Process Group/Policy Details
Subject: Inventory
Process Group: Inventory
Title of Policy: Cycle Count
Effective Date: 07/01/2014
Approved/Revision Date: 07/01/2014
Approved by: State Controller
In This Policy
Process Group Description
The process group Cycle Count, includes all related tables necessary for the inventory counts and related adjustments in each warehouse operated by the State of Colorado.
Definition CYCLE COUNT:
Physically counting & documenting each stock item in a warehouse, then reconciling the differences between what CORE calculates the quantity level and the quantity actually counted.
Rationale or background to policy:
A policy is required to standardize how inventories are reconciled, when inventory items are frozen or unfrozen, and when inventory cycle counts occur.
Policy Statement:
INV.PO.03 Cycle Count
Departments that operate warehouses shall conduct inventory cycle counts at least once per fiscal year. Each department shall have discretion to conduct more frequent counts and to determine timing of when the counts will be processed. Departments shall “freeze” warehouses to process cycle counts against without items being entered or removed from the warehouse. The cycle count allows stock items to be counted so that discrepancies between the recorded and actual on hand quantities can be accounted for.
Departments may also freeze an individual item without conducting a count for the entire warehouse. Once a department freezes an individual item, the department will be able to count that item and identify discrepancies between the recorded and actual on hand quantities. The department shall have discretion when to initiate an individual item freeze.
When discrepancies are discovered in either the cycle count or on an individual commodity, Departments shall conduct an Inventory Reconciliation process. This process will create the documents to make the necessary adjustments. The Inventory Reconciliation document shall be approved by the Warehouse Manager Role in an individual department.
Procedure(s):
INV.PO.03.PR.01 Inventory Reconciliation
Once a physical count has been completed and discrepancies have been identified, the reconciliation must take place. The following steps will occur:
Navigate to the INVF table.
Click the Search hyperlink for the warehouse.
Once the user is in the warehouse, enter the actual quantity on the INVF table.
***Save
INV.PO.03.PR.02 Freeze & unfreeze single items in Inventory
At the department level, warehouses may decide to reconcile inventory counts on a given commodity more frequently. In this case, warehouses have the ability to count and adjust a particular commodity or group of stock items.
INV.PO.03.PR.03 Cycle Count
At least once per fiscal year, each warehouse in the CORE system, will complete a cycle count on a predetermined schedule set by the respective department. Cycle count is defined as the act of physically counting each unit in the warehouse, and then reconciling those counts against the counts represented in the CORE Advantage system. The following steps will be completed:
Batch Manager Job:
Navigate to the secondary navigation panel, and
enter the page code BATRUN.
Click on the Job Manager link. A new sub-window will populate
Inventory Freeze Batch Job:
Open the Financial drop down menu, Inventory drop down menu, Batch Jobs drop down menu, and
finally click on the Inventory Freeze Batch Job.
Job Summary for Inventory:
Click Schedule New Job hyperlink:
Job Name,
App Server,
Scheduled Date/Time
***Save
Setup Parameters Hyperlink
Adjustment Code,
From Warehouse Code,
To Warehouse Code
***Save
Click the View Pending Jobs hyperlink
INVF Table:
Navigate to it using Jump To
Search a commodity in the Warehouse that was just frozen by checking the “Frozen for Accounting” check box and verifying it is grayed out with a check box.