After creating and entering in quantities for a new Inventory Count, the Entry User can review any Alert Flags that appeared as a count was entered by clicking the 'Review' button. Alert Flags demonstrate that a discrepancy exists between this count and the last count.
Once the count is reviewed and discrepancies are updated, then the Entry User can mark the count as 'Complete', which will lock the User out of making additional edits. Users with approval abilities can then review the final count and update it if needed by once more unlocking the count and making the necessary changes. When the count is finalized, it can then be approved.
This article will review the following for Admin Users who review and approve an Inventory Count:
Important Note on Updating Inventory Count Templates
Before updating an Inventory Count Template, ensure that all counts using that template are completed and/or approved. If a template is edited while it is in use, then it will be updated to reflect the structure of the 'In Progress' count when that count is marked as completed and/or approved.
Completed Inventory Count Screen
Inventory Counts will need to be reviewed before marking the count as 'Approved'. To initiate the Review process, select the desired Inventory Count and then click 'Review' in the Inventory Count sidesheet. This will open the Review sidesheet.
- Note: An 'Unlock' button will appear after the 'Complete' button is clicked. Clicking 'Unlock' will enable the User or any Entry Users to make changes to the count.
1) General Information - This header includes general information about the Template used for that Location, including the name of the team member who took the count and the date the count was made
2) GL Posting - This toggle enables the Inventory Template to post to the General Ledger when toggled on. If toggled off, the Inventory Count will not have an impact on the General Ledger
3) Uploaded Files - This enables any other relevant documentation to be added to the count if desired. Accepted File Types include PDF, PNG, or JPG
4) Review Tab - This tab lists the count and enables the User to correct any necessary count amounts. Alert Flags will be displayed on this screen for a quick view into any abnormalities in the count and can even be filtered via the Alerts Filter (#10). These alerts include the following:
- 'Less than Half' - This will display if the entry is half or less of the item entry from the last count
- 'Twice as Much' - This will display if the entry is double or more of the item entry from the last count
- 'Assume Zero' - This will display when the system entered a '0' quantity because the item was missing from the current count but was present on the last count
- '0 Quantity' - This will display when '0' was entered for this count but had a quantity entered in the last count
5) Storage Details Tab - This tab is for informational purposes only and displays all items and the details about their entry, regardless of Storage Location. This tab looks back at the last time the exact same template was used to determine the variance. This tab can easily be exported via the Excel icon . Details include the following:
- Current Qty – Total quantity entered for Inventory Item in the Storage Location
- Current $ Cost – Dollar cost for the Inventory Item at time of count
- Current $ Total – ‘Current Qty’ x ‘Current $ Cost’
- Prev Qty – Previous count quantity from the last count with the same template
- Prev $ Cost – Previous dollar cost from the last count with the same template
- Prev $ Total – ‘Prev Qty’ x ‘Prev $ Cost’
- Qty Variance – Difference between the ‘Current Qty’ and ‘Prev Qty’
- $ Variance – Difference between the ‘Current $ Total’ and ‘Prev $ Total’
6) Item Details Tab - This tab lists the actual Accounting Transaction and looks at the last time the item was counted to find its true net change. This tab can be filtered by Alert Flags (#10) and can easily be exported via the Excel icon . Details include the following:
- Current Qty – Total quantity entered for the Inventory Item in all Storage Locations
- Current $ Cost - Dollar cost for the Inventory Item at time of count
- Current $ Total - ‘Current Qty’ x ‘Current $ Cost’
- Prev Qty - Previous count quantity from the last count with the same template
- Prev $ Cost - Previous dollar cost from the last count with the same template
- Prev $ Total - ‘Prev Qty’ x ‘Prev $ Cost’
- Adjustment – Inventory adjustment amount to be posted to the 'Cost Acct' and 'Inventory Acct' for the Inventory Item
- Cost Acct – Cost GL Account
- Inventory Acct – Inventory GL Account
- Flag – Any inventory count alerts for the Inventory Item
7) Distribution Tab - This tab will only appear when GL Posting (#2) is toggled on and includes the Account Number, the amount Debited and Credited, and the corresponding Location and Legal Entity. This tab can easily be exported via the Excel icon
8) Search Bar - This enables the User to filter for a specific Item on any tab
9) View All - This will display all items included in the count
10) Alerts Filter - This will filter for items that were marked with an Alert Flag
11) Refresh Cost - This will refresh the cost to the most accurate cost in the system for every item in the list
12) + Add Item Button - This button will enable the User to search for a specific item to add to the Inventory Count. A prompt will appear asking whether the item should be added to the Template. Clicking 'Count and Template' will add the item to the template for the current and future counts while 'Count Only' would only include the item in the current count. Clicking 'X' will exit out without adding the item to either the count or template
13) Approve Button - Clicking this button will lock any role from editing the count. While the 'Complete' button can be clicked as an extra step before Approval, it does not have to be marked as 'Completed' to be 'Approved'. Once clicked, the status of this count will be labeled as 'Approved' in the Inventory Count listing
