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Physical Inventory & Cycle Counting

Physical Inventory & Cycle Counting. 2008 Database Training Conference Indianapolis, IN. Logistics. Breaks Food Questions. Agenda. How to prepare for a Physical Inventory Conducting a Physical Inventory Cycle Counting. Physical Inventory. What do you want to learn from this session?.

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Physical Inventory & Cycle Counting

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  1. Physical Inventory&Cycle Counting 2008 Database Training Conference Indianapolis, IN

  2. Logistics • Breaks • Food • Questions

  3. Agenda • How to prepare for a Physical Inventory • Conducting a Physical Inventory • Cycle Counting

  4. Physical Inventory • What do you want to learn from this session?

  5. Inventory Preparation • Warehouse Preparation (at least 2 weeks prior to the scheduled inventory) • Decide how you want your warehouse locations mapped and then enter them in Menu 9.20.20.

  6. Warehouse Preparation • Print bin location labels from Menu 34.8.1 • To speed up the inventory process mark the product, bin box and shelf location with the product bar code. • If needed use Menu 34.7 to cross the manufacture numbers to the Johnstone part numbers.

  7. Warehouse Preparation • Go through the small part shelves and make sure everything is in the correct boxes. • Pre-count excess fitting and place in a baggie. Change the count number on the bag when inventory is sold/removed. • Purchase construction tape or post-it pads. • Purchase dots to tag equipment as it gets counted.

  8. Hardware Preparation • Borrow handhelds, chargers, and scanners from your other branches. • Set the IP address and WAP access code and company number. • Charge extra batteries. • Turn on backlights on handhelds • Confirm laptops, Wyse terminals and PC ports that will be used during the scanning process are set to login into the correct company. (Menu 12.10) • Wireless network is needed

  9. Inventory Preparation (24 Hours before starting) • Create a spreadsheet that lists all warehouse locations to be counted.

  10. Inventory Preparation • Run Negative On-hand Report, Menu 9.20.3 • Password protect Menu 9.20 by using Menu 12.1.14. • Call your customers and have them pick up their orders.

  11. Staff Preparation • Arrange for extra staff (if needed) • Arrange for food • Employee sign/sign-out sheet • Create a sign and post that the store will be closed for inventory • Confirm inventory dates and start time • Assign one person as the “go to” person. • Does not scan inventory and is removed from day to day operations during inventory • Responsible for making all adjustments to the inventory in Menu 9.20.4

  12. Inventory Day • Things to Remember • Receive in Everything (DO NOT count freight that has not been received) • Invoice out all handwrites • Count Will Call areas after store closes. • While store is open pre-count the non/slow movers first. If one of these items is sold, the designated “go to” person must be told so an inventory adjustment can be made.

  13. Physical Inventory Workflow • Run Menu 9.20.3 – Negative On-Hand Report

  14. Physical Inventory Workflow • Menu 9.20.1 – Clear Pre-counts (clears warehouse and showroom) • No hand counting will be completed after pre-counts begin. All items are to be scanned into inventory. By scanning items, an accurate count and location will be recorded.

  15. Physical Inventory Workflow • Menu 9.20.2 – Clear Warehouse Locations • Locations are cleared from the Product Detail file (Menu 12.3.2.3) and Stock Status. • Locations will be updated after Menu 9.20.12 is run.

  16. Physical Inventory Workflow • Menu 9.20.28 – Display Old Locations

  17. Physical Inventory Workflow • Entering Pre-counts • Store can remain open during the pre-count process • Scan least likely to move inventory first. • Clearly mark locations after they have been scanned.

  18. Physical Inventory Workflow • Pre-counting with Bar Code Scanners • Use Menu 9.20.4 • Laptop and Bar Code scanner is needed • 2 person process • Bar codes are good to use when counting hard to reach inventory

  19. Menu 9.20.4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS WLOC: PART NBR DESCRIPTION PRECOUNT PRECOUNT TOTAL ======================================================================= S0101A01 Scan Warehouse Location

  20. Menu 9.20.4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS WLOC: PART NBR DESCRIPTION PRECOUNT PRECOUNT TOTAL ======================================================================= S0101A01 Scan the item in that warehouse location B10-120

  21. Menu 9.20.4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS WLOC: PART NBR DESCRIPTION PRECOUNT PRECOUNT TOTAL ======================================================================= S0101A01 ___-___ B10-120 083S DRYER 1 1 B10-120 083S DRYER 1 1 The item will appear and drop down one line

  22. Menu 9.20.4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS WLOC: PART NBR DESCRIPTION PRECOUNT PRECOUNT TOTAL ======================================================================= S0101A01 ___-___ B10-120 083S DRYER 1 1 One item is counted automatically until a quantity is entered. If no quantity is entered before scanning a different item, there will be one of this item counted.

