Physical Inventory & Cycle Counting

Physical Inventory&

Cycle Counting

2008 Database Training 2008 Database Training ConferenceConference

Indianapolis, INIndianapolis, IN

Logistics

BreaksBreaks FoodFood QuestionsQuestions

Agenda

How to prepare for a Physical InventoryHow to prepare for a Physical Inventory Conducting a Physical InventoryConducting a Physical Inventory Cycle CountingCycle Counting

Physical Inventory

What do you want to learn from this What do you want to learn from this session?session?

Inventory Preparation

Warehouse Preparation Warehouse Preparation (at least 2 weeks prior to the (at least 2 weeks prior to the

scheduled inventory)scheduled inventory)

Decide how you want your warehouse Decide how you want your warehouse locations mapped and then enter them locations mapped and then enter them in Menu 9.20.20.in Menu 9.20.20.

Warehouse Preparation

Print bin location labels from Menu Print bin location labels from Menu 34.8.134.8.1

To speed up the inventory process To speed up the inventory process mark the product, bin box and shelf mark the product, bin box and shelf location with the product bar code.location with the product bar code.

If needed use Menu 34.7 to cross the If needed use Menu 34.7 to cross the manufacture numbers to the Johnstone manufacture numbers to the Johnstone part numbers.part numbers.

Warehouse Preparation

Go through the small part shelves and make Go through the small part shelves and make sure everything is in the correct boxes.sure everything is in the correct boxes.

Pre-count excess fitting and place in a Pre-count excess fitting and place in a baggie. Change the count number on the baggie. Change the count number on the bag when inventory is sold/removed.bag when inventory is sold/removed.

Purchase construction tape or post-it pads.Purchase construction tape or post-it pads. Purchase dots to tag equipment as it gets Purchase dots to tag equipment as it gets

counted.counted.

Hardware Preparation

Borrow handhelds, chargers, and scanners from Borrow handhelds, chargers, and scanners from your other branches.your other branches.

Set the IP address and WAP access code and Set the IP address and WAP access code and company number.company number.

Charge extra batteries.Charge extra batteries. Turn on backlights on handheldsTurn on backlights on handhelds Confirm laptops, Wyse terminals and PC ports that Confirm laptops, Wyse terminals and PC ports that

will be used during the scanning process are set to will be used during the scanning process are set to login into the correct company. (Menu 12.10)login into the correct company. (Menu 12.10)

Wireless network is needed Wireless network is needed

Inventory Preparation (24 Hours before starting)

Create a spreadsheet that lists all Create a spreadsheet that lists all warehouse locations to be counted.warehouse locations to be counted.

Inventory Preparation

Run Negative On-hand Report, Menu Run Negative On-hand Report, Menu 9.20.39.20.3

Password protect Menu 9.20 by using Password protect Menu 9.20 by using Menu 12.1.14.Menu 12.1.14.

Call your customers and have them pick Call your customers and have them pick up their orders.up their orders.

Staff Preparation

Arrange for extra staff (if needed)Arrange for extra staff (if needed) Arrange for food Arrange for food Employee sign/sign-out sheetEmployee sign/sign-out sheet Create a sign and post that the store will be closed Create a sign and post that the store will be closed

for inventoryfor inventory Confirm inventory dates and start timeConfirm inventory dates and start time Assign one person as the “go to” person.Assign one person as the “go to” person.

Does not scan inventory and is removed from day Does not scan inventory and is removed from day to day operations during inventoryto day operations during inventory

Responsible for making all adjustments to the Responsible for making all adjustments to the inventory in Menu 9.20.4inventory in Menu 9.20.4

Inventory Day

Things to RememberThings to Remember Receive in Everything (DO NOT count freight that Receive in Everything (DO NOT count freight that

has not been received)has not been received) Invoice out all handwritesInvoice out all handwrites Count Will Call areas after store closes.Count Will Call areas after store closes. While store is open pre-count the non/slow movers While store is open pre-count the non/slow movers

first. If one of these items is sold, the designated first. If one of these items is sold, the designated “go to” person must be told so an inventory “go to” person must be told so an inventory

adjustment can be made.adjustment can be made.

