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Epicor ERP Cycle and Physical Count Course
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Cycle and Physical Count Course...........................................................................................5
Before You Begin....................................................................................................................6
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Workshop Constraints..............................................................................................................................8 8
Cycle and Physical Counting................................................................................................10 1
0 Application Setup.................................................................................................................12
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Cycle Counts versus Full Physical Inventory Counts.........................................................................................19
Cycle Count Period Definition........................................................................................................................19
Workshop - Define a Cycle Period...........................................................................................................20
Cycle Count Schedule Maintenance...............................................................................................................21
Perform Part Selection............................................................................................................................21
Workshop - Define a Cycle Schedule and Select Parts for Counting..................................................22
Workshop - Add Parts to Cycle Count Schedule...............................................................................23
Count Cycle Maintenance - Generate Tags....................................................................................................23
Workshop - Generate Count Tags...........................................................................................................24
Count Cycle Maintenance - Start Count Sequence.........................................................................................25
Workshop - Start Count Sequence..........................................................................................................25
Count Tag Entry.............................................................................................................................................26
Workshop - Count Tag Entry..................................................................................................................26
Print Reports..................................................................................................................................................27
Print Unreturned/Voided Tags Report......................................................................................................27
Count Variance Calculation/Report.........................................................................................................27
Workshop - Print Post-Count Reports......................................................................................................28
Perform Tag Maintenance..............................................................................................................................28
Generate Recount Tags...........................................................................................................................29
Void Blank Tags......................................................................................................................................29
Workshop - Void Blank Tags............................................................................................................29
Void Tags by Part....................................................................................................................................29
Workshop - Void Count Tag............................................................................................................30
Count Discrepancy Reason Code Entry...........................................................................................................30
Workshop - Enter Discrepancy Reason Codes..........................................................................................30
Post Counts...................................................................................................................................................31
Count Processing....................................................................................................................................32
Workshop - Post Counts.........................................................................................................................33
Conclusion.............................................................................................................................34
Cycle and Physical Count Course
This course introduces the concepts of cycle and full physical counting and provides information on the configuration of the product required to lay the foundation for these activities. Hands on workshops guide you through the cycle counting process.
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Define cycle and full physical counting.
Determine cycle and full physical counting parameters.
List the steps in the operation to complete a cycle or full physical count.
Before You Begin
Read this topic for information you should know in order to successfully complete this course.
Modules Licensing
The following modules must be licensed to complete all the workshops in this course:
Multiple Warehouse
Inventory Management
Audience
Specific audiences will benefit from this course.
Cost Accountant
Shop Floor Employee
Shop Floor Manager
Shipping and Receiving
Production Manager
Purchasing Staff/Buyer
Prerequisites
To complete the workshops in this course, the necessary modules must be licensed and operating in your training environment. For more information on the modules available, contact your Epicor Customer Account Manager. It is also important you understand the prerequisite knowledge contained in other valuable courses.
Foundations Agenda Courses on Epicor Learning Center - These courses describe logging in to Epicor ERP, using menus and toolbars, working with Tree view and sheets. They give you a quick overview how to enter data in Epicor ERP, use searches to find data and work with grids. The courses in this agenda teach you to personalize your application, print forms and reports and use trackers to view information.
Part Entry Agenda - This agenda contains courses to teach you about part records in Epicor ERP. It focuses on the importance of Part Maintenance by helping you understand part concepts, create part master records, enter part details, determine costing methods, define part locations, set up sales kits and create parts on-the-fly.
Environment Setup
The environment setup steps and potential workshop constraints must be reviewed in order to successfully complete the workshops in this course.
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Note To refresh your Epicor training data, enter a support ticket in EpicCare and include your site ID.
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Workshop Constraints
The workshops in this course can be performed only once in each instance of a restored (refreshed) shared database. If a user has already completed these workshops in the database, the database must be restored (refreshed) before another user can complete this course.
Due to the logic of performing a cycle count, the cycle counting process cannot be executed more than once in any given sequence or schedule. Therefore, the cycle counting workshops in this course cannot be completed by more than one person on a shared database. To perform the cycle counting functionality provided, contact your system administrator to verify your education database is refreshed prior to completing this course.
