Using Inventory Reconciliation

The F3 option allows inventory adjustments to be made.

Scroll to select the item and press F3 to open the inventory adjustment option. An adjustment window will appear: "On-hand will be adjusted by (off-by or variance amount). Continue?"

• Select no to return to the inventory reconciliation item selection box.
• Select yes to adjust the quantity from the item but not the value. The remaining value will be added to the remaining balance and will increase the unit cost accordingly.

 

If the amount of the adjustment exceeds the maximum amount of adjustment allowed, the following message will display: "Maximum adjustment allowed is XX pounds from here!! Space bar to continue." Press the space bar to return to the inventory reconciliation F10 window. The maximum amount of adjustment allowed is determined by the Reconciliation Adjustment Limit setting in Inventory Options.

Note: You can only adjust an item by the amount of the variance. Adjustments are not allowed on standard cost items, since this adjustment holds values constant. The message line "Standard Cost items invalid from here!!! Space bar to continue" will appear. Press the space bar to return to the inventory reconciliation F10 window.

Note: Adjustments are not allowed on lotted items. The message line "Lotted item amount adjustment invalid from here!!! Space bar to continue." Press the space bar to return to the inventory reconciliation F10 window.

Note: This procedure does not adjust values. To adjust both quantity and value, see Inventory Adjustments.

Note: While the system allows a maximum adjustment of up to 999 pounds to be established, we suggest that you do not allow values greater than 5 to 10 lbs. The reason for this is that the reconciliation screen only adjusts weight, not value. Making large changes from the reconciliation screen can result in inventory valuation problems if only weight is removed and not the value. For example: on-hand amount = 100 lbs, physical amount = 0 lbs, variance = 100 lbs. Making an adjustment to this item would result in a zero on-hand balance but leave the total value of 100 lbs. However, if the physical count for the item is 50, the physical amount can first be changed to 50 followed by an adjustment, to bring the on-hand balance into agreement. (On-hand amount = 100, physical amount = 50, variance = 50). The adjustment to 50 lbs will double the value of the remaining 50 lbs since only the weight is adjusted, not the value.

 

The F4 key allows inventory transfers to be created. You can only perform transfers from items that have a positive variance ("off-by" amount) to another item which has a negative value or another specified item. In addition, you can only transfer the amount of product which corresponds to the receiving item's "off-by" amount. Transfers cannot be made to a lotted or standard cost item.

1. Scroll to the item with a positive off-by amount or variance.

2. Press F4 to create an inventory transfer. A transfer window will appear with the following information:

• From Item – The item ID code and item name of the item selected. This becomes the transfer "from" item ID code.
• Off-By – The total "off-by" or variance amount.
• Weight – Enter the amount of the off-by or variance to transfer to another item.

 

A Select A To Item will appear with the following options:

• EXIT – Select EXIT to exit from the inventory transfer option
• ENTER ITEM – Select ENTER ITEM to enter an item to be transferred to. The item must not have a negative "off-by" or variance.
  • Enter the item group in the To Item field.
  • A Select An Item window will appear. Scroll to the item to be transferred and press Enter.

• A list of items with a negative off-by or variance. Scroll to the item and press Enter to select.

 

After the "to" item is selected the following fields will display:

• To Item – The item ID code and the name of the item selected as the "to" item
• Off-By – The total "off-by" or variance amount of the "to" item
• Weight – The amount of weight to transfer into the "to" item
• Yield % – The percentage yield taken on the transfer calculated as the "to" weight/"from" weight
• Loose COOL – If the item is defined as COOL = Loose, enter the COOL identity for the "to" item.

 

The following message will appear: "Update Transfer? No/Yes."

• Select no to abort the transfer and return to the inventory reconciliation item selection window.
• Select yes to update the transfer and return to the inventory reconciliation F10 window.

 

For Example:

From Item (Source Item) ........................ To Item (Receiving Item)
On-Hand amount = 100 lbs ..........................On-Hand amount = -50 lbs
Physical amount = 0 lbs................................Physical amount = 0 lbs
Variance = 100 lbs .........................................Variance = -50 lbs

 

If you want to zero both items, create a transfer by highlighting the From Item, and pressing F4.

