A physical inventory is the process of manually counting all inventory for a specific warehouse or location. Upon completion of the actual physical inventory, all numbers are then recorded, and discrepancies are identified and explained. This process provides a factual valuation of inventory.
NOTE: If you only need to do a partial inventory of selected items, or you cannot afford to have your entire system frozen while you perform inventory, you can do a cycle count instead. For a description of the differences between a cycle count and a physical inventory, see Differences Between Cycle Counts and Physical Inventories.
To perform a physical inventory, use the following procedures:
NOTE: Before a physical inventory can begin, the inventory status must be frozen. While performing the inventory, all inventory items for the selected warehouse are unavailable until the inventory is complete. Once you freeze inventory, you cannot unfreeze it until the physical inventory is complete for this warehouse.
To freeze the inventory:
To enter a replacement tag/sheet number for an item/lot/location combination while the inventory is frozen, on the Input/Update Tags form or the Input/Update Sheets form, select Actions > New. You can also add a few records with blank sheet/tag numbers when needed without executing the printing process.