Inventory Control > Physical Inventory Count

When performing physical inventory count, it is important to set the proper cut-off point of recorded on-hand quantities for a more efficient and effective performance of the physical inventory count process. In AccountMate Enterprise, you are allowed to set the cut-off point of the recorded system on-hand quantities using the Freeze Inventory function. The cut-off point of the system recorded on-hand quantities will be used in comparison against the actual counted on-hand quantities for reconciliation and independent checks of the records. To avoid affecting the integrity of the inventory records during the physical count process, you must closely monitor the following transactions after freezing the inventory items for proper accounting of counted quantities:

•Selling of inventory items to customers

•Receipt of inventory items from vendors

•Adjustments of inventory items

•Manufacturing of inventory items

To freeze inventory item, perform the following procedures:

1.Access the Freeze Items function from the Physical Count group under the Transactions menu of the Inventory Control module.

2.In the Selection Criteria page, specify the inventory items that you want to freeze. You can specify to include a range of records for each criterion by choosing the Range option, or include all records by choosing the All option in the following criteria:

oWarehouse

Enter in this field the desired warehouse for which the item(s) you want to freeze is stored.

Note: Inventory items assigned to warehouses that are set for drop ship transactions will not be included in the freezing process.

oBin

Enter in this field the desired bin location of the items you want to freeze.

oABC Category

Enter in this the category code of the items you want to freeze, if applicable.

oItem #

Enter in this field the desired inventory items you want to freeze.

oItem Class

Enter in this field the desired item class of the inventory items you want to freeze.

oProduct Line

Enter in this field the desired product class of the inventory item you want to freeze.

oLast Count Date

Enter in this field the desired date when you updated your inventory count using the Update Physical Count function. The system displays the latest updated quantities as the on-hand quantities when you access the Input Physical Count function.

oNext Count Date

Enter in this field the date you want to use as the next date you perform the physical count.

3.You may also select which inventory items to include depending upon their status. Select one of the following options:

oActive and Inactive Items

Choose this option if you want to include all inventory items regardless of their status.

oActive Items Only

Choose this option if you want to include all active inventory items only.

oInactive Items Only

Choose this option if you want to include all inactive inventory items only.

Note: An inventory item that was frozen using the active or inactive criterion will remain frozen even if its status is changed after the freeze.

4.When you are ready, click the Freeze button in the function toolbar to proceed and freeze the inventory items that meets the conditions specified in the criteria area. The Summary page will automatically display showing information such as the number of warehouses, number of bins and the number of inventory records affected by the freeze process. Click the Cancel button if you do not want to save the freeze items transaction and revert the process.

Notes:

•Kit inventory items not requiring pre-build cannot be frozen in the system. These inventory items do not have on-hand quantities for counting because they are considered as shipped to the customers as soon as they are built in the system.

•Even if inventory items are frozen, the system will still allow transactions for these inventory items and subsequently update the corresponding inventory records. However, the on-hand quantities reflected in this function will still be the quantities at the time they were frozen, excluding transactions made after freezing the items. You need to clear the frozen items and freeze again the inventory items to reflect the updated frozen on-hand quantities.

Example: When you freeze a specific inventory item with 25 units, the 25 units will be the frozen on-hand quantities that will be reflected in the Input Physical Count function which is the basis for comparison against the actual counted quantities. If after freezing the inventory items, you shipped 5 units of such frozen inventory item to a customer, the 5 units will not be deducted from the 25 units when you input the actual physical count. The system will still reflect “25” as the quantity in the On-hand column of the Input Physical Count function. The system will then compare this “25” units with the actual counted quantity. To properly reconcile the quantity per books versus the quantity per physical count in the system, you need to clear the frozen items and then freeze again the inventory items for the system to reflect the 20 units as the recorded on-hand quantities. In this process, the system will not affect the costing of such inventory items.

•If you overwrite existing frozen inventory items in the system, the system will erase the physical count results that have been entered through the Input Physical Count function for the overwritten frozen items but have not been updated through the Update Physical Count function.

Q. Can I post inventory item related transactions in AccountMate after freezing all inventory items?

A. The system allows you to enter any transaction in any module. It will use the quantity of frozen inventory items and update the inventory records; however, the values under the On-Hand column of the Input Physical Count function will remain unchanged by any transaction entered after the inventory items have been frozen.

Freeze Items

Freeze Items

See Also