January 2012 Newsletter

Inventory reconciliation is generally done on a regular basis, with smaller counts being taken throughout the year. Many stores choose to do at least one major inventory count per year, often in January following the busy holiday season.

The following tips are compiled from frequently asked questions, so please feel free to send in any tips or questions that you would like to share!

What is the best way to perform a full store count?

Generally the easiest way to count inventory is to:

• Do a freeze on incoming/outgoing stock
• Do a full count of the store
• Resume normal receiving/selling only after the final reconciliation has been completed

This method allows those taking stock to only concentrate on a static amount of inventory, and not having to worry about factoring in sold/received/returned items can really simplify the process of looking over the Differences List. Although it may seem difficult to find a time to do the count when the store is closed and not allow inventory to be sold or received during that time, it can both speed up the inventory reconciliation process and make the final count more accurate.

If you do choose to sell/receive/return items during an inventory count, the Differences List will likely be longer and more complicated to sort out. Running reports for Sales and PO Received using a date filter during the time of the stock taking can make it easier to track down differences that may occur when an item was counted and later sold.

Finishing a Reconciliation-Auto

The main steps to performing an Inventory Reconciliation-Auto are:

• Go to Functions-Inventory Reconciliation-Auto (or Auto File if you are uploading from a handheld scanner)
• Clear items from the existing Scanned Items List, as these are from the last count taken
• Enter on hand items into the Scanned Items List (either by scanning, or typing the SKU manually)
• Once all items are entered, press the Next button and choose to view the Differences list
• Go through each item on the Differences List and re-check the count, to see whether the counted value is incorrect, or if the on hand number truly differs from the amount shown in Executive
  • If you find any counting errors in the Differences List, go back to the Scanned Items List and correct them.
  • Tip: Click in the SKU field on the Scanned Items list and press CTRL+F on your keyboard to allow searching, which can help you quickly find the SKU you want to update
• Once all necessary recounts have been made, the remaining items on the Differences list are accepted, and you can move forward to the final reconciliation
• After checking over the reconcile list to make sure everything looks correct, hit forward and choose to perform the Auto Reconciliation. The Scanned values will now be reconciled into Executive and become the new On Hand value
  • Example: On the differences list ABC00123 has 2 Scanned, 3 On Hand, and -1 Differences. This means that 1 item may have been missed during scanning, or has been lost or moved since the last time it was counted. Since the Auto Reconcile always sets the new On Hand level to the Scanned level, finalizing the reconciliation would set the new On Hand level in Executive to 2 for item ABC00123

Stock Taking Methods

There are 3 common methods of entering the counted items: manually, with a wired barcode scanner (such as the Metrologic barcode scanner), or with a handheld scanner (such as the Hornet handheld scanner). Each method has pros and cons, so choosing the most effective way depends on your stock taking needs.

Manual Counting

Depending on your needs and how you take inventory, manual counting may be the best option because you could have a larger group of people counting, and do not need special hardware. A good way to do this is to assign each person specific cases or areas of the store, and print them a report with the presumed stock levels, which they can work from and verify/correct on paper and then enter into Executive's Scanned Items List afterwards.

Barcode Scanner

If you have a large amount of stock and less manpower, a barcode scanner hooked up to the computer may be an option to explore. You can then simply bring a tray over and scan each barcode into the system, reducing manual entry and allowing a pair of stock takers to cover a large store in less time then through manually entering.

Handheld Scanner

If you have a greater amount of inventory and only 1 designated stock taker, a handheld scanner may be worth the investment. Although this method requires expensive hardware and only one person can take stock at a time, it is an effective way to scan large quantities of items without needing to be near a computer, as you can upload the list when scanning is complete.

Summary

Regardless of the method used to take stock, the easiest way is generally to count the inventory when no items are incoming/outgoing, and to do the counting efficiently and accurately so that the differences list can be completed and the reconciliation can be finalized. You never want to rush when taking inventory, but with a little bit of planning and finding the most efficient methods based on your needs, Inventory Reconciliation can be relatively quick, easy, and pain free, while ensuring your inventory levels are accurate moving forward.

For more a more detailed description of how to perform an Inventory Reconciliation in Executive, see the Executive Manual in section 14D.