• Using the example above, enter 50 lbs as the weight to transfer.
• Select the "to" item from the Select A To Item window. Only items with negative variances will be displayed in this window.
• Enter the amount to transfer as 50 lbs.
• Update/complete the transfer. This will zero out the "to" item. To bring the "from" item's on-hand amount to zero, perform an inventory adjustment as previously described.

Yields can also be calculated on items. Using the above example, the 100 pounds of the "from" item could be transferred to 50 pounds of the "to" item, resulting in a 50% yield.

If the "To" item is a standard cost item, A Select An Inventory Adjustment Type window will appear. Scroll to the inventory adjustment type to assign the inventory adjustment reason needed for the change in value between the "From" item and the standard cost for the 'To" item selected and press Enter.

The F9 key sets the physical count to 999999, meaning "uncounted". Entering 999999 allows users to enter the physical balance at a later time.

Press F10. The following command options will appear: Filter, Load Physical, Physical, Update, Finish, Print(X), Exit

• Filter – Select Filter to filter the selected items with the following choices:
  • Off By Only (V) – Select Off By Only (V) to list items with off by (variance) amounts.
  • Not Taken Only – Select Not Taken Only to list items with "99999" physical amounts, indicating the physical balance is uncounted. The items will be included again in the next cycle count.
  • All Items – Select All Items to list all items.
  • Exit – Select Exit to exit the filter options.
• Load Physical – Select Load Physical to choose how to load the physical amount.
  • On-Hand – Select On-Hand to replace the Physical Inventory column with the current on-hand balance of the items. The following message will appear: "reset all physical quantities to match current on-hand? No/Yes."
    • Select no to return to the command options.
    • Select yes to reset the current physical balance to the current on-hand balance.
  • Last On Hand – Select Last On Hand to replace the Physical Inventory column with the last on-hand balance saved on the prior inventory reconciliation for the items. The following message will display: Reset all physical quantities to match the last on hand? No/Yes."
    • Select no to return to the command options.
    • Select yes to reset the current physical balance to the last on-hand balance.
  • Physical – Select Physical to reset all physical quantities to match current physical balances saved for the items. The following message will display: "Reset all physical quantities to match current physical? No/Yes."
    • Select no to return to the command options.
    • Select yes to reset the current physical balance to the saved current physical balance.
  • Last Physical – Select Last Physical to replace the physical balance with the saved physical balance from the last inventory reconciliation. The following message will display: "Reset all physical quantities to match last physical? No/Yes."
    • Select no to return to the command options.
    • Select yes to reset the current physical balance to the last physical balance.
  • Zero – Select Zero to reset the physical balance to zero. The following message will display: "Reset all physical balances to zero? No/Yes."
    • Select no to return to the command lines.
    • Select yes to resent the current physical balance to zero.
  • Exit – Select Exit to exit the Load Physical screen and return to the command options.
• Physical – Select Physical to return back to the inventory reconciliation F10 window to enter/change the physical amounts.
• Update – Select Update to exit the reconciliation without resetting physical amounts to zero or save the on-hand balance. Selecting Update will, however, save the current physical amounts so that the reconciliation can be finished at a later date, without having to enter physical balances a second time.
• Finish – Select Finish to exit the inventory reconciliation screen. Selecting Finish resets physical amounts to zero and saves the On-Hand and Physical column entries. The following message will display: Save reconciliation and reset physical to zero. Continue? No/Yes?"
  • Select no to return to the command options.
  • Select yes to save the on-hand and physical balance.
• Print(X) – Select Print to print the reconciliation report. The summary report will print a list of the items based on the current filter selected (off-by, not taken, or all items) showing the on-hand, physical, and off-by balances. The detail report lists transactions based on the current system date – today's date. The report does not list the detail since the last physical date because the inventory reconciliation is designed to be finished on a daily basis. The transactions included are all inductions and releases for the item, shipped and ready sales orders, received and completed purchase orders, credit orders, transfers, planned transfers, inventory adjustments, and closed work orders. Select Print. The following message will display: "Print Detail? No/Yes."
  • Select no to print a summary report.
  • Select yes to print a summary and detail report.
• Exit – Select Exit to exit the inventory reconciliation screen. The following message will appear: "Exit without updating or finishing? No/Yes."
  • Select no to return to the command options.
  • Select yes to exit without saving the physical balances entered or updating the last on-hand and physical balances.