Perform Cycle Count

Introduction

Cycle Count is a method of inventory management where a small, pre-selected number of inventory items is counted periodically to verify inventory accuracy against inventory records (such as records in OpenBoxes or Physical Bin Card). Cycle Counting helps identify discrepancies, track variances, and ultimately improve inventory accuracy and efficiency.

The Cycle Count feature in OpenBoxes will assist your warehouse team to check your inventory data, correct inventory as needed and get insights from your inventory accuracy. This feature will assist with regularly counting few inventory items between the annual or bi-annual counts.

ABC Classification

ABC classification is a method of categorizing items into three groups: A, B, and C based on their consumption.

Group A items are high-consumption items that should be counted 4 times a year.

Group B items should be counted 2 times a year.

Group C items should be counted once a year.

Using the Cycle Count Feature

Using the Cycle Count Feature involves three steps in OpenBoxes.

1. Pick Products to Count [ALL PRODUCTS PAGE]

   In this step, you will review and pick which products you want to count during this cycle count depending on the item's last count date and its ABC classification.

   1. Go to Inventory > Manage Cycle Count. This will load a list of ALL PRODUCTS available to count.

      

   2. In the ALL PRODUCTS list, the items are sorted by which ones you should count the earliest.

      The Sorting is based on Last Counted Date and ABC Classification.

      

   3. Use the available filters to see a reduced number of items. For example, use the Bin Location filter if you want to count items only in a specific bin, or use the Tags filter to count products with a specific tag.

   4. Once you have selected the items that you want to count, click on Mark as To Count.

      This button will add the items to the TO COUNT list for you to count.

2. Perform the Count [TO COUNT PAGE]

   In this step, you will perform physical counts on the products you selected from the ALL PRODUCTS page. Once the physical count is complete, the users can enter the inventory count data into the system.

   1. Print Count Form & Perform Physical Count

      On the TO COUNT page, select the products you or your team member will count. Click on Print Count Form. You can either Print the Count Form in PDF or Excel version.

      

      The Count Forms include the Serial / Lot Number of the items with Expiration Dates (if present in the system). However, it will not include the quantity of those items in the system. This is known as Blind Count.

      The person physically counting will write / type the quantities they count on the Count Form with comments as necessary.

      

      Note: When performing the physical count, you may find Lot numbers not displayed in the Count Form. In such cases, make sure to note the Lots & Expirations in the Count Form to enter in the system later.

      
      
   2. Start Count
      1. Once you or your team member has completed the physical count for the selected items, go back to OpenBoxes. Go to Inventory > Perform Cycle Count. This will bring you to the TO COUNT page.

      2. Select the items that have been counted. Click on Start Count.

         

         
         
         

         In the next page, enter data for the following fields for each product:

         

         1. Date Counted: will default to today's date. Change if needed.
         2. Counted By: Select the person who counted the product.
         3. Quantity Count: Enter the quantity counted during the physical count for each Serial / Lot Number.
         4. Comment: Enter comment as needed.
         5. Add new record: If you found a Lot Number not present in the Count Form, use this button to record the newly found Lot Number, Expiration Date, quantity and comment.

         6. Save Progress as you enter the data to not lose any data.

            Click on Next to go to the next step.

      3. Review all the entered information. Click on Back to update/add/delete anything. Click on Save to move forward.

         If the data you entered does not match what is currently in OpenBoxes, you will see this pop-up.

         

         Click on Resolve to view and resolve discrepancies or select Not now to resume later.

3. Resolve Discrepancies [TO RESOLVE PAGE]

   In this step, you will review and resolve the discrepancies identified from your inventory count by re-counting and confirming.

   You/team member should perform investigations as to why the physical quantities do not match the quantities in OpenBoxes. Some possible causes may be: missing transactions, or item placed in an unknown bin location.

   

   1. Go to Inventory > Perform Cycle Count > TO RESOLVE.
   2. Select the products with discrepancies you want to resolve.
   3. Print the Recount Form in either PDF or Excel.
   4. Perform a re-count on the items. A different person should perform the re-count.
   5. Once the recount is complete, click on Start resolution in OpenBoxes.

   6. You will see the following information:

      

      1. Date Counted: The date of the first count.
      2. Counted by: The person who performed the first count.
      3. Date recounted: will default to today's date. Change if needed.
      4. Recounted by: Select the person who counted the product.
      5. Quantity Count: The quantity that was counted in the first count.
      6. Count Difference: Shows the difference between the count entered during first count and the quantity in OpenBoxes. For the screenshot above, the count difference is +1 because the quantity counted during first count was 2, but the quantity in OpenBoxes is 1, noting a discrepancy of +1.
      7. Quantity Recounted: Enter the quantity after the second count.
      8. Recount Difference: The difference between the recounted quantity and the quantity in OpenBoxes. In the screenshot above, the Recount Difference shows equal because I entered "1" for Qty Recounted, which matches the quantity in OpenBoxes.
      9. Root Cause: If the Quantity Recounted does not equal the existing quantity in OpenBoxes, select a Root Cause of why as you find from your investigation.
      10. Comment: Enter any relevant information.
      11. Add new record: If you found a Lot Number not present in the Recount Form, use this button to record the newly found Lot Number, Expiration Date, quantity and comment.
      12. Save Progress as you enter the data to not lose any data. Click on Next.
      13. Review the data entered. Click Save.

4. Stock History

   The Stock History will show the Cycle Count transaction.

   

   As seen in the screenshot above, Cycle Count is displayed as an Inventory Count (with the calculator icon).

   If the physical quantities were different from the quantities in OpenBoxes, the discrepancy resolutions are displayed as adjustments right after the Inventory Count. See the Red Downward Arrow.