1. Physical inventory

Physical inventory is a process to count all items in selected subinventories or all subinventories for an organization. A physical inventory may be defined for a single subinventory, selected subinventories, or an entire inventory organization. Subinventories must be defined as “Quantity Tracked” to be included in a physical inventory. A physical inventory assumes that all on-hand balances within the scope of the physical inventory will be counted.

The physical inventory process takes a snapshot of the on-hand balances, and generates tags for all items with an on-hand balance. Counts are recorded against the tag number and compared to the snapshot quantity. Deltas between the snapshot quantity and the counted quantity will generate adjustment transactions.

Physical inventory counts are generally performed at the end of a fiscal year, although you may create a physical inventory and perform a count at any time. When a count is being performed, material movement transactions may continue, but should be limited and controlled if an accurate count is to be assured. The physical count is compared to a snapshot or frozen on-hand balance quantity, so material movements should not be done from the time the snapshot is taken until the count is completed.

Scenario: Place five items into your subinventory to use for a physical inventory.

Step1: Perform Miscellaneous transactions for four items into Subinventory SCRAP to use for a physical inventory in FGI Organization

Navigation: Inventory > Transactions > Miscellaneous Transaction

Screen: Miscellaneous Transactions (FGI)


Fields Values
Date (Take the default)
Type Miscellaneous receipt
Source Blank
Click on Transaction Lines Button
Note: Enter all items before saving.
Miscellaneous receipt screen Appears
Item 3000988
Subinventory SCRAP
Lot
Quantity 125
UOM (Take the default)
Account Dummy
Press the down arrow key
Item 3000991
Subinventory SCRAP
Account Dummy
Quantity 72
UOM (Take the default)
Press the down arrow key
Item 3001060
Subinventory SCRAP
Account Dummy
Quantity 87
UOM (Take the default)


Item 3001010
Subinventory SCRAP
Account Dummy
Quantity 112
UOM (Take the default)

Press the down arrow key
Click on the Save icon
Close the Windows



Step2: Define Physical Inventory and make an Inventory Snapshot. Use the Physical Inventories window to: Setup a physical inventory definition for your subinventory.


Navigation: Inventory > Counting > Physical Inventory > Physical Inventories

Screen: Physical Inventories Summary (FGI)

Region Fields Values
Click on New Button
Define Physical Inventory Screen Appears
Name TEST1
Description Test1 Physical Inventory
Date (Take the default)
Tab to the Approval Area
Approvals Required Select: If Out of Tolerance
Quantity +10% and -10%
Value +10% and -10%
Tab to the Count Subinventories Area
Count Subinventories Specific Check the Box
Subinventory SCRAP
Allow Dynamic Tags Uncheck the Box
Click on Snapshot button

• Record the concurrent request # ___________________
• Click OK
• Close the Define Physical Inventory screen
• Close the Physical Inventory Summary screen
• Go to the View menu and select Requests
• Click on the Find button in the Find Requests screen
• Verify your concurrent request completes normally
• Close the Requests screen

Step3: Generate Tags. Use the Tag Generation window to: Generate default tags for your physical inventory definition.

Navigation: Inventory > Inventory Counting > Physical Inventory > Tag Generation

Screen: Generate Physical Inventory Tags (FGI)

Region Fields Values
Name TEST1
Description Test1 Physical Inventory
Date (Take the default)
Tag Type Select Default
Show Serial on Tags Leave Checked
Tab to the Tags Area
Tags Starting Tag TXX001
Digit Increments 000111 (Defaults)
Ending Tag System calculated
Number of Tags System calculated
Click on Generate button

• Record the concurrent request # ___________________
• Click OK
• Close the Generate Tags screen
• Go to the View menu and select Requests
• Verify your concurrent request completes normally and close the window.

Step4: Enter Counts Use the Tag Counts window to: Enter tag counts using the default tags.

Navigation: Inventory > Inventory Counting > Physical Inventory > Tag Counts

Screen: Physical Inventory Tag Counts (FGI)

Region Fields Values
Name TXX-PHYS
Click on the Find button
Click on Yes on Decision Box
Use arrow keys to move from line to line and enter a count for each item
3000988 100
3000991 111
3001060 125
3001010 60
Click on the Save icon
Close the window.

Step5: Approve the Adjustments.
Use the Approve Physical Adjustments Summary window to: Approve all the adjustments.

Navigation: Inventory > Inventory Counting > Physical Inventory > Approve Adjustments

Screen: Approve Physical Adjustment Summary (FGI)



Region Fields Values
Name TEST1
Click on the Find button
Click No on Decision Box
Click on the Approve All button
Click on the Save icon
Close the window.

Step6: Launch the Adjustments Program
Use the Physical Inventories Summary window to: Adjust the physical inventory quantities.


Navigation: Inventory > Inventory Counting > Physical Inventory > Physical Inventories

Screen: Physical Inventory Summary (FGI)


Fields Values
Click on the line which lists your Physical Inventory TEST1
Go to the Tools Menu and select: Launch Adjustments

The Launch Adjustments screen will open
Adjustment Account Variance account
Click on the Launch Adjustments button

• Record the concurrent request # ___________________
• Click OK
• Close the Physical Inventory Summary screen
• Go to the View menu and select Requests
• Verify your concurrent request completes normally and close the window.


Step7: Physical Inventory Report.
Use the Request Window to: Run the Physical Inventory Accuracy Analysis report

Navigation: Inventory > Reports > ABC and Counting

• Select Single Request in the dialog box and click OK.
• Select the report name: Physical Inventory Accuracy Analysis.
• Enter the name of your physical inventory definition “TEST1”
• Click on OK and then Submit.

• Record the concurrent request # ___________________
• Click on No.
• Go to the View menu and select Requests.
• Verify your concurrent request completes normally .
• Click on the line which lists your request.
• Click on the View Output button to review the report.
• Close the report output window and the requests screen.

Step8: Purge Physical Inventory
Use the Physical Inventories window to: Run the physical inventory purge program

Navigation: Inventory > Counting > Physical Inventory > Physical Inventories

Screen: Physical Inventories Summary (FGI)

• Click on the line which lists your Physical Inventory TEST1

• Click on Open Button to verify that the Adjustment Posted box is checked
• Go to the Tools Menu and select: Perform Purge

The Perform Purge screen will open

Select: All in the dialog box.
Click on the Purge button.

Record the concurrent request # __________________.
Click OK.

Close the Physical Inventory Summary screen.

Go to the View menu and select Requests.
Verify your concurrent request completes normally and close the window.

Reopen the Physical Inventories Summary screen to verify the purge has removed your definition “TEST1”.