Physical Inventory Workflow

Run Menu 9.20.3 – Negative On-Hand ReportRun Menu 9.20.3 – Negative On-Hand Report


Menu 9.20.1 – Clear Pre-counts (clears Menu 9.20.1 – Clear Pre-counts (clears warehouse and showroom)warehouse and showroom) No hand counting will be completed after No hand counting will be completed after

pre-counts begin. All items are to be pre-counts begin. All items are to be scanned into inventory. By scanning items, scanned into inventory. By scanning items, an accurate count and location will be an accurate count and location will be recorded.recorded.


Menu 9.20.2 – Clear Warehouse Menu 9.20.2 – Clear Warehouse LocationsLocations Locations are cleared from the Locations are cleared from the

Product Detail file (Menu 12.3.2.3) Product Detail file (Menu 12.3.2.3) and Stock Status.and Stock Status.

Locations will be updated after Menu Locations will be updated after Menu 9.20.12 is run.9.20.12 is run.


Menu 9.20.28 – Display Old LocationsMenu 9.20.28 – Display Old Locations


Entering Pre-countsEntering Pre-counts Store can remain open during the Store can remain open during the

pre-count processpre-count process Scan least likely to move inventory Scan least likely to move inventory

first.first. Clearly mark locations after they have Clearly mark locations after they have

been scanned.been scanned.


Pre-counting with Bar Code ScannersPre-counting with Bar Code Scanners Use Menu 9.20.4Use Menu 9.20.4 Laptop and Bar Code scanner is Laptop and Bar Code scanner is

needed needed 2 person process2 person process Bar codes are good to use when Bar codes are good to use when

counting hard to reach inventorycounting hard to reach inventory

Menu 9.20.4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY

WHSE: 004 JOHNSTONE - JAX SS WLOC:

PART NBR DESCRIPTION PRECOUNT PRECOUNT TOTAL

=======================================================================

PHYSICAL INVENTORY PRE-COUNT ENTRY



=======================================================================

S0101A01

Scan Warehouse Location




=======================================================================




=======================================================================

S0101A01

B10-120Scan the item in that warehouse location




=======================================================================




=======================================================================

S0101A01

___-___B10-120 083S DRYER 1 1

The item will appear and drop down one line

B10-120 083S DRYER 1 1




=======================================================================




=======================================================================

S0101A01

___-___

B10-120 083S DRYER 1 1

One item is counted automatically until a quantity is entered. If no quantity is entered before scanning a different item, there will be one of this item counted.




=======================================================================




=======================================================================

S0101A01

___-___

B10-120 083S DRYER 1 2

Scan the same item again, and a new line will appear and drop down and a count of

one will be added for a total of 2

B10-120 083S DRYER 1 1




=======================================================================




=======================================================================

S0101A01

B10-120 083S DRYER 1 1

To manually type in the quantity, type in the actual

quantity counted here proceeded by a dot (.) Then

press <ENTER>

.100___




=======================================================================




=======================================================================

S0101A01

___-___

B10-120 083S DRYER 99 100B10-120 083S DRYER 1 1

A New line will appear and drop

down




=======================================================================




=======================================================================

S0101A01

___-___

B10-120 083S DRYER 99 100B10-120 083S DRYER 1 1

The total quantity counted from anywhere

in the building will display in the Precount

Total Column




=======================================================================




=======================================================================

S0101A01

B10-120 083S DRYER 99 100B10-120 083S DRYER 1 1

To reduce the quantity, if an incorrect quantity was

entered, scan the item again – a count of 1 is added for a

total of 101

B10-120 083S DRYER 1 101




=======================================================================




=======================================================================

S0101A01

_.-50

B10-120 083S DRYER 99 100B10-120 083S DRYER 1 1

Enter a dot, then minus, then the quantity to subtract, less one.

For example if you want to reduce the quantity by 51 (for a

total of 50 counted), type in ‘.-50’ and press <ENTER>

B10-120 083S DRYER 1 101




=======================================================================




=======================================================================

S0101A01

B10-120 083S DRYER 99 100B10-120 083S DRYER 1 1

The computer automatically adds the one just scanned to your count and reduces the

count by 51.

B10-120 083S DRYER 1 101

B10-120 083S DRYER -51 50




=======================================================================




=======================================================================

S0101A01

B10-120 083S DRYER 99 100B10-120 083S DRYER 1 1

Before scanning the next item, scan the warehouse location

here.

