Cycle Counting

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Cycle Counting

Scope

This procedure covers performing regular cycle counts of inventory.

This procedure does not cover defining an ABC Analysis or conducting a Physical Inventory. Refer to ABC Analysis and Physical Inventory.

System References

Cycle Counting - Defining

Cycle Counting - Generating Cycle Count Listing

Cycle Counting - Entering Actual Quantities

Cycle Counting - Approving Adjustments

Policy

Cycle Counting is:

performed periodically to ensure accuracy of inventory quantities and values
a method of taking inventory that does not require the inventory organization to shut down in order to count actual inventory items
performed by an inventory organization at the discretion of the INV Administrator; conducting a Physical Inventory is an alternative method of taking inventory

Responsibility

The INV Administrator is responsible for:

setting up the cycle count parameters and scheduling

The INV Inventory Specialist is responsible for:

printing cycle count requests
performing the item counting
entering actual item counts
resolving inventory discrepancies in the database

Distribution

Director of Procurement Services

INV Administrator^*

INV Inventory Specialist^*

Ownership

The Director of Procurement Services is responsible for ensuring that this document is necessary, reflects actual practice, and supports University policy.

Activity Preface

Preparing the cycle count is performed during setup of the inventory organization in the database. It may be performed as needed for changes to scheduling and setup or as items are added to the inventory.

Cycle counting is performed on a regular basis as determined by the INV Administrator during the setup process.

This procedure continues from:

Defining an ABC Analysis.

INV Administrator

1. Define cycle count.

Set the parameters for the cycle count including settings such as schedule, tolerances, recount criteria, and the ABC group to use.

Inventory
N ® Counting ® Cycle Counting ® Cycle Counts
B ® New
Cycle Counts

Cycle Counting - Defining.

2. Schedule Cycle Count listing.

Inventory
N ® Reports ® ABC and Counting
S ® Single Request
B ® OK
ABC and Counting Reports

Refer to Cycle Counting - Generating Cycle Count Listing.

INV Inventory Specialist

3. Retrieve the Cycle Count Listing from the printer.

If the Cycle Count Listing did not print automatically, goto task #4. Otherwise, goto task #5.

4. Generate Cycle Count Listing.

Inventory
N ® Reports ® ABC and Counting
S ® Single Request
B ® OK
ABC and Counting Reports

Refer to Cycle Counting - Generating Cycle Count Listing.

5. Count items in inventory.

6. Enter actual quantities into database.

Inventory
N ® Counting ® Cycle Counting ® Cycle Count Entries
Cycle Count Entries

Refer to Cycle Counting - Entering Actual Quantities.

7. Compare actual quantity to expected quantity.

If there is a discrepancy, goto task #8. Otherwise, end of activity.

8. Recount items.

If there is a discrepancy outside the tolerance limits, the item will be recounted during the next cycle count. The item will appear on the next Count Requests report if recounting is necessary. IS Inventory will request recount for an item until you reach the maximum number or recounts.

If the maximum number of recounts has been reached for any item, goto task #9. Otherwise, goto task #6.

INV Administrator

9. Approve adjustments.

Inventory
Counting ® Cycle Counting ® Approve Counts
Count Adjustment Approvals Summary

Refer to Cycle Counting - Approving Adjustments.

End of activity.

Effective: 08/13/04

Revision: 2