15 Nov Inventory Cycle Counts in Dynamics GP
If you want to maintain an accurate inventory, you will need to complete a physical count of your inventory periodically. A common approach is to count 100% of your inventory at year-end.
For some companies this works fine. But it usually means that you have to shut down part of your business to stop the physical movement of goods and to free up personnel to actually count the stuff.
A more practical way to conduct physical counts is to implement a cycle count plan. A cycle count plan involves performing a physical count on a small portion of your inventory on a regular basis. You can adjust your plan to count the high volume or high value items more frequently.
Typically an A-B-C categorization of various inventory items is done to help analyze inventory and help create the cycle count plan. Dynamics GP includes functionality that will allow you to easily analyze your inventory and assign A-B-C codes to each item. GP can also schedule your cycle counts though out the year to meet your objectives, and provides a nice interface and functionality to record the cycle counts and analyze count variances.
Here is a quick video that shows this in action: