cycle.counting.pdf

Epicor ERP Cycle and Physical Count Course 10.0.700.2

Disclaimer This document is for informational purposes only and is subject to change without notice. This document and its contents, including the viewpoints, dates and functional content expressed herein are believed to be accurate as of i ts date of publication. However, Epicor Software Corporation makes no guarantee, representations or warranties with regard to the enclosed information and specifically di sclaims any applicable implied warranties, such as fitness for a particular purpose, merchantability, satisfactory quality or reasonable skill and care. As each user of Epicor Epi cor software is likely to be unique in their requirements in the use of such software and their business processes, users of this document are always advised to discuss the content of this document with their Epicor account manager. All information contai ned herein is subject to change without notice and changes to this document since printing and other important information about the software product are made or published in release notes, and you are urged to obtain the current release notes for the software product. We welcome user comments and reserve the right to revise this publication and/or make improvements or changes to the products or programs described in this publication at any time, without notice. The usage of any Epicor software shall be pursuant to an Epicor end user license agreement and the performance of any consulting services by Epicor personnel shall be pursuant to Epicor's standard services terms and conditions. Usage of the solution(s) described in this document with other Epicor software or third party products may require the purchase of licenses for such other products. Where any software is expressed to be compliant with local laws or requirements in this document, such compliance is not a warranty and is based solely on Epicor's current understanding of such laws and requirements. All laws and requirements are subject to varying interpretations as well as to change and accordingly Epicor cannot guarantee that the software will be compliant and up to date with such changes. All statements of platform and product compatibility in this document shall be considered individually in relation to the products referred to in the relevant statement, i.e., where any Epicor software is stated to be compatible with one product and also stated to be compatible with another product, it should not be interpreted that such Epicor software is compatible with both of the products running at the same time on the same platform or environment. Additionally platform or product compatibility may require the application of Epi cor or third-party updates, patches and/or service packs and Epicor has no responsibility for compatibility issues which may be caused by updates, patches and/or service packs released by third parties after the date of publ ication of this document. Epicor ® is a registered trademark and/or trademark of Epicor Software Corporation in the United States, certain other countries and/or the EU. All other trademarks mentioned are the property of their respective owners. Copyright © Epicor Software Corporation 2014. All rights reserved. No part of this publication may be reproduced in any form without the prior written consent of Epicor Software Corporation.

EDE8306905 90521-10-9230-58310702 10.0.700.2 Revision: July 25, 2014 2:01 a.m. Total pages: 32 course.ditaval

Disclaimer This document is for informational purposes only and is subject to change without notice. This document and its contents, including the viewpoints, dates and functional content expressed herein are believed to be accurate as of i ts date of publication. However, Epicor Software Corporation makes no guarantee, representations or warranties with regard to the enclosed information and specifically di sclaims any applicable implied warranties, such as fitness for a particular purpose, merchantability, satisfactory quality or reasonable skill and care. As each user of Epicor Epi cor software is likely to be unique in their requirements in the use of such software and their business processes, users of this document are always advised to discuss the content of this document with their Epicor account manager. All information contai ned herein is subject to change without notice and changes to this document since printing and other important information about the software product are made or published in release notes, and you are urged to obtain the current release notes for the software product. We welcome user comments and reserve the right to revise this publication and/or make improvements or changes to the products or programs described in this publication at any time, without notice. The usage of any Epicor software shall be pursuant to an Epicor end user license agreement and the performance of any consulting services by Epicor personnel shall be pursuant to Epicor's standard services terms and conditions. Usage of the solution(s) described in this document with other Epicor software or third party products may require the purchase of licenses for such other products. Where any software is expressed to be compliant with local laws or requirements in this document, such compliance is not a warranty and is based solely on Epicor's current understanding of such laws and requirements. All laws and requirements are subject to varying interpretations as well as to change and accordingly Epicor cannot guarantee that the software will be compliant and up to date with such changes. All statements of platform and product compatibility in this document shall be considered individually in relation to the products referred to in the relevant statement, i.e., where any Epicor software is stated to be compatible with one product and also stated to be compatible with another product, it should not be interpreted that such Epicor software is compatible with both of the products running at the same time on the same platform or environment. Additionally platform or product compatibility may require the application of Epi cor or third-party updates, patches and/or service packs and Epicor has no responsibility for compatibility issues which may be caused by updates, patches and/or service packs released by third parties after the date of publ ication of this document. Epicor ® is a registered trademark and/or trademark of Epicor Software Corporation in the United States, certain other countries and/or the EU. All other trademarks mentioned are the property of their respective owners. Copyright © Epicor Software Corporation 2014. All rights reserved. No part of this publication may be reproduced in any form without the prior written consent of Epicor Software Corporation.

