phyisical inventory - cycle count user's guide -...

ACTIVANT D2K Physical Inventory and Cycle Count User's GuideRelease 3.0 Version 9

This manual contains reference information about software products from Activant Solutions Inc. The software described in this manual and the manual itself are furnished under the terms and conditions of a license agreement. The software consists of software options that are separately licensed. It is against the law to copy the software on any medium, or to enable any software options, except as specifically permitted under the license agreement. In addition, no part of this manual may be copied or transmitted in any form or by any means without the prior written permission of Activant Solutions Inc.

From time to time, Activant makes changes to its software products. Therefore, information in this manual is subject to change, and the illustrations and screens that appear in the manual may differ somewhat from the version of the software provided to you.

Created by: Yardley Technical Communication

2006, Activant Solutions Inc. All rights reserved. Activant and the Activant logo are registered trademarks and Activant Prophet 21 is a trademark of Activant Solutions Inc. All other company or product names are the trademarks or registered trademarks of their respective companies.

Activant Solutions Inc. 7683 Southfront Road Livermore, CA 94551

Version 9 Publication Date: 3.21.2006

i

Table of Contents

Preface

Overview to the User’s Guide .....................................................................................................1 How to Use the User’s Guide ......................................................................................................3

Chapter 1 - Physical Inventory

Overview.................................................................................................................................. 1-1 Section A - Introduction to the Physical Inventory Module

Overview..............................................................................................................................1-A-1 The Physical Inventory Module...........................................................................................1-A-2 Features and Benefits of Physical Inventory .......................................................................1-A-3 The Physical Inventory Process...........................................................................................1-A-5 The Physical Inventory Checklist ........................................................................................1-A-7 Knowledge Check................................................................................................................1-A-8 Knowledge Check Answers...............................................................................................1-A-10

Section B - Starting the Physical Inventory Process Overview.............................................................................................................................. 1-B-1 The Process of Starting a Physical Inventory ...................................................................... 1-B-3 The Physical Inventory Constants (PI.CONSTANTS)........................................................ 1-B-5 Guidelines for Entering PI.CONSTANTS........................................................................... 1-B-6 The PI.SETUP Function ...................................................................................................... 1-B-8 How to Create Temporary Physical Inventory Files (PI.SETUP) ....................................... 1-B-9 The PRINT.PI.TAGS Function.......................................................................................... 1-B-11 How to Print Physical Inventory Tags (PRINT.PI.TAGS)................................................ 1-B-14 How to Reprint Physical Inventory Tags (REPRINT.PI.TAGS) ...................................... 1-B-16 How to Print Additional Extra Tags (PRINT.EXTRA.TAGS) ......................................... 1-B-18 Guidelines for Tagging Your Inventory ............................................................................ 1-B-20 How to Save Pre-Count Inventory Data (PI.CUTOFF)..................................................... 1-B-22 Knowledge Check.............................................................................................................. 1-B-24 Knowledge Check Answers............................................................................................... 1-B-26

Section C - Entering Physical Inventory Counts Overview.............................................................................................................................. 1-C-1 The Process of Entering Physical Inventory Counts ........................................................... 1-C-3 The ENTER.PI.COUNTS Function..................................................................................... 1-C-5 The “Enter Physical Inventory Counts” Screen................................................................... 1-C-7

Continued on next page

ii

Table of Contents, Continued

Chapter 1, Section C - Entering Physical Inventory Counts, continued

How to Enter Physical Inventory Counts (ENTER.PI.COUNTS) ...................................... 1-C-9 Procedure 1: Select Entry Option ............................................................................. 1-C-10 Procedure 2: Enter Counts by Tag Number.............................................................. 1-C-12 Procedure 3: Enter Tags with Zero Counts............................................................... 1-C-14 Procedure 4: Reenter Counts .................................................................................... 1-C-16 Procedure 5: Void Tags ............................................................................................ 1-C-19 Procedure 6: Reactivate Voided Tags....................................................................... 1-C-20 Procedure 7: Void Unentered Tags........................................................................... 1-C-21 Procedure 8: Enter Zero Counts for a Range of Tags............................................... 1-C-22 Tag Audit Reports ............................................................................................................. 1-C-25 Discrepancy Reports .......................................................................................................... 1-C-29 Guidelines for Resolving Discrepancies............................................................................ 1-C-31 Knowledge Check.............................................................................................................. 1-C-32 Knowledge Check Answers............................................................................................... 1-C-35

Section D - Completing the Physical Inventory Process Overview..............................................................................................................................1-D-1 The Process of Completing the Physical Inventory.............................................................1-D-3 How to Complete Count Entry (PI.COUNT.FINISHED) ...................................................1-D-5 The COST.TAGS Function .................................................................................................1-D-7 Calculate the Current Value of Tags (COST.TAGS) ..........................................................1-D-8 The Counted Inventory Valuation Report (LIST.VAL.TAG)...........................................1-D-11 How to Print the Counted Inventory Valuation Report (LIST.VAL.TAG).......................1-D-12 How On-Hand Quantities are Updated..............................................................................1-D-14 How to Update Item Records With Counts (PI.IM.UPDATE) .........................................1-D-17 How to Reset the Physical Inventory Process (PI.RESET) ...............................................1-D-19 Knowledge Check..............................................................................................................1-D-21 Knowledge Check Answers...............................................................................................1-D-23

Chapter 2 - Cycle Counting

Overview.................................................................................................................................. 2-1 Section A - Introduction to Cycle Counting

Overview..............................................................................................................................2-A-1 What is Cycle Counting? .....................................................................................................2-A-2 Features and Benefits of Cycle Counting ............................................................................2-A-3 The Cycle Counting Process................................................................................................2-A-5


iii

Table of Contents, Continued

Chapter 2, Section A - Introduction to Cycle Counting, continued

The Cycle Count Checklist ..................................................................................................2-A-7 Knowledge Check................................................................................................................2-A-9 Knowledge Check Answers...............................................................................................2-A-10

Section B - Select Items to Cycle Count Overview.............................................................................................................................. 2-B-1 The Cycle Count Constants (CC.CONSTANTS)................................................................ 2-B-3 Guidelines for Entering CC.CONSTANTS......................................................................... 2-B-5 How to Identify Groups of Items to Count (PLAN.ITEMS.TO.COUNT).......................... 2-B-7 How to Select Specific Items to Cycle Count (COUNT.THIS) ........................................ 2-B-11 How to Save Pre-Count Comparison Data (ITEM.CUTOFF)........................................... 2-B-13 How to Print a Count Worksheet (COUNT.WORKSHEET) ............................................ 2-B-15 Knowledge Check.............................................................................................................. 2-B-17 Knowledge Check Answers............................................................................................... 2-B-19

Section C - Enter Cycle Counts and Update Inventory Overview.............................................................................................................................. 2-C-1 The ENTER.CYCLE.COUNTS Function ........................................................................... 2-C-3 How to Enter Cycle Counts (ENTER.CYCLE.COUNTS).................................................. 2-C-5 Guidelines for Correcting Tag and Hold Discrepancies (LIST.HOLD.QTY.DISCREP) ... 2-C-9 How On-Hand Quantities are Updated by ENTER.CYCLE.COUNTS ............................ 2-C-10 The CC.PURGE Function.................................................................................................. 2-C-13 The Cycle Count History Reports...................................................................................... 2-C-15 Knowledge Check.............................................................................................................. 2-C-16 Knowledge Check Answers............................................................................................... 2-C-18

Summary

Putting These Ideas to Work.................................................................................................... 8-1

Preface 1

Preface

Overview to the User’s Guide

Introduction Welcome to the Physical Inventory and Cycle Counting User’s Guide. We

hope you enjoy learning about your D2K system. We also hope you will use all of the resources available to you to learn the Physical Inventory and Cycle Counting D2K module as thoroughly as possible.

Purpose The purpose of this User’s Guide is to introduce you to the Physical Inventory

and Cycle Counting module, and to provide procedures and guidelines for using the functions within the module. This User’s Guide has been designed as both a self-study training tool and a reference manual.

Objectives Upon completion of this User’s Guide, you will be able to:

• describe the Physical Inventory process • complete the necessary tasks to perform a physical inventory, including

printing tags, entering counts, and identifying discrepancies • describe the Cycle Counting process, and • complete the necessary tasks to perform a cycle count, including selecting

items to count, printing a count worksheet, and entering counts.

Guide content This guide contains the following chapters:

• Chapter 1 - function descriptions and procedures for running a physical

inventory • Chapter 2 - function descriptions and procedures for performing cycle

counts • Summary - a summary of this user’s guide


2 Preface

Overview to the User’s Guide, Continued

Learning advice

For more information on other Inventory Control topics, including inventory receipts and adjustments, Multiple Location processing, lot and serial number control, Bill of Materials (the processing of kit orders) and multiple facilities (the generation of warehouse transfer orders) refer to these User’s Guides: Inventory Control User’s Guide Bill of Materials User’s Guide Multiple Facility Processing User’s Guide

Preface 3

How to Use the User’s Guide

Introduction This User’s Guide has been designed as both a self-study training tool and a

reference manual.

Audience The concepts and procedures presented in this guide are appropriate for new

D2K Physical Inventory and Cycle Counting users. Note: If you are already familiar with D2K, you may find the procedures in this guide to be helpful as you perform your job.

Recommended prerequisite

We recommend that you complete the D2K System Conventions User’s Guide before completing this guide. D2K System Conventions User’s Guide provides you with the basic D2K concepts and navigation instruction that you will need to complete this guide.

Customizing your User’s Guide

This is your User’s Guide. Please make notes and customize the guide to help you complete the tasks for your job.

Menus, screens, and prompts

This User’s Guide displays standard D2K menus, screens, and prompts. Your system may be customized to meet your company’s needs. Therefore, your menus, screens, and prompts may not look the same. We provide a space called “Accessing the function” with each procedure in this guide. This space is for you to write in your system’s menu path to each function. Example: Use the boxes below to write your menu path to the AGE.AR function.

DIST-2000 GA AR AR.RPTS AGE.AR


D2K

4 Preface

How to Use the User’s Guide, Continued

The learning environment

To help you learn the contents of this guide, your System Administrator or will

• provide a place where you can work without interruption • follow your progress • assist when difficulties arise, and • clarify the content when you need further explanation.

Review chapter objectives

Your first step in completing this guide is to review the objectives displayed in each chapter’s overview. If the material the objectives cover seems unfamiliar, assume that you need to study the entire chapter’s content.

Knowledge checks

This User’s Guide provides knowledge checks at the end of each chapter, that will assess your learning of physical inventory and cycle counting concepts. Answers to the knowledge check are found on the pages following the questions. Responding to the knowledge checks helps you evaluate your learning. Review the text if you have trouble answering the questions correctly. Proceed at a comfortable rate. If you reach your limit of concentration, stop at a natural division in the text so that you can continue later without difficulty.

Completion time

The time you need to complete this guide depends on your previous experience with the concepts, and on the pace you set for your learning. The average time estimate for completion of this guide is 1 to 3 hours.

Physical Inventory 1-1

Chapter 1

Physical Inventory

Overview

Introduction A complete physical inventory can be a major, complex task that involves

numerous people and departments. It is imperative to perform a physical inventory accurately, and with the least disruption to other areas of your business.

Purpose The purpose of this chapter is to introduce you to the Physical Inventory

module. This chapter will focus on the process of performing a physical inventory, and will provide you with the procedures necessary to perform each step in the process.

Objectives Upon completion of this chapter, you will be able to

• describe the Physical Inventory process • perform the necessary steps to initiate a physical inventory • print tags necessary for a physical inventory • enter counts for items • identify discrepancies in counts through the use of reports, and • perform the necessary tasks to complete the physical inventory.

In this chapter This chapter contains the following sections:

Topic See SectionIntroduction to the Physical Inventory Module A Starting the Physical Inventory Process B Entering Physical Inventory Counts C Completing the Physical Inventory Process D

Introduction to the Physical Inventory Module 1-A-1

Section A

Introduction to the Physical Inventory Module

Overview

Introduction Before starting the Physical Inventory process, you should understand what it

entails, and how to best prepare for this task.

Purpose The purpose of this section is to introduce you to the Physical Inventory

module. You will learn about the major processes a Physical Inventory performs. You will also find a checklist that can be used to ensure that each step is performed in the correct order when you perform a Physical Inventory.

Objectives Upon completion of this section, you will be able to

• describe the Physical Inventory module and identify its major processes • identify the features and benefits to using the Physical Inventory module,

and • describe the process of performing a physical inventory.

1-A-2 Introduction to the Physical Inventory Module

The Physical Inventory Module

Description The D2K Physical Inventory module (PI) provides an orderly set of

procedures used to perform a complete physical inventory. The Physical Inventory module contains the following major processes: • tag printing • freezing inventory • entering actual counts • discrepancy and variance reporting • inventory valuation, and • updating Item Master information. The Physical Inventory module also provides the ability to perform Cycle Counting. Note: You will learn more about Cycle Counting in the next chapter.

Example The year-end for A-1 Distributors, Inc. is June 30. At that time, the

warehouse is shut down to perform a count of all inventory items. This is done to verify the value of their inventory assets for financial reporting and tax auditing. With the Physical Inventory module, A-1 Distributors is able to perform an accurate physical inventory, and provide management with figures for financial reporting and tax auditing.


Features and Benefits of Physical Inventory

Introduction There are many features and benefits to using the D2K Physical Inventory

functions.

Features and benefits

The table below describes some of the features of the Physical Inventory module and their benefits.

Feature Benefit

Checks and balances are built into the software.

Prevents you from inadvertently running crucial functions in the incorrect sequence.

Capability to perform a physical for multiple facilities.

Separate physical inventories can be performed simultaneously in a multiple facility environment.

Freezes and stores pre-count on-hand information.

Pre-count on-hand data is used for variance and discrepancy reporting. This also allows for the update to item balances using the difference between the actual and the frozen count.

Transactions from other modules can be entered into the system after saving pre-count inventory data. Example: Invoicing of shipped orders may be performed while the count is in progress.

Allows other departments to continue with processing that does not interfere with the physical counting of items.

Numerous discrepancy reports. Provides management with crucial information, such as missing tags, dollar and count discrepancies.

Counts may be reentered. Allows for spot-check counts to check accuracy when discrepancies are found.


Figure 1-A-1. The Physical Inventory Process.

Starting the Physical Inventory Process:

Entering Physical Inventory Counts:

Completing the Physical Inventory Process:

Define PIparameters

Create "Hold"files for PI

Print tags orcount book

Reprint tagsor print

extra tags

Freeze currentbalances Count items

Enter countsIdentifymissing tags

Enter counts,void counts,or void tags

Printdiscrepancy

reports

Perform &enter

second count

Completecount

process

Printvaluationreports

Updateon-hand

quantities

Print "HOLD"locationvariancereport

Reset systemPI flags


The Physical Inventory Process

Description The Physical Inventory process allows you to perform quick and massive

updates of counts for your entire inventory at one time. Each step of the physical inventory is controlled, preventing the update of counts prior to reconciliation of all tags.

Illustration Figure 1-A-1 is an illustration of the Physical Inventory process.

Process The table below describes the Physical Inventory process.

Stage Description Starting the Physical Inventory Process:

1 User defines parameters for the physical inventory by facility. 2 User creates temporary “hold” files for the physical inventory. 3 User prints tags or a count book to be used when performing the

physical inventory. Note1: Tags may be reprinted, or extra tags may be generated if necessary. Note 2: The Physical Inventory process may be restarted any time prior to freezing inventory information.

4 User freezes current inventory balances to be used as the basis for comparing counts. Note: Once balances are frozen, no item movement should occur until counting is completed.

5 User counts items.



The Physical Inventory Process, Continued

Process (continued)

Stage Description Entering Physical Inventory Counts:

6 User enters actual quantities counted. 7 User identifies tags not accounted for. 8 If necessary, user may:

• enter additional counts • void counted tags • reinstate voided tags, or • void unused tags.

9 User repeats Stages 7-8 until all tags are accounted for. 10 User prints discrepancy reports to identify items with a variance

between the frozen and counted quantities. 11 If discrepancies are found, user may perform and enter an

additional count. 12 User repeats Stages 10-11 as necessary until the physical

inventory count is correct. Completing the Physical Inventory Process:

13 User identifies that physical inventory count is completed by locking out further count entry.

14 User prints Tag Valuation report. 15 User updates on-hand quantities in the item file. 16 If necessary, the user prints a report of items in Tag and Hold

locations that had a count discrepancy. The user then corrects and discrepancies manually.

17 User completes the physical inventory process, resetting all internal system flags.


The Physical Inventory Checklist

Checklist The table below can be used as a checklist to verify that all steps of a physical

inventory are performed, and in the proper sequence. These steps must be performed in the sequence shown.

Step Action

1 Define parameters for physical inventory: PI.CONSTANTS 2 Create temporary files: PI.SETUP 3 Print tags or count book: PRINT.PI.TAGS 4 If using tags, tag each item to be counted. 5 If necessary, print extra tags: PRINT.EXTRA.TAGS 6 If necessary, reprint tags: REPRINT.PI.TAGS 7 Freeze current inventory balances: PI.CUTOFF 8 Count items in the warehouse. 9 Enter counts: ENTER.PI.COUNTS 10 Identify tags not accounted for: LIST.MISSING.TAGS 11 If necessary, enter additional counts: ENTER.PI.COUNTS 12 If necessary, void counted tags: ENTER.PI.COUNTS 13 If necessary, void unused tags: ENTER.PI.COUNTS 14 Repeat Steps 10-13 until all tags have been accounted for. 15 Print discrepancy reports: PI.HOLD.QTY.DISCREP

LIST.DISCREP.$ LIST.DISCREPANCIES LIST.DISCREP.COUNT

16 If necessary, perform and enter an additional count : ENTER.PI.COUNTS Entry Function #3

17 Repeat Steps 15-16 until satisfied with entered counts. 18 Lock out further count entry: PI.COUNT.FINISHED 19 Calculate value of count: COST.TAGS 20 Print tag valuation report: LIST.VAL.TAG 21 Update on-hand quantities in Item Master file:

PI.IM.UPDATE

22 If Tag and Hold processing, print hold location discrepancy report and correct inventory, if necessary: LIST.HOLD.QTY.DISCREP

23 Reset physical inventory flags: PI.RESET


Knowledge Check

Directions Answer the following questions. This knowledge check is based on the

objectives stated in the beginning of this section.