Cycle and Physical Counting
The Cycle Counting and Physical Counting functions in the Epicor application allow for inventory error identification, analysis, and resolution. These functions process and manage inventory counting conducted on a cyclical basis, and also handle single physical counts conducted for all parts within a specified warehouse. To meet the needs of managing and controlling inventory, the cycle counting module contains extensive functionality and features used for:
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The following workshops demonstrate how ABC Aeronautics defines control parameters (such as ABC codes, cycle periods and schedules) before using Cycle Count functionality, and the cycle counting processes they use once the control parameters are defined.
Application Setup
Before using the Cycle Count and Physical Count functions, you must define control parameters and perform certain tasks.
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Learning Channel: First Time Setup Procedures (job aid)
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ABC Code Maintenance
Use ABC Code Maintenance to define ABC codes used to classify parts in inventory based on usage and cost criteria. At least one ABC code must be set up in order to perform cycle count processing in the Epicor application.
Menu Path: System Management > Business Process Management > Method Directives Maintenance
Important This program is not available in Epicor Web Access.
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Percentage Tolerance
Quantity Tolerance
Value Tolerance
Note Part/site count parameters established on the Site Configuration Control > Modules > Inventory Management > Cycle Count > Abc Codes > Detail sheet override the default settings specified at the
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• Material Management > Inventory Management > Setup > ABC Code
Workshop - Review Existing ABC Codes
Before you start the cycle counting process, you must define the ABC codes used to classify parts in inventory. In this workshop, review the existing ABC codes and verify the stock valuation percentage and count frequency information.
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Click the ABC Code button. The ABC Code Search window displays.
Click Search.
Click Select All, and click OK.
Using the tree view, review the following information:
Exit ABC Code Maintenance.
Cascading Count Parameters
The Epicor application allows for entry of a cascading series of control parameters that can be defined at the part/warehouse, warehouse, part/site, site configuration and ABC code levels. It uses these user-defined control parameters for both cycle and full warehouse physical inventory counts.
Menu Path: System Management > Business Process Management > Method Directives Maintenance
Important This program is not available in Epicor Web Access.
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At the warehouse level in the Warehouse Maintenance > Cycle Count/Physical Inv > Cycle Count Detail sheet. This defines default cycle and physical inventory count selection parameters for the warehouse. Use the ABC Code sheet to specify ABC code count intervals and quantity/percent tolerances for the warehouse.
At the part/site level in the Part Maintenance > Part > Sites > Cycle Count\Physical Inv sheet. This defines count parameters for specific parts in specific sites. These parameters include specifying quantity, quantity adjustment, percent and value tolerances.
At the site configuration level in the Site Configuration > Modules > Inventory Management > Cycle Count\Physical Inv sheet. This defines default cycle and physical inventory count selection parameters for the site. Use the ABC Code sheet to specify ABC code count intervals and quantity/percent tolerances for the site.
At the ABC classification code level in the ABC Code Maintenance program. This defines ABC codes used to classify parts in inventory based on usage and cost criteria. At least one ABC code must be set up in order to perform cycle count processing in the Epicor application.
Calculate ABC Codes
Use Calculate ABC Codes to perform warehouse or site-specific stock valuation calculations, produce a report with suggested ABC code assignments and (optionally) assign ABC codes to part records in the warehouses associated with specified sites. You normally run this function prior to processing cycle and physical inventory counts. If you do not use cycle counting for inventory count processing, you do not need to run this function.
Calculate ABC Codes (optionally) assigns ABC coding to parts by descending level of usage, based on stock valuation in a user-specified historical usage period. These classifications indicate that a small percentage of the items usually represent the bulk of the inventory cost. This is known as Pareto's law or the 80/20 rule. Class A normally includes items with the highest requirements value, Class B a lower value, and Class C, with the least value. Refer to ABC Code Assignment and Stock Valuation Calculations for specific details on how the program assigns ABC codes to part/warehouse records. If required, you can use the Parts Missing ABC Code Report before running this program to view the part records that do not have assigned ABC codes.
Important ABC codes must be defined in ABC Code Maintenance before you run this program.
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• Material Management > Inventory Management > General Operations > Calculate ABC Codes
ABC Code Assignment
If the Update ABC check box has been selected, Calculate ABC Codes assigns an ABC code to each part based on the calculation parameters defined for the part and the criteria specified when running this program.