EDE8306905 90521-10-9230-58310702 10.0.700.2 Revision: July 25, 2014 2:01 a.m. Total pages: 32 course.ditaval

Cycle and Physical Count Course

Contents

Contents Cycle and Physical Count Course............................. Course............................................ ............................. ............................ ............................. ...................5 ....5 Before You Begin............................ Begin.......................................... ............................. ............................. ............................ ............................. ............................. ................6 ..6 Audience Audi ence.......... ...................... ........................ ....................... ....................... ........................ ....................... ....................... ........................ ....................... ....................... ........................ ........................ ..............6 ..6 Prerequisi Prere quisites.................. tes............................. ....................... ........................ ....................... ....................... ........................ ....................... ....................... ........................ ....................... ....................... ..............6 ..6 Environment Setup...................... Setup.................................. ....................... ....................... ........................ ........................ ....................... ....................... ........................ ....................... ......................7 ...........7 Workshop Constraints.................... Constraints................................ ....................... ....................... ........................ ....................... ....................... ........................ ....................... ....................... .............7 .7

Cycle and Physical Counting........................... Counting......................................... ............................ ............................. ............................. ............................8 ..............8 Application Setup........................... Setup......................................... ............................. ............................. ............................ ............................. ............................. ..............10 10 ABC Code Maintenance................... Maintenance............................... ....................... ....................... ........................ ....................... ....................... ........................ ....................... ....................... .................10 .....10 Workshop - Review Existing ABC Codes....................... Codes................................... ....................... ....................... ........................ ....................... ....................... .................11 .....11 Cascading Count Parameters................. Parameters............................. ....................... ....................... ........................ ....................... ....................... ........................ ....................... ......................11 ...........11 Calculate ABC Codes....................... Codes................................... ....................... ....................... ........................ ....................... ....................... ........................ ....................... ....................... .................12 .....12 ABC Code Assignment..................... Assignment................................ ....................... ........................ ........................ ....................... ....................... ........................ ....................... ....................12 .........12 Stock Valuation Calculations....................... Calculations.................................. ....................... ........................ ....................... ....................... ........................ ....................... ......................13 ...........13 Workshop - Calculate ABC Codes...................... Codes.................................. ........................ ....................... ....................... ........................ ....................... ....................... ...............14 ...14 Count Discrepancy Reason Codes...................... Codes................................. ....................... ........................ ....................... ....................... ........................ ....................... ......................15 ...........15 Workshop - Modify Discrepancy Reason Codes...................... Codes................................. ....................... ........................ ....................... ....................... ...................15 .......15 Initialize Last Cycle Count Dates..................... Dates................................ ....................... ........................ ....................... ....................... ........................ ....................... ....................... ...............16 ...16

Cycle and Physical Count Processing............................ Processing.......................................... ............................. ............................. ..........................17 ............17 Cycle Counts versus Full Physical Inventory Counts...................... Counts.................................. ....................... ....................... ........................ ....................... ....................17 .........17 Cycle Count Period Definition........................ Definition................................... ....................... ........................ ....................... ....................... ........................ ....................... ....................... ...............18 ...18 Workshop - Define a Cycle Period...................... Period.................................. ........................ ....................... ....................... ........................ ....................... ....................... ...............18 ...18 Cycle Count Schedule Maintenance.................... Maintenance................................ ........................ ........................ ....................... ....................... ........................ ....................... ....................19 .........19 Perform Part Selection...................... Selection................................. ....................... ........................ ........................ ....................... ....................... ........................ ....................... ....................19 .........19 Workshop - Define a Cycle Schedule and Select Parts for Counting........................ Counting................................... ....................... ...............20 ...20 Workshop - Add Parts to Cycle Count Schedule...................... Schedule................................. ....................... ........................ ....................... ......................21 ...........21 Generate Tags..................... Tags................................. ........................ ....................... ....................... ........................ ....................... ....................... ........................ ....................... ....................... .................21 .....21 Workshop - Generate Count Tags...................... Tags.................................. ........................ ....................... ....................... ........................ ....................... ....................... ...............21 ...21 Count Tag Entry................... Entry............................... ........................ ....................... ....................... ........................ ....................... ....................... ........................ ....................... ....................... .................22 .....22 Workshop - Count Tag Entry.................... Entry............................... ....................... ........................ ....................... ....................... ........................ ....................... ....................... .............23 .23 Print Reports.................... Reports................................ ........................ ....................... ....................... ........................ ........................ ....................... ....................... ........................ ....................... ....................24 .........24 Print Unreturned/Voided Tags Report..................... Report................................. ........................ ....................... ....................... ........................ ....................... ......................24 ...........24 Count Variance Calculation/Report......... Calculation/Report.................... ....................... ........................ ....................... ....................... ........................ ....................... ....................... ...............24 ...24 Workshop - Print Reports.................... Reports............................... ....................... ........................ ....................... ....................... ........................ ........................ ....................... ..................24 .......24 Perform Tag Maintenance.................... Maintenance................................ ....................... ....................... ........................ ....................... ....................... ........................ ....................... ....................... .............25 .25 Generate Recount Tags..................... Tags................................ ....................... ........................ ........................ ....................... ....................... ........................ ....................... ....................26 .........26 Void Blank Tags...................... Tags.................................. ....................... ....................... ........................ ....................... ....................... ........................ ........................ ....................... ..................26 .......26 Workshop - Void Blank Tags....................... Tags.................................. ....................... ........................ ....................... ....................... ........................ ....................... ......................26 ...........26 Void Tags by Part.................... Part................................ ....................... ....................... ........................ ....................... ....................... ........................ ........................ ....................... ..................27 .......27 Workshop - Void Count Tag...................... Tag.................................. ........................ ........................ ....................... ....................... ........................ ....................... ......................27 ...........27

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3

Contents


Count Discrepancy Reason Code Entry...........................................................................................................28 Workshop - Enter Discrepancy Reason Codes..........................................................................................28 Post Counts...................................................................................................................................................28 Count Processing....................................................................................................................................29 Workshop - Post Counts.........................................................................................................................29

Conclusion.............................................................................................................................31

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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. Upon successful completion of this course, you will be able to: •

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.

