Inventory Counting & Methods
Generally, Counting methods are used to verify the stock availability in the warehouse with
available quantity showing in the system(Application).
Counting Methods are:
1) Physical Counting
2) Cycle Counting
The general process flow for Inventory count is below,
Required Roles
1) Warehouse Operator: Performs warehouse activities such as creating inventory
transactions, processing movement requests, recording cycle and physical inventory counts,
performing material put away and confirming pick slips.
2) Warehouse Manager: Manages and analyzes all warehouse activities including analyzing
materials management and logistics performance, managing inventory Transactions, managing
cycle and physical counts, configuring warehouse setups and reviewing inventory balances.
Physical Counting
Physical Counting: Physical inventory counting is a process to verify whether the actual on-
hand quantity in an inventory matches the system on-hand quantity. Mostly Physical inventory
counting is performed once a year, but based on business requirement the physical inventory
count can be performed.
During the physical inventory counting process, all inventory transactions will be blocked and
no inventory moments to be performed.
Navigation: Supply Chain Execution>Inventory Management
I. Defining Physical Inventories:
Task Panel > Counts > Manage Physical Inventories
Click on OK.
Click on +
Enter data in required fields and click on Save and Close.
ii. Generating Snap Chat:
From Actions Dropdown select Generate Physical Inventory Snapshot.
Click on OK.
Check the Program status. It should be Success.
iii. Generate Tags:
From the Actions dropdown select Generate Physical Inventory Tags
Click on OK.
Check the Program status. It should be Success.
Run Print Physical Inventory tag Listing report program
Select Organization, Physical Inventory and Click on Submit.
Click on OK.
Check the Program status. It should be Success.
iv. Enter Counts:
From the Actions drop down Select Record Physical Inventory Tags.
Enter Count quantity and click on Save and close.
V. Approve Adjustments:
From the Actions Dropdown Select Approve Physical Inventory Adjustments.
Approve or Reject the Items based on your requirements.
Vi. Processing/Post Physical Inventory Adjustments:
From Actions drop down select Post Physical Inventory Adjustments.
Click on OK.
Click on OK.
Check the Program Status. It should be success.
Task Panel > Inventory > Review Completed Transactions
Verify the Item Quantities.
ABC Classification Sets
ABC Classification Sets Overview:
You use an ABC classification set to classify some or all of an organization's items based on the
scope and criteria specified in order to divide them into ABC classes for use in ABC analysis and
cycle counting.
Navigation: Setup and Maintenance > Setup > Manufacturing and Supply Chain Materials
Management > Items > Manage ABC Classification Sets
Enter data in required fields and click on Submit.
Click on OK.
Check the program status it shuould be success.
ABC Classes
Manage ABC Classes Overview:
You use ABC classes to identify the value groupings to which items belong. You can define these
classes using your own terminology. For example, you can define classes High, Medium, Low,
and later assign items of highest rank to High, those of lower rank to Medium, and those of the
lowest rank to Low.
Typically, ABC refers to the ranking you assign your items in the order of their estimated
importance suggesting that the inventories of an organization are not of equal value, such as:
• A items are very important for an organization and are very tightly controlled and
accurate records are maintained.
• B items are important, but less important than A items and more important than C
items and are less tightly controlled and good records are maintained.
• C items are marginally important with the simplest controls possible and minimal
records are maintained.
Navigation: Setup and Maintenance > Setup > Manufacturing and Supply Chain Materials
Management > Items > Manage ABC Classes
Click on + and created ABC Classes and click on Save and Close.
ABC Assignment Groups
ABC Assignment Groups Overview:
ABC assignment groups link a particular ABC classification set with a valid set of ABC classes.
You selectively reduce or increase the number of ABC classes you want to use in your item
assignments for a particular ABC classification set.
These groups are used when you automatically assign your items to ABC classes. It ensures that
you divide your items into the exact number of groupings you specified in the ABC group. You
can assign the same item to different ABC classes in two different ABC assignment groups. You
must also assign a sequence number to each class associated with the ABC group. The class
with the lowest sequence number is assumed to have the highest rank and will have higher
rank items assigned to that class than the next higher sequence number
Navigation: Setup and Maintenance > Setup > Manufacturing and Supply Chain Materials
Management > Items > Manage ABC Assignment Groups
Click on +
Enter the data in required fields and click on +.
Create Sequence and Click on Save and Close.
Select the Assignment Group Name and Click on Perform ABC Assignments.
Enter the data in required fields and click on Submit.
Click on OK.
Check the program status. It should be Success.
Cycle Counting
Cycle counting is an inventory accuracy analysis technique where inventory is counted on a
cyclic schedule rather than once a year to ensure the accuracy of inventory quantities and
values.
Cycle counting enables you to keep inventory records accurate by correcting errors between
the on-hand (perpetual) and actual on-hand (physical) quantities. Cycle counting can also be a
valuable tool to help identify patterns in the errors found. Analysis of these patterns can
suggest and help to prioritize improvements in training, tools, and processes. Over a period of
time these improvements may increase the average level of inventory record accuracy.
Navigation: Home Page > Product Management > Product Information Management
Enter the Data in required fields and Click on OK.
Under Inventory Tab,
Select Yes for Cycle Count Enabled.
Click on Save and Close.
Navigation: Click on Home Icon > Supply Chain execution > Inventory Management
Navigation: Task Panel > Counts > Create Cycle Count
Enter Name and enter data in required fields.
Click Next.
Enter Data in required fields and click on Next.
Enter Data in required fields and click on Next.
Enter Data in required fields and click on Next.
Click on Save and Close.
Execute the below programs in Schedule new Process.
1) Perform Full Cycle Count (Through Job Set) or Generate Count Schedules and Generate
Count Sequences.
2) Print Cycle Count Listing Report
Navigation: Supply Chain Execution > Inventory Management
Tools>Counts>Record Count Sequences
Task Panel > Inventory > Review Completed Transactions
Verify the Item Quantities.