In Physical Count Process Overview

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Physical Count Process Overview

Users Guide

Davisware

514 Market Loop

West Dundee, IL 60118

Phone: (847) 426-6000

Fax: (847) 426-6027

Contents are the exclusive property of Davisware.

Copyright 2011. All Rights Reserved.


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2 | Davisware GlobalEdge [guide name] Users Guide

Table of ContentsIntroduction ...................................................................................................................................3

The Basics ......................................................................................................................................3

Count Sheet Purge..........................................................................................................................4

Physical Count Calculation ..............................................................................................................5

Using GlobalWarehouse .................................................................................................................6

Count Sheet Printing .................................................................................................................... 10

Physical Count Entry ..................................................................................................................... 12

Physical Count Report .................................................................................................................. 17

Inventory Variance Report............................................................................................................ 17

Update Physical Inventory ............................................................................................................ 19

Physical Inventory Journal ............................................................................................................ 19

Importing the count from Excel .................................................................................................... 20


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IntroductionPurpose:

To give a basic understanding of how to record a physical inventory count within GlobalEdge

Overview:All of the necessary steps are laid out sequentially under the Inventory Physical Count Menu found off

the Inventory Management module. Simply process each step from top to bottom to successfully

complete a parts count.

Access:

Parts counts, whether full warehouse counts or cycle counts, are all processed via the Inventory

Management > Inventory Physical Count Menu

The BasicsBefore beginning your inventory, be sure that both the Order Invoice Audit Trail and the Service Invoice

Audit Trail have been cleared of all insufficient stock transactions. If not, stop here and do that first. (Fo

more explanation on these reports refer to your Daily Closing Procedures Guide ). Also be sure that any

items on the Order Valuation Report and the Service Order Inventory ValuationReport have been

removed from their home on the shelf and put in the designated staging area.

1. Count Sheet Purge use this option to clear away any outstanding count sheets from a priorinventory or practice inventory. This is highly recommended before beginning any new counts.

2. Physical Count Calculationuse this option to define what warehouse(s), item(s), bin(s), etc. wilbe counted so that GlobalEdge can create the desired count sheets.3. Count Sheet Printinguse this option to print paper copies of the count sheets. Each countsheet will contain a bin in the warehouse; pass out a count sheet to each employee responsible

for counting a designated bin. If you are using a barcode scanner, then this step may be

skipped.

4. Physical Count Entry once the parts counts are written on the count sheets, use this option toinput the counted quantities. If youre using a Bluetooth or wired barcode scanner connected to

a laptop, then use this option to scan the item and input the count. If you are using the

Intermec or Dolphin wireless barcode scanner with GlobalWarehouse installed, then this step

may be skipped.

5. Physical Count Report and Inventory Variance Reportthese reports are essentially the same,but the Variance Report shows the variance from existing QOH (Quantity on Hand).

6. Update Physical InventoryThis step updates the QOH in the warehouse with the countedquantities and writes the cost differences to the Physical Inventory Journal. NOTE: It is

recommended that you run the Inventory Valuation Report before running this process.

7. Physical Inventory JournalRun and review this journal, then run it again with Reset selectedto pass it forward to the Inventory Distribution Report in preparation for posting the variances

to the GL. For new customers counting their warehouses before going live, DO NOT reset this

journal until your GL is ready to take actual transactions. Meaning all the beginning balances are

in and any posted journals from test or initial entries have been removed. Essentially dont

reset this until you are actually LIVE on GE.


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Count Sheet PurgeBefore beginning your inventory, be sure that both the Order Invoice Audit Trail and the Service Invoice

Audit Trail have been cleared of all insufficient stock transactions. If not, stop here and do that first. (For

more explanation on these reports refer to your Daily Closing Procedures Guide ). Also be sure that any

items on the Order Valuation Report and the Service Order Inventory ValuationReport have beenremoved from their home on the shelf and put in the designated staging area.

Once the critical step of running the audits is completed then this is where every physical count begins.

Use this option to clear away any hanging count sheets from a prior inventory or practice inventory.

Leaving the default designations will clear away all count sheets from all warehouses. If other counts

are ongoing, run this report with the appropriate range of warehouse codes and bin locations for what

you wil l be counting. When prompted for output destination, you can run this function to screen.