  23. Menu 9.20.4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS WLOC: PART NBR DESCRIPTION PRECOUNT PRECOUNT TOTAL ======================================================================= S0101A01 ___-___ B10-120 083S DRYER 1 2 B10-120 083S DRYER 1 1 Scan the same item again, and a new line will appear and drop down and a count of one will be added for a total of 2

  24. Menu 9.20.4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS WLOC: PART NBR DESCRIPTION PRECOUNT PRECOUNT TOTAL ======================================================================= S0101A01 .100___ B10-120 083S DRYER 1 1 To manually type in the quantity, type in the actual quantity counted here proceeded by a dot (.) Then press <ENTER>

  25. Menu 9.20.4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS WLOC: PART NBR DESCRIPTION PRECOUNT PRECOUNT TOTAL ======================================================================= S0101A01 ___-___ B10-120 083S DRYER 99 100 B10-120 083S DRYER 1 1 A New line will appear and drop down

  26. Menu 9.20.4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS WLOC: PART NBR DESCRIPTION PRECOUNT PRECOUNT TOTAL ======================================================================= S0101A01 ___-___ B10-120 083S DRYER 99 100 B10-120 083S DRYER 1 1 The total quantity counted from anywhere in the building will display in the Precount Total Column

  27. Menu 9.20.4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS WLOC: PART NBR DESCRIPTION PRECOUNT PRECOUNT TOTAL ======================================================================= S0101A01 B10-120 083S DRYER 1 101 B10-120 083S DRYER 99 100 B10-120 083S DRYER 1 1 To reduce the quantity, if an incorrect quantity was entered, scan the item again – a count of 1 is added for a total of 101

  28. Menu 9.20.4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS WLOC: PART NBR DESCRIPTION PRECOUNT PRECOUNT TOTAL ======================================================================= S0101A01 _.-50 B10-120 083S DRYER 1 101 B10-120 083S DRYER 99 100 B10-120 083S DRYER 1 1 Enter a dot, then minus, then the quantity to subtract, less one. For example if you want to reduce the quantity by 51 (for a total of 50 counted), type in ‘.-50’ and press <ENTER>

  29. Menu 9.20.4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS WLOC: PART NBR DESCRIPTION PRECOUNT PRECOUNT TOTAL ======================================================================= S0101A01 B10-120 083S DRYER -51 50 B10-120 083S DRYER 1 101 B10-120 083S DRYER 99 100 B10-120 083S DRYER 1 1 The computer automatically adds the one just scanned to your count and reduces the count by 51.

  30. Menu 9.20.4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS WLOC: PART NBR DESCRIPTION PRECOUNT PRECOUNT TOTAL ======================================================================= S0101A01 S0101B01 B10-120 083S DRYER 99 100 B10-120 083S DRYER 1 1 Before scanning the next item, scan the warehouse location here.

  31. Menu 9.20.4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS WLOC: PART NBR DESCRIPTION PRECOUNT PRECOUNT TOTAL ======================================================================= S0101B01 ___-___ The new location will display in the WLOC: field and you’re ready to scan the next item.

  32. Physical Inventory Workflow • Pre-counting with Hand-helds • S3 Menu Option #4 • One hand-held per person • Scanning

  33. END (or F1) Opens AccuTerm in the S3 Menu Push either of the yellow buttons near the top of the device to scan. Power Enter

  34. Push any of the three yellow buttons to scan. END (or F1) Opens AccuTerm in the S3 Menu Opens Delivery Signature Capture Program Enter Power

  35. Handheld S3 Menu 4 - Precounts Begin by logging into the S3 Menu on the handheld, you will be prompted for your Operator Code. OPER CODE Then select Option #4 - Precounts

  36. Handheld S3 Menu 4 - Precounts You are first prompted to enter the warehouse for which you are doing inventory. Next, scan the location that you are counting. The Warehouse and Warehouse Location will be displayed on the screen and you will be prompted for the product (part number). WHSE: ENTER WLOC -------------------- WHSE:004 WLOC:R0101A01 PRODUCT 004 R0101A01

  37. Handheld S3 Menu 4 - Precounts Scan the item at the Product prompt. The part number, description and quantity of 1 will be displayed on the screen as well as the warehouse, warehouse location and product prompts again. WHSE:004 ENTER WLOC R0101A01 -------------------- WHSE:004 WLOC:R0101A01 PRODUCT B10-120 083S DRYER 1 -------------------- WHSE:004 WLOC:R0101A01 PRODUCT B10120

