Inventory Count

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Counting inventory is an important part of keeping your system up to date and accurate. Properly and regularly counting inventory helps keep costing, purchasing and materials forecasting accurate. While it can be a cumbersome task, performing inventory counts is critical to the success of a company.   There are many reasons why inventory can be out of balance, and performing regular counts can help identify these reasons, and rectify problems before mistakes are made.  Even if you produce a stock status report and the report matches your General Ledger inventory balance, there is no guarantee that the quantities in the warehouse will match what you have listed in your inventory. Spire helps make this process more efficient by allowing counts to be performed with a bar-code reader or by entering counts manually. You can combine these methods, and Spire keeps track of count transactions, per item, as they are entered. These transactions display values such as count quantity, the user that counted the record, and the date that they entered the count quantity. Spire inventory count supports counting in different units of measure, handles average costing and FIFO costing and posts adjusting General Ledger Journal entries as necessary.

Before counting inventory please note that it is critical that physical inventory quantities remain static (i.e. actual quantities of items on shelves and in bins). While you may continue to receive purchase orders and invoice sales orders, it is important that you “freeze inventory” so the physical inventory state matches the systems expected state of inventory. Accordingly, make sure not to count inventory that has been received after the ‘Freeze’ and make sure inventory sold after the ‘Freeze’ is counted.

The result of an inventory count in Spire is to capture the difference between the expected state of inventory and actual state of inventory. If inventory is physically removed AFTER a count process is started but BEFORE the item is counted, inaccuracies will result.  Based on this, inventory counts should be accomplished as quickly as possible.   To that end, inventory counts are often performed based on logic subdivisions of inventory (e.g product categories).

Course Features

  • Lectures 6
  • Quizzes 1
  • Skill level All levels
  • Language English
  • Students 454
  • Certificate Yes
  • Assessments Self