changes can be made

• On-hand inventory quantities are updated

• All variances are moved to the Quarantine warehouse

• Variances are reconciled by Auditors monthly

The count journal must be posted to complete the inventory cycle count. Posting the journal updates the book inventory with the counted quantities for each item counted.


Posting Count Journals

Demonstration

Post the Final Count


Inventory Reports

• Inventory Audit Report• Displays counts entered from RF Scanner• Displays items with “0” count quantity when

Submit button is used to save and closes the count journal

• Once journal is posted, displays all counts and variances

• Agency Inventory Report• Snapshot of current inventory• Updated when a receipt has been completed • Updated when a count journal has been posted

The Inventory Audit report is a record of the inventory cycle count. It shows the items counted and their variances. This report can be printed prior to posting the count journal once counts have been done. If items have been added directly to the count journal on the Enterprise Portal, the user must select the Submit button to save and close the journal in order for the added items to show on the Inventory Audit report when run prior to posting. This report needs to be run once the journal is finally posted and kept it on file for the Auditors.

The Agency Inventory report is also updated once a count journal has been posted.


Inventory Reports

Demonstration

Run Inventory Audit Report

Run Agency Inventory Report


ANY QUESTIONS

?

Questions


Find Help Here… The New Liquor Enterprise Service Center (LESC):• Committed to customer service

• Responsible for receiving operations inquiries and issues; for assigning, tracking, and reporting on all inquiries and issues, spotting trends and finding their causes

• Committed to resolving all issues

• Monitored by the Department of Commerce at highest levels

Inquiries can be logged by either of the following methods:• email: [email protected]• phone: 877-812-0013


Documents

IA Process and Cycle Counting Refresher Training v5 Pro… · · 2018-02-16Microsoft PowerPoint - IA Process and Cycle Counting Refresher Training v5.pptm