Cycle Counting

Cycle Counting

Cycle counting is a continuous inventory audit method where you count a subset of inventory on a rotating schedule, without shutting down operations.

Creating a Cycle Count

• Go to Inventory → Cycle Counts
• Click New Count
• Select scope: by Location, Zone, Product, or ABC Class
• Submit to create count session

Count Workflow

Create → Start → Count Items → Submit → Review Variances → Adjust

Scanning During Count

Use the barcode scanner on the count screen to quickly locate items:

• Scan a product barcode — the app auto-scrolls to that item
• Enter the counted quantity
• Proceed to the next item

Variance Review

After submitting counts, the system shows variances:

• Green: counted matches system quantity
• Yellow: minor variance (within tolerance)
• Red: significant variance — requires manager approval before adjustment

Adjustment

Approved variances automatically create stock adjustment records with:

• Reason code
• Counted vs system quantity
• Timestamp and user who counted

Best Practices

• Count A-class items weekly, B-class monthly, C-class quarterly
• Count during off-peak hours when possible
• Scan to reduce manual entry errors