3.2.4.� Topic: Cycle Counting

3.2.4.1. Cycle Counting by Class Code
3.2.4.2. Cycle Count Frequency
3.2.4.3. Creating Cycle Count Tags

If you need to count Inventory on a regular basis, then you will need to know how to perform Cycle Counts. Let's start with a definition: A Cycle Count is a periodic issue of a Count Tag to count Inventory quantity within an Item Site. The "periodic" aspect of Cycle Counting will be the focus of this section.

Tip

You may find it useful to refer also to the section dedicated to Count Tags, where the mechanics of Count Tag processing are discussed in more detail.

3.2.4.1.�Cycle Counting by Class Code

To begin, let's create a scenario in which we have a Warehouse called "WEST" and a Class Code called "Books". Our aim will be to Cycle Count all the Items belonging to Class Code Books located in Warehouse WEST. The following screenshot shows the Item Sites we will be Cycle Counting:

Item Sites in WEST Warehouse

It just so happens that all the Items located in Warehouse WEST also belong to Class Code Books. The next thing to do is to see whether any Count Tags already exist for these Item Sites. To check on pre-existing Count Tags, we open the Count Tag Edit List and specify our Warehouse/Class Code combination. After selecting the QUERY button, we see that no Count Tags currently exist for this combination, as shown in the following screenshot:

Empty Count Tag Edit List

Before we create the Count Tags for our Items in Warehouse WEST, let's first understand the underlying issues involved with Cycle Counting.

Note

Cycle Count Tags are the Count Tags created when a Cycle Count is performed.

3.2.4.2.�Cycle Count Frequency

First of all, we need to look at Cycle Count frequency settings. These settings indicate how frequently an Item Site should be Cycle Counted. For example, if the Cycle Count frequency for an Item Site is set to "30", this indicates the Item Site should be Cycle Counted every 30 days; if the setting is "5", the Item Site should be Cycle Counted every 5 days, etc. The following screenshot shows the Item Site master for Item B1, one of our target Items:

Cycle Count Frequency for Item in WEST Warehouse

As you can see in the example, the Cycle Count frequency for Item B1 is set to "1". This means the Item Site should be Cycle Counted on a daily basis. In fact, all our target Items in Warehouse WEST share the same frequency setting. They are all due to be Cycle Counted every day.

Tip

A Cycle Count frequency must be specified on an Item Site master for Cycle Count Tags to be created. If no Cycle Count frequency is specified, no Cycle Count Tags will be created when the Create Cycle Count Tags utility is run.

You might well ask: How do I manage my Cycle Count due dates? Or, How can I keep track of when Item Sites were last counted? The answer is that xTuple ERP monitors this information for you. Take a look at the next screenshot, which shows the I/M Module display Item Sites by Class Code:

Last Counted Dates for Target Item Sites

The Item Sites by Class Code display is one of a series of I/M Module displays dedicated to rendering Item Site information. As you can see in the example, we are displaying all Item Sites in Warehouse WEST belonging to Class Code Books. Not only do we see Item Numbers and Item Descriptions, but to the right of the screen we also see a column labeled "Last Cnt"d." This column displays the date when a given Item Site was last counted. xTuple ERPxTuple ERP monitors this information and displays it for us here.

Note

The term "Last Counted date" has a very specific meaning. Item Sites are only considered to have been counted if Count Tags for them have been posted. Simply issuing a Count Tag is not enough to mark an Item Site as having been counted. Issued Count Tags must be posted for the count to be registered.

3.2.4.3.�Creating Cycle Count Tags

Okay, we have identified when our Item Sites were last counted: 02/04/2004. That was yesterday. Remember, the Cycle Count frequency for these Item Sites indicates they should be Cycle Counted daily. So now we need to initiate a Cycle Count. To do so, we open the Create Cycle Count Tags by Warehouse screen, as shown below:

Create Cycle Count Tags by Warehouse

As you can see in the example, we have specified the parameters required to produce our desired result—namely, the creation of Cycle Count Tags for Items in Class Code Books located in Warehouse WEST. Here are the parameters we specified:

Warehouse: Selected WEST.
Class Code: Selected Books.
Mark Created Count Tag as Priority: Selected. Count Tags marked as having priority status are listed first in any prioritized lists. For example, priority Count Tags will appear at the top of the Count Tag Edit List; whereas, non-priority Count Tags will appear at the bottom of the list.
Freeze Inventory: Selected. We are specifying that Inventory be frozen during the Cycle Count. Freezing Inventory during a Cycle Count helps preserve the integrity of Quantity on Hand (QOH) values. For more information on freezing and thawing, see the section dedicated to that topic.
Maximum Number of Tags to Create: Entered 20. Indicate the maximum number of Cycle Count Tags you want to be created—up to a maximum of 1,000--during the Cycle Count. In our case, we are dealing with fewer than 20 Item Sites. By entering a maximum of 20 will cover our bases.
Comments: This is a scrolling text field with word-wrapping for entering comments related to the Cycle Count. Use the Comments field to enter any instructions or other comments that need to reach and be read by the cycle counters.

Once our parameters have been entered, we are ready to select the CREATE TAGS button. Doing so will create our Cycle Count Tags. To verify the Cycle Count Tags have in fact been created, we return to the Count Tag Edit List. Sure enough, they do appear on the list, as shown in the following screenshot:

Count Tags Edit List Showing Cycle Count Tags

Note

Cycle Count Tag Numbers are generated automatically by the system in a sequential pattern, using specifications entered on the Warehouse master. Within the Warehouse master you can specify both the prefix to be used by Count Tags created in the given Warehouse (e.g., WEST) and also the starting point for the numeric sequence.

At this point, the Cycle Count Tags would be processed in exactly the same way as manually created Count Tags are processed. Again, for more information on the mechanics of Count Tag processing, refer to the section dedicated specifically to this topic.

Because we will not be covering Count Tag mechanics in this example, let's assume we have counted the Item Sites and posted the results. Our target Item Sites have now been counted. The final step would be to verify that the Last Counted date for these Item Sites has been updated. Let's look again at the Item Sites by Class Code display, as shown in the following screen:

Item Site Display Showing Updated Last Counted Dates

When we look at the "Last Cnt"d" column, we see that today's date is displaying: 02/05/04. As expected, the date has been updated to correspond with our Cycle Count activity. We have now successfully completed the cycle.