S0101B01




=======================================================================




=======================================================================

S0101B01

___-___The new location will display in the WLOC: field and you’re ready to scan the next item.

Menu 9.20.4 – Enter Precounts


Pre-counting with Hand-heldsPre-counting with Hand-helds S3 Menu Option #4S3 Menu Option #4 One hand-held per personOne hand-held per person ScanningScanning

Push either of the yellow buttons near the top of the device

to scan.

END (or F1)

Power

Enter

Opens AccuTerm in the S3 Menu

Power

Push any of the three yellow

buttons to scan.

END (or F1)

Enter

Opens Delivery Signature Capture

Program

Opens AccuTerm in the S3 Menu

Handheld S3 Menu 4 - PrecountsBegin by logging into the S3

Menu on the handheld, you will be prompted for your Operator Code.

OPER CODEOPER CODE

Then select Option #4 - Precounts

WHSE:ENTER WLOC--------------------WHSE:004 WLOC:R0101A01PRODUCT

WHSE:ENTER WLOC--------------------WHSE:004 WLOC:R0101A01PRODUCT

004R0101A01

Handheld S3 Menu 4 - PrecountsYou are first prompted to enter the warehouse for which you are doing inventory.

Next, scan the location that you are counting.

The Warehouse and Warehouse Location will be displayed on the screen and you will be prompted for the product (part number).

WHSE:004ENTER WLOC R0101A01--------------------WHSE:004 WLOC:R0101A01PRODUCTB10-120083S DRYER 1--------------------WHSE:004 WLOC:R0101A01PRODUCT

WHSE:004ENTER WLOC R0101A01--------------------WHSE:004 WLOC:R0101A01PRODUCTB10-120083S DRYER 1--------------------WHSE:004 WLOC:R0101A01PRODUCT

B10120

Handheld S3 Menu 4 - PrecountsScan the item at the Product prompt.

The part number, description and quantity of 1 will be displayed on the screen as well as the warehouse, warehouse location and product prompts again.

B10-120083S DRYER 1--------------------WHSE:004 WLOC:R0101A01PRODUCTB10-120083S DRYER 10--------------------WHSE:004 WLOC:R0101A01PRODUCT

B10-120083S DRYER 1--------------------WHSE:004 WLOC:R0101A01PRODUCTB10-120083S DRYER 10--------------------WHSE:004 WLOC:R0101A01PRODUCT

.10

Handheld S3 Menu 4 - PrecountsTo manually enter a quantity, type the quantity beginning with a dot (i.e., .10) then press <ENTER>

Now the part number, description and a quantity of 10 is displayed.

B10-120083S DRYER 10--------------------WHSE:004 WLOC:R0101A01PRODUCTB10-121084 DRYER 1--------------------WHSE:004 WLOC:R0101A01PRODUCT

B10-120083S DRYER 10--------------------WHSE:004 WLOC:R0101A01PRODUCTB10-121084 DRYER 1--------------------WHSE:004 WLOC:R0101A01PRODUCT

B10121

Handheld S3 Menu 4 - PrecountsTo count another item in the same location, scan the next item.

The new item, description and quantity 1* will be displayed on the screen

*If the item has been scanned in from another location, the quantity counted will be reflected here so it may not be 1.

B10-121084 DRYER 1--------------------WHSE:004 WLOC:R0101A01PRODUCTB10-121084 DRYER 2--------------------WHSE:004 WLOC:R0101A01PRODUCT


B10121

Handheld S3 Menu 4 - PrecountsTo increase quantity by ones – scan the same item again. Each consecutive scan will increase the quantity by 1.



B10121



B10121

Handheld S3 Menu 4 - PrecountsTo reduce the quantity, in the event that an incorrect quantity was entered, do the following:

Step 1: Scan the item again

Step 2: Enter the quantity to reduce, less one, with a ‘.-’ in front of it.

For example, if you want to reduce this to a total quantity of 1, you would enter ‘.-3’



.-3



B10121

Handheld S3 Menu 4 - PrecountsWhen moving on to the next location, simply scan the new location at the Product prompt.

The warehouse, NEW warehouse location and product prompt will appear on the screen.