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5

Before You Begin


Before You Begin Read this topic for information you should know in order to successfully complete this course.

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 i n your training environment. For more information on the modules available, contact your Epicor Customer Account Manager at [email protected]. It is also important you understand the prerequisite knowledge contained i n other valuable courses. •

•

•

6

Navigation Course - This course introduces navigational aspects of the Epicor application's user interface. Designed for a hands-on environment, general navigation principles and techniques available in two user interface modes - Classic Menu and Modern Shell Menu. Workshops focus on each of these modes and guide you through each navigational principle introduced. System Flow Course - This course introduces a basic quote to cash scenario that includes the process from the initial customer quote to final cash receipts and payment of supplier invoices. This course emphasizes the series of processes that make up the quote to cash process by using a simple scenario to highlight various transactions. Your organization may have more complex processing routines than those described in this course. Parts Course - This course introduces the building blocks that make up Part Maintenance. It focuses on the importance of Part Maintenance, required maintenance program setup, key fields, manufactured and purchased part setup, and commonly used reports and trackers.

Epicor ERP | 10.0.700.2


Before You Begin

Environment Setup The environment setup steps and potential workshop constraints must be reviewed in order to successfully complete the workshops in this course. Your Epicor training environment, in which the Epicor demonstration database is found, enables you to experience Epicor functionality in action but does not affect data in your live, production environment. The following steps must be taken to successfully complete the workshops in this course. 1.

Verify the following or ask your system administrator to verify for you: •

Your Epicor training icon (or web address if you are using Epicor Web Access) points to your Epicor training environment with the Epicor demonstration database installed. Do not complete the course workshops in your live, production environment. Note It is recommended that multiple Epicor demonstration databases are installed. Contact Support or Systems Consulting for billable assistance.

•

•

The Epicor demonstration database is at the same service pack and patch as the Epicor application. Epicor's education team updates the Epicor demonstration database for each service pack and patch. If your system administrator upgrades your Epicor application to a new service pack or patch, he or she must also download the corresponding Epicor demonstration database from EPICweb > Support > Epicor > Downloads and install it. If this is not performed, unexpected results can occur when completing the course workshops. Your system administrator restored (refreshed) the Epicor demonstration database prior to starting this course. The Epicor demonstration database comes standard with parts, customers, sales orders, and so on, already defined. If the Epicor demonstration database is shared with multiple users (that is, the database is located on a server and users access the same data, much like your live, production environment) and is not periodically refreshed, unexpected results can occur. For example, if a course workshop requires you to ship a sales order that came standard in the Epicor demonstration database, but a different user already completed this workshop and the Epicor demonstration database was not restored (refreshed), then you will not be able to ship the sales order. Epicor's education team has written the course workshops to minimize situations like this from occurring, but Epicor cannot prevent users from manipulating the data in your installation of the Epicor demonstration database.

2.

Log in to the training environment using the credentials manager/manager. If you are logged into your training environment as a different user, from the Options menu, select C hange User.

3.

From the Main menu, select the company Epicor Education (EPIC06).

4.

From the Main menu, select the Main Site.

Workshop Constraints The workshops in this course can be performed only once in each instance of a restored (refreshed) 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.

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7

Cycle and Physical Counting


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 singl e 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: •

Detailed audit control over the selection of items to be counted.

•

Controlling the frequency by which items are counted.

•

Tracking, recording, and review of variances for the items counted.

Cycle counting functions in the Epicor application are based on the selection and counting of a specific number of ABC-coded parts, typically on a daily basis. High value, fast moving parts are normally counted on a more frequent basis, while low value, slow moving parts are counted less frequently. ABC coding in individual part records can be automatically updated based on specified stock usage percentages or manually entered and locked to further automate update. Note The term ABC Code refers to an alphabetical categorization of inventory based on a combination of inventory usage and valuation.

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. They include: •

Default cycle count selection methods.

•

Default stock percentages used to assign ABC codes to inventory items by usage.

•

Default cycle count intervals (in days) for A, B, and C-coded inventory items.

•

•

Allowable default percent, quantity tolerance, value and quantity adjustment percentages for A, B, and C-coded inventory items or for selected items in a specific warehouse. Specifying if inactive items, items with zero quantity-on-hand, obsolete items, or items with negative quantity-on-hand should be excluded when selecting cycle items for a specific warehouse. Note The cycle counting and physical counting functions in the Epicor application ignore parts stored in managed inventory bins. Managed inventories are those parts that are located i n non-standard bins that have been designated as customer-owned or supplier-owned in Warehouse Bin D etail.

