Cycle Count Method

A cycle count is a partial count of a single warehouse location.  This method allows you to select the items to be counted based on an Item Number, Bin Number, or Item Description range.  When the system is prepared for this type of count, the beginning balances of the items in the selected range are stored, the count quantity field of all items in the selected range is set to zero, and all count records for the selected location are cleared from the Inventory Count file.  When this type of count is performed all items in the selected range must be counted and only items with count records in the Inventory Count file are adjusted at the end of the count process.  This is an important point.  If an item has an on hand quantity in the computer at the beginning of the count process and it is not found during the physical count, it will not be adjusted to the correct quantity (0) unless a count record with a zero quantity is entered for the item into the Inventory Count file.  Generally, when the partial or cycle count method is used, a count record should be entered into the count file for every item in the range being processed.

More:

Complete Count Method