WHSE:004 WLOC:R0101A01PRODUCT B10121B10-121084 DRYER 3--------------------WHSE:004 WLOC:R0101A01PRODUCT--------------------WHSE:004 WLOC:R0101A02PRODUCT

WHSE:004 WLOC:R0101A01PRODUCT B10121B10-121084 DRYER 3--------------------WHSE:004 WLOC:R0101A01PRODUCT--------------------WHSE:004 WLOC:R0101A02PRODUCT

R0101A02


Run Menu 9.20.3 – Negative On-hand Run Menu 9.20.3 – Negative On-hand report again. Remember that you will report again. Remember that you will not be able to freeze inventory if you not be able to freeze inventory if you have negative on-hand quantities.have negative on-hand quantities.


Menu 9.20.5 – Freeze InventoryMenu 9.20.5 – Freeze Inventory Log all ports to the “Big J”Log all ports to the “Big J” Freezing can take at least one hourFreezing can take at least one hour Note: Once inventory is frozen, Note: Once inventory is frozen,

products not scanned into inventory products not scanned into inventory using Menu 9.20.4 must be scanned using Menu 9.20.4 must be scanned in using Menu 9.20.6.in using Menu 9.20.6.


Menu 9.20.7 – Not Scanned ReportMenu 9.20.7 – Not Scanned Report This reports displays products that This reports displays products that

were not scanned during pre-counts. were not scanned during pre-counts. If a location has been missed then If a location has been missed then

use Menu 9.20.6 to scan in inventory.use Menu 9.20.6 to scan in inventory.


Menu 9.20.6 – Scan InventoryMenu 9.20.6 – Scan Inventory Scan inventory not scanned during Scan inventory not scanned during

the pre-count stage.the pre-count stage. Note: Bar code scanner can only be Note: Bar code scanner can only be

used in Menu 9.20.6. Hand-held used in Menu 9.20.6. Hand-held scanners cannot be used.scanners cannot be used.


Menu 9.20.8 - Update VarianceMenu 9.20.8 - Update Variance This program calculates the This program calculates the

difference between the frozen on-difference between the frozen on-hand quantity and the total inventory hand quantity and the total inventory scanned for each item.scanned for each item.


Menu 9.20.9 – Variance ReportMenu 9.20.9 – Variance Report Use this report to conduct your Use this report to conduct your

recounts.recounts. Keep track of each page (pages are Keep track of each page (pages are

numbered)numbered)

Variance Report

Variance ReportThe variance report prints only the items for which the original on hand quantity is different than the quantity counted at inventory.

It shows the tag # for the item – to be used to enter actual counts, the part number and description, the warehouse location and quantity counted in each location. It also shows the old count (prior to inventory), the total new count, the variance quantity, the dollar value of the counted qty and the difference between the value counted and the original value.

Physical Inventory Recount Options Option #1Option #1

Recount Recount everything that everything that appears on the appears on the Variance Report.Variance Report.

Option #2Option #2 Recount by dollar Recount by dollar

amount, items (+ amount, items (+ or -) $200.00)or -) $200.00)

Then on Then on subsequent subsequent recounts focus on recounts focus on items (+ or -) items (+ or -) $100.00 or $100.00 or $50.00$50.00


Recount ProcessRecount Process Give one page per inventory counter Give one page per inventory counter

at a time.at a time. Keep track of pages when they are Keep track of pages when they are

turned in.turned in. Have one person enter actual counts Have one person enter actual counts

in Menu 9.20.10.in Menu 9.20.10.


CAUTIONCAUTION After Menu 9.20.9 Variance Report is After Menu 9.20.9 Variance Report is

run, Menu’s 9.20.4, 9.20.6 and 9.20.7 run, Menu’s 9.20.4, 9.20.6 and 9.20.7 cannot be run again.cannot be run again.


Menu 9.20.10 – Enter Actual CountsMenu 9.20.10 – Enter Actual Counts Enter in the tag number as noted on Enter in the tag number as noted on

the Variance Report.the Variance Report. Enter the actual count in stock.Enter the actual count in stock. Only use Menu 9.20.10 if the PI.CNT Only use Menu 9.20.10 if the PI.CNT

(pre-count total) is wrong (I.e. (pre-count total) is wrong (I.e. OH.CNT is correct or recounts found OH.CNT is correct or recounts found a totally different number).a totally different number).

