physical inventory

Warehouse physical inventory is the process of taking a physical inventory count. At the end of the fiscal period, most companies take an inventory count. The difference between the perpetual or expected inventory and the actual inventory is journalized to an inventory shrink account.

There are two options available to enter inventory counts.

• Physical Inventory Count - when using this method, the user will enter each line for the products that were counted.
• Auto-Load - this method will load all products in inventory with the available inventory. The user will then enter the actual inventory for the required products.

The following options are outlined in this document

• Physical Inventory Count
• Auto-Load Inventory
• Post Physical Inventory
• Journal Transactions

Physical Inventory Count

1. In General>Warehouses, select Physical Inventory.
2. In the Warehouse Physical Inventory main index, click to create a new physical inventory record.
3. In the New Record dialog box, In the Trans Date field, enter the date of the physical inventory. Generally, physical inventory records are created at the end of the fiscal year.
4. From Warehouse No, select the warehouse/cost center where the inventory is located, and then click 'OK'.
5. In the Warehouse Physical Inventory screen, click to add a new inventory product. This will allow one product to be added at a time.
   

6. Entity Trans ID displays the warehouse cost center for the physical inventory adjustment.
7. Entity Trans Name displays the name of the selected warehouse.
8. From the Product Type drop-down menu, select the required type of product. Available options are: Field Products, Medication, Semen, or Vaccinations.
9. From Product No, select the product number of the required inventory product. Product numbers will filter for available products according to the selected product type. For example, if 'Medication' is selected in the Product Type field, Product No will display only medication product numbers.
10. Product Name defaults from Product No and displays a description of the product.
11. Lot No is a unique identification number for the product, and is generally used for medications and vaccinations. Enter the lot number, if applicable.
12. In the Location No field, enter the location number of where the inventory product is stored, if applicable. This field is optional and is not validated.
13. The Consignment flag will be selected if the product is purchased on consignment.
14. The Consignment Complex PO will be displayed if the consignment flag is selected, and is for reference only. Any consignment inventory that is adjusted will not be expensed with the warehouse inventory.

 




15. Adjustment Quantity calculates the difference between what he system says is there and the amount that is actually counted. *NOTE: Adjustment Quantity and Adjustment Value will be calculated once the physical inventory transaction is saved.
16. In the Quantity field, enter the number of units of the selected product.
17. Adjustment Value automatically calculates the value using the selected valuation methodology of Average Cost or FIFO.
18. Book Quantity displays the product quantity in units depending on the system's numbers. When the record is saved, Book Quantity will update to reflect the number entered in the Quantity filed.
19. Selecting the Void flag will cancel the inventory line.
20. In the Comments field, enter any additional information related to the inventory product.
21. Post Status indicates whether the inventory line is Active or Posted and will automatically update to reflect changes.
22. Once the fields have all been entered, click to save the inventory record, and then close the screen. Saving the record will calculate the adjustment quantity and value. Ending Inventory can be viewed in: Warehouses>Inventory from the  folder.

Auto-load from Inventory

Alternatively, all products from inventory can be automatically added at one time rather than adding individual products one at a time.

1. To add all products from inventory, in the Warehouse Physical Inventory screen, click the drop-down menu and select 'Auto-load from Inventory'.

 




2. All of the products in inventory for the selected date will be listed on the Warehouse Physical Inventory screen with the current inventory quantities.





3. In the Quantity field, enter the number of units of the selected product.
4. If applicable, enter any additional information In the Comments field.
5. Once the fields have all been entered, click to save the inventory record, and then close the screen. This process will establish an ending inventory, unit quantity, and value. To view the product in inventory, select Warehouses>Inventory.

Post Physical Inventory

Once the physical inventory has been entered and saved, the transaction needs to be posted. The posting process locks the physical inventory record to prevent edits, and creates the journal transaction to record the adjustment variance. The UnPost option unlocks the physical inventory and reverses the journal transactions.

1. In the Physical Inventory index, select the required transactions and right-click to select 'Post'.
2. To un-post an inventory, select the required physical inventory transactions and right-click to select 'UnPost' or select Options>UnPost. This process will set the transaction status to Reversed which allows the transaction to be edited. The unposting process will also reverse the journal transaction created in the post process.

Journal Transaction

The posting process creates the journal transaction. The journal will record the product to inventory and create the accounts payable accrual.