It updates individual part/warehouse records and assigns ABC codes only if the Manual ABC Code check box has been cleared in the Part Maintenance > Sites > Warehouses > Cycle Count sheet for the specified warehouse. For determination of what ABC code to assign to a part/warehouse record, Calculate ABC Codes uses the Stock Valuation Percent setting defined for each ABC code when performing warehouse or site-specific stock valuation calculations upon which ABC code assignment is based.
Stock Valuation Calculations
To determine what ABC code to assign to a part/warehouse record, Calculate ABC Codes uses the Stock Valuation Percent setting defined for each ABC code when performing stock valuation calculations upon which ABC code assignment is based.
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Note Calculate ABC Code does not assign an ABC code to a part record that is lower than the setting of the Min ABC field defined in the appropriate setup program (see default hierarchy above).
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Workshop - Calculate ABC Codes
Once the ABC codes are defined, the next step is to calculate the ABC codes. Any stock part that has the Update ABC check box selected will have an ABC code assigned, based on the calculation parameters defined for the part. In this workshop, calculate ABC codes but do not update part records.
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15. Exit Calculate ABC Codes.
Count Discrepancy Reason Codes
When processing parts in a cycle or physical count, Count Discrepancy Reason Code Entry requires entry of codes that denote reasons that parts are out of tolerance with respect to the actual physical count quantity and perpetual inventory balance in the Epicor application. Define these codes as Inventory Adjustment codes in Reason Code Entry, and select the Count Discrepancy Reason Code check box to designate each code for use in Count Discrepancy Reason Code Entry.
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• Material Management > Inventory Management > General Operations > Count Discrepancy Reason
Workshop - Modify Discrepancy Reason Codes
When you complete a cycle count, you must enter reason codes for counted inventory items that are out of tolerance. In this workshop, modify existing discrepancy reason codes. Navigate to Reason Code Maintenance. Menu Path: Material Management > Inventory Management > Setup > Reason Code
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Select Save.
Exit Reason Code Maintenance.
Initialize Last Cycle Count Dates
Use Initialize Last Cycle Count Dates to initialize the Last Cycle Count Date field in part records for selected warehouses, prior to use of inventory count functions in the Epicor application.
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• Material Management > Inventory Management > General Operations > Initialize Last Cycle Count Date
Cycle and Physical Count Processing
Cycle and Physical Count Processing includes performing operations on a periodic and daily basis.
Cycle Counts versus Full Physical Inventory Counts
The manner that you begin processing is dependent on whether you are performing a cycle count, or a full physical inventory (wall-to-wall) count.
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Note When performing full physical inventory counts, you skip the use of the Cycle Count Period Definition and Cycle Count Schedule Maintenance programs. The remaining tasks you perform (generating tags, entering count quantities, printing reports, accounting for discrepancies and posting counts) are essentially identical to cycle count processing.
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Cycle Count Period Definition
Use Cycle Count Period Definition to define cycle count periods used in Cycle Count Schedule Maintenance. The cycle period includes a two-digit identification number (from 01 - 99) and specifies the year, start date and end date for the cycle count period.
Cycle count periods can span any length of time (months, weeks, days) but should take place within the same calendar year. When you use Cycle Count Schedule Maintenance to define cycle count schedules for your site, select a cycle count period defined in Cycle Count Period Definition.
Example You can define period lengths based on how frequently you count parts, or the lowest value you would want to use for count frequency. For example, if your lowest count frequency is monthly (for example, 30/31 days), it makes sense to define monthly cycle count periods. However, if there are some parts you want to count weekly or bi-weekly, you should define cycle count periods as weekly or bi-weekly.
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• Material Management > Inventory Management > Setup > Cycle Count Period Definition
Workshop - Define a Cycle Period
Once the ABC codes have been set up and calculated, the next step is to define the cycle count periods. In this workshop, define a cycle period. Navigate to Cycle Count Period Definition Maintenance. Menu Path: Material Management > Inventory Management > Setup > Cycle Count Period Definition
Click New.
In the Year field, verify the current year defaults.
In the Description field, enter XXX-Period (where XXX are your initials).
In the Period Start field, select the date for the Monday next week.
In the Period End field, select the date for the Monday next week. The period range is user-defined; in our workshop, we are defining a single-day period so all parts in the training warehouse are selected for counted. In normal operations, this will probably represent a longer period, usually a month.