- Note: When clicked, the 'Unapprove' button will take its place
14) Unlock Button - This signifies that the Entry User has reviewed and marked the count as 'Complete', which locks them and any other Entry User from editing the count. Once 'Complete' is clicked and this 'Unlock' button is displayed, the status of this count will be labeled as 'Completed' in the Inventory Count listing, signifying that it is ready to be reviewed and approved. Clicking 'Unlock' will reopen the count for edits
- Note: The 'Unlock' button is only available to Users with Approval access
15) Inventory Count Review Menu - The Inventory Count Review Menu includes the following actions:
- Export Count Sheet - This will export the count sheet to Excel so that entries can be made on the home computer and then imported back into the system
- Import Count Sheet - This will import the count sheet into the count sidesheet
- Print- The following print options are available:
- Print Count Sheet
- Print Count Review (this is the Stock Count Quantities Report)
- Print Transaction Summary
- Share Email Link - This will share a link to the Inventory Count in a pre-formatted modal
- Delete- This will enable the User to delete the Count
- Note: When the count is marked as 'Approved', the delete option will not be available
16) Help Menu - This will open the Help Menu, which lists multiple resources to assist in reviewing an Inventory Count
17) Expand - This will expand the sidesheet to full screen. Once expanded, this icon can be clicked again to minimize the sidesheet back to its original size
18) Close Out - This will close out the sidesheet
Review Inventory Count
When reviewing an Inventory Count, ensure to review the following areas to assist in resolving count issues:
- Refresh Cost. If invoices are in progress at the time the count was started, ensure that all invoices are entered and approved and then click 'Refresh Cost' in the Inventory Count Review screen to update the costs.
- Review Each Amounts. Sort the 'Unit of Measure 1' column from highest to lowest and then lowest to highest to find the items that have a higher or lower entry amount, respectively, than expected. Repeat this for each Unit of Measure column and compare these entry amounts alongside their UofMs listed to ensure that AP Invoices have been entered correctly.
- Filter the 'Review' Tab for Alerts. Review the listed Alerts to determine where potential errors were made. This could be an incorrectly entered amount or a skipped entry.
- Add New Items. Ensure that any new items purchased for the first time since the last count have been added to this Inventory Count Template.
- Verify Proper Account Assignment. Navigate to the 'Distribution' tab and review that the Inventory Count GL Accounts match the Cost GL Accounts. If these do not match, open the 'Item Details' tab and search for items that have been assigned to the same Cost and Inventory GL Accounts.
- Note: If GL Accounts are not one-to-one, such as Meat Cost and Meat Inventory GL Accounts, but are one-to-many, such as Meat Cost to Food Inventory GL Accounts, compare the total lines impacting the Inventory Accounts in the grid to the net adjustment rather than the full distribution total.
- Compare Against the Balance Sheet. Run the Balance Sheet for the date and Location of the Inventory Count and then click the 'Total' value for Inventory to view the GL Account Detail of those accounts. These Balance Sheet values should match the printed Count Review, or Stock Count Quantity, report where the 'Beginning Balance' value should match the 'Previous Amt', the 'Total' value should match the 'End' value, and the 'Adjustment' should match the 'Adjustment', respectively. Reasons for a mismatch include:
- Items dropped off
- Items are assigned to an Inventory Account for the Cost Account field, meaning purchases are being marked as inventory
- If more than one Inventory Count Template is used per store for end period inventory, ensure all items only exist on one of these templates
- Counting inventory should be the only transaction that impacts Inventory Asset Accounts. Journal Entries should not be entered to account for things that were not counted in inventory; otherwise, the Balance Sheet will no longer match the Inventory Count
- Run the Actual versus Theoretical Report. Run the AvT report to look for any variances that 'grew' over the count cycle, or increased in amount without the explanation of purchases. These will be displayed in red in the 'Actual' column and include items that were either counted incorrectly or an invoice or other transaction that is missing in the system.
Editing Item Counts
After clicking 'Review', Item counts can be updated on both the 'Count Entry' tab as well as the 'Item Details' tab.
- Note: Once the Inventory Count has been 'Completed', Item counts can no longer be updated. To update Item counts, the Inventory Count will need to be 'Unlocked'.
Count Entry tab
On the Count Entry tab, counts for the Item can be updated within a single Storage Location.
- Click the current count for the desired U of M. This will open inline editing.
- Update the count
- Press 'Enter' or 'Tab' on the keyboard or click anywhere on the sidesheet. Changes made are automatically saved.
Item Details tab
On the Item Details tab, counts can be updated for the Item across all Storage Locations.
- Click the line for the desired Item. This will open the 'Storage Location Quantities' form.
- Click the count that needs to be updated
- Update the count
- Click 'DONE' or 'X' to close the form. Changes are automatically saved.
Approve Inventory Count
After reviewing all Alert Flags and updating the count where necessary, Users with approval abilities can then approve the count by clicking the 'Approve' button in the top right corner of the sidesheet.