The Inventory Cycle Count function in Dynamics GP is very useful. It allows you to perpetually adjust your inventory quantities to actuals without having to do a total physical count.
By performing regular cycle counts you’ll find that your inventory quantities are more accurate within your accounting system. And doing so will not be as arduous as if you shut down your business to take a 100% physical count.
There are a couple of nice features that make using the cycle count function efficient and effective:
- You can assign ABC codes to help determine how often you should count each item. This is based on several business values you can choose.
- When you start a count, a snapshot of your inventory is taken, to which the actual results will be compared. This allows you to continue using Dynamics GP for business processing. Just make sure you have good control over the physical movement of items in your storage locations.
- There are handy inquiry windows that will help you resolve discrepancies between book quantities and count quantities. For example there may be a recent receipt of goods in which the goods were physically added to your inventory, but the receipt has not yet posted, thereby throwing off your book quantities. The inquiry windows will help you resolve these types of problems.
- The actual count quantities are entered into Dynamics GP, and the system will calculate the differences.
Here is a quick video of inventory cycle counts that shows this in action.