The Epicor application uses these quantity, percentage, value and quantity adjustment parameters to determine if a part is out-of-tolerance. It does this by calculating the difference between pre-count snapshot and counted quantities for a cycle part, and then comparing this difference to the appropriate tolerance factors. Out of tolerance parts display on variance reports. User-defined Count Discrepancy Reason (CDR) codes must be entered to specify the reasons why count quantities are out of tolerance for counted parts (pilferage, breakage, original count incorrect, lot expired). Business Scenario

ABC Aeronautics conducts daily cycle counts of a specific number of ABC-coded parts to manage inventory. The following workshops demonstrate how ABC Aeronautics defines control parameters (such as ABC codes, cycle periods and schedules) before using Cycle C ount functionality, and the cycle counting processes they use once the control parameters are defined.

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Epicor ERP | 10.0.700.2

Cycle and Physical Counting

9

Application Setup


Application Setup Before using the Cycle Count and Physical Count functions, you must define control parameters and perform certain tasks. Note This course only focuses on defining cycle count parameters on the ABC Code Maintenance level.

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. ABC Parameters

Parameter values for the Cycle Counting and the Variance Tolerance sections establish a company's global values for each ABC code. Parameter values for Cycle Counting are divided into two sections - Cycle Count and Value Tolerances. Cycle Count Section

The options in this section determine how to handle the selection of parts within a defined ABC. •

•

•

Exclude from Cycle Count - This check box designates if parts containing the ABC code specified in the ABC Code field are only counted during physical inventory and excluded from selections for cycle counting in this warehouse. Stock Valuation Percent - This field is used by Calculate ABC Codes to determine what ABC code is assigned to a part/warehouse record. Count Frequency - This field designates how often parts with this ABC classification code are counted. Express ABC Codes in days. The application converts an entry in number of days, to represent a number of months (if desired). For example, ABC Code A should reflect a count performed monthly. The count frequency would be 30 (days) to represent monthly.

Variance Tolerances Section

The tolerances established in this section are used to filter parts on the variance reports. A part does not display on a variance report if it is within the tolerance defined. There are three tolerance parameters available: •

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 ABC classification code level in ABC Code Maintenance. However, the application automatically overrides count parameters specified at the site level with any corresponding settings using the following hierarchy:

10

•

Part Maintenance: on the Part > Sites > Warehouses > Cycle Count sheet

•

Warehouse Maintenance: on the Cycle Count/Physical Inv > ABC Codes > ABC Code Detail sheet

•

Part Maintenance: on the Part > Sites > Cycle Count sheet

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Application Setup

Menu Path

Navigate to this program from the Main Menu: •

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. Navigate to ABC Code Maintenance. Menu Path: Material Management > Inventory Management > Setup > ABC Code 1. Click the ABC Code button.

The ABC Code Search window displays. 2. Click Search. 3. Click Select All, and click OK. 4. Using the tree view, review the following i nformation: ABC Code

Stock Valuation Percent

Count Frequency

A

80

30

B

95

90

C

100

365

5. 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. Use the Part Maintenance > Part > Sites > Warehouses > Cycle Count\Physical Inv sheet to enter count parameters for specific parts in specific warehouses. These parameters include setting ABC codes, specifying cycle count intervals and quantity / quantity adjustment /percent / value tolerances. Part/warehouse count parameters established in this sheet override corresponding count settings specified: •

•

•

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

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11

Application Setup


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. This program (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.

Menu Path


Material Management > Inventory Management > General Operations > Calculate ABC Codes

Parts Missing ABC Code Report

Use Parts Missing ABC Code Report to view parts in warehouses associated with specified sites that are missing an ABC code. If using cycle count functions in the Epicor appli cation, all parts in a warehouse must contain an ABC code.

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.

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Application Setup

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. The hierarchy used to retrieve the Stock Valuation Percent settings depends on whether the Warehouse stock valuation % or Site stock valuation % option has been selected. If the Warehouse stock valuation % option is selected, it uses the following hierarchy: •

•

•

To retrieve the correct stock valuation percentage for each ABC code, the program first determines if the ABC code has been defined (for the warehouse being processed) in the Warehouse Maintenance > Cycle Count/Physical Inv > ABC Codes > ABC Code Detail sheet. If one has, the program retrieves the associated stock valuation percentage. If this override does not exist, the program then determines if the ABC code has been defined (for the site with which the warehouse is associated) in the Site Configuration Control > Modules > Inventory Management > Cycle Count > Abc Codes > Detail sheet. If one has, the program retrieves the associated stock valuation percentage. If the ABC code has not been defined at the warehouse or site levels, the program retrieves the stock valuation percentage defined for the ABC code in ABC Code Maintenance.

If the Site stock valuation % option is selected, it uses the following hierarchy: •

•

To retrieve the correct stock valuation percentage for each ABC code, the program first determines if the ABC code has been defined (for the site being processed) in the Site Configuration Control > Modules > Inventory Management > Cycle Count > ABC Codes > Detail sheet. If one has, the program retrieves the associated stock valuation percentage. If the ABC code has not been defined at the site level, the program retrieves the stock valuation percentage defined for the ABC code in ABC Code Maintenance.

Once the program has retrieved the correct stock valuation percentage, it calculates the total value for the part, either by warehouse or by site, depending on if you have selected the Warehouse stock valuation % or Site stock valuation % options. It does this by multiplying the part cost by the total quantity of each part in the warehouse or site, based on the following criteria entered at runtime. It then ranks parts in the selected warehouse or site by percentage of usage and dol lar value: •

Periods Of Historical Usage (Beginning and ending dates)

•

Current on hand inventory quantity balances

•

Projected future usage factors Example

If 80.0 was specified as the stock valuation factor for ABC Code A, the Epicor application assigns Code A to inventory items that represent 80% of the value of the total inventory in the warehouse or site. I f 95.0 was specified as the stock valuation factor for ABC Code B, it assigns Code B to inventory items that represent the next 15% of the value of the total inventory in the warehouse or site. 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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13

Application Setup


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. Navigate to Calculate ABC Codes. Menu Path: Material Management > Inventory Management > General Operations > Cal culate ABC Codes 1. Navigate to the Filter sheet. 2. Click the Sites button.

The Site Search window displays. 3. Search for and select Main. 4. Navigate to the Selection sheet. 5. In the Historical Usage From field, select the first day of the current year.

This date is for the historical usage period used in stock valuation calculations. 6. Verify the Include Projected Usage check box is selected. 7. In the Projected Usage Through field, verify today's date defaults.

This date is for the projected usage period used in stock valuation calculations. 8. Select the Include Current On-hand check box. 9. Clear the Update ABC Codes check box. Note This check box denotes if part records should be updated with the calculated ABC codes. We are skipping the update because the specific parts you will be cycle counting have already been ABC coded; in your operations, you most often select this check box.

10. In the Schedule field, verify Now displays. 11. In the User Description field, enter XXX Report (where XXX are your initials). 12. From the Standard toolbar, click Generate Only. 13. From the File menu, click Print Preview to examine the generated report. The Calculate ABC Codes Report is displayed. 14. Close the generated report. 15. Exit Calculate ABC Codes.

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Application Setup

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. To use reason codes, select the appropriate options in Company Configuration. Next, set up the codes in Reason Code Maintenance and select the reasons in the following programs: •

Count Discrepancy Reason Code Entry

•

Time and Expense Entry

•

Inventory Adjustment Entry

•

RMA Processing

•

RMA Dispositions

•

Opportunity/Quote Entry

Menu Path


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 1. In the Reason Type field, select Inv. Adjustment. 2. In the Reason Code field, search for and select Cycle Count Variance. 3. In the tree view, highlight the reason code. 4. In the Detail sheet, in the Inventory Adjustment pane, select the Count Discrepancy Reason check box. 5. Click Save. 6. Exit Reason Code Maintenance.

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Application Setup


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. •

•

When running the Perform Part Selection selection on the Cycle Count Schedule Maintenance Actions menu, it uses the Last Cycle Count date, in conjunction with the cycle count interval factors defined for specific parts, to calculate the dates on which individual parts should be reselected for cycle counting. The Initialize Last Cycle Count Dates program assigns (and spreads) the last count dates for the selected ABC items across the last x number of months, where x is the cycle count interval defined for the ABC code category in ABC Code Maintenance. However, it uses as an override any part/warehouse parameters that have been defined for the ABC code category in the Part Maintenance > Part > Sites > Warehouses > Cycle Count\Physical Inv sheet, or part/site parameters that have been defined in the Site Configuration Control > Modules > Inventory > Cycle Count/Physical Inv > ABC Code > Detail sheet. Note This program should only be used when first implementing Cycle Counting capabilities. Once run, this program should not be re-run once Cycle Counting has been implemented.

Menu Path


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Material Management > Inventory Management > General Operations > Initialize Last Cycle Count Date

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Cycle and Physical Count Processing

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. Cycle counting is a procedure in which a small subset of inventory, in a specific location (usually a warehouse), is counted on a specified day or period of time; a "Cycle" is the period of time over which all items in inventory are counted. If you are performing a single full physical inventory count in which you count all parts in a warehouse, you first use the Initialize Physical Inventory program to initialize data and select the parts for processing. After specifying the warehouses being counted, the Epicor appli cation performs the following tasks: •

•

For each selected warehouse, the Epicor application creates an internal warehouse count control record, flagged as a full physical inventory count, and assigns a single cycle scheduled for the specified start date. Selects all bins in the specified warehouse, and assigns parts for counting that meet the following criteria: •

Parts are stocking, quantity-bearing (regularly stocked) items that are not defined as Kit type parts. These are parts for which the Type field is not set to Sales Kit, the Non-Stocked Item check box has been cleared, and the Quantity Bearing check box has been selected in the Part Maintenance > Part > Detail sheet. Note An Include Non-Stock check box in Initialize Physical Inventory can be used as needed to designate if quantity-bearing parts that are flagged as non-stock should also be included in the physical count.

•

An Include Zero check box can be used as needed to select parts with zero quantity on-hand balances.

Unlike cycle count cycles, you cannot add, del ete or move parts assigned to the physical inventory cycle. 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 i dentification number (from 01 - 99) and specifies the year, start date and end date for the cycle count period. Cycle count periods can span any l ength 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. Note Even though you can define cycle count periods in Cycle Count Period Definition with overlapping dates, a part can only be assigned to one open cycle at a time in Cycle Count Schedule Maintenance. This happens even if different cycle schedules include the same date on which a part is due for counting; the part would be selected for only one of the cycle schedules. Menu Path


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 i s 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 1. Click New. 2. In the Year field, verify the current year defaults. 3. In the Description field, enter XXX-Period (where XXX are your initials). 4. In the Period Start field, select the date for the Monday next week. 5. 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 counting. In normal operations, this will probably represent a longer period, usually a month. 6. Click Save. 7. Record the period number __________. 8. Exit Cycle Count Period Definition Maintenance.

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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. After specifying a cycle period, year and production calendar, the program creates a default cycle schedule; the default cycle count dates can then be modified as required. The individual cycles within the master periodic schedule are independent of each other but multiple cycles can be conducted concurrently as necessary. •

•

After modifying the generated cycle count schedule, select the parts being counted by running the Perform Part Selection selection on the Actions menu. The Epicor application uses the cycle count method (Random or Repetitive) define d for the specified warehouse in the Warehouse Maintenance > Cycle Count\Physical Inv sheets to select and assign specific parts to each cycle count sequence within the cycle period.

Prior to using this program, you must define cycle periods in Cycle Count Period Definition, and define count parameters at the part/warehouse, warehouse, part/site, site configuration and ABC code levels. Note Even though you can define cycle count periods in Cycle Count Period Definition with overlapping dates, a part can only be assigned to one open cycle at a time in Cycle Count Schedule Maintenance. This happens even if different cycle schedules include the same date on which a part is due for counting; the part would be selected for only one of the cycle schedules. Menu Path


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: •

•

•

While using this process, the Epicor appli cation locks the cycle schedule record and prevents any further maintenance in Cycle Count Schedule Maintenance while performing the actual cycle count selection processing. The number of parts selected for each cycle displays on the Cycles sheet, and for each ABC code on the ABC Qtys sheet. After running this process, you can also view the selected parts on the Count Cycle Parts Selected Report .

This process uses one of the two following methods for cycle count item selection (as designated in the Cycle Count Selection field at the warehouse or site configuration levels): 1.

Repetitive - This method selects items for cycle counting based on the cycle count intervals defined in the Count Interval field (in order of precedence) at the part/warehouse, warehouse or site configuration levels. It divides the selected items equally among the number of count cycles in the month.

2.

Random - This method randomly selects parts for cycle counting and uses an algorithm to randomly select the items being counted, and divides this number among the specified cycle count cycle sequences defined for the month/year.

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Once you run the Perform Part Selection process: •

•

•

•

•

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.

Workshop - Define a Cycle Schedule and Select Parts for Counting In the previous workshop you defined the cycle count period. Now you have to define a cycle schedule for a specific warehouse and cycle count period. In this workshop, define a cycle schedule for the Cycle Count Warehouse and the cycle period you defined in the Workshop - Define a Cycle Period. Navigate to Cycle Count Schedule Maintenance. Menu Path: Material Management > Inventory Management > General Operations > Cycle Count Schedule Maintenance 1. From the New menu, select New Schedule. 2. In the Warehouse field, select Cycle Count Warehouse. 3. In the Year field, verify the current year defaults. 4. In the Cycle Period field, select XXX-Period (where XXX are you initials). 5. Click the Calendar button, then search for and select D5H8. 6. In the remaining fields, accept the default values and click Save. 7. From the Actions menu, select Perform Part Selection .

The Parts Selected indicator displays. 8. Select the Cycles sheet to see the total number of parts assigned to each cycle per day. 9. Exit Cycle Count Schedule Maintenance.

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Workshop - Add Parts to Cycle Count Schedule After running Perform Part Selection in Cycle Count Schedule Maintenance, you decide you need to establish two new part records, and then add them add to the cycle count schedule so they can be properly counted with a formal audit trail.

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. To generate tags, navigate to Cycle Count Maintenance > Actions > Generate Tags. •

•

•

•

•

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 Until now you have defined the cycle count sequence and cycle schedule so now you need to generate the 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 1. Click the Cycle button.

The Count Cycle Search window displays. 2. In the Filters pane, in the Cycle Period field, select XXX-Period (where XXX are your initials) and click Search. 3. In the Search Results grid, click the Cycle Sequence header one time.

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The cycle sequences display starting with 1. 4. In the Search Results grid, select cycle sequence 1 for the cycle period created in Workshop - Define Cycle Period and click OK. 5. In the Cycle Period field, verify XXX-Period (where XXX are your initials) displays. 6. From the Actions menu, select Generate Tags.