Question 1 Listed below are the six major processes contained in the Physical Inventory

module. Place them in the proper order by placing the appropriate number in the column provided.

1-6 Process

Freeze current inventory on-hand balances. Update Item Master file with counted on-hand quantities. Print tags. Print tag valuation report(s). Print reports identifying discrepancies and variances. Enter actual counts.

Question 2 Mark these statements true or false.

TRUE or FALSE The Physical Inventory module prevents you from

inadvertently running crucial functions in the incorrect sequence.

TRUE or FALSE Separate physical inventories can be performed simultaneously in a multiple facility environment.

TRUE or FALSE Other departments may not use the D2K system while a physical inventory is being performed.

TRUE or FALSE Physical inventory tags may be reprinted, or extra tags may be generated, if necessary.



Knowledge Check, Continued

What’s next? Compare your answers to the ones provided on the next page.

The information in this section provides a foundation for other sections within this user’s guide. If you were unable to complete this knowledge check, please review the section before proceeding. If you are still uncomfortable with the information provided, or have specific questions regarding your system, contact your System Administrator or D2K Customer Care Consultant.


Knowledge Check Answers

Answer 1 Listed below are the six major processes contained in the Physical Inventory

module. Place them in the proper order by placing the appropriate number in the column provided.

1-6 Process 2 Freeze current inventory on-hand balances. 6 Update Item Master file with counted on-hand quantities. 1 Print tags. 5 Print tag valuation report(s). 4 Print reports identifying discrepancies and variances. 3 Enter actual counts.

Answer 2 Mark these statements true or false.

TRUE or FALSE The Physical Inventory module prevents you from

inadvertently running crucial functions in the incorrect sequence.

TRUE or FALSE Separate physical inventories can be performed simultaneously in a multiple facility environment.

TRUE or FALSE Other departments may not use the D2K system while a physical inventory is being performed. Explanation: Processing that does not require item movement may continue after saving pre-count inventory data.

TRUE or FALSE Physical inventory tags may be reprinted, or extra tags may be generated, if necessary.

Starting the Physical Inventory Process 1-B-1

Section B

Starting the Physical Inventory Process

Overview

Introduction Now that you understand the process of performing a physical inventory, you

are ready to start.

Purpose The purpose of this section is to review the steps needed to start the physical

inventory process. It also provides procedures on how to run each of the required functions.


• describe the processing of starting a physical inventory • identify processing parameters found in the PI.CONSTANTS • describe and run the PI.SETUP function • describe the functions used to print tags • run the PRINT.PI.TAGS function, and • describe and run the PI.CUTOFF function.

1-B-2 Starting the Physical Inventory Process

Figure 1-B-1. The Process of Starting a Physical Inventory.

Identify PIparametersby facility

(PI.CONSTANTS).

Create "Hold"files for PI

(PI.SETUP).

Print tagsor count book

(PRINT.PI.TAGS).

Reprint tags(REPRINT.PI.TAGS)

or print extra tags(PRINT.EXTRA.TAGS).

Freeze currenton handbalances

(PI.CUTOFF).

Count yourinventory.


The Process of Starting a Physical Inventory

Introduction Certain steps must be performed, in a specific sequence, to prepare a facility

for performing a physical inventory.

Important A physical inventory may be run simultaneously for multiple facilities.

However, this process must be performed for each facility.

Illustration Figure 1-B-1 is an illustration of the process of starting a physical inventory.

Process The table below describes the process of starting a physical inventory. This

process must be run for each facility performing a physical inventory.

Stage Description 1 The user sets parameters for the facility on which to perform a

physical inventory using the PI.CONSTANTS function. 2 The user creates temporary physical inventory files for the facility

on which to perform a physical inventory using the PI.SETUP function.

3 The user prints inventory tags or a count book using the function PRINT.PI.TAGS. Tip: Print tags a week prior to starting the physical inventory. Tag all items, then walk through the facility before starting the count to make sure everything is tagged.

4 If necessary, the user can reprint tags (REPRINT.PI.TAGS) or print extra tags (PRINT.EXTRA.TAGS).

5 The user freezes current on-hand balances using the PI.CUTOFF function. Note: Once inventory is frozen, quarantine any new item receipts in a special holding area in the warehouse. Do not remove items from their shelves, or place new items on the shelves while the physical inventory is being performed.

6 The user counts inventory items and writes the actual quantity counted on the tag or in the count book.


Figure 1-B-2. The PI.CONSTANTS Screen.

PI.CONSTANTS - Maint Physical Inventory Control Parameters "CHG" Mode PI.CONSTANTS for Facility 01 Newark NJ 03 Title of Inventory YEAR END PHYSICAL 6/30/YY --- Options for Inventory Tags/Books --- 04 Beginning Tag Number 1 Last Tag Number Printed 06 Number of Extra Tags 25 07 Estimated Total Tags 1100 08 Tags for Active Items with Zero On Hand? Y ------------------------- 09 Tags for Inactive Items with Zero On Hand? N | Diff. for Discrepancy | --- For Items not Excluded Above -- | Reporting | 10 Tags for Nonstock Items with Zero On Hand? N | 12 $ Value 10.000 | 11 Tags for Drop Ship Items with Zero On Hand? N | 13 % Count 5 | 14 Print Internal Item Number? N ------------------------- 15 Print First Line of Extended Description? N 16 Counts entered in (B)ase or (S)elling UOM B --- For Items not Excluded Above --- Multi-Bin/Location Options --- Miscellaneous Sorts for PI Tags --- Tags for Zero Total On Hand in: 17 Permanent Bin/Locations? Y Files Attributes 18 Shipping Bin/Locations? Y 19 Primary 20 Nbr 21 Secondary 22 Nbr 23 Count Book Bin Page Break? N Change Which Field, END, TOP, \P ..........


The Physical Inventory Constants (PI.CONSTANTS)

Description The PI.CONSTANTS contain system defaults and parameters which control

the Physical Inventory module. Constants are defined for each facility (if multiple facility processing is in use). Constants must be set before beginning the first physical inventory for a facility, and should be reviewed before each subsequent physical inventory.

Illustration Figure 1-B-2 is an illustration of the PI.CONSTANTS screen.

Fields and descriptions

The table below describes the key fields (in bold text) on the PI.CONSTANTS screen.

Field Description

Title of Inventory This title prints on all tags, and in the headings of all physical inventory reports.

Estimated Total Tags An estimate of the total number of tags required. The number entered affects temporary file size creation.

Tags for Active Items with Zero On Hand?

Identifies whether items flagged as “active” with a zero on-hand balance should have tags printed.

Tags for Inactive Items with Zero On Hand?

Identifies whether items flagged as “inactive” with a zero on-hand balance should have tags printed.

Tags for Nonstock Items with Zero On Hand?

Identifies whether items flagged as “nonstock” with a zero on-hand balance should have tags printed.

Tags for Drop Ship Items with Zero On Hand?

Identifies whether items flagged as “drop ship” with a zero on-hand balance should have tags printed.

$ Value Identifies the allowable dollar difference (+ or -) for physical inventory discrepancies.

% Count Identifies the allowable percent difference (+ or -) for physical inventory discrepancies.

Files and Attributes (Primary and Secondary)

The file name(s) and attribute number(s) used to sort tags when the “Misc Field(s)” sort option is chosen in the PRINT.PI.TAGS function.


Guidelines for Entering PI.CONSTANTS

Introduction The type of physical inventory you are performing may cause you to answer

the prompts in the PI.CONSTANTS differently. Example: If this is a start-up physical (no inventory balances are on your D2K system yet), you may use different parameters than if this is an on-going physical inventory.

Guidelines Follow these guidelines when setting the parameters for a physical inventory

in the PI.CONSTANTS function: • Always include the month and year in the “Title of Inventory”. This will

easily identify the audit reports once the physical is completed. • Make sure that the “Estimated Total Tags” is a good estimate of the

number of tags you will require. A poor estimate may affect the time it takes for the system to process and update the physical inventory files.

• When performing a start-up physical inventory, your D2K system will

have zero balances for all items. Because of this, the prompts “Tags for Active Items with Zero On Hand?” and “Tags for Inactive Items with Zero On Hand?” in PI.CONSTANTS should be set to “Y”.

• Generally, tags are not printed for non-stock items with zero on-hand

balances. • Generally, tags are not printed for drop ship items with zero on-hand

balances.


Figure 1-B-3. The PI.SETUP Function.

PI.SETUP - Create Temporary Physical Inventory Files ------------------------------------------------------------------ | *** ATTENTION *** | | | | This function creates the temporary files necessary to run a | | physical inventory. | ------------------------------------------------------------------ 01 Ready to Proceed? : Y 02 Facility : 01 FACILITY 1 Change Which Field, END, TOP, \P ..........


The PI.SETUP Function

Description The function PI.SETUP is used to create two temporary files needed for

physical inventory processing. The files created are: • PI.TAG - stores physical inventory tag information • PI.IM|nn - stores physical inventory count information, where

nn=facility# Example: PI.IM|01 stores counts for facility 01, and PI.IM|02 stores counts for facility 02.

This function must be run before each physical inventory, after the constants have been set.

Illustration Figure 1-B-3 is an illustration of the PI.SETUP function.

Note The files PI.TAG and PI.IM|nn are not available for Information Extraction

Processing (IEP).


How to Create Temporary Physical Inventory Files (PI.SETUP)

Introduction After setting the constants, the function PI.SETUP is run to create temporary

files needed for the physical inventory.

Accessing the function

Use the boxes below to write your menu path to the PI.SETUP function.

Procedure Complete the steps in the table below to create temporary physical inventory

files.

Step Action 1 Access the function PI.SETUP.

Result: The prompt “Are you ready to run this process? (Y,N)” displays.

2 Type Y and press [Enter]. Result: The prompt “Enter the Facility” displays.

3 Type the facility code to process and press [Enter], or press [Enter] to process the default facility displayed. Result: The Command Line “Change Which Field, END, TOP” displays.

4 Type END and press [Enter]. Result: The system creates two files for the selected facility, called PI.IM and PI.TAG. The message “PI.SETUP is complete. To continue you may press <CR>” displays.

5 Press [Enter] to return to the menu.


Figure 1-B-4. The PRINT.PI.TAGS Function.

PRINT.PI.TAGS - Print Tags ------------------------------------------------------------------------ | *** ATTENTION *** | | | | This function creates physical inventory tag records and optionally | | prints the documents used to record your physical inventory count | | information. You may print the tag records on individual tag forms | | or in count book format. | ------------------------------------------------------------------------ --- Available Sort Options --- 01 Document Type T TAGS 1. Item Number 2. Vendor/Item Number 3. Misc Field(s) --- Multi-Loc Users Only --- 02 Facility 01 Facility 01 4. Item Number/Bin Location 03 Sort Option 1 5. Bin Location/Item Number 04 Page Break on Bin Location? 6. Bin Location/Misc Field(s) 7. Misc Field(s)/Item Number 8. Misc Field(s)/Bin Location Change Which Field, END, TOP:


The PRINT.PI.TAGS Function

Description The PRINT.PI.TAGS function creates physical inventory tag records for all

items selected for counting based on selection parameters defined in PI.CONSTANTS. It is optionally used to print tag documents or a count book. • If an item is set for Lot Tracing, a separate tag is printed for each lot. • If the facility is set for Multiple Location processing, a separate tag is

printed for each item’s location.

Illustration Figure 1-B-4 is an illustration of the PRINT.PI.TAGS function.


The table below describes the key fields (in bold text) on the PRINT.PI.TAGS screen.

Field Description

Document Type Identifies the type of document to print:

Type Description T Tags B Count Book N None

Note 1: This option is not recommended unless you have a custom tag print function. Note 2: You may print tags or a count book later using REPRINT.PI.TAGS.

Sort Option Determines how items will be presented when tags or a

count book are printed. Note: The “Misc Field(s)” sort options refer to the miscellaneous sort files and attributes identified in PI.CONSTANTS.


Figure 1-B-5. The standard D2K Physical Inventory tag form.

YEAR-END PHYSICAL 6/30/YY INVENTORY TAG WAREHOUSE 01 Newark, NJ TAG NO. 101 BIN/LOCATION A102 DATE 06/27/YY ITEM# P3393-56 ONE LIGHT WALL BRACKET BRASS SALES U/M DZ BASE/STOCKING U/M EA COUNTED BY COUNTED BY COUNTED BY DATE/TIME DATE/TIME DATE/TIME

1ST COUNT 2ND COUNT 3RD COUNT

REMARKS:


Figure 1-B-6. The Physical Inventory Count Book. PHYSICAL INVENTORY COUNT RECORD BOOK 06/27/YY Page 1 Facility : 02 - NEWARK, NJ Item Number Location Sales Stock ------ Count Data ------ Tag Description U/M U/M |Date |By |Quantity |Number -------------------------- -------- ----- ----- |-------|-----|----------|------ P3393-56 A102 DZ EA | | | | 101 | | | | ONE LIGHT WALL BRACKET | | | | BRASS | | | | | | | | |-------|-----|----------| P3393-56 A261 DZ EA | | | | 102 | | | | ONE LIGHT WALL BRACKET | | | | BRASS | | | | | | | | |-------|-----|----------| P3393-56 RCVNG DZ EA | | | | 103 | | | | ONE LIGHT WALL BRACKET | | | | BRASS | | | | | | | | |-------|-----|----------| P3405-10 A102 EA EA | | | | 104 | | | | POLISHED CANOPY LIGHT | | | | | | | | | | | | |-------|-----|----------| P3405-10 S005 EA EA | | | | 105 | | | | POLISHED CANOPY LIGHT | | | | | | | | | | | | |-------|-----|----------| SWF60 A201 EA EA | | | | 106 | | | | SYLVANIA 60 WATT BULB | | | | | | | | | | | | |-------|-----|----------| SWF60 R59 EA EA | | | | 107 | | | | SYLVANIA 60 WATT BULB | | | | | | | | | | | | |-------|-----|----------| SWF60 RCVNG EA EA | | | | 108 | | | | SYLVANIA 60 WATT BULB | | | | | | | | | | | | |-------|-----|----------|


How to Print Physical Inventory Tags (PRINT.PI.TAGS)

Introduction You have set the constants and have created the temporary files for physical

inventory. The next step is to create the internal tag records for counting, and to print either tag forms or a count book. Note: If you do not wish to print tags or a count book at this time, the function must still be run to create the internal physical inventory tag records for the system to reconcile the count (Document Type “N” for “None”).

Illustrations Figure 1-B-5 is an illustration of the standard D2K tag form. Figure 1-B-6 is

an illustration of a count book. The count book is designed to print on 8.5 x 11 inch blank paper. Note: These illustrations are not exact to size.

Learning advice

When considering whether to print a count book or physical inventory tags, take into account the layout of your facility. Usually, if a facility uses Multiple Location processing, it is best to print tags. When a facility is highly organized, and items are stored in one location, a count book can be used. For further information or recommendations, speak with your D2K Customer Care Consultant.

Before you begin

The form name PRINT.TAGS must be set up in SYS.USERS in order for tags to print on the proper printer.


Use the boxes below to write your menu path to the PRINT.PI.TAGS function.



How to Print Physical Inventory Tags (PRINT.PI.TAGS), Continued

Procedure Complete the steps in the table below to print physical inventory tag records.

Step Action 1 Access the function PRINT.PI.TAGS.

Result: The prompt “Enter the Document Type (N)one, (B)ook, (T)ag” displays.

2 Make the following decision:

IF you want to… THEN type… create internal tag records only

Note: Tags may be printed at a later time using the function REPRINT.PI.TAGS.

N and press [Enter].

print tags in a count book format on standard printer paper

B and press [Enter].

print individual tag forms T and press [Enter].

Result: The prompt “Enter the Facility” displays. 3 Type the facility code to print tags for and press [Enter], or press

[Enter] to use the default facility displayed. Result: The prompt “Enter the Sort Option (1-8)” displays.

4 Using the available options displayed on the right side of the screen, type the number for the Sort Option desired, and press [Enter]. Note: Miscellaneous fields are identified in PI.CONSTANTS. Result: The Command Line “Change Which Field, END, TOP” displays.

5 Type END and press [Enter]. Result: The function is run, creating the document type specified in Step 2, and you are returned to the menu.


How to Reprint Physical Inventory Tags (REPRINT.PI.TAGS)

Description The function REPRINT.PI.TAGS is used to reprint tag forms or count book

pages that did not print correctly in the function PRINT.PI.TAGS. This function is also used to print original tag documents generated but not printed in PRINT.PI.TAGS (when “None” was selected as the “Document Type”).


Use the boxes below to write your menu path to the REPRINT.PI.TAGS function.

Procedure Complete the steps in the table below to reprint physical inventory tags or a

count book.

Step Action 1 Access the function REPRINT.PI.TAGS.

Result: The prompt “Enter the Starting Tag Number, <CR> for Lowest” displays.

2 Type the starting tag number to reprint and press [Enter], or press [Enter] to reprint from the lowest tag number. Note: If you are printing the original tag documents, press [Enter] to print all the tag documents. Result: The prompt “Enter the Ending Tag Number, <CR> for Highest” displays.



How to Reprint Physical Inventory Tags (REPRINT.PI.TAGS), Continued

Procedure (continued)

Step Action 3 Type the ending tag number to reprint and press [Enter], or press

[Enter] to reprint from the highest tag number. Note: If you are printing the original tag documents, press [Enter] to print all the tag documents. Result: The prompt “Enter the Document Type (B)ook, (T)ag” displays.


IF you want to… THEN type… print tags in a count book

format on standard printer paper



Result: The prompt “Enter the Facility” displays. 5 Type the facility code to print tags for and press [Enter], or press

[Enter] to use the default facility displayed. Result: The Command Line “Change Which Field, END, TOP” displays.

6 Type END and press [Enter]. Result: The tags are reprinted and you are returned to the menu.


How to Print Additional Extra Tags (PRINT.EXTRA.TAGS)

Description The PRINT.EXTRA.TAGS function is used to print additional extra physical

inventory tag documents in the event the original quantity of extra tags requested in PI.CONSTANTS was not sufficient. You may extra tags on individual tag forms or in count book format. Note: An “extra tag” is not associated with a specific item. You will use an extra tag when an item is found that had no tag printed, or when additional quantities are found in other stocking locations for an item.


