Physical Inventory Procedures

This procedure allows you to complete tasks in physical inventory. Changes were made in Rev 15.

1. Complete all activities affecting inventory.

• Invoices, voids, adjustments and credit memos.

• Post all service tickets.

• Post all inventory receipts.

• Post all custody records.

2. Stop all of the above inventory activities.

3. Stop all equipment movement.  Any equipment coming in must be tagged and kept aside.

4. Run the following reports:

• Machine Custody Report--by item  (CN-4-8)

• Open Orders By Item  (OE-4-1)

• Purchase Orders By Item  (PO-4-3)

• Physical Inventory Reports  (INV-4-2-13, 14)

5. Print Inventory Valuation using Last or Average Cost depending on how cost is recognized when inventory is sold.  If this report is run in detail, you have an itemized record of the inventory dollars prior to the physical count.  (INV-4-2-10,11,12)

6. Run emergency service calls.  Any parts taken on calls must be logged out and not returned to inventory.  If a part comes back, it must be tagged and kept aside.

7. Physically count all inventory items.  Physical inventory is done systematically by location.  These quantities should either be recorded on the Physical Inventory or entered into the bar code reader.  Note:  Each technician’s trunk is considered a warehouse.

8. Using the program Physical Posting, enter the quantities that are in stock.  (INV-1-8)

9. Verify all units on custody (i.e., accessories, stands, and supplies on trial) and input correct quantities (On Hand Adjustments).  (INV-1-3)

10. After all physical counts are taken, add or delete the serial-numbered items with appropriate costs.

11. Run Inventory Valuation using Last or Average Cost depending on how cost is recognized when inventory is sold.  If this report is run in detail, you have an itemized account of your inventory dollars.

12. Verify the Inventory Valuation Report generated in Step 13 page by page to eliminate obvious errors.

13. Once the corrected Inventory Valuation Report is verified, resume day-to-day operations.

Rev 15 Changes

• The instruction previously on number 6 to run ADVZERO has been removed since Rev 14.

• The instruction previously on number 9 regarding "if system says quantity in stock and should not be" has been removed.

• The instruction previously on number 12 associated with running ADVZERO has been removed since Rev 14.