About Cycle Counts

Cycle counting is a method for taking stock of what is in your inventory. Cycle counting is accomplished by taking periodic counts of what is actually in stockrooms.

Note: An alternate way to stock is with a physical inventory.

For a comparison of the differences between a cycle count and a physical inventory, see Differences Between Cycle Counts and Physical Inventories.

Periodic reconciliation of your inventory balances is important for the proper control of inventory levels. This control leads to improved customer service combined with an overall reduction of inventory.

Accurate counts:

Help you know precisely how much is in stock.
Give you a better ability to promise quantities to customers.
Help prevent keeping too much in stock.

If you record all receipts and disbursements, the physical count should match the On Hand field on the Items form. If the physical count does not match the On Hand field on the Items form, a portion of your system needs to correct its procedures for tracking inventory. It is possible to establish cycle counting data to allow more frequent counting of important items. Variance reports quickly help spot large discrepancies.

Counts are taken at regular intervals. Different items can be counted at different intervals. For instance, you might want to keep a closer watch on the level A items, so it might be necessary to count them every two months. But it might only be necessary to count level C items every twelve months.

Cycle counting allows you to count a limited range of items at a time, instead of having to shut down the entire factory.

Note: During cycle counting, if the actual count in a specific location/lot is less than what the system has reserved in that location/lot, the system flags this as an exception and does not post. This occurs on the Variance Report.

Cycle counting takes place for the current warehouse. Cycle counting can take place at the same time for multiple warehouses.