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Cycle counting and Physical count?
Posted: Tue May 13, 2008 1:13 pm
by mah.rukh
Hi Friends,
I want to know the difference between cycle counting and physical count in inventory?
Thanks
Posted: Mon May 19, 2008 8:37 am
by utsavwalia
Hi,
When you say physical count are you talking about physical inventory?
Regards,
Utsav.
Posted: Tue May 20, 2008 2:15 am
by mah.rukh
Yes.
Posted: Tue May 20, 2008 9:55 am
by utsavwalia
Hi,
Physical inventory is a process of taking couint of all inventory items available. SO lets say you have 100 different items. Everythime you are asked for a physical inventory you are supposed to count and check the quantities of all 100 items.
It is therefore necessary to take a snapshot of the inventory quantities so it can be matched since the inventory transactions will still update the values.
In case of cycle count u r still going to perform a simliar act p=but its periodic and progressive and based on parameters. Again asuume you have 100 items and 5 of these items are calls A items. 10 are class B and 85 are class C items.
You can perform a cycle count for say class A items.You don't need a snapshot since this will a quciker process given the limited number of items.
I hope this has clarified the process. it has for me to some extent. DO let me know if yu have doubts.
Regards,
Utsav.