Use the boxes below to write your menu path to the PRINT.EXTRA.TAGS function.

Procedure Complete the steps in the table below to print additional extra tags.

Step Action 1 Access the function PRINT.EXTRA.TAGS.

Result: The prompt “Enter the quantity of Additional Extra PI Tags needed” displays.

2 Type the number of extra tags to print and press [Enter]. Note: These extra tags are used in addition to the extra tags requested in PI.CONSTANTS. When printing extra tags, remember that all unused tags must be accounted for (either entered with a count or voided). Result: The prompt “Enter the Facility” displays.



How to Print Additional Extra Tags (PRINT.EXTRA.TAGS), Continued


Step Action 3 Type the facility code to print tags for and press [Enter], or press

[Enter] to use the default facility displayed. Result: The prompt “Enter the Document Type (B)ook, (T)ag” displays.


IF you want to… THEN type… print tags in a count book

format on standard printer paper



Result: The Command Line “Change Which Field, END, TOP” displays.

5 Type END and press [Enter]. Result: The extra tags are printed and you are returned to the menu.


Guidelines for Tagging Your Inventory

Introduction If you have selected to printed tags for the physical inventory, you must place

a tag by every item to be counted.

Guidelines Follow these guidelines for tagging your inventory:

• Tags should have been printed well before the start of the physical

inventory. Tag all items in the facility. If necessary, print extra tags when items are found in additional storage locations, or when an item is found that had no tag printed.

• If, before the start of the physical inventory, you sell the last of an item

that has been tagged, put the tag in a “Tags to be Voided” basket. These tags must be voided after PI.CUTOFF is run.

• If, before the start of the physical inventory, you receive an out-of-stock

item, pull its tag from the “Tags to be Voided” basket, or print a new tag. All items must have a tag when the physical inventory starts.

• Just before running PI.CUTOFF, walk through the warehouse again to

make sure all items are tagged.


Figure 1-B-7. The PI.CUTOFF Function.

PI.CUTOFF - Save Pre-count Comparison Data --------------------------------------------------------------------------- | *** ATTENTION *** | | | | This function saves current inventory status data for each item to be | | counted during your physical inventory. This data includes on hand | | quantities and may include bin locations and/or lots (if you are using | | either or both of these options). | | | | Before proceeding, verify that: | | | | - all inventory transactions affecting inventory areas have been entered. | | - all items having receipt transactions not entered and shipment | | transactions which have been entered are "quarantined" for no count. | | - no material movement will occur until counting and tagging is complete. | --------------------------------------------------------------------------- 01 Ready to Proceed? : Y 02 Facility : 01 FACILITY 1 Change Which Field, END, TOP, \P ..........


How to Save Pre-Count Inventory Data (PI.CUTOFF)

Description The function PI.CUTOFF saves (freezes) current on-hand figures for items

selected to be counted. These figures are used as a basis for comparing counts and costs throughout the physical inventory process. PI.CUTOFF will also generate new tag records (and print a report identifying new tags that need to be printed using REPRINT.PI.TAGS) when: • an item was added to the system after PRINT.PI.TAGS • an item has an on-hand quantity at PI.CUTOFF, but had zero on-hand

when tags were printed (and PI.CONSTANTS suppressed tags for items with zero on-hand)

• an item in a non-Multiple Location facility is moved to a “Hold” area for

Tag and Hold processing.

Illustration Figure 1-B-7 is an illustration of the PI.CUTOFF function.

Before you begin

Before proceeding, verify that: • all actual receipts, transfers and adjustments that have taken place have

been entered on the system • all shipments (invoicing) is complete • all items having receipts not yet entered on the system are held aside

(quarantined) in a special area. These items should not be counted, and • no item movement will occur in the warehouse until counting is complete.

Learning advice

Although D2K will allow you to process other transactions during a physical inventory, it is recommended that no item movement occur until the count is complete. In the event of a discrepancy which would require a second or third count, this will eliminate one possibility for error.



How to Save Pre-Count Inventory Data (PI.CUTOFF), Continued


Use the boxes below to write your menu path to the PI.CUTOFF function.

Procedure Complete the steps in the table below to save the pre-count inventory data.

Step Action 1 Access the function PI.CUTOFF.



3 Type the facility code to save pre-count data for and press [Enter], or press [Enter] to use the default facility displayed. Result: The Command Line “Change Which Field, END, TOP” displays.

4 Type END and press [Enter]. Result: The function is run, saving pre-count data for the selected facility, and you are returned to the menu.


Knowledge Check



Question 1 Which statement best describes the PI.CONSTANTS?

a. Creates temporary inventory files used for physical inventory processing. b. Contains parameters that dictate the order in which the physical inventory

functions are run. c. Contains system defaults and processing parameters which control the

Physical Inventory module. d. Identifies a range of item numbers to count during the Physical Inventory

process.

Question 2 TRUE or FALSE

It is important to provide a good estimate in the “Estimated Total Tags” field in PI.CONSTANTS so that you can determine the number of man-hours required to complete the physical inventory.

Question 3 Match the Physical Inventory function on the left with its description on the

right, by placing the appropriate letter in the column provided.

a-e Function Description PI.SETUP a. Reprints tag forms or the count book. PRINT.PI.TAGS b. Freezes current on-hand figures for

items selected to be counted. REPRINT.PI.TAGS c. Creates two temporary files for

physical inventory processing. PRINT.EXTRA.TAGS d. Creates internal tag records for the

physical inventory count, and prints tag forms or a count book.

PI.CUTOFF e. Prints additional tags in the event the original quantity of extra tags requested in PI.CONSTANTS was not sufficient.





If you were unable to complete this knowledge check, we recommend that you review the section before continuing. If you are still uncomfortable with the information provided, or have specific questions regarding your system, contact your System Administrator or D2K Customer Care Consultant.



Answer 1 Which statement best describes the PI.CONSTANTS?

c. Contains system defaults and processing parameters which control the Physical Inventory module.

Answer 2 TRUE or FALSE

It is important to provide a good estimate in the “Estimated Total Tags” field in PI.CONSTANTS so that you can determine the number of man-hours required to complete the physical inventory. Explanation: It is important to provide a good estimate because a poor estimate may affect the time it takes for the system to process and update physical inventory files.

Answer 3 Match the Physical Inventory function on the left with its description on the

right, by placing the appropriate letter in the column provided.

a-e Function Description c. PI.SETUP a. Reprints tag forms or the count book. d. PRINT.PI.TAGS b. Freezes current on-hand figures for

items selected to be counted. a. REPRINT.PI.TAGS c. Creates two temporary files for

physical inventory processing. e. PRINT.EXTRA.TAGS d. Creates internal tag records for the

physical inventory count, and prints tag forms or a count book.

b. PI.CUTOFF e. Prints additional tags in the event the original quantity of extra tags requested in PI.CONSTANTS was not sufficient.

Entering Physical Inventory Counts 1-C-1

Section C

Entering Physical Inventory Counts

Overview

Introduction Once all the functions for starting the physical inventory have been run, you

are ready to count your items. As items are counted, the data may be entered into the D2K system.

Purpose The purpose of this section is review the options available for entering

physical inventory counts. It will describe the discrepancy reports, used to identify differences in the count and the actual on-hand quantities. This section also provides procedures on how to run each of the required functions.


• describe the process of entering physical inventory counts • describe the options available in the ENTER.PI.COUNTS function • enter counts for tags • void counts, reactivate voided tags, and void unused tags • describe the reports available for auditing counts and identifying missing

tags • describe the discrepancy reports • describe the process of resolving discrepancies, and • re-enter counts.

1-C-2 Entering Physical Inventory Counts

Figure 1-C-1. The Process of Entering Physical Inventory Counts.

Enter actual counts.

Identify missing tags.

Enter counts,void counts,

reactivate voided tags,void unused tags.

Repeat until alltags are accounted for.

Identify dollar andcount discrepanies.

Perform additionalcount, if needed, to

resolve discrepancies.

Re-enter counts.Repeat untildiscrepanciesare acceptable.


The Process of Entering Physical Inventory Counts

Introduction As items are counted, the count quantity is written on the tag or count book.

These counts must be entered into the D2K system, and checked for discrepancies with the actual count.

Illustration Figure 1-C-1 is an illustration of the process of entering physical inventory

counts.

Process The table below describes the process of entering physical inventory counts.

Stage Description 1 The user enters counts using the ENTER.PI.COUNT function:

• Option 1 - Enter Counts • Option 2 - Enter Zero Counts • Option 7 - Enter Zero Counts for a Range of Tags

2 The user identifies tag numbers not yet entered using the functions:• LIST.MISSING.TAGS • LIST.TAGS.AUDIT • LIST.TAGS

3 User continues to reconcile tags using the ENTER.PI.COUNT function: • Option 1 - Enter Counts • Option 4 - Void Counted Tags • Option 5 - Reactivate Voided Tags • Option 6 - Void Unused Tags

4 The user repeats Stages 2-3 until all tags have been accounted for. 5 The user prints discrepancy reports:

• LIST.DISCREP.COUNT • LIST.DISCREP.$ • LIST.DISCREPANCIES • PI.HOLD.QTY.DISCREP (for Tag & Hold processing only)

6 If discrepancies exist, the user may perform an additional count on the item, and enter any revision using ENTER.PI.COUNTS: • Option 3 - Reenter Counts

7 The user repeats Stages 5-6 until satisfied with all discrepancies.


Figure 1-C-2. The ENTER.PI.COUNTS - Selection Screen.

ENTER.PI.COUNTS - Enter Counts/Void Tags/Reactivate Tags "ADD" Mode --- Entry Functions --- 01 Entry Function Number 1 1. Enter Counts 2. Enter Zero Counts 3. Reenter Counts 4. Void Tags 5. Reactivate Voided Tags 6. Void Unentered Tags 7. Enter Zero Counts for a Range of Tags 02 Facility 01 Newark, NJ Change Which Field, END, TOP, \P ..........


The ENTER.PI.COUNTS Function

Description The ENTER.PI.COUNTS function is used to perform different tasks that will

ultimately account for all tags printed for a physical inventory.

Illustration Figure 1-C-2 is an illustration of the initial selection screen in the

ENTER.PI.COUNTS function.

Entry functions The table below describes the entry functions available in the

ENTER.PI.COUNTS function.

Function Description Enter Counts Allows the user to enter the first counted quantity for

individual tag numbers. Enter Zero Counts Automatically enters a zero quantity count for

individual tag numbers. Reenter Counts Allows the user to enter second counts for individual

tags identified on a discrepancy report. Void Tags Voids a range of unused tags. If a tag in the entered

range has a count entered, the user is given the option to void the count.

Reactivate Voided Tags

Reinstates tag numbers that were voided in error.

Void Unentered Tags Voids a range of unused tags. If a tag in the entered range has a count entered, it will be automatically skipped and not voided.

Enter Zero Counts for a Range of Tags

Automatically enters a zero quantity count for a range of tag numbers.

Note Serial numbers are not entered or verified by the ENTER.PI.COUNTS

function. If on-hand quantities are adjusted (+/-) for a serial numbered item, an audit report will print when the physical inventory is completed to remind you of required adjustments for these types of items. For more information, see the topic “How to Update Item Records With Counts (PI.IM.UPDATE)” in Section D of this chapter.


Figure 1-C-3. ENTER.PI.COUNTS - The “Enter Physical Inventory Counts” screen.

ENTER.PI.COUNTS - Enter Physical Inventory Counts "CHG.NULL" Mod Tag Number 101 Facility 01 Newark, NJ 03 Date Counted 06-30-YY 04 Item Number P3393-56 ONE LIGHT WALL BRACKET Base UOM EA Each Selling UOM DZ Dozen 07 Location A102 AISLE 10, BIN 2 08 Quantity Counted 37 09 Count UOM EA 10 Lot Number 11 Hold Quantity N Change Which Field, END, TOP, \P ..........


The “Enter Physical Inventory Counts” Screen

Description The Enter Physical Inventory Counts screen (Entry Function 1 in

ENTER.PI.COUNTS) is the most common screen used to input counts. Counts may be entered using tags or a count book as the source document. The user is prompted to enter the tag number. When a valid tag number is entered, the data associated with the tag is automatically displayed (such as item number, units of measure, item location, and lot number). When an extra tag number is entered, the user must identify all data about the item number counted.

Illustration Figure 1-C-3 is an illustration of the Enter Physical Inventory Counts screen,

presented when Entry Function 1 is selected. Note: This screen layout is also used for Entry Functions 2 and 3, Enter Zero Counts and Reenter Counts. However, some of the fields in those Entry Functions are automatically assigned by the system, and data entry in other fields may be disallowed.


The table below describes the key fields (in bold text) on the Enter Physical Inventory Counts screen (Entry Function 1 in ENTER.PI.COUNTS).

Field Description

Tag Number The tag number from which the actual count is entered. Date Counted The date on which the tag was counted.

Note: This date is used for all subsequent counts, until changed.

Item Number The item number originally assigned to the tag when PRINT.PI.TAGS was run.

Location If using Multiple Location processing, the location assigned to the tag when PRINT.PI.TAGS was run. Note: An item will have multiple tags printed when it is found in multiple locations.



The “Enter Physical Inventory Counts” Screen, Continued

Fields and descriptions (continued)

Field Description Quantity Counted The actual quantity counted for the tag. Count UOM The unit of measure (either Base or Selling) in which the

count quantity was entered. Lot Number When the item is fully traceable by lot number, the lot

associated with the tag automatically displays. You may change the lot number, if necessary, as long as the lot number is valid (entered via the MNT.LOT.DATA function). Note: An item will have multiple tags printed when it has multiple lot numbers in inventory.

Hold Quantity A Y/N field that determines whether the entered count was for a “HOLD” type location (Tag and Hold processing):

IF this field is… THEN the count… Y is for a hold area or location. N is for a warehouse area or

location.

Note 1: In a multiple location facility, you may not change this field. It is automatically set based on the Location entered above. Note 2: In a non-multiple location facility, you may change this field. The count will then be reported on the PI.HOLD.QTY.DISCREP report, or on the LIST.HOLD.QTY.DISCREP report (after counts have been updated).


How to Enter Physical Inventory Counts (ENTER.PI.COUNTS)

Introduction The function ENTER.PI.COUNTS is used to enter actual item counts based

on the results of the physical inventory.

Learning advice

The ENTER.PI.COUNTS function provides the capability to enter item counts using a variety of methods. On the following pages, you will find procedures that cover each entry function: • Procedure 1: Select Entry Option • Procedure 2: Enter Counts by Tag Number • Procedure 3: Enter Tags with Zero Counts • Procedure 4: Reenter Counts • Procedure 5: Void Tags • Procedure 6: Reactivate Voided Tags • Procedure 7: Void Unentered Tags • Procedure 8: Enter Zero Counts for a Range of Tags Always start by completing Procedure 1: Select Entry Option. Depending on the transaction you are entering, Procedure 1 will direct you to complete other procedures to finalize the transaction.


Use the boxes below to write your menu path to the ENTER.PI.COUNTS function.



How to Enter Physical Inventory Counts (ENTER.PI.COUNTS), Continued

Procedure 1: Select Entry Option

Complete the steps in the table below to select the entry function for processing physical inventory counts.

Step Action

1 Access the function ENTER.PI.COUNTS. Result: The prompt “Enter the Entry Function Number (1-7)” displays.


TO… THEN type… enter counts by tag number 1 and press [Enter]. enter zero counts by tag

number 2 and press [Enter].

reenter counts 3 and press [Enter]. void tags 4 and press [Enter]. reactivate voided tags 5 and press [Enter]. void unentered tags 6 and press [Enter]. enter zero counts for a range

of tag numbers 7 and press [Enter].

Result: The prompt “Enter the Facility” displays.

3 Type the facility code and press [Enter], or press [Enter] to use the default facility displayed. Note: All subsequent count selections will use this facility code as the default facility, until changed. Result: The Command Line “Change Which Field, END, TOP” displays.

4 Type END and press [Enter]. Result: The appropriate count option screen appears.




Procedure 1: Select Entry Option (continued)

Step Action 5 Make the following decision:

IF using Entry

Function… THEN go to…

1 Procedure 2: Enter Counts by Tag Number 2 Procedure 3: Enter Tags with Zero Counts 3 Procedure 4: Reenter Counts 4 Procedure 5: Void Tags 5 Procedure 6: Reactivate Voided Tags 6 Procedure 7: Void Unentered Tags 7 Procedure 8: Enter Zero Counts for a

Range of Tags




Procedure 2: Enter Counts by Tag Number

Complete the steps in the table below to enter physical inventory counts by tag number. This procedure starts when the prompt “Enter the Tag Number” displays.

Step Action

1 Type the tag number counted and press [Enter]. Result: Default data for the tag appears, and the prompt “Enter the Date Counted” displays.

2 Type the count date and press [Enter], or press [Enter] to use the date displayed (if applicable). Note: All subsequent counts will use this date as the default count date, until changed.

3 Does the prompt “Enter the Item Number Counted” display? If yes, type the item number counted on this tag, and press [Enter].If no, go to Step 4. Note: You will be prompted for the Item Number only when the count is for an extra tag. Result: Depending on your system setup, either the prompt “Enter the Quantity Counted” or the prompt “Enter the location of the Item Counted” displays.

4 Does the prompt “Enter the location of the Item Counted” display? If yes, type the bin location counted and press [Enter]. If no, go to Step 5.




Procedure 2: Enter Counts by Tag Number (continued)

Step Action 5 Type the quantity counted and press [Enter].

Note: The system uses the default unit of measure selected in PI.CONSTANTS as the Count UOM. The quantity counted may only be entered using the Base or Selling units of measure displayed for the item. Result: The Command Line “Change Which Field, END, TOP” displays.

6 Type END and press [Enter]. Result: The count is filed, and the prompt “Enter the Tag Number” displays.

7 Do you wish to enter counts for another tag?

IF… THEN… yes return to Step 1 of this procedure. no type END and press [Enter].

Result: The count selection screen appears, and the prompt ““Enter the Entry Function Number (1-7)” displays.

8 Do you wish to enter counts using a different entry function?

IF… THEN… yes return to Step 2 of Procedure 1: Select

Entry Option.

no type END and press [Enter]. Result: You are returned to the menu.




