It’s that time of year when many businesses begin preparing for the year-end inventory count. Even businesses that do cycle counts throughout the year may be required to do an annual count of everything in inventory. The day, when you count everything in the warehouse, can be hectic. It starts early and ends late. The auditors have many questions and you may need several recounts.
Here are some helpful tips:
Before count day:
- Increase the frequency and number of items that you cycle count. Then resolve or book all major variances. This will improve inventory accuracy and save you time on count day.
- Organize the warehouse; move product into the proper locations.
- Disposition damaged product.
- Process all transactions that affect inventory such as receipts, shipments, and transfers.
- Print extra tags, you will probably need them. Record the range of tag numbers; you will have to account for all of them.
During count day:
- Use your pickers, receivers, and inventory control people to do the counting. They know the product.
- If you need additional people, use them for non-counting tasks such as keying counts or issuing tags.
- If you cannot shut down product movement, tape movement tags on every location. Whenever product is moved into or out of a location, record it on the movement tag.
- The counter adjusts their physical count by the net movement as recorded on the movement tag. Then the counter draws a line below the last entry on the movement tag. If a recount is needed the re-counter can tell by location of the line whether there was product movement after the original count.
- Feed the crew, bring in breakfast and lunch. That saves time and generates good will. Count day is always too short.
JD Edwards World software has processes for both types of counts. Knowledge documents: Cycle Count Process (Doc ID 626660.1) and Inventory Tag Count Physical Count (Doc ID 626812.1) present a thorough overview of each process. Additional knowledge documents about inventory counts are: FAQ Inventory Counts (Doc ID 1553628.1) and Troubleshooting Inventory Counts (Doc ID 1553650.1).