Physical Inventory

Many companies are required to perform a physical inventory on an annual basis.  A physical inventory is conducted to ensure that computer records accurately reflect actual inventory balances.  During a physical inventory, the actual inventory quantity is determined by counting every part stored in each stocking location.

MAC-PAC supports a ticket-based physical inventory system that provides printed documents (tickets) that may be issued to stockroom personnel and used to record inventory counts.  Once the counted quantities have been recorded on the system, reports can be run to provide a comparison of perpetual (system) inventory to actual physical counts.  These counts may be adjusted as necessary.  The final step in the physical inventory process is to post the results, during which inventory is adjusted automatically by the system.  Below is an overview of the steps necessary to conduct a physical inventory.

Physical Inventory Overview

Many companies use cycle counting as an alternative to, or to complement, the physical inventory process.  The concept behind cycle counting is that a subset of parts in specified stock locations is counted on a cyclical schedule rather than once a year.  Performing a cycle count allows a company to receive an accurate picture of its inventory every 1-3 months.  For more information about performing a cycle count, refer to the Cycle Counting Key Concept.

Related

• Setup Procedures
• Counting and Recording
• Reconciliation and Reporting
• Posting Inventory Adjustments