Procedure 3: Enter Tags with Zero Counts

Complete the steps in the table below to enter physical inventory counts for tags with zero counts. This procedure starts when the prompt “Enter the Tag Number” displays.

Step Action

1 Type the tag number counted and press [Enter]. Result: The item number, description, and units of measure for the tag appears. A count of “0” is inserted in the “Quantity Counted” field, and the prompt “Enter the Date Counted” displays.

2 Type the count date and press [Enter], or press [Enter] to use the date displayed (if applicable). Note: All subsequent counts will use this date as the default count date, until changed.

3 Does the prompt “Enter the Item Number Counted” display? If yes, type the item number counted on this tag, and press [Enter]. If no, go to Step 4. Note: You will be prompted for the Item Number only when the count is for an extra tag. Result: Depending on your system setup, either the prompt “Enter the location of the Item Counted” or the Command Line “Change Which Field, END, TOP” displays.

4 Does the prompt “Enter the location of the Item Counted” display? If yes, type the bin location counted and press [Enter]. If no, go to Step 5.

5 Type END and press [Enter]. Result: The zero count is filed, and the prompt “Enter the Tag Number” displays.




Procedure 3: Enter Tags with Zero Counts (continued)

Step Action 6 Do you wish to enter a zero count for another tag?


Result: The count selection screen appears, and the prompt “Enter the Entry Function Number (1-7)” displays.


IF… THEN… yes return to Step 2 of Procedure 1: Select Entry

Option.





Procedure 4: Reenter Counts

Complete the steps in the table below to reenter physical inventory counts for tags already entered. This procedure starts when the prompt “Enter the Tag Number” displays.

Step Action

1 Type the tag number counted and press [Enter]. Note: Because you are reentering the count for this tag, default information such as the item number, description, and units of measure do not display. Result: The prompt “Enter the Date Counted” displays.

2 Type the count date and press [Enter], or press [Enter] to use the date displayed (if applicable). Note: All subsequent counts will use this date as the default count date, until changed. Result: The prompt “Enter the Item Number Counted” displays.

3 Type the item number and press [Enter]. Result: Depending on your system setup, either the prompt “Enter the location of the Item Counted” or the prompt “Enter the Quantity Counted” displays.

4 Does the prompt “Enter the location of the Item Counted” display? If yes, type the location counted and press [Enter]. If no, go to Step 5.




Procedure 4: Reenter Counts (continued)

Step Action 5 Type the quantity counted and press [Enter].

Note: The system uses the default unit of measure selected in PI.CONSTANTS as the Count UOM. The quantity counted may only be entered using the Base or Selling units of measure displayed for the item. Result: Depending on your system setup, either the prompt “Enter the Lot Number”, “Is the Quantity Counted from a Sales Hold Location/Area? (Y,N)” or the Command Line “Change Which Field, END, TOP” displays.

6 Does the prompt “Enter the Lot Number” display? If yes, type the lot number counted on this tag and press [Enter]. If no, go to Step 7.

7 Does the prompt “Is the Quantity Counted from a Sales Hold Location/Area? (Y,N)” display? If yes, respond to the prompt by typing Y or N and press [Enter]. If no, go to Step 8.

8 Type END and press [Enter]. Note: If any of the new data entered differs from the original data associated with the tag, you will be required to confirm the change(s). Result: The count is filed, and the prompt “Enter the Tag Number” displays.




Procedure 4: Reenter Counts (continued)

Step Action 9 Do you wish to reenter the count for another tag?


Result: The count selection screen appears, and the prompt “Enter the Entry Function Number (1-7)” displays.



Entry Option.





Procedure 5: Void Tags

Complete the steps in the table below to void physical inventory tags for which counts have already been entered. This procedure starts when the prompt “Enter the Starting Tag Number to Void” displays.

Step Action

1 Type the starting tag number to void and press [Enter]. Result: The prompt “Enter the Ending Tag Number to Void” displays.

2 Type the ending tag number to void and press [Enter]. Result: The Command Line “Change Which Field, END, TOP” displays.

3 Type END and press [Enter]. Note: When voiding a tag for which a count quantity has been entered, you will be required to confirm the void. Result: The selected tags are voided, and the message “Voiding is Complete. ‘N’ tags were voided. To continue Press <CR>” displays.

4 Press [Enter] to continue. Result: The count selection screen appears, and the prompt “Enter the Entry Function Number (1-7)” displays.



Entry Option.





Procedure 6: Reactivate Voided Tags

Complete the steps in the table below to reactivate physical inventory tags that have been voided. This procedure starts when the prompt “Enter the Starting Tag Number to reactivate” displays.

Step Action

1 Type the starting tag number to reactivate and press [Enter]. Result: The prompt “Enter the Ending Tag Number to reactivate” displays.

2 Type the ending tag number to reactivate and press [Enter]. Result: The Command Line “Change Which Field, END, TOP” displays.

3 Type END and press [Enter]. Note: If a tag has not been voided, the message “Tag number ‘n’ has not been voided - bypassing. Press <CR>” displays. Press [Enter] to bypass this message, if necessary. Result: The selected tags are reactivated, and the message “Reactivating is Complete. ‘nn’ tags were reactivated. To continue Press <CR>” displays.




Entry Option.





Procedure 7: Void Unentered Tags

Complete the steps in the table below to void physical inventory tags for which a count quantity has not been entered. This procedure starts when the prompt “Enter the Starting Tag Number to Void” displays.

Step Action

1 Type the starting tag number to void and press [Enter]. Result: The prompt “Enter the Ending Tag Number to Void” displays.

2 Type the ending tag number to void and press [Enter]. Result: The Command Line “Change Which Field, END, TOP” displays.

3 Type END and press [Enter]. Note: Tags for which a count quantity has been entered will not be voided using this function. Result: The selected tags are voided, and the message “Voiding is Complete. ‘N’ tags were voided. To continue Press <CR>” displays.




Entry Option.





Procedure 8: Enter Zero Counts for a Range of Tags

Complete the steps in the table below to automatically enter a count quantity of zero for a range of physical inventory tags. This procedure starts when the prompt “Enter the Starting Tag Number to Zero” displays.

Step Action

1 Type the starting tag number for which to enter a zero count and press [Enter]. Result: The prompt “Enter the Ending Tag Number to Zero” displays.

2 Type the ending tag number for which to enter a zero count and press [Enter]. Result: The prompt “Enter the Date Counted” displays.

3 Type the count date and press [Enter]. Result: The Command Line “Change Which Field, END, TOP” displays.

4 Type END and press [Enter]. Result: The selected tags are processed, and the message “Zeroing is Complete. “N” tags were zeroed. To continue Press <CR>” displays.



IF… THEN… yes return to Step 2 of Procedure 1: Select Entry

Option.



Figure 1-C-4. The LIST.MISSING.TAGS Report. LIST.MISSING.TAGS D2K Distribution Services Page 1 11:16:29 02 JUL YYYY Acct ivc Process 60030 Inventory Tags Not Keyed or Voided For Facility - 01, YEAR END PHYSICAL 6/30/YY Tag Item Number Description Lot Number Location Base Number UOM ------ ------------------------ -------------------- ------------ ------------ ----- 105 P3405-10 POLISHED CANOPY LIGHT S005 EA 126 078489-177886 ELECTRICAL CORD - 32’ B12 EA 149 GE025 GE 25 WATT BULB A153 EA 150 GE025 GE 25 WATT BULB G60 EA 151 GE025 GE 25 WATT BULB G78 EA 220 CA-SS4 ALARM AND CONNECTION BOX A002 EA 291 R14/2 14/2 CABLE W/GROUND RED D6 DZ 292 R14/2 14/2 CABLE W/GROUND RED D9 DZ 588 RXAL-B11BU RX COIL PLENUM 144 C332 EA 589 RXAL-B11BU RX COIL PLENUM 3409 RCVNG EA 725 54100|01 POWER GRINDER D337 EA 946 Thru 961 16 “Extra Tags” are missing. ******** Report Summary ******** First PI Tag Number 101 Last PI Tag Number 961 Number of Tags Checked 861 Total missing tags 27


Figure 1-C-5. The LIST.TAGS.AUDIT Report. LIST.TAGS.AUDIT 14:20:24 02 JUL YYYY D2K Distribution Services Acct ivc Process 60140 Page 1 Facility 01 YEAR END PHYSICAL 6/30/YY - Listing of Physical Inventory Tag Records - Keyed or Voided, by Tag number Tag Item Number Description Lot Nbr Date Count Count Base Vd Ky Entered Sell Number Counted Bin-Loc Quantity UOM Fg Fg Quantity UOM ----- --------------- ------------------ --------- ------- -------- -------- ----- -- -- --------- ---- 101 12/2 12/2 CABLE W/GROUND 07/01/YY C564 36 EA K 3 DZ 102 12/2 12/2 CABLE W/GROUND 07/01/YY F112 108 EA K 9 DZ 103 14/2 14/2 CABLE W/GROUND 07/01/YY F113 22 EA K 104 14/2 14/2 CABLE W/GROUND 07/01/YY R345 0 EA V K 106 14500-12 POWER GRINDER 07/01/YY S12 9 EA K 107 14600-00 HD POWER GRINDER 07/01/YY A342 3 EA K 108 231000-36 ELECTRICAL CORD - 36’ 07/01/YY G660 21 EA K 109 231000-48 ELECTRICAL CORD - 48’ 07/01/YY G700 101 EA K 110 B14/2 14/2 CABLE W/GROUND BLUE 07/01/YY D124 10 EA K 111 B14/2 14/2 CABLE W/GROUND BLUE 07/01/YY R67 EA V 112 GE060 GE 60 WATT BULB 07/02/YY A412 12 EA K 1 DZ 113 GE060 GE 60 WATT BULB 07/01/YY D129 2 EA K 114 GE060 GE 60 WATT BULB 07/01/YY R199 0 EA K 115 GE120 GE 120 WATT BULB 07/01/YY A413 11 EA K 116 GE120 GE 120 WATT BULB 07/01/YY E331 24 EA K 2 DZ 117 CA-SS4 ALARM AND CONNECTION BOX 07/02/YY H099 7 EA K 118 CA-SS4 ALARM AND CONNECTION BOX 07/01/YY RCVNG 0 EA V K 119 RXAL-B15BU RX COIL PLENUM PLUS 07/01/YY S21 6 EA K 120 RXAL-B15BU RX COIL PLENUM PLUS 07/02/YY R45 9 EA K 121 R14/2 14/2 CABLE W/GROUND RED 07/02/YY F323 5 EA K


Tag Audit Reports

Description After entering counts, you need to identify any missing tags. You may also

want to check operator entry by comparing the count written on the tag against the count entered into the system. This is accomplished by printing tag audit reports.

Illustrations Figure 1-C-4 is an illustration of the LIST.MISSING.TAGS report.

Figure 1-C-5 is an illustration of the LIST.TAGS.AUDIT report.

Important point

You may run these reports as often as necessary to determine which tags need to be accounted for, or to compare actual counts with entered counts. When satisfied with the tag audit, continue the physical inventory process by printing the discrepancy reports.

Reports and descriptions

The table below describes the audit reports available for identifying tags not accounted for during the physical inventory.

Report Description

LIST.MISSING.TAGS A report of inventory tags not accounted for. This report includes: • tags for which a count has not been entered • tags that have not been voided Note: Use this report to quickly identify only the missing tags.



Tag Audit Reports, Continued

Reports and descriptions (continued)

Report Description LIST.TAGS.AUDIT A report of inventory tags accounted for. This

report includes: • tags with counts • tags with zero counts • voided tags Note: This report can be used to verify and compare item counts written on the tag with the counts entered into the system.

LIST.TAGS A report of all inventory tags produced for the physical inventory. This report includes: • tags with counts • tags with zero counts • voided tags • tags not accounted for


Figure 1-C-6. The Valuation Discrepancy Report (LIST.DISCREP.$).

LIST.DISCREP.$ 07:53:13 01 JUL YYYY D2K Distribution Services Acct ivc Process 60050 Page 1

YEAR END PHYSICAL 6/30/YY - Facility 01 - (Valuation Discrepancies, Discrepancy over $350.000, at Cutoff cost)

Item Number Description Tag Cutoff Cost Base Cutoff Cutoff Count Count Discrepancy Nbr Cost UOM UOM Onhand Valuation Onhand Valuation Valuation ------------ ------------------ ----- ------- ----- ---- ------- --------- ------- --------- ----------- 14500-12 POWER GRINDER 106 129.450 EA EA 17 2200.650 9 1165.050 -1035.600 231000-48 ELECTRICAL CORD-48’ 109 5.050 EA EA 26 131.300 101 510.050 378.750 RXAL-B15BU RX COIL PLENUM PLUS 119 4.720 EA EA 411 1939.920 6 28.320 -1911.600 ********** Report Summary ********** Total Cutoff Onhand Valuation : 4271.870 Total Positive Valuation Discrepancies : 378.750 Total Count Onhand Valuation : 1703.420 Total Negative Valuation Discrepancies : -2947.200 Net Onhand Valuation : -2568.450

Figure 1-C-7. The Count Discrepancy Report (LIST.DISCREP.COUNT).

LIST.DISCREP.COUNT 07:53:47 01 JUL YYYY D2K Distribution Services Acct ivc Process 60050 Page 1

YEAR END PHYSICAL 6/30/YY - Count Discrepancies, Facility: 01 (Discrepancy over 50.00 % , at Cutoff cost)

Item Number Tag Cutoff Cost Base Cutoff Count Count Hold Discrep Bin Description Number Cost U/M U/M Onhand Onhand Discrepancy Flag Percent Location (Lot Number) --------------- ------ -------- ----- ----- ------- --------- ------------ ---- -------- -------- 12/2|01 101 1.000 EA EA 15 36 21 140.00 C564 *** 12/2 CABLE W/GROUND 231000-48|01 109 5.050 EA EA 26 101 75 288.46 G700 *** ELECTRICAL CORD-48’ B14/2|01 111 1.450 EA EA 27 1 -26 -96.30 R67 *** 14/2 CABLE W/GROUND BLUE CA-SS4|01 117 3.520 EA EA 96 21 -75 -78.13 H099 *** ALARM AND CONNECTION BOX RXAL-B15BU|01 119 4.720 EA EA 411 6 -405 -98.54 S21 *** RX COIL PLENUM PLUS


Figure 1-C-8. The Valuation and Count Discrepancy Report (LIST.DISCREPANCIES).

LIST.DISCREPANCIES 07:53:26 01 JUL YYYY D2K Distribution Services Acct ivc Process 60050 Page 1

YEAR END PHYSICAL 6/30/YY - Items with Valuation Discrepancy over $ 350.000 or Count Discrepancy over 50.00 % at Cutoff cost , sorted by Item Number

Item Number Cutoff Cost Base Tag Hold Bin-Loc Cutoff Count Count Discrepancy Description Cost U/M U/M Number Flag Onhand Onhand Valuation Valuation (Lot Number) --------------- --------- ----- ----- ------ ---- -------- -------- ------- ----------- ------------ 12/2|01 1.000 EA EA 101 C564 15 36 36.000 21.000 12/2 CABLE W/GROUND 14500-12|01 129.450 EA EA 106 S12 17 9 1165.050 -1035.600 POWER GRINDER 231000-48|01 5.050 EA EA 109 G700 26 101 510.050 378.750 ELECTRICAL CORD-48’ B14/2|01 1.450 EA EA 111 R67 27 1 1.450 -37.700 14/2 CABLE W/GROUND BLUE CA-SS4|01 3.520 EA EA 117 H099 96 21 73.920 -264.000 ALARM AND CONNECTION BOX RXAL-B15BU|01 4.720 EA EA 119 S21 411 6 28.320 -1911.600 RX COIL PLENUM PLUS ********** Report Summary ********** Total Cutoff Onhand Valuation : 4663.940 Total Positive Valuation Discrepancies : 399.750 Total Count Onhand Valuation : 1814.790 Total Negative Valuation Discrepancies : -3248.900 Net Onhand Valuation : -2849.150

Figure 1-C-9. The Count Discrepancy for Hold Quantities Report (PI.HOLD.QTY.DISCREP).

PI.HOLD.QTY.DISCREP 07:52:59 01 JUL YYYY D2K Distribution Services Acct ivc Process 60050 Page 1

YEAR END PHYSICAL 6/30/YY - Count Discrepancies for Hold Quantities in Facility 01 Item Number Description Base Tag Bin-Loc Cutoff Count Count U/M Number Onhand Onhand Discrepancy --------------- ------------------------------ ----- ------ -------- ----------- ------ ------------ 12/2|01 12/2 CABLE W/GROUND EA 946 HOLD1 * 12 12 102 F112 10 0 -10 ----------- ------- ------------ *** Item Totals: 10 12 2 ********** Report Complete **********


Discrepancy Reports

Background When the physical inventory parameters were set using PI.CONSTANTS,

you identified allowable dollar and percent differences for count discrepancies.

Description D2K provides discrepancy reports, to be printed after all tags are accounted

for. These reports identify items where large discrepancies exist between the cutoff and the counted quantities and valuation. Large discrepancies can signal a possible error in the count, or in operator entry. Discrepancy reports should be used to identify items that should be selected for recount.

Illustrations Figure 1-C-6 is an illustration of the LIST.DISCREP.$ report.

Figure 1-C-7 is an illustration of the LIST.DISCREP.COUNT report. Figure 1-C-8 is an illustration of the LIST.DISCREPANCIES report. Figure 1-C-9 is an illustration of the PI.HOLD.QTY.DISCREP report.

Important point

You may run these reports as often as necessary, before running PI.COUNT.FINISHED, to identify large discrepancies that might require a recount. When satisfied with the discrepancies, continue by completing the physical inventory process.



Discrepancy Reports, Continued


The table below describes the discrepancy reports, and their uses.

Report Description

LIST.DISCREP.$ Valuation Discrepancy Report - identifies items where discrepancies exist between the cutoff and the counted valuation. Items may be valued at cutoff cost, or current cost.

LIST.DISCREP.COUNT Count Discrepancy Report - identifies items where discrepancies exist between the cutoff and the counted quantity. The discrepancy is identified as a percent of difference between counts.

