Inventory Physical Count Process

Setup

1. Physical Inventory Types: Define how various count events are managed per warehouse. Each type includes settings for which items will be included and how the count sheets are ordered. You can also limit the selection to specific warehouse locations. Create as many Physical Inventory Types as needed to support counting activities.
   1. Enter Type ID
   2. Enter type Description
   3. Select Generation Method: Determines which setup tabs appear on the screen. (Enable Advanced Physical Inventory to access options 2-6 below.)
      1. Full Physical Inventory
      2. By Inventory – Select specific Items to be counted on the Inventory Item Selection tab
      3. By Movement Class – assigned to items in separate process or manually
      4. By ABC Code – assigned to items in separate process or manually
      5. By Cycle – Setup cycle frequency first, the assign to items
      6. By Item Class - Select specific Item Classes to be counted on the Item Class Selection tab
   4. Unfreeze Stock When Counting is Finished: When checked, this allows normal inventory transactions to resume immediately after selecting Finish Counting.

⚠️ Use caution: If count quantities are still being entered or reviewed, this may cause discrepancies in the inventory count adjustment. This option is not recommended for most cases.

1. 5. Hide Book Qty on PI Count: Hides the system’s frozen quantity (“booked quantity”) during data entry.

Note: This option is not available for Lot/Serial-tracked items.

1. 6. Warehouse: Select warehouse being counted for the type.

Process

1. Prepare Physical Count
   1. Navigate to the Prepare Physical Count screen.
   2. Select the appropriate Type ID (based on the Physical Inventory Type set up earlier).
   3. Define any exclusions for the count on the Location and Item Selection tabs.
   4. Click Generate PI to:
      1. Create the count sheet.
      2. Take a snapshot of current inventory quantities and values.
      3. Freeze inventory for all items included in the count (no inventory transactions can occur for these items until the resulting adjustment is released).

2. Documenting the Count:  Employees responsible for counting can use the following tools under the Inventory → Physical Inventory section:
   1. Physical Count Tags – Print tags for each item to be counted.
   2. Physical Count Sheet – Print sheets showing (optionally) the Book Qty and a space to record the Physical Qty.
   3. Physical Inventory Count – Allows multiple users to enter count data simultaneously without viewing item costs or hidden Book Qty. Data can also be exported to Excel for offline entry.

Note: Alternatively, the count quantities can be recorded with a barcode scanner in the Scan and Count screen of Acumatica WMS.

2. 4. Physical Inventory Review – Export the count list from Prepare Physical Count to Excel, then re-import results into this screen.
3. Review Physical Inventory
   1. Use the Physical Inventory Review screen to review and reconcile physical count results.
      1. Enter count quantities or upload from a spreadsheet to record all count information.
      2. Apply a specific Reason Code to identify adjustments from the count process. This can be defaulted in Inventory Preferences.

1. 2. Finish Counting – Marks the count as complete and enables variance and cost review.

Note: Adjustments to Physical Qty and Unit Cost can still be made after this step.

1. 3. Update Actual Cost – Recalculates item costs using average cost for all items, regardless of valuation method.

1. 4. Set Not Entered To Zero – Sets uncounted items to zero quantity and updates detail lines from Not Entered to Entered status.

Note: Using this option will result in items set to zero Physical Qty being adjusted out of inventory.

1. 5. Set Not Entered To Skipped – Excludes uncounted items from adjustments, retaining their original quantities, and updates detail lines from Not Entered to Skipped status.

1. 6. Cancel PI – Cancels the count and unfreezes affected items. A cancelled count may be deleted using the trash can icon.
   7. Complete PI: Creates inventory adjustment transaction based on quantities and cost in the count sheet.

4. Physical Count Variance Preview - Report to view quantity and cost variance for a physical count prior to finalizing the adjustment.

5. Release Inventory Adjustment Transaction
   1. From the Physical Inventory Review –> ADJUSTMENT INFO tab, open the inventory adjustment using the Ref Nbr link.
   2. Release the inventory adjustment transaction to finalize the count process.