Select Save.
Record the period number __________.
Exit Cycle Count Period Definition Maintenance.
Cycle Count Schedule Maintenance
Use Cycle Count Schedule Maintenance to create and maintain cycle count schedules. This includes selecting the parts that will be cycle counts for a specific warehouse in a designated time period and year, based on the selected production calendar.
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• Material Management > Inventory Management > General Operations > Cycle Count Schedule Maintenance
Perform Part Selection
After defining cycle count schedules, you use the Perform Part Selection option in the Cycle Count Schedule Maintenance Actions menu for a specific cycle schedule:
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You can no longer add cycles to, or delete cycles from, the warehouse schedule for this month/year.
The quantity in the Quantity to Select field in the Cycle Count Schedule Maintenance > ABC Qtys sheet cannot be changed.
Part selection criteria cannot be changed in the Cycle Count Schedule Maintenance > Detail sheet.
The Epicor application flags the selected parts as being attached to a cycle count cycle; they are skipped for any subsequent cycle count selection processing.
Parts can be added to the cycle sequence, moved to another cycle sequence, or removed from the cycle sequence using the Cycle Count Part Selection Update program.
Note A part that has been inactivated (by selecting the Inactive check box in the Part Maintenance > Detail sheet) cannot be selected for cycle counting (using the Perform Part Selection option on the Actions menu in Cycle Count Schedule Maintenance), or manually added to an existing cycle count in Cycle Count Part Selection Update. To cycle count an inactive part, you must first activate it by clearing the Inactive check box. You can then select or manually add the item for cycle counting and perform all related count-related activities. Once you do this, you then reselect the Inactive check box to inactivate the part.
Note Part quantities associated with a PCID are excluded from inventory counts.
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Click Cycle, then search for and select the cycle count schedule you generated in Workshop - Define a Cycle Schedule and Select Parts. The parts you selected for the cycle count schedule display in the Parts Selected grid.
Click New. An empty line displays in the grid.
In the Part field, enter DRPLT59375. The part description, ABC code, Quantity Adjustment Status and Posting Status for the newly added item display.
Click Save.
Exit Cycle Count Schedule Update.
Count Cycle Maintenance - Generate Tags
Use Generate Cycle Count Tags to generate count or blank tag records for a specific cycle in a specified warehouse. It generates tag numbers for all parts that were previously assigned to the cycle sequence using the Perform Part Selection option in the Cycle Count Schedule Maintenance Actions menu, or assigned to a physical count using Initialize Physical Inventory. You must generate tags before you can start the count sequence using the Start Count Sequence selection.
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The Epicor application locks the cycle record and prevents any further maintenance of the specified cycle sequence in Cycle Count Schedule Maintenance or Part Selection Update while generating tag records.
It uses the parts selected for the count cycle and generates one tag number for each part/bin/UOM/lot combination associated with the parts/warehouse.
If the part is serial tracked, it generates one tag for each of the serial numbers for the part that have not been voided or scrapped in the current warehouse, and with a serial status of Inventory. It assigns an identifying tag number of n.1 (where n is a sequentially assigned counter number) to each cycle count tag.
It also sets the status of the cycle sequence to Tags Generated.
If the Blank Tags Only check box has been selected, it generates blank tag records for number of tags specified in the Number of Blank Tags field. Blank tags can be used to handwrite count quantities in the event the count tags have been lost.
Note Count tags are not generated for items with zero on-hand inventory balances and for which a primary bin has not been designated in the Part Maintenance > Sites > Warehouses > Bins sheet. If you wish to generate tags for items with zero on-hand inventory balances, a primary bin must be designated for the part.
Once count or blank tags are generated, you can use the Print Tags selection on the Count Cycle Maintenance Actions menu to print the tags being used in your actual cycle or physical inventory counts.
Workshop - Generate Count Tags
After defining the cycle count sequence and cycle schedule, you generate the count sheets or tags for the cycle period defined in the Workshop - Define a Cycle Period. Navigate to Count Cycle Maintenance. Menu Path: Material Management > Inventory Management > General Operations > Count Cycle Maintenance
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17. Remain in Count Cycle Maintenance.