LIST.DISCREPANCIES Valuation and Count Discrepancy Report - identifies items where discrepancies exist between both the cutoff and the counted valuation and quantity. Items may be valued at cutoff cost, or current cost. Note: To sort this report by Descending Discrepancy Value, you must first run the COST.TAGS function. Reference: For more information on COST.TAGS, refer to Section D in this chapter.

For Tag and Hold processing only: PI.HOLD.QTY.DISCREP Identifies discrepancies between the counted

quantity and the quantity reserved in the HOLD.ENTRY function for hold locations or areas. Use this report before PI.IM.UPDATE to identify discrepancies.

LIST.HOLD.QTY.DISCREP Identifies physical inventory and cycle count discrepancies between the counted and reserved quantities from the HOLD.ENTRY function. Use this report after PI.IM.UPDATE to correct discrepancies.


Guidelines for Resolving Discrepancies

Introduction You have printed the discrepancy reports, and now must decide what action,

if any, to take.

Guidelines Follow these guidelines when taking action against discrepancies found for

physical inventory counts: • If the count is determined to be incorrect, reenter the count using

ENTER.PI.COUNTS, Entry Function 3 (Reenter Counts). • In a multiple location facility, if the inventory is misplaced between

locations, you may either physically relocate the inventory to the proper location or disregard the discrepancy and let the system update inventory to the proper locations.

• For Tag and Hold processing: When a discrepancy occurs in a “Hold”

location, and the count is determined to be correct, (i.e., the error was in the HOLD.ENTRY function):

⇒ finish the physical inventory (run PI.IM.UPDATE) ⇒ print the Discrepancy Report for Hold Locations

(LIST.HOLD.QTY.DISCREP) ⇒ use the HOLD.ADJUST function to correct the quantity in the “Hold”

area.


Knowledge Check




TRUE or FALSE There are multiple options available for reconciling

physical inventory tags.

TRUE or FALSE “Extra tags” printed via the PRINT.PI.TAGS or PRINT.EXTRA.TAGS functions do not have to be accounted for during the physical inventory process.

TRUE or FALSE Discrepancy reports should be printed only after all tags have been accounted for.

TRUE or FALSE Large discrepancies can signal a possible error in the count, or in operator entry.

TRUE or FALSE Additional counts, or corrections to counts, may be entered as many times as needed to resolve discrepancies.




Question 2 Match the ENTER.PI.COUNTS Entry Function on the left with its

description on the right, by placing the appropriate letter in the column provided.

a-g Entry Function Description

Enter Counts a. Reinstates tag numbers that were voided in error.

Reenter Counts b. Voids a range of unused tags. If a tag in the entered range has a count entered, the user is given the option to void the count.

Enter Zero Counts c. Voids a range of unused tags. If a tag in the entered range has a count entered, it will be automatically skipped and not voided.

Void Tags d. Automatically enters a zero quantity count for individual tag numbers.

Void Unentered Tags e. Allows the user to enter the first counted quantity for individual tag numbers.

Reactivate Voided Tags

f. Allows the user to enter second counts for individual tags identified on a discrepancy report.

Enter Zero Counts for a Range of Tags

g. Automatically enters a zero quantity count for a range of tag numbers.

Question 3 There are two reasons why a tag audit report may be printed. They are:

• •

Question 4 Dollar and quantity percent discrepancies are identified based on parameters

set in ____________________ .




Question 5 For dollar valuation discrepancies, items may be valued at either __________

cost or at ______________ cost.






TRUE or FALSE There are multiple options available for reconciling

physical inventory tags.

TRUE or FALSE “Extra tags” printed via the PRINT.PI.TAGS or PRINT.EXTRA.TAGS functions do not have to be accounted for during the physical inventory process. Explanation: All tags, including the extra tags, must be accounted for during the physical inventory process. Extra tags that are not used must be voided.

TRUE or FALSE Discrepancy reports should be printed only after all tags have been accounted for.

TRUE or FALSE Large discrepancies can signal a possible error in the count, or in operator entry.

TRUE or FALSE Additional counts, or corrections to counts, may be entered as many times as needed to resolve discrepancies.



Knowledge Check Answers, Continued

Answer 2 Match the ENTER.PI.COUNTS Entry Function on the left with its

description on the right, by placing the appropriate letter in the column provided.

a-g Entry Function Description e. Enter Counts a. Reinstates tag numbers that were voided

in error. f. Reenter Counts b. Voids a range of unused tags. If a tag in

the entered range has a count entered, the user is given the option to void the count.

d. Enter Zero Counts c. Voids a range of unused tags. If a tag in the entered range has a count entered, it will be automatically skipped and not voided.

b. Void Tags d. Automatically enters a zero quantity count for individual tag numbers.

c. Void Unentered Tags e. Allows the user to enter the first counted quantity for individual tag numbers.

a. Reactivate Voided Tags

f. Allows the user to enter second counts for individual tags identified on a discrepancy report.

g. Enter Zero Counts for a Range of Tags

g. Automatically enters a zero quantity count for a range of tag numbers.

Answer 3 There are two reasons why a tag audit report may be printed. They are:

• identify missing tags. • check operator entry by comparing the count written on the tag

against the count entered into the system.

Answer 4 Dollar and quantity percent discrepancies are identified based on parameters

set in PI.CONSTANTS .

Answer 5 For dollar valuation discrepancies, items may be valued at either cutoff cost

or at current cost.

Completing the Physical Inventory Process 1-D-1

Section D

Completing the Physical Inventory Process

Overview

Introduction When all tags have been accounted for and discrepancies are resolved

satisfactorily, the Physical Inventory process can be completed.

Purpose The purpose of this section is to review the steps necessary to complete the

Physical Inventory process. This involves printing a valuation of all tags for accounting purposes, and updating the item file with corrected counts.


• describe the process of completing the Physical Inventory • describe the purpose of the COST.TAGS function • identify the accounting value of the physical inventory • describe how the system updates the item on-hand quantities using the

PI.IM.UPDATE function, and • reset the internal physical inventory flags

1-D-2 Completing the Physical Inventory Process

Figure 1-D-1. The Process of Completing the Physical Inventory.

Lock out additionalcount entry

(PI.COUNT.FINISHED)

Calculate thevalue of

inventory tags(COST.TAGS)

Print TagValuation report

(LIST.VAL.TAG)

Tag & Hold:print Hold LocationDiscrepancy report

(LIST.HOLD.QTY.DISCREP)

Reset internalPI flags

(PI.RESET)


The Process of Completing the Physical Inventory

Description After all tags have been accounted for and discrepancies resolved, use of the

ENTER.PI.COUNTS function must be locked out. The value of inventory tags is calculated, and printed on a tag valuation report for accounting purposes. Finally, the internal system flags that control the Physical Inventory process are reset, allowing normal processing to resume.

Illustration Figure 1-D-1 is an illustration of the process of completing the physical

inventory.

Process The table below describes the process of completing the physical inventory.

Stage Description 1 The user locks out additional count entry by running the function

PI.COUNT.FINISHED. Note: At this point, inventory transaction can be entered on the system. The PI.IM.UPDATE function, run in Stage 4, will make allowances for changes to the actual on-hand quantity.

2 The user runs the COST.TAGS function to extend the value of the counted inventory.

3 The user runs the tag valuation report, LIST.VAL.TAG. 4 The user updates item on-hand quantities using the function

PI.IM.UPDATE. 5 If Tag and Hold processing, the user prints the Hold Location

Discrepancy report (LIST.HOLD.QTY.DISCREP) and correct errors, if necessary.

6 The user resets the internal physical inventory flags using the PI.RESET function.


Figure 1-D-2. The PI.COUNT.FINISHED Screen.

PI.COUNT.FINISHED - Indicate Count Entry Completed +----------------------------------------------------------------------+ ¦ *** ATTENTION *** ¦ ¦ ¦ ¦ This function sets the physical inventory control flag to indicate ¦ ¦ that you have completed entry of your counts via ENTER.PI.COUNTS. ¦ +----------------------------------------------------------------------+ 01 Ready to Proceed? : Y 02 Facility : 01 Newark, NJ Change Which Field, END, TOP, \P ..........


How to Complete Count Entry (PI.COUNT.FINISHED)

Description The function PI.COUNT.FINISHED is used to indicate to the system that all

tags have been entered or voided.

Illustration Figure 1-D-2 is an illustration of the PI.COUNT.FINISHED screen.

Before you begin

Before running this function, make sure that • all tags have been accounted for, and • all discrepancies have been resolved.


Use the boxes below to write your menu path to the PI.COUNT.FINISHED function.

Procedure Complete the steps in the table below to indicate that count entry is

completed.

Step Action 1 Access the function PI.COUNT.FINISHED.





How to Complete Count Entry (PI.COUNT.FINISHED), Continued


Step Action 3 Type the facility code and press [Enter], or press [Enter] to use

the default facility displayed. Result: The Command Line “Change Which Field, END, TOP” displays.

4 Type END and press [Enter]. Result: The system sets an internal flag indicating that the physical inventory count is finished, and the message “The Physical Inventory Control Flag, for Facility ‘nn’ has been set to indicate that count entry is complete. Press <CR>” displays.

5 Press [Enter]. Result: You are returned to the menu.


The COST.TAGS Function

Description The COST.TAGS function is used to calculate the value of counted items

using the item’s Accounting Value cost (versus the cost saved when inventory counts were frozen). This insures that changes to item costs that occurred after the physical inventory cutoff will be considered. The system extends the cost using this calculation:

(Counted On-Hand Quantity x Current Accounting Value Cost) These results are used when printing the following reports: • LIST.VAL.TAG, when using the Current Cost option • LIST.VAL.TAG, when using the Descending Value sort option • LIST.DISCREPANCIES, when using the Descending Value sort option

Standard cost users

If your system uses the Standard costing method, your year-end procedures may require that Standard costs be changed. It is suggested that you switch to your new Standard costs between the time PI.CUTOFF is run, and the time COST.TAGS is run. By doing this, COST.TAGS will value your inventory and report discrepancies using the new Standard costs. Reference: The functions MOVE.COST.SETS and CALC.COST can be used to calculate and switch to a new Standard cost. For more information on these topics, refer to the Inventory Control User’s Guide Chapter 7, “Inventory Costing”, or speak with your D2K Customer Care Consultant.


Calculate the Current Value of Tags (COST.TAGS)

Introduction The function COST.TAGS is used to calculate the extended cost for each

item counted during the physical inventory using the current Accounting Value of each item stored in the item records. This function must be run before the LIST.VAL.TAG report can be run using the Current Cost option. It must also be run prior to running the LIST.DISCREPANCIES and LIST.VAL.TAG functions when using the “Descending Value” sort option.


Use the boxes below to write your menu path to the COST.TAGS function.

Procedure Complete the steps in the table below to calculate the value of physical

inventory tags.

Step Action 1 Access the function COST.TAGS.



3 Type the facility code to calculate costs for and press [Enter], or press [Enter] to use the default facility displayed. Result: The Command Line “Change Which Field, END, TOP” displays.



Calculate the Current Value of Tags (COST.TAGS), Continued


Step Action 4 Type END and press [Enter].

Result: The tags are extended, and the message “COST.TAGS processing is complete. Press <CR>” displays.



Figure 1-D-3. The Counted Inventory Valuation Report (LIST.VAL.TAG).

LIST.VAL.TAG 11:56:28 02 JUL YYYY D2K Distribution Services Acct ivc Process 60060 Page 1 YEAR END 6/30/YY - Valuation Listing, by Tag number using Current costs. Tag Item Number Saved Count Ent. Entered Cost Current Extended Number Description General Ledger No. Bin/Loc UOM Quantity UOM Cost Current $ ------ ------------------- --------------------- ------- ----- ----------- ----- ---------- --------- 101 12/2|01 C564 DZ 3 EA 1.000 3.00 12/2 CABLE W/GROUND 102 12/2|01 F112 EA 108 EA 1.000 108.00 12/2 CABLE W/GROUND 103 14/2|01 F113 EA 22 EA 1.000 22.00 14/2 CABLE W/GROUND 106 14500-12|01 S12 EA 9 EA 129.450 1165.05 POWER GRINDER 107 14600-00|01 A342 EA 3 EA 135.550 406.65 HD POWER GRINDER 108 231000-36|01 01-01-3100 G660 EA 21 EA 4.850 101.85 ELECTRICAL COIL - 36’ 109 231000-48|01 01-01-3100 G700 EA 101 EA 5.050 510.05 ELECTRICAL COIL - 48’ 110 B14/2|01 D124 EA 10 EA 1.450 14.50 14/2 CABLE W/GROUND BLUE 111 B14/2|01 R67 EA 38 EA 1.450 55.10 14/2 CABLE W/GROUND BLUE 112 GE060|01 A412 EA 12 EA 0.840 10.08 GE 60 WATT BULB 113 GE060|01 D129 EA 2 EA 0.840 1.68 GE 60 WATT BULB 114 GE060|01 R199 EA 3 EA 0.840 2.52 GE 60 WATT BULB 115 GE120|01 A413 EA 11 EA 0.950 10.45 GE 120 WATT BULB 116 GE120|01 E331 EA 24 EA 0.950 22.80 GE 120 WATT BULB 117 CA-SS4|01 H099 EA 7 EA 3.520 24.64 ALARM AND CONNECTION BOX 119 RXAL-B15BU|01 S21 EA 6 EA 4.720 28.32 RX COIL PLENUM PLUS 120 RXAL-B15BU|01 R45 EA 9 EA 4.720 42.48 RX COIL PLENUM PLUS 121 R14/2|01 F323 EA 5 EA 1.020 5.10 14/2 CABLE W/GROUND RED Continued ---------------- 945 X99-45|01 F110 EA 23 EA 79.760 1834.48 POWER SAW - TABLE 946 X99-45|01 RCVNG EA 2 EA 79.760 159.52 Total all Tags 348,504.27


The Counted Inventory Valuation Report (LIST.VAL.TAG)

Description The LIST.VAL.TAG function prints a report showing the dollar value of all

counted physical inventory tags. Tags can be valued based on the current Accounting Value cost (extended by COST.TAGS) or the saved cost (frozen at PI.CUTOFF). This report can be used by the Accounting department to obtain the total value of counted inventory for tax purposes.

Illustration Figure 1-D-3 is an illustration of the Counted Inventory Valuation report,

sorted by tag number, and using current Accounting Value costs (extended by COST.TAGS).

Sort options The report may be sorted by

• Tag Number • Item Number • General Ledger Account Number / Item Number • Descending Dollar Value • Inventory Division / Item Number

Valuation options

Items may be valued using • cutoff item cost (saved by PI.CUTOFF) • current item cost (extended by COST.TAGS)


How to Print the Counted Inventory Valuation Report (LIST.VAL.TAG)

Introduction The Counted Inventory Valuation report can be used by Accounting to obtain

the total value of counted inventory for tax purposes.

Before you begin

If this report will value tags using current costs, or if you need to sort the report in descending value, run the COST.TAGS function first.


Use the boxes below to write your menu path to the LIST.VAL.TAG function.

Procedure Complete the steps in the table below to print a Counted Inventory Valuation

report.

Step Action 1 Access the function LIST.VAL.TAG.

Result: The prompt “Enter the Sort Option (1-5)” displays.

2 Type the number of the Sort Option desired and press [Enter]. Result: The prompt “Enter the Cost to use (C) for Current, (S) for Saved” displays.


TO value items using… THEN type… the current accounting value C and press [Enter]. the saved accounting value S and press [Enter].




How to Print the Counted Inventory Valuation Report (LIST.VAL.TAG), Continued


Step Action 4 Type the facility to value tags for and press [Enter], or press

[Enter] to use the default facility displayed. Result: The prompt “Do want to print Extended Descriptions? (Y,N)” displays.

5 Do you want to see item extended descriptions? If yes, type Y and press [Enter]. If no, press [Enter]. Result: The Command Line “Change Which Field, END, TOP” displays.

6 Type END and press [Enter]. Result: The report prints, and you are exited from the function.


How On-Hand Quantities are Updated

Introduction After PI.COUNT.FINISHED is run, inventory transactions may once again be

entered into the D2K system. These transactions will affect the pre-count on-hand balance of items. How, then, does the D2K system correctly update the item file with physical inventory counts?

Update calculation

PI.IM.UPDATE makes allowances for changes to the saved on-hand and the actual on-hand when the update is performed. Items are updated in the following manner: (Saved On-Hand +/- new transactions entered before PI.IM.UPDATE) +/- (Counted On-Hand - Saved On-Hand) New On-Hand

Example 1 An item had a saved quantity of 100. During the count, only 90 were found.

There were no additional transactions to the item before PI.IM.UPDATE was run. The New On-Hand calculation is: 100 = (100 - 0) = (Saved On-Hand +/- new transactions) -10 = (90 - 100) = (Counted On-Hand - Saved On-Hand) 90 = New On-Hand

Saved O/H

(PI.CUTOFF) Counted O/H new

transactions New O/H

100 90 0 90



How On-Hand Quantities are Updated, Continued

Example 2 An item had a saved quantity of 100. During the count, 103 were found.

Invoices were then entered, with a total of 22 shipped before PI.IM.UPDATE was run. The New On-Hand calculation is: 78 = (100 - 22) = (Saved On-Hand +/- new transactions) + 3 = (103 - 100) = (Counted On-Hand - Saved On-Hand) 81 = New On-Hand

Saved O/H

(PI.CUTOFF) Counted O/H new

transactions New O/H

100 103 -22 (invoices) 81

IT records PI.IM.UPDATE creates IT (Inventory Transaction) records when the update

is performed. These IT records are for the difference between the counted and saved on-hand quantities (Counted On-Hand - Saved On-Hand). In Example 1, an IT record for a quantity of -10 is created:

In Example 2, an IT record for a quantity of 3 is created:

---- Inventory Transaction History ---- Page 1 Item Nbr 12/2|01 12/2 CABLE W/GROUND Stock UM EA Cutoff Date ALL Sorted Latest to Earliest Bal. Before Tran.Date Time User Transact Cd Reference Qty Transaction -------------------------------------------------------------------------------- 90 Balance 06-30-YY 11:55 ivc Inv Adj PI COR QTY -10 100 Loc 01,Unknown

---- Inventory Transaction History ---- Page 1 Item Nbr GE060|01 GE 60 WATT BULB Stock UM EA Cutoff Date ALL Sorted Latest to Earliest Bal. Before Tran.Date Time User Transact Cd Reference Qty Transaction -------------------------------------------------------------------------------- 81 Balance 06-30-YY 11:55 ivc Inv Adj PI COR QTY 3 78 Loc 01,Unknown


Figure 1-D-4. The PI.IM.UPDATE Function error report. PI.IM.UPDATE 11:19:36 02 JUL YYYY D2K Distribution Services Acct ivc Process 60230 Page 1 Physical Inventory Items not updated by PI.IM.UPDATE Serial Traceable Items and Lot tracing or IPL errors Item Number/Description Base Location Lot Number Saved Counted Discrepancy U/M On/Hand On/Hand 14600-00|01 HD POWER GRINDER EA RCVNG 0 1 1 SERIAL TRACED A342 4 3 -1 SERIAL TRACED


How to Update Item Records With Counts (PI.IM.UPDATE)

Description The function PI.IM.UPDATE is used to update the quantity on-hand in the

Inventory Planning (IPL) file with the difference between the old on-hand quantity (at the time PI.CUTOFF was run) and the counted quantity. It also writes inventory transaction records for the difference between the frozen on-hand and the counted on-hand quantities. This function also zeros out the on-hand quantity in item records for which tags were voided in the ENTER.PI.COUNTS function.