  38. Handheld S3 Menu 4 - Precounts To manually enter a quantity, type the quantity beginning with a dot (i.e., .10) then press <ENTER> Now the part number, description and a quantity of 10 is displayed. B10-120 083S DRYER 1 -------------------- WHSE:004 WLOC:R0101A01 PRODUCT B10-120 083S DRYER 10 -------------------- WHSE:004 WLOC:R0101A01 PRODUCT .10

  39. Handheld S3 Menu 4 - Precounts To count another item in the same location, scan the next item. The new item, description and quantity 1* will be displayed on the screen B10-120 083S DRYER 10 -------------------- WHSE:004 WLOC:R0101A01 PRODUCT B10-121 084 DRYER 1 -------------------- WHSE:004 WLOC:R0101A01 PRODUCT B10121 *If the item has been scanned in from another location, the quantity counted will be reflected here so it may not be 1.

  40. Handheld S3 Menu 4 - Precounts To increase quantity by ones – scan the same item again. Each consecutive scan will increase the quantity by 1. B10-121 084 DRYER 1 -------------------- WHSE:004 WLOC:R0101A01 PRODUCT B10-121 084 DRYER 2 -------------------- WHSE:004 WLOC:R0101A01 PRODUCT B10-121 084 DRYER 2 -------------------- WHSE:004 WLOC:R0101A01 PRODUCT B10-121 084 DRYER 3 -------------------- WHSE:004 WLOC:R0101A01 PRODUCT B10121 B10121

  41. Handheld S3 Menu 4 - Precounts To reduce the quantity, in the event that an incorrect quantity was entered, do the following: Step 1: Scan the item again Step 2: Enter the quantity to reduce, less one, with a ‘.-’ in front of it. For example, if you want to reduce this to a total quantity of 1, you would enter ‘.-3’ B10-121 084 DRYER 2 -------------------- WHSE:004 WLOC:R0101A01 PRODUCT B10-121 084 DRYER 3 -------------------- WHSE:004 WLOC:R0101A01 PRODUCT B10-121 084 DRYER 3 -------------------- WHSE:004 WLOC:R0101A01 PRODUCT B10-121 084 DRYER 4 -------------------- WHSE:004 WLOC:R0101A01 PRODUCT B10-121 084 DRYER 4 -------------------- WHSE:004 WLOC:R0101A01 PRODUCT B10-121 084 DRYER 1 -------------------- WHSE:004 WLOC:R0101A01 PRODUCT B10121 B10121 .-3

  42. Handheld S3 Menu 4 - Precounts When moving on to the next location, simply scan the new location at the Product prompt. The warehouse, NEW warehouse location and product prompt will appear on the screen. WHSE:004 WLOC:R0101A01 PRODUCT B10121 B10-121 084 DRYER 3 -------------------- WHSE:004 WLOC:R0101A01 PRODUCT -------------------- WHSE:004 WLOC:R0101A02 PRODUCT R0101A02

  43. Physical Inventory Workflow • Run Menu 9.20.3 – Negative On-hand report again. Remember that you will not be able to freeze inventory if you have negative on-hand quantities.

  44. Physical Inventory Workflow • Menu 9.20.5 – Freeze Inventory • Log all ports to the “Big J” • Freezing can take at least one hour • Note: Once inventory is frozen, products not scanned into inventory using Menu 9.20.4 must be scanned in using Menu 9.20.6.

  45. Physical Inventory Workflow • Menu 9.20.7 – Not Scanned Report • This reports displays products that were not scanned during pre-counts. • If a location has been missed then use Menu 9.20.6 to scan in inventory.

  46. Physical Inventory Workflow • Menu 9.20.6 – Scan Inventory • Scan inventory not scanned during the pre-count stage. • Note: Bar code scanner can only be used in Menu 9.20.6. Hand-held scanners cannot be used.

  47. Physical Inventory Workflow • Menu 9.20.8 - Update Variance • This program calculates the difference between the frozen on-hand quantity and the total inventory scanned for each item.

  48. Physical Inventory Workflow • Menu 9.20.9 – Variance Report • Use this report to conduct your recounts. • Keep track of each page (pages are numbered)

  49. Variance Report

  50. Variance Report The variance report prints only the items for which the original on hand quantity is different than the quantity counted at inventory. It shows the tag # for the item – to be used to enter actual counts, the part number and description, the warehouse location and quantity counted in each location. It also shows the old count (prior to inventory), the total new count, the variance quantity, the dollar value of the counted qty and the difference between the value counted and the original value.

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