Count Cycle Maintenance - Start Count Sequence
Use Start Count Sequence in preparation for actual counting of parts or PCIDs selected for a specified cycle sequence, or for a full physical inventory count in a selected warehouse. If a full physical inventory count is already in process for the specified warehouse, you cannot run Start Count Sequence; however, you can run it if there are other active cycle counts because each part or PCID can only be assigned to one cycle count sequence at any given time.
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Once you have started the count sequence for a selected cycle sequence or full physical inventory, it can be reversed (using the Reverse Count Sequence selection on the Actions menu) as long as the Cycle Status has not progressed beyond Count Started (that is, no count quantities have been entered). The Reverse Start Count selection clears the snapshot quantity and cost values from the tag records and resets the Cycle Status back to Tags Generated.
Workshop - Start Count Sequence
After generating count tags, start the count sequence for the selected cycle count.
From the Actions menu, select Start Count Sequence.
In the Count Status field, note that the status is now set to Count Started.
Exit Count Cycle Maintenance.
Count Tag Entry
Use Count Tag Entry to add or update the physical count information for count tags or sheets in a selected cycle sequence. Open tags can be updated, and blank tags can be added only until the cycle sequence has been posted using the Post Counts selection in the Count Cycle Maintenance Actions menu.
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• Material Management > Inventory Management > General Operations > Count Tag Entry
Workshop - Count Tag Entry
Using the count tags generated in the previous workshop, your warehouse crew has just completed a physical count of some of the parts and need to update count quantity information. In this workshop, update count quantity information for count tags or sheets in your cycle sequence.
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Click the Cycle button, and search for and select the cycle period created in Workshop - Define Cycle Period.
Click the Tag button, and click Search. The Count Tag Search window displays.
From the Search Results grid, select all the part numbers.
Click OK.
Navigate to the List sheet.
In the Count Tag List grid enter a Counted Qty and Counted By for all selected parts. Use the following format (where XXX are your initials):
Click Save.
Exit Count Tag Entry.
Print Reports
Use the Actions menu in Count Cycle Maintenance to generate the following reports after entering physical count information:
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• Material Management > Inventory Management > General Operations > Count Cycle Maintenance
Print Unreturned/Voided Tags Report
Use the Print Unreturned/Voided Tags Report option from the Actions menu in Cycle Count Maintenance to review open tags for which count quantities have not yet been entered for a cycle sequence using Count Tag Entry or Count Entry (Handheld). You can also optionally include tags that have been voided using Void Tags by Part and Void Blank Tags. All missing tags must be accounted for before the posting and closure of the cycle sequence takes place using the Post Counts selection.
Count Variance Calculation/Report
Use the Count Variance Calculation/Report option from the Actions menu in Cycle Count Maintenance to calculate and analyze variances between the per-count snapshot quantity and counted quantities for parts in a count cycle for a specified warehouse, year, and cycle period. The report also calculates and updates tolerance data used by the Post Counts selection when posting count quantities to inventory.
Running the Count Variance Calculation/Report is a mandatory step in the Cycle Counting process. When run, the report automatically takes a snapshot of the tolerance levels for counted parts in the specified cycle, so that the tolerance variance information on the report matches the criteria used for inventory updates when running Post Counts. Count quantities cannot be posted for a part unless it has been properly processed by the Count Variance Calculation/Report.
Workshop - Print Post-Count Reports
In this workshop, generate the Print Unreturned/Voided Tags Report and the Count Variance Calculation/Report. Navigate to Count Cycle Maintenance. Menu Path: Material Management > Inventory Management > General Operations > Count Cycle Maintenance
Click Cycle and select period you previously created in the Workshop - Define a Cycle Period.
From the Actions menu, select Print Unreturned/Voided Tags Report.
Note If the Unreturned/Voided Tags Report message displays, click Yes to continue.
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Accept all the provided defaults, and click Print Preview. The Unreturned/Voided Tags Report displays.
Review and close the Unreturned/Voided Tags report.
Close the Unreturned/Voided Tags Report window.
From the Actions menu, select Count Variance Calculation/Report. The Count Variance Report window displays.
In the Part Detail field, verify All Parts defaults.
Verify the Print Tag Detail check box is selected.
Click Print Preview. The Count Variance Report displays.
Review and close the Count Variance Report.
Close the Count Variance Report window.
Remain in Count Cycle Maintenance.
Perform Tag Maintenance
After entering the physical count in Count Tag Entry, use the Actions menu from Count Cycle Maintenance to perform tag maintenance.