Once processed a report wi ll print that indicates what (if anything) was purged:

Count sheets are like score cards within GlobalEdge. When created, they record the quantity that

GlobalEdge thinks is on hand for each item. Once actual counts are keyed in, the difference between the

two numbers (if any) will be what GlobalEdge uses to calculate your inventory variance. Count sheets

can and should be created separately for multiple warehouses if they exist and for select bin ranges

within each warehouse.


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Physical Count CalculationAfter count sheets are purged, use this option to generate a list of the parts to be counted.

The top options are where you make the selection(s) of what wil l be counted. Specify the warehouse(s)

you wish to count. Using the Item Number, Bin Location, Class Code, Product Group, Vendor Code, Mfg,

Mandatory Main, Mandatory Truck, or Critical Item fields, specify any other limiting criteria you wish to

use to narrow the scope of your count. Otherwise, leave the existing default values and all items will be

counted.

Selecting Mandatory Main, Mandatory Truck, or Critical Item will include ONLY those items that

have those flags set. To include all i tems regardless of those flags, leave these unchecked.

Number of Items to Count is used for cycle counting. Leave set to the default of 999999 when

counting the whole warehouse.

Set Bypass Items Counted Since to a future date (say one year out) to insure that all selected items wil

be included in the list of parts to count.


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Use Starting Sheet Number to Indicate a starting sheet number that you would like to use or leave

default set to 00001.

The Quantity on Hand Comparison selection is an IMPORTANT FIELD. Your options are Printed,

Entered and Updated.

Select Updated if you are shutting down warehouse activity during your physical count. This

option wil l compare the counted quantity to the QOH at the time the count is updated; the

difference will be the variance.Select Printed if you are NOT shutting down warehouse activity for the duration of the count

process. It wil l lock in the starting QOH at the time you print the count sheets. The difference

between that starting quantity and the counted quantity will become your variance.

Select Entered if youll be using barcode scanners to take the count. This option locks in the

starting QOH at the time the count is actually entered. The difference between the starting

quantity and the counted quantity is your variance.

Selecting Quantity On Hand Required will shorten the count list to only include items that currently

have stock in the designated warehouse(s). Tip: If you are counting a main warehouse that has bin

locations, you probably want to see all items on your count sheets so you can check accuracy of bin

locations if nothing else. If so, answer no to this question. If you are counting a truck and bin locations

are not used, it saves time to answer yes to this question. Count sheets will print for just those items

that have qty on hand at that moment in the warehouse. For trucks, this will save time for the person

recording the entries. If an item ends up being in the warehouse but is not listed on the count sheet, it

can be written in on the last page.

Assign Equal Count On Hand saves work because it sets the count to match the existing QOH so only

the discrepancies will need to be entered. Leaving this unchecked will load 0 as the count quantity

and all items with stock will need to be entered with the inventoried amount. This method only

recommended if your accuracy % is typically very high and you do not wish to enter a counted value for

each part.

One Sheet No for all Bins will have all items listed on one count sheet number. Otherwise each binlocation will be assigned its own count sheet to help better organize your counts. Say your warehouse is

organized with each manufacturer having its own bin. And you represent 10 manufacturers. Youre

your count will generate 10 count sheets where count sheet 1 will be for the first manufacturer, 2 wil l

be the second, etc. That way you can hand all the pages for the first count sheet over to an employee to

count the goods you stock for that manufacturer. Hand the second count sheet pages over to a

different employee to count that area of the warehouse. When counting trucks it would be

recommended to select this option or if your bins represent a small area of your warehouse where

multiple sheet numbers would be more of an inconvenience.

At the end, GE prints out a summary of selection criteria and the expected page count. This process

creates (but does not actually print) the count sheets.

Using GlobalWarehouseIf you have the wireless Intermec or Dolphin scanners loaded with GlobalWarehouse and you plan to

use that device to take the physical count, then the select Physical Count option on the scanner.


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Once Physical Count is selected, the below screen will appear:

Whs. Code is used to indicate which warehouse will be counted.

Select Catalog Items if you want the system to check item catalog records (in additional to regular

item records) for a matching item number. If a catalog item is found, GE will convert the catalog record

to a regular item and the designated QOH wil l be recorded.

