Cyclic counting is performed for establishing the accuracy of system The following exercise performs a Cyclic count.

count. It is normally done for

quantities by matching them to the physical quantities. Sys qty may not high valued items. We can schedule the counting periodically to daily,
match the physical qty due to : Items misplacement, Damaged and weekly or once in a period. Create an org test_inv1 in Visions Line Of
broken items ( known during count), Stolen goods, wrong data entry, etc. Business. ( LOB)
1
T01 is created with Vision Operation as Item master Organisation. Create a Sub_Inventory t_sub1.

2
Create the first item t_no_control with no Serial, Lot control and revision T_lot_control2 is set for Full Lot Control.
controls.

3
T_serial_Control3 is set as Serial Generation at Receipt. Receive 3 qty into our sub inventory with sno101 to 103.

4
We can visualize the On hand balances in Item Item Search. Define an ABC compilation t_compile1 with content scope and valuation
scope as org, org. Since no items are costed choose Current On-hand
qty as Criterion

5
Upon completion of the compilation, the sorted results can be viewed. Create three classes hi qty, me qty and lo qty.
No control item, which has 51 qty appears on the top.

6
T_assign_group1 associates the compiles to the created classes. Remember that every class must contain atleast one item. The compiles
are assigned to various classes.

7
The assignments can be viewed under Update items.
Create a cyc counting t_cyc_count1. The adjustment account will post
the costed differences in sys qty and actual qty for future analysis.
Unscheduled entries can be counted during the present count. System
qty can also be shown to the counters also. Auto Recounts can be
restricted to a maximum of 1 count. Choose all or specific sub-inventries
for performing the count.
8
Serial control option is chosen as Multiple Per Request. This will club all
serial numbers into one sequence. Auto Schedule to a frequency of
every day also. Zero qty items can also be counted as the missing items
in the previous check may appear during this count.
We can manually choose our classes for counting with a frequency of 25
counts in a year. Here we have chosen me qty and lo qty classes only.
9
Items that belong to other classes also ( as per ABC assignment) can be
manually assigned to different classes as per need.
Here no control item which belongs to hi qty class in our ABC
assignment, is assigned to me qty, manually.
Approvals can be for out of tolerance limits of say + or 5 % in qty
variance or + or 2 % in value. We can also define a count to be a hit
count, for a specific tolerance limit, say + or 1%.
10
We can re-initiate this manually assigned class item combination by After the completion of the concurrent program the option is set to None.
performing a re-initialisation by our ABC assignment group. This will put
the ABC assignments in place for class and items.

11
Classes and items will reflect the ABC assignment group combination. Perform a full cycle count ( Tools Perform cycle count). This is a
This supersedes manual assignments. request group containing three concurrent programs ( scheduler, count
request generator and count listing)

12
In the parameters for Generate automatic schedule, enter our Cyclic In Generate cyc count request, mention our cyc count name.
count name. Include control items.

13
Fill the parameters for Listing. Submit the concurrent. This parent request set Perform Full Cycle
Count will automatically spawn three child concurrents.

14
Cyclic count listing will not generate any listing, as the output for this Run the cyc count listing againmanually. This will generate a output for
concurrent has been disabled. We have to go to Sys admin and query our Cyclic count.
the Request set and edit the parameters of Listing concurrent.

15
We can see the output. Keep a scale on the dotted line and tear off the Open the count entry form and enter the count details, as written in the
slips and hand it over to various counters. They will visit the shop floor slip.
and perform a count as mentioned in the slip.

16
Counts which are less the the sys qty will be displayed in red. For serial We can remove only from the present and not from the sys qty.
controlled items, the missing serial numbers must be entered.

17
The approver will open the count details and examine the counted qty. Various selections have been made as desired by the approver.
He can now take four actions None, Approved, Rejected or Recount.

18
Upon commit ( Save) the adjustments, if any, gets processed. One of the We can verify the new on-hand balances in items Item Search.
count has been sent for re-count.

19
In Cycle Count entries, we can find the count seq that has been sent for Here the serial number , that is missing has been corrected and saved.
re-count.