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• Material Management > Inventory Management > General Operations > Count Cycle Maintenance
Generate Recount Tags
Count Cycle Maintenance > Actions > Generate Recount Tags
Use the Generate Recount Tags option from the Actions menu in Cycle Count Maintenance to generate tags for parts that need a recount.
Use Generate Recount Tags to generate recount tags for parts in the specified cycle sequence that have been flagged as out of tolerance by the Count Variance Calculation/Report but for which count discrepancy reason codes have not been entered using the Count Discrepancy Reason Code Entry program.
Void Blank Tags
Count Cycle Maintenance > Actions > Void Blank Tags
Use the Void Blank Tags option from the Actions menu in Cycle Count Maintenance to void all unused open blank tags, or individual blank tags for a specified cycle sequence. Used blank tags (blank tags already assigned to a part) can also be voided if the associated cycle item has not been flagged as Completed/Posted.
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6. Click Save and remain in Count Cycle Maintenance.
Void Tags by Part
Use the Void Tags by Part to remove a part from a cycle if count tags or sheets have already been generated using the Generate Tags selection.
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In the Cycle Period field, verify XXX-Period (where XXX are your initials) displays.
In the Parts Selected grid, select DRPLT59375.
From the Actions menu, select Void Tags by Part. If a confirmation dialog message appears, click Yes. The Posting Status for the part changes to Voided.
Click Save.
Exit Count Cycle Maintenance.
Count Discrepancy Reason Code Entry
Use Count Discrepancy Reason Code Entry to enter the reason codes for parts that are out of tolerance. These codes denote the reasons for discrepancies between the actual physical count quantity for a part and the perpetual inventory balance in the Epicor application.
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• Material Management > Inventory Management > General Operations > Count Discrepancy Reason
Workshop - Enter Discrepancy Reason Codes
In this workshop, you will select reason codes for the out-of-tolerance counted parts that you selected in the Workshop - Count Tag Entry. These codes specify the reason why the quantity is out of balance for each of the out-of-tolerance parts.
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6. Exit Count Discrepancy Reason.
Post Counts
Use the Post Counts selection on the Actions menu in Count Cycle Maintenance to post cycle count quantity adjustments to inventory, and flag parts/PCIDs as completed for a cycle sequence. The Epicor application uses the date entered into the Transaction Date field to determine the accounting period to use for any inventory adjustment transaction postings.
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Allocated Inventory parts recorded with equal or greater amounts post and adjust inventory quantities.
Allocated Inventory parts with numbers below the necessary allocated amount posts a notice in the log. This indicates that there is no longer the required amount that was previously allocated.
The log notification prompts a user to make a change to the inventory amount, made through programs such as Fulfillment Workbench, to move parts to fulfill the necessary allocated amount.
Count Processing
For parts that are ready for posting, the Post Counts selection performs the following tasks:
Determines the exact adjustment quantity and adjustment value.
Creates PartTran records if it posts count quantity adjustments to the inventory on-hand quantity for the associated warehouse and updates serial number files as necessary.
Updates the Last Cycle Count date for each part in the selected cycle sequence.
Flags the associated part count detail and tag records with a posting status of Posted.
If at least one part is posted, it updates the cycle posting flag to reflect that posting is in process for the cycle sequence.
When it posts the inventory count quantity adjustment, it updates the part transaction record with the corresponding discrepancy reason code. If an adjustment for General Ledger (GL) was defined for the count discrepancy reason code in Reason Code Maintenance, it uses that rather than the default company inventory adjustment control GL account.
If all posting of all parts for the selected cycle sequence has been completed, it sets the cycle status to Complete, and voids any unused blank tags.
Determines the accounting period to use for the register transactions based on the transaction date entered in the Transaction Date field.
After posting is complete, it displays a message stating how many parts were posted and that processing for the specified cycle sequence is now complete.
Workshop - Post Counts
Previously you entered discrepancy reason codes for the out-of-tolerance parts. In this workshop, review the Count Variance Report and post the count results. Navigate to Count Cycle Maintenance. Menu Path: Material Management > Inventory Management > General Operations > Count Cycle Maintenance
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12. Exit Count Cycle Maintenance.
Conclusion
Congratulations! You have completed the Cycle and Physical Count course.
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