Physical Inventory Cycle Counting 2008 Database Training Conference
Physical Inventory & Cycle Counting 2008 Database Training Conference Indianapolis, IN
Logistics Breaks n Food n Questions n
Agenda How to prepare for a Physical Inventory n Conducting a Physical Inventory n Cycle Counting n
Physical Inventory n What do you want to learn from this session?
Inventory Preparation n Warehouse Preparation (at least 2 weeks prior to the scheduled inventory) n Decide how you want your warehouse locations mapped and then enter them in Menu 9. 20.
Warehouse Preparation Print bin location labels from Menu 34. 8. 1 n To speed up the inventory process mark the product, bin box and shelf location with the product bar code. n If needed use Menu 34. 7 to cross the manufacture numbers to the Johnstone part numbers. n
Warehouse Preparation n n 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.
Hardware Preparation n n n 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
Inventory Preparation (24 Hours before starting) n Create a spreadsheet that lists all warehouse locations to be counted.
Inventory Preparation Run Negative On-hand Report, Menu 9. 20. 3 n Password protect Menu 9. 20 by using Menu 12. 1. 14. n Call your customers and have them pick up their orders. n
Staff Preparation n n n 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. u Does not scan inventory and is removed from day to day operations during inventory u Responsible for making all adjustments to the inventory in Menu 9. 20. 4
Inventory Day n Things to Remember u u 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.
Physical Inventory Workflow n Run Menu 9. 20. 3 – Negative On-Hand Report
Physical Inventory Workflow n Menu 9. 20. 1 – Clear Pre-counts (clears warehouse and showroom) u 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.
Physical Inventory Workflow n Menu 9. 20. 2 – Clear Warehouse Locations u Locations are cleared from the Product Detail file (Menu 12. 3) and Stock Status. u Locations will be updated after Menu 9. 20. 12 is run.
Physical Inventory Workflow n Menu 9. 20. 28 – Display Old Locations
Physical Inventory Workflow n Entering Pre-counts u Store can remain open during the pre -count process u Scan least likely to move inventory first. u Clearly mark locations after they have been scanned.
Physical Inventory Workflow n Pre-counting with Bar Code Scanners u Use Menu 9. 20. 4 u Laptop and Bar Code scanner is needed u 2 person process u Bar codes are good to use when counting hard to reach inventory
Menu 9. 20. 4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS PART NBR DESCRIPTION S 0101 A 01 WLOC: PRECOUNT TOTAL ==================================== Scan Warehouse Location
Menu 9. 20. 4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS PART NBR DESCRIPTION WLOC: PRECOUNT S 0101 A 01 PRECOUNT TOTAL ==================================== B 10 -120 Scan the item in that warehouse location
Menu 9. 20. 4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS PART NBR DESCRIPTION WLOC: PRECOUNT S 0101 A 01 PRECOUNT TOTAL ==================================== ___-___ B 10 -120 083 S DRYER 1 1 The item will appear and drop down one line
Menu 9. 20. 4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS PART NBR DESCRIPTION WLOC: S 0101 A 01 PRECOUNT TOTAL ==================================== ___-___ B 10 -120 083 S 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.
Menu 9. 20. 4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS PART NBR DESCRIPTION WLOC: S 0101 A 01 PRECOUNT TOTAL ==================================== ___-___ B 10 -120 083 S DRYER 1 1 2 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
Menu 9. 20. 4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS PART NBR DESCRIPTION WLOC: S 0101 A 01 PRECOUNT TOTAL ====================================. 100___ B 10 -120 083 S DRYER 1 1 To manually type in the quantity, type in the actual quantity counted here proceeded by a dot (. ) Then press <ENTER>
Menu 9. 20. 4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS PART NBR DESCRIPTION WLOC: PRECOUNT S 0101 A 01 PRECOUNT TOTAL ==================================== ___-___ B 10 -120 083 S DRYER 99 1 100 1 A New line will appear and drop down
Menu 9. 20. 4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS PART NBR DESCRIPTION WLOC: PRECOUNT S 0101 A 01 PRECOUNT TOTAL ==================================== ___-___ B 10 -120 083 S DRYER 99 1 100 1 The total quantity counted from anywhere in the building will display in the Precount Total Column
Menu 9. 20. 4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS PART NBR DESCRIPTION WLOC: S 0101 A 01 PRECOUNT TOTAL ==================================== B 10 -120 083 S DRYER 1 101 B 10 -120 083 S DRYER 99 1 100 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
Menu 9. 20. 4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS PART NBR DESCRIPTION WLOC: PRECOUNT S 0101 A 01 PRECOUNT TOTAL ==================================== _. -50 B 10 -120 083 S DRYER 1 99 1 100 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>
Menu 9. 20. 4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS PART NBR DESCRIPTION WLOC: PRECOUNT S 0101 A 01 PRECOUNT TOTAL ==================================== B 10 -120 083 S DRYER -51 50 B 10 -120 083 S DRYER 1 99 1 100 1 The computer automatically adds the one just scanned to your count and reduces the count by 51.
