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Cycle Counting in Epicor

Cycle and Physical Counting

The Cycle Counting and Physical Counting functions allow for


inventory error, identification, analysis, and resolution. These
functions process and manage inventory counting conducted on a
cyclical basis, and also handle single physical counts conducted for all
parts within a specified warehouse. The cycle counting module
contains extensive functionality and features used for:

Detailed audit control over the selection of items to be counted.

Controlling the frequency by which items are counted.

Tracking, recording, and review of variances for the items counted

Cycle counting functions in the Epicor application are based on


the selection and counting of a specific number of ABC-coded
parts.

High value, fast moving parts are normally counted on a more


frequent basis, while low value, slow moving parts are counted
less frequently.

ABC coding in individual part records can be automatically


updated based on specified stock usage percentages or
manually entered and locked to further automate update.

ABC Code Maintenance

Parameter values for the Cycle Counting and the Variance Tolerance sections
establish a company's global values for each ABC code. Parameter values for Cycle
Counting are divided into two sections - Cycle Count and Value Tolerances.

Cycle Count Section: The options in this section determine how to handle the
selection of parts within a defined ABC.

Exclude from Cycle Count - This check box designates if parts containing the ABC code
specified in the ABC Code field are only counted during physical inventory and excluded
from selections for cycle counting in this warehouse.

Stock Valuation Percent - This field is used by Calculate ABC Codes to determine what
ABC code is assigned to a part/warehouse record.

Count Frequency - This field designates how often parts with this ABC classification
code are counted. Express ABC Codes in days. The application converts an entry in
number of days, to represent a number of months (if desired). For example, ABC Code A
should reflect a count performed monthly. The count frequency would be 30 (days) to
represent monthly.

Variance Tolerances Section

The tolerances established in this section are used to


filter parts on the variance reports. A part does not display
on a variance report if it is within the tolerance defined.
There are three tolerance parameters available:

Percentage Tolerance

Quantity Tolerance

Value Tolerance

Calculate ABC Codes

Use Calculate ABC Codes to perform warehouse or site-specific stock


valuation calculations, produce a report with suggested ABC code
assignments and (optionally) assign ABC codes to part records in the
warehouses associated with specified sites. You normally run this
function prior to processing cycle and physical inventory counts. If
you do not use cycle counting for inventory count processing, you do
not need to run this function.

If 80.0 was specified as the stock valuation factor for ABC Code A, the
Epicor application assigns Code A to inventory items that represent 80% of
the value of the total inventory in the warehouse or site. If 95.0 was
specified as the stock valuation factor for ABC Code B, it assigns Code B
to inventory items that represent the next 15% of the value of the total
inventory in the warehouse or site.

Count Discrepancy Reason Codes

When processing parts in a cycle or physical count, Count


Discrepancy Reason Code Entry requires entry of codes that denote
reasons that parts are out of tolerance with respect to the actual
physical count quantity and perpetual inventory balance in the Epicor
application. Define these codes as Inventory Adjustment codes in
Reason Code Entry, and select the Count Discrepancy Reason Code
check box to designate each code for use in Count Discrepancy Reason
Code Entry.

Initialize Last Cycle Count Dates

Use Initialize Last Cycle Count Dates to initialize the Last Cycle
Count Date field in part records for selected warehouses, prior to use
of inventory count functions in the Epicor application.

When running the Perform Part Selection selection on the Cycle Count
Schedule Maintenance Actions menu, it uses the Last Cycle Count date,
in conjunction with the cycle count interval factors defined for specific
parts, to calculate the dates on which individual parts should be
reselected for cycle counting.

The Initialize Last Cycle Count Dates program assigns (and spreads) the
last count dates for the selected ABC items across the last x number of
months, where x is the cycle count interval defined for the ABC code
category in ABC Code Maintenance.

Cycle Counts vs Full Physical Inventory


Counts

The manner that you begin processing is dependent on whether you


are performing a cycle count, or a full physical inventory (wall-towall) count.

Cycle counting is a procedure in which a small subset of inventory, in


a specific location (usually a warehouse), is counted on a specified
day or period of time; a "Cycle" is the period of time over which all
items in inventory are counted.

If you are performing a single full physical inventory count in which you
count all parts in a warehouse, you first use the Initialize Physical
Inventory program to initialize data and select the parts for processing.
After specifying the warehouses being counted, the Epicor application
performs the following tasks

For each selected warehouse, creates an internal warehouse count control


record, flagged as a full physical inventory count, and assigns a single cycle
scheduled for the specified start date.

Selects all bins in the specified warehouse, and assigns parts for counting that
meet the following criteria:

Parts are stocking, quantity-bearing (regularly stocked) items that are not defined
as Kit type parts. These are parts for which the Type field is not set to Sales Kit,
the Non-Stocked Item check box has been cleared, and the Quantity Bearing check
box has been selected

You cannot add, delete or move parts assigned to the physical inventory cycle.