Physical Inventory Year End Checklist

____ 1. Print the Item Status Report for an up-to-date list of item quantities to help you organize your items into physical inventory batches.

____ 2. Select the Freeze Quantities function from the Physical Inventory menu to prepare batch codes that include the items and locations you are going to count from your inventory.
  • Elect whether to use tags or worksheets for counting a batch.
  • Elect whether to enter all the inventory counts or to enter only exceptions between frozen quantities and counted quantities.
  • Elect whether to display frozen quantities on count entry screens.
  • Elect whether to print items with zero quantities on tags or worksheets.
____ 3. Select the Batch List function on the Physical Inventory menu to verify the status of each batch. The list indicates whether the various stages of the physical count process have been completed.

____ 4. Post transactions in all modules to update current on hand quantities.

____ 5. Select the Freeze Quantities function anytime after you prepare batch codes to freeze on hand quantities. Use this function when you are ready to conduct the physical count.
NOTE: Once you freeze quantities, there should be no activity in the warehouse until physical inventory is updated through the Update Perpetual Inventory function, but you can continue to process transactions during this time.

____ 6. Select the Print Inventory Tags/Worksheets function on the Physical Inventory menu to produce tags or worksheets for the physical count.

____ 7. Conduct the physical count using the printed tags or worksheets.

____ 8. Select the Physical Counts Tag Entry function on the Physical Inventory menu to enter the counted quantities on tags. Use the Physical Counts Worksheet Entry function on the Physical Inventory menu to enter the counted quantities on worksheets.

____ 9. Select the Physical Counts List function on the Physical Inventory menu to produce a list of items from the selected batches to verify that the correct counted quantities were entered.

____ 10. Print the Variance Report on the Physical Inventory menu to display the quantity and cost variances between the physical counts you entered and the frozen quantities. This report is part of your audit trail and must be printed to a file or the printer in order to run the Update Perpetual Inventory function for a batch.

____ 11. Select the Batch List function on the Physical Inventory menu to verify each step of the physical inventory process has been completed before you Update Perpetual Inventory.

____ 12. BACK UP YOUR DATA FILES! The next step makes changes to your data.

____ 13. Select the Update Perpetual Inventory function on the Physical Inventory menu to update on-hand quantities with the physical count quantities for the items in each batch. Save the log printed during the Update Perpetual Inventory as part of your audit trail for the physical inventory.