Menu 9. 20. 4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS PART NBR DESCRIPTION WLOC: S 0101 A 01 PRECOUNT TOTAL ==================================== S 0101 B 01 B 10 -120 083 S DRYER 99 1 100 1 Before scanning the next item, scan the warehouse location here.
Menu 9. 20. 4 – Enter Precounts PHYSICAL INVENTORY PRE-COUNT ENTRY WHSE: 004 JOHNSTONE - JAX SS PART NBR DESCRIPTION WLOC: PRECOUNT S 0101 B 01 PRECOUNT TOTAL ==================================== ___-___ The new location will display in the WLOC: field and you’re ready to scan the next item.
Physical Inventory Workflow n Pre-counting with Hand-helds u S 3 Menu Option #4 u One hand-held person u Scanning
Push either of the yellow buttons near the top of the device to scan. END (or F 1) Power Enter Opens Accu. Term in the S 3 Menu
Push any of the three yellow buttons to scan. END (or F 1) Power Enter Opens Accu. Term in the S 3 Menu Opens Delivery Signature Capture Program
Handheld S 3 Menu 4 - Precounts Begin by logging into the S 3 Menu on the handheld, you will be prompted for your Operator Code. OPER CODE Then select Option #4 - Precounts
Handheld S 3 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: 004 ENTER WLOC R 0101 A 01 ----------WHSE: 004 WLOC: R 0101 A 01 PRODUCT
Handheld S 3 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 R 0101 A 01 ----------WHSE: 004 WLOC: R 0101 A 01 PRODUCT B 10120 B 10 -120 083 S DRYER 1 ----------WHSE: 004 WLOC: R 0101 A 01 PRODUCT
Handheld S 3 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. B 10 -120 083 S DRYER 1 ----------WHSE: 004 WLOC: R 0101 A 01 PRODUCT. 10 B 10 -120 083 S DRYER 10 ----------WHSE: 004 WLOC: R 0101 A 01 PRODUCT
Handheld S 3 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 *If the item has been scanned in from another location, the quantity counted will be reflected here so it may not be 1. B 10 -120 083 S DRYER 10 ----------WHSE: 004 WLOC: R 0101 A 01 PRODUCT B 10121 B 10 -121 084 DRYER 1 ----------WHSE: 004 WLOC: R 0101 A 01 PRODUCT
Handheld S 3 Menu 4 - Precounts To increase quantity by ones – scan the same item again. Each consecutive scan will increase the quantity by 1. B 10 -121 084 DRYER 1 2 ----------WHSE: 004 WLOC: R 0101 A 01 PRODUCT B 10121 B 10 -121 084 DRYER 2 3 ----------WHSE: 004 WLOC: R 0101 A 01 PRODUCT
Handheld S 3 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’ B 10 -121 084 DRYER 2 3 4 ----------WHSE: 004 WLOC: R 0101 A 01 PRODUCT B 10121 B 10 -121 084 DRYER 3 4 1 ----------WHSE: 004 WLOC: R 0101 A 01 PRODUCT. -3
Handheld S 3 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: R 0101 A 01 PRODUCT B 10121 B 10 -121 084 DRYER 3 ----------WHSE: 004 WLOC: R 0101 A 01 PRODUCT R 0101 A 02 ----------WHSE: 004 WLOC: R 0101 A 02 PRODUCT
Physical Inventory Workflow n 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.