Important point

Items traced by serial number are not updated by this function. Instead, PI.IM.UPDATE prints a report showing adjustments required for serial traced items. Use the ENTER.INV.ADJUSTMENT function to make the adjustments for the physical inventory count against serial traced items.

Illustration Figure 1-D-4 is an illustration of the PI.IM.UPDATE error report. This report

shows serial traced items that must be adjusted for the physical inventory count, and items with lot number errors.


Use the boxes below to write your menu path to the PI.IM.UPDATE function.

Important point

On-hand quantities for items traced by serial number are not adjusted or updated. This function will print a report showing adjustments required for these items. You must use the function ENTER.INV.ADJUSTMENT to make any corrections to serial-numbered inventory.



How to Update Item Records With Counts (PI.IM.UPDATE), Continued

Procedure Complete the steps in the table below to update item records with physical

inventory counts.

Step Action 1 Access the function PI.IM.UPDATE.

Result: The prompt “Enter the Date for Inventory Adjustment Transactions” displays.

2 Press [Enter] to use today’s date, or type a new date and press [Enter]. Result: The message “Warning - If you have inventoried any Items which are traced by Serial Number then Remember to look for printed output defining the need to adjust these items using ENTER.INV.ADJUSTMENT. Press <CR>” displays.

3 Press [Enter]. Result: The prompt “Enter the Facility” displays.

4 Type the facility code to update and press [Enter], or press [Enter] to use the default facility displayed. Result: The Command Line “Change Which Field, END, TOP” displays.

5 Type END and press [Enter]. Result: The system updates item records with results from the physical inventory.

6 Did an error report print, showing serial numbered items to be corrected? If yes, make the necessary adjustments using the ENTER.INV.ADJUSTMENT function. If no, this completes the process.


How to Reset the Physical Inventory Process (PI.RESET)

Introduction The function PI.RESET is the last step in the physical inventory process. It is

run after all tags have been printed, items have been counted, reports have been printed, discrepancies have been reconciled, and the Item Master file has been updated.

Before you begin

If the facility uses Multiple Location processing along with Tag and Hold processing, print the Discrepancy Report for Hold Locations (LIST.HOLD.QTY.DISCREP). Any error conditions found on this report must be resolved after PI.RESET is run.


Use the boxes below to write your menu path to the PI.RESET function.

Procedure Complete the steps in the table below to reset the physical inventory process.

Step Action 1 Access the function PI.RESET.



3 Type the facility code to reset and press [Enter], or press [Enter] to use the default facility displayed. Result: The Command Line “Change Which Field, END, TOP” displays.



How to Reset the Physical Inventory Process (PI.RESET), Continued



Result: The physical inventory process is reset, and the message “PI.RESET processing is complete. To continue, you may press <CR>” displays.



Knowledge Check



Question 1 These five functions, used to complete the Physical Inventory process, must

be run in a specific order. Number the functions in the sequence in which they must be performed.

Sequence Function Description

LIST.HOLD.QTY.DISCREP Print Tag & Hold Discrepancy report.

LIST.VAL.TAG Print Tag Valuation report. PI.COUNT.FINISHED Lock out additional count

entry. PI.RESET Reset internal physical

inventory flags. COST.TAGS Calculate the value of tags

using current cost.


TRUE or FALSE Before running PI.COUNT.FINISHED, all tags must be

accounted for and all discrepancies resolved.

TRUE or FALSE After running PI.COUNT.FINISHED, you may go back and enter additional counts using the ENTER.PI.COUNTS function.

TRUE or FALSE Run COST.TAGS only when the Counted Inventory Valuation report will be run using the Current Cost option, or in Descending Value sort.




Question 3 When running the Counted Inventory Valuation report (LIST.VAL.TAG),

tags may be valued at either ________________ cost or at _______________ cost.

Question 4 When PI.CUTOFF was run, an item had a saved quantity of 237. During the

Physical Inventory count, 241 were found. There were no additional transactions to the item between PI.COUNT.FINISHED and before PI.IM.UPDATE. What is the item’s new on-hand quantity after PI.IM.UPDATE? What quantity will be written to the Inventory Transaction (IT) file?

Question 5 When PI.CUTOFF was run, an item had a saved quantity of 42. During the

Physical Inventory count, 38 were found. Between running the functions PI.COUNT.FINISHED and PI.IM.UPDATE, an invoice (shipment) for 24 of the item was processed. What is the item’s new on-hand quantity after PI.IM.UPDATE? What quantity will be written to the Inventory Transaction (IT) file?





Answer 1 These five functions, used to complete the Physical Inventory process, must

be run in a specific order. Number the functions in the sequence in which they must be performed.

Sequence Function Description

4 LIST.HOLD.QTY.DISCREP Print Tag & Hold Discrepancy report.

3 LIST.VAL.TAG Print Tag Valuation report. 1 PI.COUNT.FINISHED Lock out additional count

entry. 5 PI.RESET Reset internal physical

inventory flags. 2 COST.TAGS Calculate the value of tags

using current cost.


TRUE or FALSE Before running PI.COUNT.FINISHED, all tags must be

accounted for and all discrepancies resolved.

TRUE or FALSE After running PI.COUNT.FINISHED, you may go back and enter additional counts using the ENTER.PI.COUNTS function. Explanation: PI.COUNT.FINISHED locks out additional count entry.

TRUE or FALSE Run COST.TAGS only when the Counted Inventory Valuation report will be run using the Current Cost option, or in Descending Value sort.




Answer 3 When running the Counted Inventory Valuation report (LIST.VAL.TAG),

tags may be valued at either cutoff cost or at current cost.

Answer 4 When PI.CUTOFF was run, an item had a saved quantity of 237. During the

Physical Inventory count, 241 were found. There were no additional transactions to the item between PI.COUNT.FINISHED and before PI.IM.UPDATE. What is the item’s new on-hand quantity after PI.IM.UPDATE? 241 Actual On-Hand 237 +/- (Counted On-Hand - Saved On-Hand) + 4 New On-Hand 241 What quantity will be written to the Inventory Transaction (IT) file? 4

Answer 5 When PI.CUTOFF was run, an item had a saved quantity of 42. During the

Physical Inventory count, 38 were found. Between running the functions PI.COUNT.FINISHED and PI.IM.UPDATE, an invoice (shipment) for 24 of the item was processed. What is the item’s new on-hand quantity after PI.IM.UPDATE? Actual On-Hand 18 +/- (Counted On-Hand - Saved On-Hand) - 4 New On-Hand 14 What quantity will be written to the Inventory Transaction (IT) file? -4

Cycle Counting 2-1

Chapter 2

Cycle Counting

Overview

Introduction While a complete physical inventory may be necessary at year end, it is

equally important to keep accurate inventory records throughout the year. For this reason, cycle counting functions are available on D2K to be used in addition to the Physical Inventory module. A well-controlled and accurate inventory can mean reduced stockouts, reduced space requirements in the warehouse, increased cash available for other areas, and increased customer satisfaction.

Purpose The purpose of this chapter is to introduce you to the cycle counting

functions. This chapter will focus on the process of performing a cycle count, and will provide you with the procedures necessary to perform each step in the process.

Objectives Upon completion of this chapter, you will be able to

• describe the cycle counting process • select items to include in the cycle count • print a cycle count worksheet • enter counts for items and update inventory, and • review and purge cycle count history.

In this chapter This chapter contains the following sections:

Topic See SectionIntroduction to Cycle Counting A Select Items to Cycle Count B Enter Cycle Counts and Update Inventory C

Introduction to Cycle Counting 2-A-1

Section A

Introduction to Cycle Counting

Overview

Introduction Before starting the cycle counting process, you should understand what is

required, and how best to prepare for this task.

Purpose The purpose of this section is to introduce you to cycle counting. You will

learn about the cycle counting process, and see the features and benefits to using it.


• define cycle counting • identify the features and benefits to using cycle counting, and • describe the process of performing a cycle count.


What is Cycle Counting?

Definition Cycle counting is a method of continuously checking the accuracy of your

inventory. The goal of cycle counting is to keep the “available to sell” stock balances accurate. Using cycle counting, a specified number of items are counted each day, until all items are counted and the cycle repeated. Adjustments are made for discrepancies as they are detected, contributing to the overall accuracy of your inventory records. Cycle counting may be used in addition to the Physical Inventory module, or may be used by itself when an account of the complete inventory is not required at fiscal year end.

Example A-1 Distributors shuts their warehouse down at year-end to perform a

complete physical inventory on their 3000 items. However, they also continuously check their inventory records throughout the year by cycle counting. All items are counted once a quarter, or at a rate of approximately fifty items per day. Items are selected for count based on their location in the warehouse. Using their two stocking clerks as counters, two count worksheets are printed with twenty five items per worksheet. Counts are entered into the system, and discrepancies in inventory are immediately updated. This cycle repeats daily, until all items have been counted.

Learning advice

D2K also offers a feature that allows cycle counts obtained via a hand-held bar code reader to be uploaded to the system. This application, Bar Code Cycle Counting, can be used by companies who • use cycle counting as part of their inventory control procedures • use bar code collection devices. For more information on this feature, please speak with your D2K Customer Care Consultant.


Features and Benefits of Cycle Counting

Introduction There are many features and benefits to using the D2K cycle counting

functions.

Features and benefits

The table below describes some of the features of cycle counting and their benefits.

Feature Benefit

Checks and balances are built into the software.

Prevents you from inadvertently running crucial functions in the incorrect sequence.

Separate cycle counts can be performed simultaneously in a multiple facility environment.

Allows each facility to control which items to count, since they are performed as separate processes.

Allows you to control the volume of items to be counted each day.

Provides flexibility for those days when work loads or staffing issues prevent the intended number of items to be counted.

Select items to count by location, source vendor, product line code, sales product code, or item number.

Depending on the warehouse setup, allows you to select items using a logical sequence.

Option to automaticaly select items to count based on Highest YTD Sales@Cost or Highest YTD Receipts.

Provides flexibility in the item selection process.

Specify number of people who will be performing the cycle count.

Divides the items to count into multiple count books, providing a source document for each counter.

Freezes and stores pre-count on-hand information.

Used for variance and discrepancy reporting.

Adjustments are made for discrepancies as they are detected.

Contributes to the overall accuracy of your inventory records.

Ability to cycle count using a bar code reader.

Greatly increases the accuracy and speed at which cycle counting can be performed.


Figure 2-A-1. The Cycle Counting Process.

Select Items to Cycle Count:

Enter Cycle Counts and Update Inventory:

Establish aCycle Counting

schedule.

Select items to becounted that day.

Save pre-countcomparison data.

Print countworksheets.

Count items.Enter counts

andupdate inventory.

Print CycleCount variance

reports.

Purge countrecords not

keyed.


The Cycle Counting Process

Description Cycle counting allows you to perform a partial count of your inventory each

day. After establishing a counting schedule, items are selected to count by location, source vendor, product line code, sales product code, or item number. Count worksheets are printed, and inventory discrepancies are immediately corrected once the counts are entered into the system. Cycle counting also provides history reports, to audit any changes to inventory.

Illustration Figure 2-A-1 is an illustration of the cycle counting process.

Important point

Unlike the Physical Inventory module, cycle counts are intended to be performed over a short period of time. Therefore, changes to the frozen on-hand quantity are not taken into account when arriving at the new on-hand quantity. Once inventory on-hand quantities are frozen, no inventory movement should occur, and no transactions that affect the inventory balance should be entered for items being cycle counted.

Process The table below describes the cycle counting process.

Stage Description Select Items to Cycle Count:

1 User establishes a counting schedule, and defines options used for cycle counting for each facility.

2 User selects the items to be counted that day by selecting groups of items, or by selecting individual items.

3 User freezes current inventory information to be used as the basis for comparing counts. Note: At this point, no item movement should occur, and no transactions should be entered that affect inventory balances for items selected for cycle counting.



The Cycle Counting Process, Continued

Process (continued)

Stage Description 4 User prints worksheets to be used when performing the cycle

count. Enter Cycle Counts and Update Inventory:

5 User counts items. 6 User enters actual quantities counted. Inventory counts are

updated immediately. 7 User prints reports showing cycle count details, including

variances and discrepancies. 8 User purges cycle count records for items selected, but not

counted. Note: This places the uncounted items back into the pool of items not yet counted, and allows the process to be restarted at Stage 2.


The Cycle Count Checklist

Checklist The table below can be used as a checklist to verify that all steps of a cycle

count are performed, and in the proper sequence. These steps must be performed in the sequence shown.

Step Action

1 Establish a counting schedule and define parameters for cycle counting using the CC.CONSTANTS function.

2 Select items to be counted today using one or both of these functions: • PLAN.ITEMS.TO.COUNT (selects groups of items

based on “Cycle Count Item Selection Method” in CC.CONSTANTS)

• COUNT.THIS (selects individual items to be counted)

3 Do you want to continue using the items selected? If yes, go to Step 4. If no, run the CC.PURGE function to clear the list of item numbers selected, then return to Step 2.

4 Save current inventory information using the ITEM.CUTOFF function. Note: At this point, no item movement should occur, and no transactions can be entered that affect inventory balances for items selected for cycle counting.

5 Print worksheet(s) to be used during the count using the COUNT.WORKSHEET function.

6 Count items and write the actual quantity on the count worksheet.

7 Enter counts and update inventory on-hand using the ENTER.CYCLE.COUNTS function.



The Cycle Count Checklist, Continued

Checklist (continued)

Step Action 8 If desired, print cycle count history and variance reports:

• CC.DET.BY.ITEM • CC.DET.BY.REASON • CC.DET.BY.DOLLARS • LIST.HOLD.QTY.DISCREP (Tag and Hold processing)

9 Purge cycle count records for items selected but not counted, and reset internal cycle count flags using the CC.PURGE function.

10 Repeat Steps 2-9 until all items have been cycle counted.


Knowledge Check



Question 1 Which statement best describes cycle counting?

a. Used to verify the value of your inventory assets for financial reporting

and tax audit purposes. b. Provides accurate and current inventory status information to all

departments. c. Maintains perpetual inventory records so that at any given time, on-hand

balances are known and transaction activity is available. d. A method of continuously checking the accuracy of your inventory.


TRUE or FALSE You may perform simultaneous cycle counts for multiple

facilities.

TRUE or FALSE Inventory is updated immediately when the actual cycle count quantities are entered.

TRUE or FALSE You may continue to process invoices and receipts once the on-hand quantity has been frozen for an item selected for cycle counting.





Answer 1 Which statement best describes cycle counting?

d. A method of continuously checking the accuracy of your inventory.


TRUE or FALSE You may perform simultaneous cycle counts for multiple

facilities.

TRUE or FALSE Inventory is updated immediately when the actual cycle count quantities are entered.

TRUE or FALSE You may continue to process invoices and receipts once the on-hand quantity has been frozen for an item selected for cycle counting. Explanation: Unlike the Physical Inventory module, cycle counts are intended to be performed over a short period of time. Therefore, changes to the frozen on-hand quantity are not considered when the cycle count is entered. Once inventory on-hand quantities are frozen, no inventory movement should occur, and no transactions that affect the inventory balance should be entered for items being cycle counted.

Select Items to Cycle Count 2-B-1

Section B

Select Items to Cycle Count

Overview

Introduction Now that you understand the process of performing a cycle count, you are

ready to select the items for counting.

Purpose The purpose of this section is to review the steps needed to select items for

cycle counting. It also provides procedures on how to run each of the required functions.


• identify processing parameters found in CC.CONSTANTS • select groups of items to count • select single items to count • save pre-count comparison data, and • print a count worksheet.


Figure 2-B-1. The CC.CONSTANTS Screen.

CC.CONSTANTS - Maintain Cycle Count Control Parameters "ADD" Mode CC.CONSTANTS for Facility 01 Newark, NJ 03 Number of Items to be Counted in One Day 50 04 Item Selection Method (L,V,P,S,I) L 05 Default Adjustment Reason Code CC Cycle Count Adjustment 06 Print Internal Item Number on COUNT.WORKSHEET? N 07 Print First Line of Ext Desc on COUNT.WORKSHEET? N 08 Suppress Printing of On Hand Quantity on COUNT.WORKSHEET? N 09 Enter Counts in (B)ase, (S)elling, or (P)urchasing UOM B 10 Exclude Direct Ship Items? N 11 Nbr of Items to Count Based on Highest YTD Sales @ Cost 0 12 Nbr of Items to Count Based on Highest YTD Receipts 0 13 Exclude Items with Zero On-Hand Quantities? N ------------------ Bar Code Constants ----------------- 14 Enter Counts for ALL Item Locations? 15 Enter Counts in (B)ase or (S)elling UOM Change Which Field, END, TOP, \P ..........


The Cycle Count Constants (CC.CONSTANTS)

Description The CC.CONSTANTS contain parameters which control cycle counting.

They establish a cycle counting schedule by defining the number of items to be counted in one day. Constants are defined for each facility (if multiple facility processing is in use).

Illustration Figure 2-B-1 is an illustration of the CC.CONSTANTS screen.


The table below describes the key fields (in bold text) on the CC.CONSTANTS screen.