Variance ReportThe variance report is used as a tool to try and find errors in counting, or computer input, or items that were missed during inventory. When errors are found, the corrected information is entered in Menu 9.20.10 – Enter Actual Counts.

PHYSICAL INVENTORY COUNT ENTRY

NBR TAGS :

WHSE: NBR PIECES:

TAG # ITEM # DESCRIPTION WHS-LOC COUNT CNTR COST

-------------------------------------------------------------------------------

Variance ReportFirst, enter the warehouse number and press <enter>

Next, Enter the tag number from the variance report and press <enter>

The item for that tag number will display on the screen with the cursor blinking under the warehouse location.


NBR TAGS :

WHSE: NBR PIECES:


------------------------------------------------------------------------------- ACE-20029 20029 FNC1 GALLON S0301A01 6.799

_

200036

004 JOHNSTONE - JAX SS

Variance ReportTo accept the location that is showing on the screen, simply press <enter>

Then type in the actual quantity that was counted in that location and press <enter>

You will be asked to confirm that the information for this tag entry is correct. If it is correct, simply press <enter>


NBR TAGS :

WHSE: NBR PIECES:


------------------------------------------------------------------------------- ACE-20029 20029 FNC1 GALLON S0301A01 6.799

S0301A01

ARE ENTRIES FOR TAG # 200386 CORRECT? (CR/N)

200036

1


4

Variance ReportNow you can enter the next tag number

If you need to change the location that the item was counted in, type in the new location and press <enter>

Then type in the actual quantity counted and press <enter>

Finally, confirm that the information is correct by pressing <enter> PHYSICAL INVENTORY COUNT ENTRY

NBR TAGS :

WHSE: NBR PIECES:


------------------------------------------------------------------------------- ACE-20029 20029 FNC1 GALLON S0301A01 6.799

S0301A01 4

ALC-033642 EPRV-11 REGULATOR p0802f05 125.150

P0802D05


200036

200386

1


1

Variance ReportAny time you enter information in this screen it should ALWAYS be the actual count per location – even if you have already entered a count.

To make changes to counts for the same item in different locations, just type in the tag number again to change another location.


NBR TAGS :

WHSE: NBR PIECES:


------------------------------------------------------------------------------- ACE-20029 20029 FNC1 GALLON S0301A01 6.799

S0301A01 4

ALC-033642 EPRV-11 REGULATOR p0802f05 125.150

P0802D05 2


200036

200386

1


End


Menu 9.20.8 and Menu 9.20.9Menu 9.20.8 and Menu 9.20.9 After actual counts are entered in After actual counts are entered in

Menu 9.20.10 rerun Menu 9.20.8 and Menu 9.20.10 rerun Menu 9.20.8 and 9.20.9. 9.20.9.

Conduct further recounts if Conduct further recounts if necessary.necessary.

Note: Menu paths 9.20.8, 9.20.9 and Note: Menu paths 9.20.8, 9.20.9 and 9.20.10 must be run in this order.9.20.10 must be run in this order.


Menu 9.20.12 – Update On-Hand Menu 9.20.12 – Update On-Hand QuantitiesQuantities Only run when the final numbers on Only run when the final numbers on

the Variance Report are correct.the Variance Report are correct. Stock Status on-hand quantities will Stock Status on-hand quantities will

be updated and variance adjustments be updated and variance adjustments will be posted to the inventory history will be posted to the inventory history audit.audit.

Physical Inventory

Optional Inventory ReportsOptional Inventory Reports Menu 9.20.30 – Top 50 Variance Menu 9.20.30 – Top 50 Variance

ReportReportShows the top 50 variances up and Shows the top 50 variances up and

down in a variance report format. down in a variance report format. Can be run anytime after 9.20.8 Can be run anytime after 9.20.8 has been updated.has been updated.

