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    Inventory Count Procedure

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    Erlene Compra
    The document outlines the steps for conducting a physical inventory count. Key steps include: 1) ordering tags and preparing the inventory in advance of the count, 2) freezing warehouse activities during the count, 3) using two-person teams to count and tag inventory items, and 4) entering tag information, investigating discrepancies, and evaluating the procedure after each count. The procedure is intended to ensure an accurate inventory count through preparation, control of activities during the count, and verification of count results.

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    Inventory Count Procedure

    Uploaded by

    Erlene Compra
    997 views2 pages
    The document outlines the steps for conducting a physical inventory count. Key steps include: 1) ordering tags and preparing the inventory in advance of the count, 2) freezing warehouse activities during the count, 3) using two-person teams to count and tag inventory items, and 4) entering tag information, investigating discrepancies, and evaluating the procedure after each count. The procedure is intended to ensure an accurate inventory count through preparation, control of activities during the count, and verification of count results.

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    The document outlines the steps for conducting a physical inventory count. Key steps include: 1) ordering tags and preparing the inventory in advance of the count, 2) freezing warehouse activities during the count, 3) using two-person teams to count and tag inventory items, and 4) entering tag information, investigating discrepancies, and evaluating the procedure after each count. The procedure is intended to ensure an accurate inventory count through preparation, control of activities during the count, and verification of count results.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    997 views2 pages

    Inventory Count Procedure

    Uploaded by

    Erlene Compra
    The document outlines the steps for conducting a physical inventory count. Key steps include: 1) ordering tags and preparing the inventory in advance of the count, 2) freezing warehouse activities during the count, 3) using two-person teams to count and tag inventory items, and 4) entering tag information, investigating discrepancies, and evaluating the procedure after each count. The procedure is intended to ensure an accurate inventory count through preparation, control of activities during the count, and verification of count results.

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    © All Rights Reserved
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    ANNEX A

    InventoryCountProcedure
    Itisnecessarytoperiodicallyconductacompletecountoftheinventory(knownasaphysicalcount).Thisis
    usuallydoneattheendofamonth,quarter,oryear,tocoincidewiththeendofareportingperiod.
    Thestepsintheprocessareasfollows:
    1. Order count tags. Order a sufficient number of twopart count tags for the amount of inventory
    expectedtobecounted.Thesetagsshouldbesequentiallynumbered,sothattheycanbeindividually
    trackedaspartofthecountingprocess.
    2. Previewinventory.Reviewtheinventoryseveraldaysinadvanceofthescheduledinventorycount.If
    therearemissingpartnumbers,orifitemsappeartobeinaconditionthatwouldbedifficulttocount
    (suchasnotbeingbaggedorboxed),notifythewarehousestafftomakethenecessarycorrections.
    3. Precountinventory.Gothroughtheinventoryseveraldaysinadvanceandcountanyitemsthatcanbe
    placedinsealedcontainers.Sealtheminthecontainersandmarkthequantityonthesealingtape.This
    makesthecountingtaskmucheasierduringtheactualcount.Ifasealisbroken,thenacountingteam
    willknowthattheyneedtorecountthecontentsofacontainer.
    4. Completedataentry.Ifthereareanyremainingdataentrytransactionstobecompleted,dosobefore
    the physical inventory count begins. This includes transactions for issuances from the warehouse,
    returnstothewarehouse,andtransfersbetweenbinlocationswithinthewarehouse.
    5. Freezewarehouseactivities. Stopall deliveries from the warehouse, and alsosegregate all newly
    receivedgoodswheretheywillnotbecounted.Otherwise,theinventoryrecordswillbeinastateof
    fluxduringtheinventorycount,andsowillnotbeentirelyreliable.
    6. Instructcountteams.Assembletwopersonteamstocounttheinventory,andinstructthemintheir
    countingduties.Thesedutiesinvolvehavingonepersoncountinventorywhiletheotherpersonmarks
    downtheinformationonacounttag.Onecopyofthetagisaffixedtotheinventory,whiletheteam
    retainstheothercopy.
    7. Issuetags.Aninventoryclerkissuesblocksofcounttagstothecountteams.Eachteamisresponsible
    forreturningaspecificnumericrangeofcounttags,whetherornotthetagsareused.Maintaining
    controloverallcounttagsensuresthatlosttagswillbeinvestigatedpromptly.
    8. Assigncountareas.Assignaspecificrangeofbinstoeachcountteam.Notetheselocationswitha
    highlighteronamapofthewarehouse.Theinventoryclerkshouldmaintainamasterlistofwhichareas
    ofthewarehousehavebeencounted,andwhichteamshavebeenassignedtoeacharea.
    9. Countinventory.Onepersononeachteamcountsaspecificitemwithinabinlocation,andthenthe
    otherpersonmarksthebinlocation,itemdescription,partnumber,quantity,andunitofmeasureona
    counttag.Theteamaffixestheoriginalcopyofthetagtotheinventoryitem,andretainsthecopy.
    10. Verifytags.Uponcompletionofacountarea,eachcountteamreturnstotheinventoryclerk,who
    verifiesthatalltagswerereturned.Iftherearemorewarehouseareastobecounted,assignanewarea
    tothecountteamsandissuethemnewblocksofcounttagsasnecessary.
    11. Entertaginformation.Entertheinformationonthecounttagsintoanonlinedataentryform.Oncedata
    entryiscompleted,printareportshowingalltagnumbersentered,sortedbytagnumber,andlookfor
    anygapsinthenumbers.Investigateanynumberinggapsfound.Thiswillensurethatallcounttags
    issuedwereincludedinthefile.

    ANNEX A

    12. Investigateunusualresults.Resorttheinventoryreportseveralwaystolookforunusualinformation,
    andinvestigatethetagentryassociatedwitheachone.
    Itmaybeusefultoevaluatethisprocedureaftereverycount,toseeiftheprocedureshouldbealteredto
    compensateforcountingissuesexperienced.

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