Leave Sheet Required unchecked if you want to be able to count items that werent included in thecount sheet. This is useful if you have an item in the designated warehouse which does not currently

have a record in GE for that warehouse. Also useful when an item has moved to a new location within

the warehouse and therefore isnt included on the sheet for the bin being counted. You can also leave

this unchecked if you plan to count items without a count sheet. Meaning you can count items without

being directed as to what to count.

Show On Hand will display the existingQOH for the item being counted.

Labels doesnt work at this time. If i ts left selected then the [Label] button will appear on the Count

Entry screen. Simply uncheck the box so that button doesnt appear.

Update Bin allows you o change the bin number for a part.


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Sheet No. allows you to indicate which count sheet to load for counting. If you arent using a count

sheet (and Sheet Required is deselected), then input a sheet number here that doesnt exist already

and GlobalWarehouse will prompt you whether or not you want to create that count sheet. Then just

scan the parts you want to count and input the quantity on hand.

Date is where youll indicate the current date which will be applied to the items as the date they were

counted.

Select [OK] to proceed. That will bring up the Physical Scan Count Entry screen:

The cursor is in the Bin Scan field awaiting your first bar code scan. Scan the barcode on the first item

youre going to count. That will load the item number into the screen. The cursor stays in the Item

Scan field so you can scan the individual bar codes of the item being counted. Each scan will count as a

quantity of 1. The initial scan to load the item onto the screen does NOT apply towards the Count of the

item.

Otherwise, you can input the Count manually by selecting [Override] and entering the Count into the

Count field.


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When done, select [OK] to save the count for that part. Then simply scan the next item youre preparing

to count and repeat the steps above.

Note: If you select [OK] without entering a Count, a message will appear asking if you want to continue

with a Count of zero. Answer No if you want to go back and input a count for the designated part.

If Update Bin was checked before the Physical Scan Count Entry screen was launched, there wi ll be an

[Updat] button to the right of the Bin field. Use that if you need to modify the Bin location of the item.

The [QOH] button can be used to quickly set the Count to equal the current quantity on hand.

The [Reduce] button can be used to reduce the current Count. Each time the button is selected the

Count is reduced by a quantity of 1.

Selecting [Close] will close the Entry screen. If a part was being counted and you select [Close], the

screen wil l close down WITHOUT saving the entered count.

Taking the count with the GlobalWarehouse scan gun pushes the quantity directly into GlobalEdge, so

theres no need to print the count sheets or go to Physical Count Entry. Once all the items are counted,

simply run the Physical Count Report and/or the Inventory Variance Report and then Update Physical

Inventory once those reports are reviewed for accuracy.


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Count Sheet PrintingWhen inventory wil l be done with pen and paper, then use this option to print out the count sheets in

order to record the counted quantities for subsequent entry into GlobalEdge.

Most of the options are fairly self-explanatory.

Page After Each Bin will put each "Sheet" on the start of a new page. Or, if the Physical Count was

calculated to include all bins on one sheet, then it will page break after each bin number. Either case,

it's a good idea to select it.

Show Warehouse Quantities willprint the current QOH on the count sheet for each part. Tip- For yourmost accurate count, it is recommended not to display your existing QOH figures. That way, it forces

those counting to do their job instead of rewriting what the report shows to be in the bin.

Here is a copy of the report when ALL the boxes are checked.


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Heres a copy of the report when NONE ofthe boxes are selected.

Without Serial Numbers


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With Serial Numbers

Physical Count Entry

Use this program to input the counts taken down on the Count Sheets or to use a barcode scanner

connected to a PC to take the counts.

Indicate the Warehouse youll be entering in quantities for and what Sheet number. Then make other

desired selections before pressing [F8-OK].

Note: On Hand Cut Off is used only if a new sheet is created during entry because of parts that were

counted but not included on the original count sheets.


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That will bring up the Entry screen

Select [F2-Add] to open up the Quick Entry screen (below screen shot is what it looks like when the

options to Allow Bin Change and Allow Cost Change are selected.


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Selecting [F2-Add] when the allow change options werent selected wil l bring up a screen with those

fields restricted from editing. Also, if the option for Check Catalog Part isnt selected, then youll be

alerted that its an invalid number even though its in the catalog file.

If you are using a Bluetooth or wired scan gun to take your count, bring up the above Entry screen, then

scan the item thats about to be counted, type in the Count and press [F10-OK & New]. Then scan the

next item, input that items count and select [F10-OK & New]. Once all items are scanned and counted,

then select [F8-OK] to leave the Quick Entry screen.