Physical Inventory

Optional ReportsOptional Reports Menu 9.20.11 – Find Tag Number For An Menu 9.20.11 – Find Tag Number For An

ItemItem Menu 9.20.13 – P.I. Value Comparison Menu 9.20.13 – P.I. Value Comparison

ReportReportTotal inventory balance before and after Total inventory balance before and after

the on-hand quantities have been the on-hand quantities have been updated (DOES NOT include NS Items)updated (DOES NOT include NS Items)

Physical Inventory

Menu 9.20.15 – Move Items for Location Menu 9.20.15 – Move Items for Location (changes warehouse locations during the (changes warehouse locations during the inventory process).inventory process).

Menu 9.20.20 – WARE.LOC Maintenance Menu 9.20.20 – WARE.LOC Maintenance (setup warehouse locations). Sequence and (setup warehouse locations). Sequence and Cycle Count fields are for future use. Zone Cycle Count fields are for future use. Zone field is optional.field is optional.

Menu 9.20.21 – WARE.LOC ListingMenu 9.20.21 – WARE.LOC Listing

Physical Inventory

Menu 9.20.22 – Products with **NO** Warehouse Menu 9.20.22 – Products with **NO** Warehouse LocationsLocations This report details the list of products with quantity on-This report details the list of products with quantity on-

hand that have no warehouse location listed in product hand that have no warehouse location listed in product detail (Menu 12.3.2.3). Before beginning your detail (Menu 12.3.2.3). Before beginning your inventory, consider it a best practice to run this report. inventory, consider it a best practice to run this report. To tie a product to a warehouse location use Menu To tie a product to a warehouse location use Menu 34.11 Scan Warehouse Locations. If you have the 34.11 Scan Warehouse Locations. If you have the Symbol handheld scanner the S3 option 1 – Scan Symbol handheld scanner the S3 option 1 – Scan Location can also be used to tie a product to a location.Location can also be used to tie a product to a location.

Physical Inventory

Menu 9.20.24 – List of Items by Menu 9.20.24 – List of Items by Location/VendorLocation/Vendor Information from this report pulls from Information from this report pulls from

the prod.det file.the prod.det file.

Location Cycle Counting

Custom Menu 10.34Custom Menu 10.34 Options 9Options 9

Cycle Counting

Run Menu 9.20.21 for a listing of locations.Run Menu 9.20.21 for a listing of locations. Use this list to keep track of counted locations.Use this list to keep track of counted locations.

Cycle Counting

At the S3-Menu, choose option 4 for At the S3-Menu, choose option 4 for Pre-counts. Pre-counts. Enter your operator code. Enter your operator code. Scan the location and then the Scan the location and then the

products and their quantities in products and their quantities in that location. that location.

When finished with that location, When finished with that location, hit the end button (bottom left of hit the end button (bottom left of handheld) and then scan the next handheld) and then scan the next location and the products and location and the products and their quantities in that location. their quantities in that location.

Tip: Try to limit the number Tip: Try to limit the number of locations that you do at of locations that you do at once to make check variances once to make check variances manageable.manageable.

Cycle Counting

*Important* - Do NOT run Menu 9.20.1, *Important* - Do NOT run Menu 9.20.1, 9.20.2, or 9.20.3 prior to running pre-9.20.2, or 9.20.3 prior to running pre-counts. These steps are not needed for counts. These steps are not needed for cycle counting.cycle counting.

Pre-counts can also be entered in Menu Pre-counts can also be entered in Menu 9.20.4 using a bar-code scanner and laptop.9.20.4 using a bar-code scanner and laptop.

Cycle Counting

Menu 10.34.9 – Cycle Pre-Count ReportMenu 10.34.9 – Cycle Pre-Count Report

Cycle Counting

Menu 10.34.10 – Cycle Pre-count Input/AdjMenu 10.34.10 – Cycle Pre-count Input/Adj Hit enter if the on-hand qty is correct. If Hit enter if the on-hand qty is correct. If

the on-hand qty is wrong, enter the the on-hand qty is wrong, enter the correct count.correct count.

Cycle Counting

Are there other cycle counting options?Are there other cycle counting options? Yes, a custom automated process is Yes, a custom automated process is

available for a small fee. available for a small fee. A report is run during EOD that provides A report is run during EOD that provides

a list of items that need to be counted. a list of items that need to be counted. You still need to enter the adjustment You still need to enter the adjustment manually. manually.

QUESTIONS??

Documents

Physical Inventory & Cycle Counting