Physical Inventory Counts and Physical Inventory Journal

Purpose of this document

This document outlines using the “Physical Inventory Journal” and a separate document exists for the “Warehouse Physical Inventory Journal” use. Both are used to record inventory counts in Ceres.

Ceres Object release 6.00.00 is required for the functionality described in this document.

TABLE OF CONTENTS

• Overview
• Physical Inventory Count Recommendations
• Setup – Inventory Setup
• Creating and Posting Physical Inventory Journal Entries

Overview

The Physical Inventory Journal is used for cycle counting and full physical inventory counts. In Ceres there are two journals used for this purpose:

• Physical Inventory Journal
• Warehouse Physical Inventory Journal

Either journal can be used for cycle counting and full physical inventory. The Physical Inventory Journal is supported by the ADCS handhelds. Check with your Ceres consultant or the Service Desk for the best journal to use to support your Ship Option. The Ceres Inventory Workflow document has more information on Ship Options.

This document outlines using the Physical Inventory Journal and a separate document exists for Warehouse Physical Inventory Journal use.

Physical Inventory Count Recommendations

Post as many Agency Orders as possible that have been shipped to reflect your inventory totals more accurately. Also, post as many Donation & Purchase Orders as possible for the product that has been received and put away.

It is suggested that you run the Item List Report, Items on Hand Report, or Availability Status Report prior to generating a count journal. The Availability Status report shows your Product still to be received and/or distributed, along with Qty on Hand. Save or Print report.

1. You will need to run this report by Location. The Physical Inventory Journal is Location-specific, so you can only view the count for a single location at a time. This will make comparing quantities easier.

2. You may also wish to filter for either Qty. Remaining >0 or Qty. on hand >0 (depending on the report) to limit the results of your report.

Note: You can run this report after your physical inventory is posted, to compare before & after totals.

A procedure titled “Year End Checklist” provides detailed recommendations for related tasks to execute prior to a full physical count.

Setup – Inventory Setup

Ceres allows the ability to perform cycle counts with items open on pick documents within certain restrictions. Complete physical inventories will require that all picks be posted or deleted prior to beginning the physical inventory process. Cycle count inventories will proceed with open picks for the location being counted. During the physical inventory journal creation, you will specify whether you are performing a physical or cycle count.

Once a cycle count has been initiated for one or more items, creation of picks will respect a parameter based on the inventory setup card.

Inventory Setup can be accessed by selecting “Search” from the Dynamics 365 Business Central Banner and entering “Inventory Setup” in “Tell me what you want to do” then selecting “Inventory Setup” from the results in the Go to Pages and Tasks section OR by selecting the “Inventory Setup” menu action (if present) from your Role Center home page.

On the the ADCS FastTab you will find the Cycle Count Notification setting.

This field has three options to choose from and the pick generation process will function accordingly when if the pick that is being created contains an item on a cycle count:

Blank – The user receives no warning and the pick will be created.

Warning – The user will receive a warning and has the option to continue creating the pick or not.

Error – The user will receive an error and wil not be able to create the pick.

Warning message:

Error message:

Note: ADCS and VOX will respect these warning or error setting.

Creating and Posting Physical Inventory Journal Entries

1. Physical Inventory Journals can be accessed by selecting “Search” from the Dynamics 365 Business Central Banner and entering “Physical Inventory Journals” in “Tell me what you want to do” then selecting “Physical Inventory Journals” from the results in the Go to Pages and Tasks section OR by selecting the “Physical Inventory Journals” menu action (if present) from your Role Center home page.

2. Select the Item Journal Template you wish to use.

3. In the Journal select the batch name from the options in the Batch Name field or create a new one.

4. To populate the Physical Inventory Journal, click Process à Ceres Calculate Inventory.

5. This will bring up the Ceres Calculate Inventory Page. Select or set filters in the various fields, as necessary.

Posting Date: In the field, enter the date for the posting of this physical inventory journal. Ceres automatically enters the system date in this field, but you can change it to the date to which you wish to post.

Document No: Here you can specify which document number will be entered in the document no field on the journal lines created by the batch job. Ceres automatically enters the next number from the number series that is set up on journal template, but you can manually change it.

By Dimension: Select the dimensions you want the lines to be grouped by. Note: If you are using bins in the location, Dimensions will not be posted on the physical inventory ledger entries, the item ledger entries, or on the value entries.

Calculation Method: Specify whether or you are performing a complete physical inventory or cycle count. Physicals are only allowed when all warehouse documents have been posted. Cycle Counts are allowed with open warehouse documents with certain restrictions. The inventory setup above details the options available when performing cycle counts with open warehouse documents.

The following error message will appear if un-posted Inventory Picks exists and you select a Calculation Method of Physical Inventory when running the Calculate Inventory function. Instead, you can select a Calculation Method of Cycle Count to populate the Journal when un-posted Inventory Picks exist.

Item FastTab: This is used if you want to apply filters, for example by location or a range of item numbers.

6. Select OK to run the process.

Once the Physical Inventory Journal has been generated, print the Physical Inventory Sheet by clicking Post/Print à Print from the menu.

7. Set filters, as necessary.

Show Qty. (Calculated): Toggle on this field if you want the report to show the quantity Ceres is showing on hand.

8. When the count is complete, you are ready to populate the physical inventory journal with the actual quantities counted. This quantity is entered in the “Qty. (Phys. Inventory)” column, not the “Quantity” column.

Note: When using ADCS, the “Qty. (Physical Inventory)” will default to a value of zero when inventory is calculated. Otherwise, the field will default to the value of the “Qty. (Calculated)” field.

9. When you enter the Qty. (Phys. Inventory), the difference between the calculated quantity and quantity entered will now show in the “Quantity” column as a positive or negative number.

Note: Whatever Dimensions your inventory is counted by should be showing on this screen for verification of adjustments. As lots are required, be sure to show the Lot No. field as well. If you use Pallets, show that column.

10. When you have finished entering all the adjustments, be sure to print a test report by going to Actions à Posting à Test Report. The report will show you all the adjustments.

11. Please check with your Inventory Control lead to determine if multiple count passes are required for Q/A prior to posting all the adjustments.

1. If you wish to show Dimensions, click “Show dimensions” on the Options FastTab. A second line will be inserted on the report for the dimensions.
2. The report will show you all the positive and negative adjustments and provide you with a total of each Entry type at the end of the report.

12. Post the Journal by clicking Actions à  Posting à Post or Post and Print to post the journal.

13. At this point, it is recommended that you run the report you ran in Step 1 again to compare it to the report you printed previously. Now you should re-generate picks for any orders that were not picked, shipped and invoiced prior to running the physical inventory.

14. Re-create any picks that were previously deleted before starting this process.

15. You may begin receiving and distributing inventory again.