In order to use this method, GE needs to be installed on a laptop computer thats connected to the scan

gun. The laptop can be put on a rolling cart and taken around the warehouse to easily count the parts

on the designated count sheet.


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Select [F3-Edit] to open the Quick Entry screen with the item that was highlighted in the Physical Count

Entry ready to be modified with the new count quantity. The Cost and Bin Location fields will only be

available if that was previously selected.


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Select [Quick Edit] to simply key in the quantities directly to the Physical Count Entry scre en. The Enter

key on your keyboard will move you to the next line for super quick count entry. The screen is laid out

in the same order as the printed Count Sheet, so if the count was done with paper and pencil you should

just be able to read through the list and input the quantities as recorded on the printed Count Sheet:


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Physical Count ReportThe below options are available when running the Physical Count Report:

Below is an example of what the report looks like:

This step is not required but is useful to print out as a confirmation of what was entered and if any

mistakes are found, simply return to Physical Count Entry and fix the quantity counted.

Inventory Variance ReportThe below options are available when running the Inventory Variance Report. It will show all items

counted and any quantity variance from existing QOH and also provides quantity and dollar variances:


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Dollar Variance Greater Than can be used if you wish to see a minimum dollar value for any i tems thathad a variance, or leave 0.00 to view all items.

Show Only Items Not Counted will print only those items that have not had a count entered.

Serial Items Only will only includeserialized items on the report.

Show Serial Numbers will printthe serial number for every serial item counted.

Below is an example of what the report looks like:


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Update Physical InventoryThis process will take the newly counted quantities and update your warehouse records in Glob alEdge

to reflect the input QOH (Quantity on Hand). This should only be run when you are sure there are no

more errors to correct. The subsequent report thats generated lists any items that encountered a

problem and did not update. Otherwise it will be blank.

NOTE: It is generally recommended that you run the Inventory Valuation Report before running this

process.

Physical Inventory JournalRun this after the inventory counts have been updated to review the journal that list the variances

which wil l eventually post to your General Ledger. Whenever inventory quantity increases, the GL

Inventory account will be debited and the Physical GL account (from Inventory Control Maintenance)will be credited. The opposite is true when inventory stock is reduced by the count. Once this journal is

reset, then run the Inventory Distribution report to see the break out by GL number. Finally interface

Inventory to GL to post the activity to the General Ledger.

For new customers counting their warehouses before going live, DO NOT reset this journal until your GL

is ready to take actual transactions. Meaning all the beginning balances are in and any posted journals


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from test or initial entries have been removed. Essentially dont reset this until you are actually LIVE on

GE.

Importing the count from ExcelFor most people, using the Physical Count process outlined above will be far easier than loading in

quantities from Excel. But for those who are savvy in Excel and who can easily get a list of items into aspreadsheet, this may be a preferred method.

The spreadsheet wil l need to be 4 columns long, below are the names to be used in the header row of

each column:

Item-Nothis is the Item Number in GlobalEdge. It is NOT the Manufacturers Item Number.

Sheet-No this is the count sheet number being used for the load. It should not contain a count sheet

number being used in a concurrent count. If there are no other counts, then simply set this to 1 on all

items.

Whs-Code indicate the warehouse number for which the count is being input.

Actual-count indicate the quantity on hand

Be sure to format each column as Text before entering any detail. This will prevent leading zeros from

being dropped from item and warehouse numbers.

Enter the detail and save the spreadsheet in csv format.

When youre ready to load it into GlobalEdge, go into System Utilities > Conversion Programs > Data

Import Program. Double-click in the Data File field and locate the csv file that was just created. In the

Table field select COUNT-SH-TR. Leave the Insert option selected, do NOT choose Duplicate

Records or Continue, and click [Import]. At this point your screen should look similar to the one

below:


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Select [F8-OK] and if the load is successful youll receive a message indicating how many records

updated.

At this point you can go to the Inventory Physical Count Menu and run the Inventory Variance Report

and/or the Physical Count Report. Review the detail and if it all looks OK then select to Update Phy sical

Inventory to save the loaded quantities to the warehouse as QOH. Lastly, be sure to run, review, and

reset the Physical Inventory Journal.

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