20
The revised qty has been approved. It is verified in items Item search
The next accuracy check is Physical Inventory. This is performed once or
twice in an year and it is an Audit pre-requisite for verifying the Inventory
balances reflected in Profit and Loss balance sheet.
Create a Phy. inventory with approval required as Always.
21
Click on the snap shot button. This is equivalent to freezing of the The concurrent is run for logical freezing of the inventory.
physical inventory. No inv transactions are permitted till the physical
count is completed. Only after the adjustments are posted, the inventory
will be released. This is however a logical freeze and the system allows
transactions during counting also.
22
We can observe that the Snapshot is greyed and tags are enabled. The Every digit of the tag can have different increment numbers.
snapshot completion date is mentioned. The physical inventory is now
eligible for tag generation.

23
We can have only even number tags with the last digit increment set to We can also make the tags increment by 100 by having only third digit
2. incremented by 1.

24
Try very many combinations of increments. It can virtually meet any Query all tags to be counted.
client requirement of tag numbering. Upon commit, a concurrent is
generated.

25
Here the sys quantities will not be displayed to the counter. Every serial Count results for serialised item numbers must be either 0 or 1. They
number is allocateda separate tag. cannot be 2.

26
Enter the count qty and commit. The approver has only thre options. None, Approve or reject. We cannot
sent the counts for re-count as this is part of verification and not
correcting the sys qty ( as in the case of Cyc. Counting). Note one of the
count is still in None. Every count must be either approved or rejected.
27
Here upon approval, the adjustments are not processed, as in the case Adjustments are processed separately.
of Cyc. Counting.

28
A concurrent is launched for adjustment of inventory qty. We can observe that the concurrent has landed into warning. Here one
of the count which was in None, has prevented the adjustements being
processed. Even if one count is in None status, no adjustments will be
processed.
29
The above message indicates that. Make the change for that count also.

30
We can see that the concurrent has completed normally. The on-hand quantites will now reflect all the adjustments. This
completes the process of Physical examination of Inventories.

31
The following are some of the differences between Cyclic Counting and Physical Inventory.

S Cyclic Counting Physical Inventory

No
1. This is done for Internal verification of Costly/sophisticated/high
moving items in our Inventory
2. This is done periodically ( day/week/month etc.) for ensuring
availability of system quantities for transaction. CC also identifies
material handling damages and misplaced items, if any.
3. If CC reports 99% counts as hit counts ( less than 1% deviation of
phy and sys qty), Physical Inventory may be waived.
4. CC is performed on specific sub-inventories and items. Specific
classes and items are chosen for scheduling the counting. Items
and classes can be re-initialised by ABC assignment group.
5. Sequence numbers are generated for every count. Serial
numbers can be clubbed in a count with Multiple per request
selection. Items that shows zero qty can also be counted.
6. Number of automatic re-counts can be restricted for adjustment
of sys qty.
7. Unspecified entries during a count can also be included, if
necessary. The scheduling algorithm plans the counting of every
class as per counts per year
8. System qty can be displayed to the counter, for analyzing
missed / misplaced items.
9. Adjustments processed upon approval.
10. Even if approvers take no action on some counts, adjustments
are still processed.
This is an Audit Requirement for physical verification of Inventory
Stock as projected in Financial statements.
This is normally done once in a year or 6 months by Audit for tallying
phy. quantities with sys. Qty, before announcement of Financial
results for half yearly / yearly periods.
No such criteria.
It is usually performed for all items and all sub-inventories put
together. ABC classifications are not used. Inventory is freezed for
transactions during counting period.
Tag numbers are generated for count. Every sno will have a separate
tag. Flexibility for generating tags with diff increments for diff digits of
tag ( eg. Only even number tags are possible)
Re-counts are not possible. Counted results are final. Audit may
accept or reject count results.
By default all items are counted. We have the option of voiding and
un-voiding tags during count, as agreed by audit.
Audit is sitting before the Inventory to verify whether the sys qty are
unnmai or poi. Sys qty can not be shown to counter.
Adjustments not triggered on approval. It is processed separately.
If no action taken (NONE) on even one count, Launch adj. will fail.

If you find more do write to me.

Nana
apps.nana@gmail.com

32