Dynamics GP – Inventory Stock Count Overview
One of our customers recently emailed asking about the process for Inventory Cycle counting. I put this together based on the Help Text, pulling together the information and adding screenshots.
Stock count overview
To maintain an accurate inventory it is best to continually count your inventory. The following easy to use Dynamics GP process will assist you in making cycle counts.
To help you monitor your inventory and the accuracy of your inventory records, you can use Inventory Control to complete stock counts, which include both cycle counts and physical inventory counts.
Cycle counting is the practice of having inventory personnel count items on an on-going basis. If you want inventory personnel to complete some counts every day or every week, you’ll probably want to use cycle counting.
Physical inventory counts occur when all items are counted at the same time. Inventory Control’s stock count system includes both cycle counts and physical inventory counts.
With Inventory Control, you can specify items to be counted in a stock count schedule. After the count is complete, you can enter the results. The counted quantities are compared with inventory record quantities.
You can use variance transactions—if needed—to correct discrepancies. Later, you can compare the accuracy of different stock counts with the Accuracy Comparison report. The information on that report can help you spot inventory trends, which can be helpful in determining business practices.
You can specify how frequently you want to count each item number at each site. For example, you might want to count critical items every 30 days, and you might want to count relatively unimportant items—such as supplies—much less frequently. You can specify a different count frequency—or “cycle”—for each item at each site.
Once you’ve specified a group of items with the same cycle frequency, Inventory Control divides the number of items to be counted over the cycle period. For example, if you have 100 item numbers to be counted every 10 days at a site, Inventory Control would schedule 10 items to be counted each day. This helps to minimize the impact of the stock counts on your inventory personnel.
You can refer to these Help topics in your Dynamics GP for more information about using stock counts and cycle counting.
- Stock count calendar explains how to create and modify a stock count calendar—the calendar the system will use to determine the days when a stock count might be done.
- Count intervals in Inventory Control describes how you can specify a count interval for groups of items.
- Stock count schedules includes information about starting a stock count—specifying which item-site combinations should be included in the count, printing forms to record count information, and so on.
- Stock count processing contains information about entering the results of a stock count, working with default variance transactions, and generating the stock count accuracy report. Information about using the report also is included.
There are basically two steps:
Create a Stock Count Schedule (Transactions >> Inventory >> Stock Count Schedule)
Complete and post a Stock Count Entry (Transactions >> Inventory >> Stock Count Entry)
There are a variety of ways to create a Stock Count Schedule. You will want to use the (Mass Add) feature on the Stock Count Schedule screen.
Adding many items to a stock count schedule
Use the Stock Count Mass Add window to add many item-site combinations to a stock count schedule. You can add items only to a stock count that has Available status.
To add many items to a stock count schedule:
- Open the Stock Count Maintenance window. (Inventory >> Transactions >> Stock Count Schedule)
- Enter or select a stock count ID. The status of the stock count must be Available.
- Choose Mass Add to open the Stock Count Mass Add window.
- Define the range of items to add to the stock count. Select a Stock Count Range, and then enter or select the beginning and end of the range for that type of range.
Stock Count Range
Specify the type of range of items to assign to this stock count. You can define ranges by Site ID, ABC Code, Item Class, Item Number, Generic Description, Description, Item Type and Next Stock Count Date. If you’re using multiple bins, you also can select a range of bins.
For example, to add all the items in an Item Class, you’d select Item Class for the Stock Count Range, and then enter the Class in the From and To fields.
5. Choose Insert to add the restriction.
6. Continue, repeating steps 4 and 5 until you’ve entered restrictions to narrow the group of item-site combinations to just those to be added to the stock count schedule. You can create as many restrictions as you like, but you can use each type of Stock Count Range only once. For example, you can define only one range of Next Stock Count Dates for this stock count.
7. Choose Add. The Stock Count Mass Add window closes and you’re returned to the Stock Count Schedule window.
8. Choose Save and close the window.
9. You can choose File >> Print to print the Stock Count List to verify the items listed in the stock count schedule, if needed.
Three of the most popular ways to select items to include on the Stock Count Schedule:
Choose ABC Analysis Options: Usage Value, Usage Quantity, On Hand Inventory Value or Unit Cost.
Choose ABC System Options: Decide how to handle items with zero quantity and usage and also whether you will treat negative quantity on hand as zero for the analysis.
Choose ABC Analysis: Calendar Months or Fiscal Periods
Choose ABC Usage Quantity to be used. Historical Annual Usage, Projected Annual Usage, Weighted Average.
Set ABC Analysis Breakpoints by percentage or value:
Item Class (As shown above in the Mass Add example)
Next Stock Count Date (Set up the Stock Calendar: Tools >> Setup >> Inventory >> Stock Calendar, and assign the “Next Count Date”: Cards >> Inventory >> Count Cycle Assignment)
Once you’ve created the Stock Count Schedule, you will click the “Start Count” button to activate the count.
You will be prompted to print out the stock count sheets. When the count is activated, a “snapshot” of the inventory quantities for the items is saved. The actual count results will be compared against this “snapshot”.
This is a big advantage, because it will allow normal activities in GP to continue while the count is being completed, entered, and analyzed. You will need to be mindful of the physical movement of goods so that the count results are not adversely affected.
The actual results are entered into the Stock Count Entry screen. This entry screen can be saved and reopened to allow for entry and analysis of results as soon as they are available. The “Unposted Trx” and “Trx History” buttons, open transaction queries that can help you find track down discrepancies caused by timing issues and errant stock movement.
Once you have completely entered your count results and analyzed variances, you can process the entry; the variance transaction will be created, and the count items will be released for the next count.
Hopefully you will find this helpful.
If you have any additional questions or need assistance, please contact us: support@iSolutionsPartners.com.