Field Description

Number of Items to be Counted in One Day

Determines how many items will be selected for counting by the PLAN.ITEMS.TO.COUNT function.

Item Selection Method Determines the selection method used by the PLAN.ITEMS.TO.COUNT function:

Method Selects items by… L location, or by Reference Bin

(when Multiple Location processing is not used).

V source vendor number. P product line code. S sales product code. I item number.

Default Adjustment Reason Code

Adjustments entered by the function ENTER.CYCLE.COUNTS will use this reason code and its associated G/L account number.

Suppress Printing of On Hand Quantity on COUNT.WORKSHEET

Determines whether the current on-hand quantity at cutoff will print for each item on the count worksheet.



The Cycle Count Constants (CC.CONSTANTS), Continued


Field Description Enter Counts in (B)ase, (S)elling, or (P)urchasing UOM

Determines the unit of measure in which count quantities are entered in ENTER.CYCLE.COUNTS.

Nbr of Items to Count Based on Highest YTD Sales@Cost

Determines how many items will be selected for counting by the PLAN.ITEMS.TO.COUNT function based on the highest YTD sales@cost (IM.AUX 3, Independent Usage, for current year usage periods x IM 19, Current Cost). Note: A number entered in this field takes precedence over any other selection criteria.

Nbr of Items to Count Based on Highest YTD Receipts

Determines how many items will be selected for counting by the PLAN.ITEMS.TO.COUNT function based on the highest YTD receipts (IM.AUX 54, YTD Receipts). Note: A number entered in this field takes precedence over any other selection criteria.


Guidelines for Entering CC.CONSTANTS

Introduction Your objectives for performing cycle counts will determine how you set the

cycle count constants. Example: If you want to cycle count your complete inventory line every quarter, the number of items to count in one day will be different than if the cycle count needs to be completed semi-annually.

Guidelines Follow these guidelines when setting the parameters for cycle counting in the

CC.CONSTANTS function: • Constants should be set before beginning a cycle count, and should be

reviewed before each subsequent cycle count. • Typically, the “Cycle Count Item Selection Method” should remain the

same until all of your items have been counted once. (This ensures that all items are reviewed at least once during the cycle). You may spot check individual items, however, by selecting them using the COUNT.THIS function.

• If your warehouse is set up to use locations, cycle counting by location

can be most beneficial. This will focus your daily count in a limited area of the warehouse.


Figure 2-B-2. The PLAN.ITEMS.TO.COUNT Function.

PLAN.ITEMS.TO.COUNT - Select Items to Cycle Count +----------------------------------------+ ¦ Count in Selected Items Selection ¦ 01 Proceed? Y ¦ Progress Items To Cnt Option is ¦ ¦ 0 Location ¦ +----------------------------------------+ 02 Facility 01 Newark, NJ 03 List Entries 3 .01) A110 .02) A111 .03) A112 04 Lowest Number 05 Highest Number .01) .02) .03) 06 Maximum Number of Items to be Counted 50 Change Which Field, END, TOP, \P .........

Displays the “Item Selection Method”

from CC.CONSTANTS

Allows entry of a “List” or “Range” of codes for the “Item Selection Method”


How to Identify Groups of Items to Count (PLAN.ITEMS.TO.COUNT)

Description The function PLAN.ITEMS.TO.COUNT allows for selection of items to

cycle count for a specified facility. Items to count are selected by a list or a range of record IDs, based on your “Selection Option” (location, source vendor, product line code, sales product code, or item number). The item “Selection Option” (displayed in the top right corner of the screen) is specified in CC.CONSTANTS. Items with the oldest last cycle count date are selected first.

Learning advice

Items which are both serial and lot number traced, phantom items, and items with a discrepancy in a hold location/area for which an adjustment is in progress in the HOLD.ADJUST function are not selected for counting.

Illustration Figure 2-B-2 is an illustration of the PLAN.ITEMS.TO.COUNT function.


Use the boxes below to write your menu path to the PLAN.ITEMS.TO.COUNT function.

Procedure Complete the steps in the table below to select groups of items to cycle count.

Step Action 1 Access the function PLAN.ITEMS.TO.COUNT.

Result: The prompt “Do you want to proceed with this process (Y,END)” displays.



How to Identify Groups of Items to Count (PLAN.ITEMS.TO.COUNT), Continued


Step Action 2 Type Y and press [Enter].


3 Type the facility code to cycle count, and press [Enter]. Result: If you are using the CC.CONSTANTS option to Count Based on Highest YTD Sales@Cost or Count Based on Highest YTD Receipts, you are taken directly to the “Change Which Field” prompt at Step 10. When using these options, you are not allowed to select records to count. If you are not using one of these options, the prompt “Record ID for Item Selection, <CR>, TOP” displays.

4 Look at your “Selection Option” at the top right corner of the screen. Make the following decision:

IF you want to… THEN … enter individual record IDs

based on your “Selection Option” Example: Enter specific locations to count.

• type the record ID and press [Enter].

• Continue entering record IDs, pressing [Enter] after each.

• Press [Enter] when done. • Go to Step 8. Result: The prompt “Enter the Maximum Number of Items to be Counted in One Cycle” displays.

select a range of record IDs, or ALL record IDs, based on your “Selection Option”

press [Enter]. Result: The prompt “Starting Record ID for Item Selection, <CR>” displays.



How to Identify Groups of Items to Count (PLAN.ITEMS.TO.COUNT), Continued


Step Action 5 Make the following decision:

IF you want to select… THEN… a range of record IDs for

cycle counting • type the starting record ID

and press [Enter]. • Go to Step 6. Result: The prompt “Ending Record ID for Item Selection, <CR>” displays.

all record IDs for cycle counting

• press [Enter]. • Go to Step 8.

6 Type the ending record ID in the range and press [Enter], or press

[Enter] to end with the highest record ID. 7 Repeat from Step 5 until all record selections have been made. If

necessary, press [Enter] when done to access the prompt “Enter the Maximum Number of Items to be Counted in One Cycle” displays. Note: Up to three different record ID selections may be entered.

8 Type the maximum number of items to be counted today and press [Enter], or press [Enter] to accept the default displayed. Note: This number applies to items selected through this function only. Items selected through the function COUNT.THIS are always included for counting. Result: The Command Line “Change Which Field, END, TOP” displays.

10 Type END and press [Enter]. Result: Items are selected, and you are returned to the menu.


Figure 2-B-3. The COUNT.THIS Function.

COUNT.THIS - Select Specific Items to Cycle Count "ADD" Mode 01 Item Number P3405-10|01 POLISHED CANOPY LIGHT 02 Item Type P Change Which Field, END, TOP, \P ..........


How to Select Specific Items to Cycle Count (COUNT.THIS)

Description The function COUNT.THIS is used to select specific item numbers to cycle

count. Items selected in COUNT.THIS are added to the count worksheet, along with items selected by the PLAN.ITEMS.TO.COUNT function. Items selected through COUNT.THIS always appear on the count worksheets, regardless of the maximum number of items to be counted specified in PLAN.ITEMS.TO.COUNT.

Learning advice

Items which are both serial and lot number traced, phantom items, and items with a discrepancy in a hold location/area for which an adjustment is in progress in the HOLD.ADJUST function are not selected for counting.

Illustration Figure 2-B-3 is an illustration of the COUNT.THIS function.


Use the boxes below to write your menu path to the COUNT.THIS function.

Procedure Complete the steps in the table below to select specific items to cycle count.

Step Action 1 Access the function COUNT.THIS.

Result: The prompt “Enter the Item Number” displays.

2 Type the item number to cycle count and press [Enter]. Result: The Command Line “Change Which Field, END, TOP” displays.



How to Select Specific Items to Cycle Count (COUNT.THIS), Continued



Result: The item is added to the count worksheet, and the prompt “Enter the Item Number” displays.

4 Do you want to add another item to the cycle count? If yes, repeat from Step 2. If no, type END and press [Enter]. Result: You are returned to the menu.


How to Save Pre-Count Comparison Data (ITEM.CUTOFF)

Introduction The function ITEM.CUTOFF saves current inventory status data for each

item to be counted during your cycle count. This data is used for the basis of comparing counts.

Important point

ITEM.CUTOFF must be run prior to printing a count worksheet. When an item on the count worksheet is not counted, its count sheet number is erased and the item is placed back in the “pool” to be selected again, when CC.PURGE is run.


Use the boxes below to write your menu path to the ITEM.CUTOFF function.

Procedure Complete the steps in the table below to save the pre-count comparison data.

Step Action 1 Access the function ITEM.CUTOFF.

Result: The prompt “Do you want to proceed with this process? (Y,END)” displays.

2 Type Y and press [Enter]. Result: The prompt “Enter the Facility to Process” displays.

3 Type the facility code to save pre-count data for and press [Enter]. Result: The Command Line “Change Which Field, END, TOP” displays.

4 Type END and press [Enter]. Result: The function is run, saving pre-count data for the selected items, and you are returned to the menu.


Figure 2-B-4. The Cycle Count Worksheet (COUNT.WORKSHEET).

COUNT.WORKSHEET 11:26:51 18 NOV YYYY D2K Distribution Services Acct ivc Process 60270 Page 1 Cycle Count Worksheet for Facility 01 Newark, NJ - Multi Loc Base Cnt No Item Number Item Descrip. Location Lot Number On Hand UOM Qty Counted ------ -------------- ----------------------- -------- -------------- -------- ----- ------------ 107 12/2 12/2 CABLE W/GROUND C564 24 EA ____________ F112 102 EA ____________ 108 14/2 14/2 CABLE W/GROUND F113 46 EA ____________ R345 11 EA ____________ INSPECT 2 EA ____________ RCVNG 1 EA ____________ 109 14500-12 POWER GRINDER A342 9 EA ____________ 110 14600-00 HD POWER GRINDER RCVNG 2 EA ____________ A345 0 EA ____________ 111 231000-36 ELECTRICAL CORD - 36’ G660 54 EA ____________ S32 1 EA ____________ 112 231000-48 ELECTRICAL CORD - 48’ G700 2 EA ____________ RCVNG 60 EA ____________


How to Print a Count Worksheet (COUNT.WORKSHEET)

Introduction The function COUNT.WORKSHEET is used to print one or more source

documents on which actual counts may be written. This document is then used to enter actual counts using the ENTER.CYCLE.COUNTS function.

Illustration Figure 2-B-4 is an illustration of a count worksheet. In this example, the on-

hand quantity from ITEM.CUTOFF prints (determined by CC.CONSTANTS).

Learning advice

An option is provided in CC.CONSTANTS that determines whether the on-hand quantity at item cutoff will print on the Count Worksheet. It is recommended that the on-hand quantity be suppressed from printing on the worksheet. This will insure that the counter actually performs the count, and does not assume that the count printed on the worksheet is correct.


Use the boxes below to write your menu path to the COUNT.WORKSHEET function.

Procedure Complete the steps in the table below to print a count worksheet.

Step Action 1 Access the function COUNT.WORKSHEET.

Result: The prompt “Enter the Number of Counters” displays.



How to Print a Count Worksheet (COUNT.WORKSHEET), Continued


Step Action 2 Type the number of people who will be performing the count and

press [Enter]. Note: The system divides the number of items selected to count by the number of counters and prints separate worksheets, dividing the items to count equally between counters. Result: The prompt “Enter the Facility” displays.

3 Type the facility code to print count worksheets for and press [Enter]. Result: The Command Line “Change Which Field, END, TOP” displays.

4 Type END and press [Enter]. Result: Count worksheets are printed, and you are returned to the menu.


Knowledge Check



Question 1 Which of the following is not a method that can be used to select items to

count in the PLAN.ITEMS.TO.COUNT function (the method is defined in CC.CONSTANTS): a. location, or reference bin (when Multiple Location processing is not

used) b. source vendor number c. facility number d. sales product code e. item number

Question 2 CC.CONSTANTS establish a cycle counting schedule by _______________

_____________________________________________________________ .

Question 3 TRUE or FALSE Items may be selected for counting by using only one of

the following functions: PLAN.ITEMS.TO.COUNT, or COUNT.THIS.

Question 4 TRUE or FALSE You may print a count worksheet (to identify the items

selected by PLAN.ITEMS.TO.COUNT) prior to freezing the inventory on-hand quantities using the ITEM.CUTOFF function.




Question 5 The COUNT.WORKSHEET function prints one or more source documents

on which actual counts may be written. How does this function determine the number of worksheets to print?





Answer 1 Which of the following is not a method that can be used to select items to

count in the PLAN.ITEMS.TO.COUNT function (the method is defined in CC.CONSTANTS): c. facility number

Answer 2 CC.CONSTANTS establish a cycle counting schedule by defining the

number of items to be counted in one day.

Answer 3 TRUE or FALSE Items may be selected for counting by using only one of

the following functions: PLAN.ITEMS.TO.COUNT, or COUNT.THIS. Explanation: Items selected in COUNT.THIS are added to the count worksheet, along with items selected by the PLAN.ITEMS.TO.COUNT function.

Answer 4 TRUE or FALSE You may print a count worksheet (to identify the items

selected by PLAN.ITEMS.TO.COUNT) prior to freezing the inventory on-hand quantities using the ITEM.CUTOFF function. Explanation: ITEM.CUTOFF must be run prior to printing a count worksheet. When an item (appearing on the count worksheet) is not counted, its count sheet number is erased when CC.PURGE is run.




Answer 5 The COUNT.WORKSHEET function prints one or more source documents

on which actual counts may be written. How does this function determine the number of worksheets to print? The system divides the number of items selected to count by the number of counters (entered in the COUNT.WORKSHEET function) and prints separate worksheets, dividing the items to count equally between counters.

Enter Cycle Counts and Update Inventory 2-C-1

Section C

Enter Cycle Counts and Update Inventory

Overview

Introduction Once items have been selected for cycle counting, you are ready to count the

items appearing on the count worksheet. The actual quantities counted are entered into the D2K system, and adjustments to the on-hand balances are automatically made when discrepancies are found in counts.

Purpose The purpose of this section is to describe the process of entering cycle counts,

and to review how inventory is updated when discrepancies exist. It will also review the cycle count history reports available to audit changes to inventory balances.


• enter cycle counts • change locations, lots, and/or serial numbers for a counted item • describe how the system updates inventory balances with cycle counts • clear uncounted items from the count worksheet, allowing the next group

of items to be selected for cycle counting, and • print cycle count history reports to audit changes made to inventory

balances.


Figure 2-C-1. The ENTER.CYCLE.COUNTS Screen.

Figure 2-C-2. The ENTER.CYCLE.COUNTS Screen for a facility using multiple locations.

ENTER.CYCLE.COUNTS - Enter Inventory Cycle Counts "CHG.ALL" Mode Count Number 52 Record Type P Item Number 14500-12 Date Saved 11-20-YY Description POWER GRINDER Count Date 11-20-YY Sell UOM EA Purchase on Order 24 Sales Alloc 28 Transfer on Order 0 Trans Alloc 0 Saved On Hand 35 13 Counted Qty 34 14 Reason Code CC CYCLE COUNT Change Which Field, END, TOP, \P ..........

ENTER.CYCLE.COUNTS - Enter Inventory Cycle Counts "CHG.ALL" Mode Count Number 38 Record Type P Item Number 231000-48 Date Saved 11-20-YY Description ELECTRICAL CORD - 48’ Count Date 11-20-YY Base UOM EA Purchase on Order 48 Sales Alloc 15 Transfer on Order 1 Trans Alloc 8 Saved Count 12 Locs On Hand 14 Qty Entries 4 .01) A342 46 42 .02) F112 11 13 .03) KIT.WIP 0 0 .04) RCVNG 12 12 .05) .06) .07) .08) 15 Reason Code CC CYCLE COUNT Change Which Field, END, TOP, \P .........


The ENTER.CYCLE.COUNTS Function

Description The function ENTER.CYCLE.COUNTS is used to enter the actual inventory

quantity counted for an item. This function immediately updates the item record with the new count quantity, and writes an inventory transaction (IT) record for the adjustment.

Illustration Figure 2-C-1 is an illustration of the ENTER.CYCLE.COUNTS screen. This

screen is presented when the item is in a facility that does not use Multiple Location or Tag and Hold processing. Figure 2-C-2 is an illustration of the ENTER.CYCLE.COUNTS screen. This screen is presented when the item is in a facility set up to use Multiple Location processing.

Learning advice

Depending on your system set up and the item being counted, one of six different screens will be presented in ENTER.CYCLE.COUNTS. Screens other than the two illustrations include • a screen for a lot controlled item (no Multiple Locations) • a Multiple Location screen for a lot controlled item • a Tag and Hold processing screen (no Multiple Locations) • a Tag and Hold processing screen for a lot controlled item (no Multiple

Locations)


The table below describes the key fields (in bold text) from the ENTER.CYCLE.COUNTS screen.

Field Description

Count Number The count worksheet number, which identifies the item to be counted.

‘xxx’ UOM The unit of measure specified in CC.CONSTANTS is displayed. This is either the Base, Selling, or Purchasing unit of measure. Note: All quantities entered must be in this unit of measure.



The ENTER.CYCLE.COUNTS Function, Continued


Field Description Sales Alloc The total quantity allocated to sales orders for this

item. Trans Alloc The total quantity allocated to warehouse transfer

orders for this item. Date Saved The date that the pre-count comparison data was saved

by the function ITEM.CUTOFF. Count Date Uses the current system date as the count date. Purchase on Order The total open purchase order quantity for the item. Transfer on Order The total scheduled inbound warehouse transfer order

quantity for this item. Saved On Hand The on-hand quantity saved by the function

ITEM.CUTOFF. Counted Qty The actual quantity counted in the unit of measure

displayed at the top of the screen. Cases and pieces may be entered if using selling or purchasing unit of measure.

Reason Code The appropriate reason code for this adjustment. The default reason code from CC.CONSTANTS is displayed as a default. Note: This field is required only when the count differs from the saved on-hand quantity.


How to Enter Cycle Counts (ENTER.CYCLE.COUNTS)

Introduction Actual counts have been written onto the cycle count worksheet. To update

inventory balances with these quantities, you will use the function ENTER.CYCLE.COUNTS.

Learning advice

You may only enter cycle counts for your home facility.


Use the boxes below to write your menu path to the ENTER.CYCLE.COUNTS function.

Procedure Complete the steps in the table below to enter cycle count quantities for

items.

