One necessary evil for all companies is the physical count, at least once a year the activity of counting the physical inventory on the floor to make sure it matches the books must be completed. In TRX Enterprise the physical counts are used to ensure that the actual quantities of inventory items in a warehouse stocking location(s) matches what TRX Enterprise says is in your database.
Physical counts are also performed as part of the implementation of TRX Enterprise to enter beginning balances of items. Items to be counted can be selected based on warehouse location, manufacturer item category or class, count code, building, room, row, shelf or bin location. The physical count process involves the following steps:
- Freezing the Inventory - Freezing the inventory is the first step. It is used to record the current on hand quantity of the items that will be counted. It is important that procedures be in place at the warehouse location to also record any receipts or issues of the items that have been frozen and to include the transactions as part of the count. This will not process will not stop transactions from occurring it only takes a snap shot in time to give you a reference point.
- Printing Count Sheets - This prints the items being counted in the order in which they will be counted.
- Counting the Inventory - Employees or contract workers actually count and record the quantities of each item.
- Entering the Count - The count of each item is entered. This is compared with the quantity of the item that was frozen to determine any overage or shortage of the item.
- Physical Count Verification Report - This report prints the items that were frozen for the count, the actual count that was entered and any discrepancies that will cause changes in the inventory when the Complete Count Processing is done. Many will print this report out and recount any items that seem to have a large difference.
- Completing the Count - This process produces a report showing any discrepancies between the quantity of items frozen and the quantity actually counted and makes inventory transactions so that the quantity on hand will match the quantity that is physical stocked at the warehouse location. Any GL difference will be stored in the Physical count variance GL account.
One necessary evil for all companies is the physical count, at least once a year the activity of counting the physical inventory on the floor to make sure it matches the books must be completed. In TRX Enterprise the physical counts are used to ensure that the actual quantities of inventory items in a warehouse stocking location(s) matches what TRX Enterprise says is in your database.
Physical counts are also performed as part of the implementation of TRX Enterprise to enter beginning balances of items. Items to be counted can be selected based on warehouse location, manufacturer item category or class, count code, building, room, row, shelf or bin location. The physical count process involves the following steps:
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