Physical Inventory Workflow n Menu 9. 20. 5 – Freeze Inventory u Log all ports to the “Big J” u Freezing can take at least one hour u Note: Once inventory is frozen, products not scanned into inventory using Menu 9. 20. 4 must be scanned in using Menu 9. 20. 6.
Physical Inventory Workflow n Menu 9. 20. 7 – Not Scanned Report u This reports displays products that were not scanned during pre-counts. u If a location has been missed then use Menu 9. 20. 6 to scan in inventory.
Physical Inventory Workflow n Menu 9. 20. 6 – Scan Inventory u Scan inventory not scanned during the pre-count stage. u Note: Bar code scanner can only be used in Menu 9. 20. 6. Hand-held scanners cannot be used.
Physical Inventory Workflow n Menu 9. 20. 8 - Update Variance u This program calculates the difference between the frozen onhand quantity and the total inventory scanned for each item.
Physical Inventory Workflow n Menu 9. 20. 9 – Variance Report u Use this report to conduct your recounts. u Keep track of each page (pages are numbered)
Variance Report
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.
Physical Inventory Recount Options n Option #1 u Recount everything that appears on the Variance Report. n Option #2 u Recount by dollar amount, items (+ or -) $200. 00) u Then on subsequent recounts focus on items (+ or -) $100. 00 or $50. 00
Physical Inventory Workflow n Recount Process u Give one page per inventory counter at a time. u Keep track of pages when they are turned in. u Have one person enter actual counts in Menu 9. 20. 10.
Physical Inventory Workflow CAUTION n After Menu 9. 20. 9 Variance Report is run, Menu’s 9. 20. 4, 9. 20. 6 and 9. 20. 7 cannot be run again.
Physical Inventory Workflow n Menu 9. 20. 10 – Enter Actual Counts u Enter in the tag number as noted on the Variance Report. u Enter the actual count in stock. u Only use Menu 9. 20. 10 if the PI. CNT (pre-count total) is wrong (I. e. OH. CNT is correct or recounts found a totally different number).
Variance Report The variance report is used as a tool to try and find errors in counting, or computer input, or items that were missed during inventory. When errors are found, the corrected information is entered in Menu 9. 20. 10 – Enter Actual Counts. PHYSICAL INVENTORY COUNT ENTRY NBR TAGS : WHSE: TAG # ITEM # NBR PIECES: DESCRIPTION WHS-LOC COUNT CNTR COST ----------------------------------------
Variance Report First, enter the warehouse number and press <enter> Next, Enter the tag number from the variance report and press <enter> The item for that tag number will display on the screen with the cursor blinking under the warehouse location. PHYSICAL INVENTORY COUNT ENTRY NBR TAGS : WHSE: 004 JOHNSTONE - JAXNBR SS PIECES: TAG # ITEM # DESCRIPTION WHS-LOC COUNT CNTR COST ---------------------------------------200036 ACE-20029 FNC 1 GALLON S 0301 A 01 _ 6. 799
Variance Report To accept the location that is showing on the screen, simply press <enter> Then type in the actual quantity that was counted in that location and press <enter> You will be asked to confirm that the information for this tag entry is correct. If it is correct, simply press <enter> PHYSICAL INVENTORY COUNT ENTRY 1 NBR TAGS : WHSE: 4 004 JOHNSTONE - JAXNBR SS PIECES: TAG # ITEM # DESCRIPTION WHS-LOC COUNT CNTR COST ---------------------------------------200036 ACE-20029 FNC 1 GALLON S 0301 A 01 ARE ENTRIES FOR TAG # 200386 CORRECT? (CR/N) 6. 799 4
Variance Report Now you can enter the next tag number If you need to change the location that the item was counted in, type in the new location and press <enter> Then type in the actual quantity counted and press <enter> Finally, confirm that the information is correct by pressing <enter> PHYSICAL INVENTORY COUNT ENTRY 1 NBR TAGS : WHSE: 4 004 JOHNSTONE - JAXNBR SS PIECES: TAG # ITEM # DESCRIPTION WHS-LOC COUNT CNTR COST ---------------------------------------200036 ACE-20029 FNC 1 GALLON S 0301 A 01 200386 ALC-033642 EPRV-11 REGULATOR 6. 799 4 p 0802 f 05 P 0802 D 05 ARE ENTRIES FOR TAG # 200386 CORRECT? (CR/N) 125. 150 1
