Due to the fact that each item in each warehouse location can have multiple bin records, inventory counting is done by bin. As the system is prepared for a count, the system records the original quantity in the bin records being counted. Count records are then created for the bins and these count records are modified based on the quantities found during the physical count. The system then compares the total quantity in the bin records for the item to the on hand quantity in the inventory record for the item. If the bin total does not match the inventory total, the system adjusts the inventory to match the bin detail. If the bin total does match the item total, the item is not adjusted.
Note: Due to the reasoning above it is very important that the bin quantities are reconciled against the inventory on hand quantity prior to the count. If this is not done, the system will show a variance for the item before the physical count is even performed. For this reason, the Prepare for Inventory Count program will output error messages if you try to perform a count and the inventory and bin quantities do not agree. The same reasoning also applies to changing bin quantities during the count. If any transactions that affect bin quantities are performed while the count is in process, the system will be able to determine this fact as there will be a difference between the current quantity in the bin record and the pre-count quantity that was recorded when the count was started. This will also invalidate the count records for the item and the count records for any affected bins must be deleted and recreated before the count process can be completed. Please see the Reconciliation section of this document for more information about reconciling bin and inventory quantities. Please see the Inventory Counting documentation for more information about processing Inventory Counts.