Differences Between Cycle Counts and Physical Inventories

There are two basic methods for counting inventory: Cycle counts and physical inventories. A cycle count and a physical inventory are similar, in that they both help you track your on-hand inventory. However, there are a few significant differences that you should be aware of when deciding which process to use. The following table summarizes the differences between these two methods:

A cycle count:	A physical inventory:
Does not require a warehouse inventory freeze.	Requires a warehouse inventory freeze.
Can be performed for individual items in inventory.	Requires that you do a count of all items in inventory.
Can be set up to be triggered in a variety of ways for a variety of reasons.	Can only be initiated in one way.
Allows other transactions to be conducted at the time the count is being performed.	Does not allow any other transactions to be conducted at the time the count is being performed.