Variance Report Any time you enter information in this screen it should ALWAYS be the actual count per location – even if you have already entered a count. To make changes to counts for the same item in different locations, just type in the tag number again to change another location. PHYSICAL INVENTORY COUNT ENTRY 1 NBR TAGS : WHSE: 4 004 JOHNSTONE - JAXNBR SS PIECES: TAG # ITEM # DESCRIPTION WHS-LOC COUNT CNTR COST ---------------------------------------200036 ACE-20029 FNC 1 GALLON S 0301 A 01 200386 ALC-033642 4 EPRV-11 REGULATOR P 0802 D 05 6. 799 p 0802 f 05 125. 150 2 ARE ENTRIES FOR TAG # 200386 CORRECT? (CR/N) End
Physical Inventory Workflow n Menu 9. 20. 8 and Menu 9. 20. 9 u After actual counts are entered in Menu 9. 20. 10 rerun Menu 9. 20. 8 and 9. 20. 9. u Conduct further recounts if necessary. u Note: Menu paths 9. 20. 8, 9. 20. 9 and 9. 20. 10 must be run in this order.
Physical Inventory Workflow n Menu 9. 20. 12 – Update On-Hand Quantities u Only run when the final numbers on the Variance Report are correct. u Stock Status on-hand quantities will be updated and variance adjustments will be posted to the inventory history audit.
Physical Inventory n Optional Inventory Reports u Menu 9. 20. 30 – Top 50 Variance Report t Shows the top 50 variances up and down in a variance report format. Can be run anytime after 9. 20. 8 has been updated.
Physical Inventory n Optional Reports u Menu 9. 20. 11 – Find Tag Number For An Item u Menu 9. 20. 13 – P. I. Value Comparison Report t Total inventory balance before and after the on-hand quantities have been updated (DOES NOT include NS Items)
Physical Inventory n n n Menu 9. 20. 15 – Move Items for Location (changes warehouse locations during the inventory process). Menu 9. 20 – WARE. LOC Maintenance (setup warehouse locations). Sequence and Cycle Count fields are for future use. Zone field is optional. Menu 9. 20. 21 – WARE. LOC Listing
Physical Inventory n Menu 9. 20. 22 – Products with **NO** Warehouse Locations u This report details the list of products with quantity onhand that have no warehouse location listed in product detail (Menu 12. 3). Before beginning your inventory, consider it a best practice to run this report. To tie a product to a warehouse location use Menu 34. 11 Scan Warehouse Locations. If you have the Symbol handheld scanner the S 3 option 1 – Scan Location can also be used to tie a product to a location.
Physical Inventory n Menu 9. 20. 24 – List of Items by Location/Vendor u Information from this report pulls from the prod. det file.
Location Cycle Counting n n Custom Menu 10. 34 Options 9
Cycle Counting n n Run Menu 9. 20. 21 for a listing of locations. Use this list to keep track of counted locations.
n Cycle Counting At the S 3 -Menu, choose option 4 for Pre-counts. u Enter your operator code. u Scan the location and then the products and their quantities in that location. u When finished with that location, hit the end button (bottom left of handheld) and then scan the next location and the products and their quantities in that location. t Tip: Try to limit the number of locations that you do at once to make check variances manageable.
Cycle Counting *Important* - Do NOT run Menu 9. 20. 1, 9. 20. 2, or 9. 20. 3 prior to running pre-counts. These steps are not needed for cycle counting. n Pre-counts can also be entered in Menu 9. 20. 4 using a bar-code scanner and laptop. n
Cycle Counting n Menu 10. 34. 9 – Cycle Pre-Count Report
Cycle Counting n Menu 10. 34. 10 – Cycle Pre-count Input/Adj u Hit enter if the on-hand qty is correct. If the on-hand qty is wrong, enter the correct count.
Cycle Counting n Are there other cycle counting options? u Yes, a custom automated process is available for a small fee. u A report is run during EOD that provides a list of items that need to be counted. You still need to enter the adjustment manually.
QUESTIONS? ?
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