Step Action 1 Access the function ENTER.CYCLE.COUNTS.

Result: The prompt “Enter the Count Number” displays.

2 Type the number from the count worksheet and press [Enter]. Result: The system displays the item associated with the count number, along with its saved on-hand. If the item is lot or location controlled, lot numbers and/or locations display along with the associated quantities. The prompt “Enter the Quantity Counted in ‘xxx’ Units” displays. Note 1: The unit of measure (‘xxx’) in which quantities must be entered was defined in CC.CONSTANTS. Note 2: If this is a Multiple Location facility, and if the item has no location records on file, the Command Line “Change Which Field, END, TOP” displays. Go to Step 7.



How to Enter Cycle Counts (ENTER.CYCLE.COUNTS), Continued


Step Action 3 Type the actual quantity counted and press [Enter].

Note 1: When the unit of measure is “Selling” or “Purchasing”, case and piece quantities may be entered, separated by a comma. Example: 4,10 for 4 cases and 10 pieces Note 2: Entry of the “Counted Quantity” is always required, even when the quantity is the same as the “Saved On Hand Quantity”.

4 Is this is a Multiple Location facility or a lot controlled item? If yes, repeat Step 3 for every location and/or lot number displayed, until quantities have been entered for all of the item’s locations and lots. Go to Step 6. Note: When a non-Multiple Location facility uses Tag and Hold processing, and when the item is lot controlled, the prompt “Enter the Quantity Counted in Hold Area…” displays. When this occurs, type the quantity counted in the Tag and Hold location and press [Enter]. If no, go to Step 5.

5 Look at your screen. Does the prompt “Enter the Quantity Counted in Hold Area…” display? If yes, type the quantity counted in the Tag and Hold location and press [Enter]. If no, go to Step 6





Step Action 6 Look at your screen. Does the prompt “Enter the Adjustment

Reason Code” display? If yes, type the Reason Code to use and press [Enter], or press [Enter] to use the default code displayed. If no, go to Step 7. Note: You will be prompted for an Adjustment Reason Code when the total quantity counted differs from the total saved quantity. Result: The Command Line “Change Which Field, END, TOP” displays.

7 Do you need to add or change data displayed on the screen? If yes, use standard System Conventions to add or change data, then return to Step 6. If no, go to Step 8. Note: If this is a Multiple Location facility or lot controlled item, you may add new locations or lots found during the cycle count.

8 Type END and press [Enter].





Step Action 9 Have you adjusted quantities to an item using serial numbers?

If yes, the Serial Number Entry screen displays. Add or remove serial numbers as prompted, then type END and press [Enter] to exit the screen. If no, go to Step 10. Result: The prompt “Enter the Count Number” displays.

10 Do you want to enter counts for another item? If yes, return to Step 2. If no, type END and press [Enter]. Result: You are exited from the function.


Guidelines for Correcting Tag and Hold Discrepancies (LIST.HOLD.QTY.DISCREP)

Introduction When entering a cycle count that changes the balance in a “hold” location

(Tag and Hold processing), a warning to print the LIST.HOLD.QTY.DISCREP report is displayed. This report advises you of differences between the counted quantity and the quantity reserved in the HOLD.ENTRY function for hold locations or areas.

Learning advice

The LIST.HOLD.QTY.DISCREP report prints hold location discrepancies generated as a result of both cycle counting and physical inventory.

Guidelines Follow these guidelines when taking action against discrepancies found for

cycle counts on the LIST.HOLD.QTY.DISCREP report: • If the discrepancy was caused by an incorrect inventory count or

misplaced inventory, physically relocate inventory, if required, and reenter counts using the ENTER.INV.ADJUSTMENTS function.

• When the count is determined to be correct (i.e., the error was in the

HOLD.ENTRY function) use the HOLD.ADJUST function to correct the quantity in the “Hold” area.


How On-Hand Quantities are Updated by ENTER.CYCLE.COUNTS

Introduction As soon as the operator files a transaction in the ENTER.CYCLE.COUNTS

function, inventory balances are updated and an inventory transaction (IT) record is written. How does the D2K system correctly update the item file with cycle counts?

Update calculation

The ENTER.CYCLE.COUNTS function replaces the quantity on-hand with the entered cycle count quantity. An inventory transaction (IT) record is written for the difference between the saved on-hand quantity and the counted on-hand quantity: Saved On-hand +/- (Counted On-hand - Saved On-hand) New On-hand

Example 1 An item had a saved quantity of 85. During the cycle count, only 83 were

found. The new on-hand quantity is 83:

Saved On-hand (ITEM.CUTOFF)

Counted On-hand (ENTER.CYCLE.COUNTS)

New On-hand

IT Quantity

85 83 83 -2

Example 2 An item had a saved quantity of 27. During the cycle count, 34 were found.

The new on-hand quantity is 34:

Saved On-hand (ITEM.CUTOFF)

Counted On-hand (ENTER.CYCLE.COUNTS)

New On-hand

IT Quantity

27 34 34 7



How On-Hand Quantities are Updated by ENTER.CYCLE.COUNTS, Continued

IT records ENTER.CYCLE.COUNTS creates IT (Inventory Transaction) records when

the update is performed. These IT records are for the difference between the counted and saved on-hand quantities (Counted On-hand - Saved On-hand). In Example 1, an IT record for a quantity of -2 is created:

In Example 2, an IT record for a quantity of 7 is created:

Warning Unlike the Physical Inventory module, ENTER.CYCLE.COUNTS does not

make allowances for changes to the saved on-hand quantity. After saving pre-count data and before entering cycle counts, no item movement should occur, and no transactions should be entered that affect inventory balances for items selected for cycle counting. Failure to do this will result in an inaccurate update to your inventory on-hand balance.

---- Inventory Transaction History ---- Page 1 Item Nbr 12/2|01 12/2 CABLE W/GROUND Stock UM EA Cutoff Date ALL Sorted Latest to Earliest Bal. Before Tran.Date Time User Transact Cd Reference Qty Transaction -------------------------------------------------------------------------------- 83 Balance 11-24-YY 08:55 ivc Inv Adj CC CC -2 85 Loc 01,B520

---- Inventory Transaction History ---- Page 1 Item Nbr GE060|01 GE 60 WATT BULB Stock UM EA Cutoff Date ALL Sorted Latest to Earliest Bal. Before Tran.Date Time User Transact Cd Reference Qty Transaction -------------------------------------------------------------------------------- 34 Balance 11-24-YY 08:56 ivc Inv Adj CC CC 7 27 Loc 01,A145


Figure 2-C-3. The CC.PURGE Function. CC.PURGE - Purge Cycle Action and Cycle Count Records +---------------------------------------------------------------+ | *** ATTENTION *** | | | | This function deletes the cycle count records associated with | | items already selected to count through PLAN.ITEMS.TO.COUNT | | and/or COUNT.THIS, thereby allowing items to be reselected | | through PLAN.ITEMS.TO.COUNT. | | | +---------------------------------------------------------------+ 01 Ready to Proceed? : 02 Facility : 1 Do you want to proceed with this process? (Y,N), END: ...


The CC.PURGE Function

Description The function CC.PURGE is used to clear items selected for cycle counting, or

to remove uncounted items from the count worksheet. Any item selected by PLAN.ITEMS.TO.COUNT or COUNT.THIS, for which a count has not been entered (in ENTER.CYCLE.COUNTS) is removed from the current cycle count. This allows new items to be selected for counting. This function may be used: • before ITEM.CUTOFF, allowing a new range of items to be selected for

the day’s count • after ITEM.CUTOFF and COUNT.WORKSHEET, when the items

selected to count and printed on the worksheet are not acceptable, or • after entering counts using ENTER.CYCLE.COUNTS, to remove

uncounted items from the count worksheet.

Illustration Figure 2-C-3 is an illustration of the CC.PURGE function.


Figure 2-C-4. The Cycle Count History by Item Report (CC.DET.BY.ITEM).

CC.DET.BY.ITEM 09:48:45 24 NOV YYYY D2K Distribution Services Acct ivc Process 60090 Page 1 Count Detail for Facility 01 Item Number Date On Hand Adj Lot Number Location Base Adjust Cost Adjusted Description Saved Quantity Rsn UM Quantity UM Value Cd -------------------------------------------------------------------------------------------------------- Date Count was Reconciled 11-18-YY 12/2|01 11-18-YY 102 CC F112 EA 25 EA 25.000 12/2 CABLE W/GROUND 14/2|01 11-18-YY 46 CC F113 EA 1 EA 1.450 14/2 CABLE W/GROUND 14/2|01 11-18-YY 11 CC R345 EA -2 EA -2.900 14/2 CABLE W/GROUND 14500-12|01 11-18-YY 9 CC A342 EA -2 EA -258.900 POWER GRINDER 14600-00|01 11-18-YY 2 CC RCVNG EA 3 EA 407.250 HD POWER GRINDER 14600-00|01 11-18-YY 0 CC A345 EA -1 EA -135.750 HD POWER GRINDER Subtotal ------------------> 24 36.150 Total for Facility 01 ---> 24 36.150

Figure 2-C-5. The Cycle Count History by Adjustment Reason Code Report (CC.DET.BY.REASON).

CC.DET.BY.REASON 14:16:56 24 NOV YYYY D2K Distribution Services Acct ivc Process 60230 Page 1 Count Detail for Facility 01 Item Number Date On Hand Date Lot Number Location Base Adjust Cost Adjusted Description Saved Quantity Counted UM Quantity UM Value -------------------------------------------------------------------------------------------------------- Adjustment Reason CC CYCLE COUNTING ADJUSTMENT 12/2|01 11-18-YY 102 11-18-YY F112 EA 25 EA 25.000 12/2 CABLE W/GROUND 14/2|01 11-18-YY 46 11-18-YY F113 EA 1 EA 1.450 14/2 CABLE W/GROUND 14/2|01 11-18-YY 11 11-18-YY R345 EA -2 EA -2.900 14/2 CABLE W/GROUND 14500-12|01 11-18-YY 9 11-18-YY A342 EA -2 EA -258.900 POWER GRINDER 14600-00|01 11-18-YY 2 11-18-YY RCVNG EA 3 EA 407.250 HD POWER GRINDER 14600-00|01 11-18-YY 0 11-18-YY A345 EA -1 EA -135.750 HD POWER GRINDER Subtotal ------------------> 24 36.150 Total for Facility 01 ---> 24 36.150


Figure 2-C-6. The Cycle Count History by Dollar Value Report (CC.DET.BY.DOLLARS).

CC.DET.BY.DOLLARS 14:35:42 24 NOV YYYY D2K Distribution Services Acct ivc Process 60230 Page 1

Count Detail for Facility 01

Item Number Date On Hand Date Adj Lot Number Location Base Adjust Cost Adjusted Description Saved Quantity Counted Rsn UM Quantity UM Value Cd

14600-00|01 11-18-YY 2 11-18-YY CC RCVNG EA 3 EA 407.250 HD POWER GRINDER 12/2|01 11-18-YY 102 11-18-YY CC F112 EA 25 EA 25.000 12/2 CABLE W/GROUND 14/2|01 11-18-YY 46 11-18-YY CC F113 EA 1 EA 1.450 14/2 CABLE W/GROUND 14/2|01 11-18-YY 11 11-18-YY CC R345 EA -2 EA -2.900 14/2 CABLE W/GROUND 231000-36|01 11-18-YY 54 11-18-YY CC G660 EA -1 EA -4.720 ELECTRICAL CORD - 36’ 14600-00|01 11-18-YY 0 11-18-YY CC A345 EA -1 EA -135.750 HD POWER GRINDER 14500-12|01 11-18-YY 9 11-18-YY CC A342 EA -2 EA -258.900 POWER GRINDER Subtotal ------------------> 24 36.150 Total for Facility 01 ---> 24 36.150


The Cycle Count History Reports

Description D2K provides variance reports, to be printed any time after counts are

entered. These reports provide an audit trail of adjustments made to inventory balances as a result of cycle counts. The user may print cycle count history for items counted within a specified range of dates, for all or selected facilities. These functions provide the optional inclusion of items with no quantity adjustment.

Illustrations Figure 2-C-4 is an illustration of the Cycle Count History by Item report.

Figure 2-C-5 is an illustration of the Cycle Count History by Adjustment Reason Code report. Figure 2-C-6 is an illustration of the Cycle Count History by Dollar Value report.


The table below describes the cycle count history reports, and their descriptions.

Report Description

CC.DET.BY.ITEM A history detail report for items counted within a specified range of dates.

CC.DET.BY.REASON A history detail report by adjustment reason code for a specified range of dates.

CC.DET.BY.DOLLARS A history detail report by descending adjustment dollar value for a specified range of dates.


Knowledge Check



Question 1 Mark all statements that are true about the ENTER.CYCLE.COUNTS

function. a. Immediately updates the item record with the actual counted quantity. b. Allows for a second count to be entered when a discrepancy is reported. c. Allows you to change the unit of measure for the actual quantity as the

count is entered. d. Will present one of six different screens for count entry, depending on

your system set up and the item being counted. e. Allows you to enter counts for items not appearing on the count

worksheet.

Question 2 TRUE or FALSE The ENTER.CYCLE.COUNTS function allows you to

add, change, or delete quantities on-hand for an item using lot and /or serial numbers.

Question 3 TRUE or FALSE Invoicing of an item selected to cycle count is

permissible, as long as the inventory was physically removed from the warehouse prior to running ITEM.CUTOFF.




Question 4 When ITEM.CUTOFF was run, an item had a saved on-hand quantity of 278.

During the cycle count, 290 were found. What is the item’s new on-hand quantity after the count is entered in ENTER.CYCLE.COUNTS? What quantity will be written to the Inventory Transaction (IT) file?

Question 5 TRUE or FALSE The CC.PURGE function is used to clear all variances

and discrepancies from the Cycle Count History reports.





Answer 1 Mark all statements that are true about the ENTER.CYCLE.COUNTS

function. a. Immediately updates the item record with the actual counted quantity. d. Will present one of six different screens for count entry, depending on

your system set up and the item being counted.

Answer 2 TRUE or FALSE The ENTER.CYCLE.COUNTS function allows you to

add, change, or delete quantities on-hand for an item using lot and /or serial numbers.

Answer 3 TRUE or FALSE Invoicing of an item selected to cycle count is

permissible, as long as the inventory was physically removed from the warehouse prior to running ITEM.CUTOFF. Explanation: Unlike the Physical Inventory module, ENTER.CYCLE.COUNTS does not make allowances for changes to the saved on-hand quantity. After saving pre-count data and before entering cycle counts, no item movement should occur, and no transactions should be entered that affect inventory balances for items selected for cycle counting. Failure to do this will result in an inaccurate update to your inventory on-hand balance.




Answer 4 When ITEM.CUTOFF was run, an item had a saved on-hand quantity of 278.

During the cycle count, 290 were found. What is the item’s new on-hand quantity after the count is entered in ENTER.CYCLE.COUNTS? 290 What quantity will be written to the Inventory Transaction (IT) file? 12

Answer 5 TRUE or FALSE The CC.PURGE function is used to clear all variances

and discrepancies from the Cycle Count History reports. Explanation: The function CC.PURGE is used to clear items selected for cycle counting, or to remove uncounted items from the count worksheet. This allows new items to be selected for counting.

Summary 3-1

Summary

Putting These Ideas to Work

Introduction This concludes the Physical Inventory and Cycle Counting User’s Guide. At

this point, you should have enough information about physical inventory and cycle counting to complete the objectives listed in the Preface of this manual.

Essential ideas of this User’s Guide

You should now be able to • describe the Physical Inventory process • complete the necessary tasks to perform a physical inventory, including

printing tags, entering counts, and identifying discrepancies • describe the Cycle Counting process, and • complete the necessary tasks to perform a cycle count, including selecting

items to count, printing a count worksheet, and entering counts.

For more information

The on-line prompt help and function documentation available on your D2K system, can provide additional information about physical inventory and cycle counting.

Learning advice

If you are not comfortable with the information presented, or have additional questions not answered by this User’s Guide, please speak with your System Administrator or D2K Customer Care Consultant.

Physical Inventory and Cycle Counting User’s Guide Evaluation Name: ____________________________________ Date: _____________ Company/Region: ____________________________________ We depend on your feedback to help us improve our user’s guide. Please print and complete this form and fax it to: Manager, Technical Communications, D2K, at (215) 321-8015. For each of the statements below, check the box that reflects your reaction to a particular aspect of the user’s guide. Then use the Comments area to elaborate. Be as specific in you comments as possible. User’s Guide Organization 1. Did the sequence of information enhance your understanding by

leading you from simple to complex topics? Comments:________________________________ ___________________________________________

2. Was the guide’s level of difficulty appropriate for your level of

experience on the job? Comments:________________________________ ___________________________________________

3. Did this guide cover topics you need to know to perform your job?

Comments:________________________________ ___________________________________________

4. Was the length of the guide comfortable (informative but not taxing)?

Comments:________________________________ ___________________________________________

User’s Guide Objectives 1. Were the objectives written clearly?

Comments:________________________________ ___________________________________________

2. Did the objectives cover tasks you expect to perform on the job?

Comments:________________________________ ___________________________________________

Instruction 1. Do you feel you can perform the tasks stated in the objectives?

Comments:________________________________ ___________________________________________

Yes Somewhat No

Yes Somewhat No

Yes Somewhat No

Yes Somewhat No

Yes Somewhat No

Yes Somewhat No

Yes Somewhat No

continued…

2. Was the information written clearly?

Comments:________________________________ ___________________________________________

3. Were simple topics covered adequately, while complex topics were covered in depth? Comments:________________________________ ___________________________________________

Presentation of Information 1. Did the text help you to understand the illustrations?

Comments:________________________________ ___________________________________________

2. Did the illustrations supplement and clarify the information in the text? Comments:________________________________ ___________________________________________

3. Was the information presented in a clear and organized manner? Comments:________________________________ ___________________________________________ Time

1. How long did it take you to complete the user’s guide? ______ hours. In how many sittings? ________ Scope

1. Which topics, if any, need further explanation? Comments:________________________________ ___________________________________________

2. What topics, if any, should we consider adding? Comments:________________________________ ___________________________________________

3. What topics, if any, should we consider deleting? Comments:________________________________ ___________________________________________ Please use this space to provide us with more comments:

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