The Generate Count Tags window displays. 7. In the Number of Blank Tags field, enter 2.

The blank tags can be used by your cycle counters to fill in quantity information for the two new parts you manually added to the count cycle; because you just created them in Part Maintenance, there are not as yet any record perpetual inventory quantities for them. 8. Select the By Part / Bin ID / UOM / Lot Number sort sequence. 9. Click the Generate Tags button. 10. Click OK to confirm the first and last tags generated. 11. From the Actions menu, select Print Tags.

The Print Tags window displays. 12. In the Sheets or Tags field, verify Tags displays. 13. Select the Print Blank Tags check box. 14. Click Print Preview. 15. Review the tags. 16. Close the Print Cycle Count Tags and Print Tags windows. 17. From the Actions menu, select Start Count Sequence.

The Cycle Count Status field changes to Count Started. 18. Click Save. 19. 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. If the tag for which a count quantity is being entered was not originall y generated as a blank tag, you cannot change the displayed part number, bin, lot, UOM (unit of measure) code and serial number information. If you are entering a count quantity for a blank tag, you can only change the UOM code if the Track Multiple UOMs

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check box has been selected for the part in Part Maintenance in the Part > Detail sheet. Before entering count quantities for a tag or sheet, you must: •

•

•

Create a cycle count schedule in Cycle Count Schedule Maintenance. Generate tags for the cycle sequence using the G enerate Tags selection in the Count Cycle Maintenance Actions menu. Start the cycle sequence using the Start Count Sequence selection in the Count Cycle Maintenance Actions menu. Note Count or blank tags cannot be deleted or voided in Count Tag Entry. They can only be voided using the Void Tags by Part or Void Blank Tags selections in the Count Cycle Maintenance Actions menu.

Menu Path


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. Navigate to Count Tag Entry. Menu Path: Material Management > Inventory Management > General Operations > Count Tag Entry 1. Click the Cycle button, and search for and select the cycle period created in Workshop - Define Cycle Period. 2. Click the Tag button, and click Search.

The Count Tag Search window displays. 3. From the Search Results grid, select all the part numbers. 4. Click OK. 5. Navigate to the List sheet. 6. 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): Part

Counted Qty

Counted By

DRPLT48125

10

XXX

DRPLT48250

50

XXX

DRPLT59125

95

XXX

DRPLT59250

94

XXX

7. Click Save. 8. Exit Count Tag Entry.

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Print Reports Use the Actions menu in Count Cycle Maintenance to generate the reports after physical count information has been entered. You can generate the following reports: •

Print Count Parts Not Posted Report

•

Print Unreturned/Voided Tags Report

•

Count Variance Calculation/Report

Menu Path


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 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 1. Click the Cycle button.


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The cycle sequences display starting with 1. 4. In the Search Results grid, select cycle sequence 1 for the cycle period created in Workshop - Define Cycle Period and click OK. 5. In the Cycle Period field, verify XXX-Period (where XXX are your initials) displays. 6. From the Actions menu, select Print Unreturned/Voided Tags Report. Note If the Unreturned/Voided Tags Report message displays, click Yes to continue.

The Unreturned/Voided Tags Report window displays. 7. Accept all the provided defaults, and cli ck Print Preview.

The Unreturned/Voided Tags Report displays. 8. Review and close the Unreturned/Voided Tags report. 9. Close the Unreturned/Voided Tags Report window. 10. From the Actions menu, select Count Variance Calculation/Report.

The Count Variance Report window displays. 11. In the Part Detail field, verify All Parts defaults. 12. Verify the Print Tag Detail check box is selected. 13. Click Print Preview.

The Count Variance Report displays. 14. Review and close the Count Variance Report. 15. Close the Count Variance Report window. 16. 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. Menu Path


Material Management > Inventory Management > General Operations > Count Cycle Maintenance

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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 C ount Discrepancy Reason Code Entry program.

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. You can select multiple tag rows for void. Click the Void All Unused button to void all open blank tags not assigned to a part, regardless of the rows that are currently selected, while the Void All Selected Tags button voids all tags for rows currently selected. Once the tags are voided, the Epicor application sets the tag status to Void, and removes the voided tags from the grid. Use the Deselect All button to clear all selections, while the Select All button select all rows.

Workshop - Void Blank Tags In this workshop, perform tag maintenance by voiding blank tags. Navigate to Count Cycle Maintenance. Menu Path: Material Management > Inventory Management > General Operations > Count Cycle Maintenance 1. Click the Cycle button.


The Cycle Sequence displays starting with 1. 4. In the Search Results grid, select cycle sequence 1 for the cycle period created in the Workshop - Define Cycle Period and click OK. 5. From the Actions menu, select Void Blank Tags.

The Count Cycle Void Blank Tags window displays. 6. Click the Select All button. 7. Click the Void Selected button.

The Blank Tags are removed from the list. 8. Close the Count Cycle Void Blank Tags window. 9. Click Save and remain in Count Cycle Maintenance.

