Stock counts are conducted periodically using the Stock Counts screen. The purpose of a stock count is to physically count stock on hand and adjust the on hand quantity when any variance is encountered. Stock counts are typically scheduled and initiated by Cycle Count Codes for sets of items.
Do not use stock counts to correct inventory errors
Whenever an inventory error is detected during workflow processes, do not use a stock count to correct the error. Instead, correct the error using the Stock Adjustments screen, which is designed to adjust stock on hand for one item at a time. By contrast, a stock count always applies to a set of items and is for inventory maintenance purposes.
Stock counts require real-time inventory updating and location control
Stock counts are only possible with real-time inventory updating and location control. Without real-time inventory updating, on hand quantities are not accurate and have no basis of comparison with physical counts. Without locations, there is no way to account for stock stored in multiple physical locations.
Job issues must be made in real time
In order to achieve real-time inventory updating, job issues must be performed when material is actually issued out on the shop floor. This means that you cannot delay job issues by “backflushing” components at time of job finish. See the Job Issues chapter for more information.
Do not avoid using locations
Do not avoid locations by using a single dummy location that has no meaning. Use multiple locations so that stock quantities are tracked against actual locations. Using multiple locations reduces errors, increases inventory accuracy, and saves time by facilitating job issuing, order picking, and stock counts.
Avoid mass physical inventories
Unless required for auditing or regulatory purposes, avoid conducting mass physical inventories where you freeze operations and count your entire inventory. Mass physical inventories are highly disruptive to operations and notoriously error-prone.
Use cycle counting
Instead of mass physical inventories, implement a cycle counting program. Cycle counting is the process by which a small sub-set of stock items is counted on a periodic basis. Each subset of items can be assigned to a Cycle Count Code against which stock counts can be scheduled to be conducted at planned intervals.
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Cycle counting is ideal for bulk materials with variable usage
Cycle counting is ideally suited for bulk raw materials such as plastics where job usage quantities are not precise and vary from job to job for the same parent item. The only practical way to issue such materials to jobs is to accept the BOM usage quantity by default. A cycle counting schedule can be applied to such items so that periodic stock counts are made to adjust on hand quantities to reflect actual stock on hand.
Alternative to mass physical inventories
Mass physical inventories where a stock count is performed on the entire inventory requires you to suspend operations and is error-prone due to the large number of items and locations being counted by numerous people in a short period of time.
Instead of conducting mass physical inventories, you can implement a cycle counting program where you count selected items, item categories, or location groups periodically on a scheduled basis. Small cycle counts are relatively easy to conduct and can be performed without suspending shop activities.
Freezing the stock count inventory
When you initiate a stock count, your intent should be to “freeze” the associated items and locations so that live transactions do not occur while a stock count is in progress. If any transactions happen to occur against an item after the stock count is initially created, the program will not allow a count quantity to be entered. Therefore, freeze the associated inventory and perform the actual stock count as quickly as possible.
Using mobile devices
Stock counts are ideally suited for real-time entry using mobile devices such as tablets or notebooks. See the Installation / Update guide for system requirements.
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Installation / Update Guide - Shop Floor Access
