• Accelerates Physical Inventory Process
• Minimizes Overall Labor Effort
• Improves Accuracy of Inventory Count
• Ensures Auditor Approval and Sign-Off

This module provides a means for the efficient feedback and reporting of a cyclical physical inventory.

Stock Tag Control

System-generated tags are printed and simultaneously recorded in the database for each stockroom and location assigned to an item within a specified division and site. Stock tags are printed in stockroom, aisle, bin and level sequence to facilitate the counting process.

Tags can be printed in advance of the actual physical count for purposes of early preparation and distribution. New locations are frequently established after the original tags have already been printed. In these instances, tags can be printed for the new locations and merged at a later point in time.

After tags are generated, a complete tag listing report can be printed showing all system-generated tags in either tag number or stockroom/location sequence.

After all stock tags are printed and immediately prior to the actual physical count, the current on-hand quantities for each location in the Location Master table are copied to each Stock Tag record stored in the Physical Inventory table. This process is performed for the purpose of reporting variances and generating recheck documents after the initial count is complete.

This design allows you to continue with your production and/or distribution processes during the actual physical count, as DMACS will make automatic inventory adjustments to account for any inventory changes during the physical inventory process.

Tags are also generated by the system for subsequent feedback of each open order physically located on the factory floor.

A Physical Inventory Variance report shows each stock tag recorded for an item and a item and total sum of all stock tag variances for each item. The absolute total variance for an item is the criteria used when sorting this report in Hi-Lo dollar variance sequence. A recheck document is printed for each tag appearing on the report in stockroom and location sequence. These documents are used to recheck the quantity counts at all locations for an item. When used, they are feedback to the system as stock tag change transactions. The printing of the variance report and generation of recheck documents may be performed as often as required.

The final step in the Physical Inventory processing is to back up the Physical Inventory tables and run the Delete Tags Program for a specific division and site. This will remove all tag records from the database and reset control information for the next time the physical inventory is to run.

Physical Inventory Methods

DMACS accommodates both the “record to rack” and “rack to record” physical inventory methods.

Record to Rack (aka. perpetual to warehouse) This is generally thought of as the more traditional physical inventory counting procedure; that is, the system generates the tags of each item and lot number that should be counted per stockroom and location. In lot controlled environments, only one tag is generated per item, lot, stockroom, and location.

Based on what the system thinks is on-hand based on its inventory records, stock tags will be printed for each item, lot (if implemented), stockroom, and location. These preprinted stock tags are then used as the primary basis for counting their stores inventory (although handwritten tags can be generated for material that is found in inventory but which is not recorded in DMACS).

Rack to Record (aka. warehouse to perpetual) Instead of the system telling you what should be counted via pre-printed stock tags, some environments require the ability to count the material in the warehouse and then report back all of the items and lots (if implemented) that were counted. Instead of generating pre-printed stock tags, rack to record reporting is accommodated by using handwritten tags as the only method of counting the stores inventory.

In lot controlled environments, it is not uncommon to have situations where a given lot of material may actually reside in multiple bundles, boxes, crates, etc. within the same stockroom and location. Each bundle, box, crate, etc. must be counted and recorded on a different handwritten tag. The total quantity counted on each of the tags for the same item, lot, stockroom and location must be accumulated together, and that total must be used as the physical inventory count for that item, lot, stockroom, and location. This situation is fully accommodated in DMACS.

Feedback

Actual quantity counts recorded on the tags can be entered into the system through either the on-line stock tag entry screen, or through a Physical Inventory batch maintenance program. This batch maintenance program facilitates bar code feedback and input from third-party data entry systems.

As tags are updated, you can print a Missing Tags Report that shows each tag sent to the floor that has yet to be turned back in for entry to the system. Each tag document record is costed during the feedback process using the latest cost for the item.

Each type of transaction passes through specific editing criteria before becoming an entry on the Physical Inventory Table. On-line transactions immediately return rejections, while rejected batch transactions are printed on a separate transaction report.

Recheck Documents A Physical Inventory Variance report shows each stock tag recorded for an item along with a total sum of all stock tag variances for each item. The absolute total variance for an item is the criteria used when sorting this report in Hi-Lo dollar variance sequence.

A recheck document is printed for each tag appearing on this report. These documents, which are printed in stockroom and location sequence, are used to recheck the quantity counts at all locations for an item.

When the re-check documents are used, they are posted to the system as stock tag change transactions. The printing of the variance report and generation of recheck documents may be performed as often as required.

When the actual physical inventory stock count is complete, the on-hand balances are adjusted via the automatic generation and processing of the batch Inventory Adjustment transaction in the Inventory Control Module.