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Void Tags by Part Use the Void Tags by Part to remove a part from a cycle if count tags or sheets have al ready been generated using the Generate Tags selection. The Void Tags by Part selection voids all cycle counts tags that have been generate d in the specified cycle sequence for the part, marks the part as voided and moves it to the next scheduled cycle for which the parts have already been selected but for which tags have not yet been generated (if it exists). If more than one cycle exists that meets these conditions, the cycle with the earliest scheduled date i s used as the move-to cycle. If required, the Cycle Count Part Selection Update program can then be used to remove the part from the specified moved-to cycle. If count tags have not yet been generated for the specified part, use Cycle Count Part Selection Update in place of Void Tags by Part to remove the part from the cycle. The Void Tags by Part option cannot be used for parts for which inventory adjustments have already been posted to inventory using the Post Counts selection. To void a Tag by Part, access the Actions menu from Cycle Count Maintenance.

Workshop - Void Count Tag Your cycle counting person was not able to count one of the parts assigned to the cycle count schedule. After analysis, you decide to simply void the count tag. 1. In the Cycle Period field, verify XXX-Period (where XXX are your initials) displays. 2. In the Parts Selected grid, select DRPLT59375. 3. From the Actions menu, select Void Tags by Part. Click Yes when the confirmation dialog appears. The Posting Status for the part changes to Voided. 4. Click Save. 5. Exit Count Cycle Maintenance.

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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. Count Variance Calculation/Report in the Count Cycle Maintenance Actions menu evaluates each part within a cycle sequence for out of tolerance quantity conditions. Inventory quantity adjustments cannot be posted for these parts by the Post Counts selection in the Count Cycle Maintenance Actions menu until you enter a reason code into Count Discrepancy Reason Code Entry. This allows parts to be held back from posting, pending further investigation. You can also enter reason codes for parts that are within tolerance, but they are not required. Menu Path


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. Navigate to Count Discrepancy Reason Code Entry. Menu Path: Material Management > Inventory Management > General Operations > Count Discrepancy Reason 1. Click the Cycle button.

The Count Cycle Search window displays. 2. In the Search Results pane, select the cycle count for which you previously entered count quantities using Count Tag Entry, and then click OK. 3. Click OK. 4. In the Parts Selected grid, in the Reason Code column, select the appropriate reason code that specifies why the quantity is out of balance for each of the out-of-tolerance parts. Select Cycle Count Variance.

The Reason Code columns that are out of balance are for the parts selected in the Workshop - Count Tag Entry and display in white. 5. Click Save. 6. Exit Count Discrepancy Reason.

Post Counts Use the Post Counts option from the Actions menu in Cycle Count Maintenance to post cycle count quantity adjustments to inventory, and flag parts as completed for a cycle sequence. The Epicor application uses the date

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entered into the Transaction Date field to determine the accounting period to use for any inventory adjustment transaction postings. With the Post Counts selection you can post inventory quantity adjustments once count quantities have been entered into Count Tag Entry or Count Entry. Parts ready for posting must meet the following conditions: •

Count quantities have been entered for the part i nto Count Tag Entry or Count Entry (Handheld).

•

It has been processed by the Count Variance Calculation/Report selection.

•

The final count for part is within tolerance, or a count discrepancy reason code has been entered for the part into Count Discrepancy Reason Code Entry.

It does not post count quantities if the following conditions exist: •

•

•

Unreturned tags exist for the part. The part has been flagged as out of tolerance without entry of a corresponding count discrepancy reason code into Count Discrepancy Reason Code Entry. A warning message displays if Post Counts does not select any p arts for posting for the specified cycle sequence. It states that the Count Variance/Calculation Report must be run, after count quantities have been entered for a part, before it can select any count quantities for that part for posting.

Count Processing For parts that are ready for posting, the Post Counts selection performs the following tasks: •

•

It determines the exact adjustment quantity and adjustment value. It creates PartTran records if it posts count quantity adjustments to the i nventory on-hand quantity for the associated warehouse and updates serial number files as necessary.

•

It updates the Last Cycle Count date for each part in the selected cycle sequence.

•

It 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. It 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 1. Click the Cycle button.

The Count Cycle Search window displays.

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2. In the Filters pane, in the Cycle Period field, select XXX-Period (where XXX are your initials) and click Search. 3. In the Search Results grid, click the Cycle Sequence header one time.

The cycle sequence displays starting with 1. 4. In the Search Results grid, select cycle sequence 1 for the cycle period created in Workshop - Define Cycle Period and click OK. 5. From the Actions menu, select Count Variance Calculation/Report.

The Count Variance Report window displays. 6. Accept all the provided defaults. 7. Click Print Preview.

The Count Variance Report displays. 8. Preview and close the Count Variance Report and the Count Variance Report window. 9. From the Actions menu, select Post Counts.

The Post Count Inventory Adjustments window displays. 10. In the Post Count Inventory Adjustments window, click the Post button.

The Post Count Results window displays. 11. In the Post Count Results window, click Ok to complete. 12. Exit Count Cycle Maintenance.

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Conclusion

Conclusion Congratulations! You have completed the Cycle and Physical Count course.

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cycle.counting.pdf

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