Resolving Differences between Inventory Counts and System Balances

After the cycle counter has counted all of the parts on the schedule, a clerk enters the amounts on the cycle count schedule by stock location.  After all parts have been recorded, another person calculates the difference between the actual count and the expected amount that is on the system.  This person then enters a cycle count adjustment which adjusts the part's stock level on the system to reflect the quantity that was actually counted.  This step is repeated for all of the parts on the cycle count schedule.  A performance report allows you to see the number of counts performed, the year-to-date adjustment activity, and the percentage of inventory accuracy.

The materials manager then runs the Cycle Count Performance Report (IC620E) to determine the company's inventory accuracy.  Periodically, the ABC classifications may need to be changed to reflect changes in part costs or in part usage.