Oracle Inventory - Cycle Counting

Oracle Inventory – Inventory Counting

There are 3 types of counting available in Oracle Inventory:

•      Cycle Counting
•      Physical Inventory Counting
•      Replenishment Counting

Introduction to Cycle count

Cycle Counting:

1. A process of checking the items periodically throughout the year to ensure accuracy of inventory quantities & values.

2. Frequency of counting item may be based on the classification of items.

3. A process of taking inventory that does not require the inventory organization to shut down in order to count actual inventory items.

4. Can be performed at organization or sub-inventory level

Example:

Class A items can be counted 4 times a year

Class B items can be counted 2 times a year

Class C items can be counted once in a year

Prerequisites:

1. ABC Classification should be defined for all items in the inventory

2. Workday Calendar should be defined for the inventory

3. When determining cycle count classes based on ABC analysis, ABC analysis compilation and assign the complied items to ABC classes.

Cycle Counting consists of:

• Cycle Counting Defining
• Generating Cycle Count Listing
• Entering Actual Quantities
• Approving Adjustment

Step 1: Cycle Counting Defining

Navigation:

India Local Inventory Responsibility > Oracle Inventory > Counting > Cycle Counting > Cycle Counts

• Enter a unique name & Description for the cycle count.
• Enter the inventory workday calendar to use for this cycle count. (This calendar is used to determine the days on which to automatically schedule cycle count.)
• Adjustment Account

·         Scope and Control Tab.

Count Controls:

·         Inactive On: Enter the date on which the cycle count becomes inactive. (Optional)

·         Late Days: Enter the number of workdays that can pass after the date the count request was generated, before a schedule count becomes a late count.

• Starting Sequence: Default to 1. Can be leave this default or enter the number to use as starting number in the next count request generator. The count sequence number uniquely identifies a particular count and is used in ordering the cycle count listing.
• Unscheduled Entries: Specify whether you can enter counts for items that are not scheduled to be counted. (Optional)
• Display System Qty: Enabling this field to display system on-hand quantities during count entry.

Automatic Recounts:

Enable this field to automatically assign a status of Recount to out of tolerance counts and include them in next cycle counting.

• Maximum: If you selected automatic recounts, enter the maximum number of times inventory can generate an automatic recount request. Once this number is reached the adjustment must be approved or rejected.

Count Subinventories:

Defaults to ALL. Can be left as default or select SPECIFIC. If “Specific” is chosen then navigate to the Subinventory region and select the subinventories to include in the cycle count.

·         Serial & Schedule Tab:

Serial Control Option:

·         Count: Select the count option to determine whether to exclude serialized items from the cycle count (Not Allowed), create one count request for each serial number (One per Request), or create multiple serial details in a count request (Multiple per Request).

• Detail: Quantity & Serial Numbers: Serial number & quantity are required and are validated when entering adjustment. Quantity Only: Serial number entry is optional if the count quantity matches the system quantity, regardless of whether the serial numbers match. If you do not enter serial number, the count is marked as completed. And no adjustments are performed. If you do enter serial numbers, both quantity and serial numbers are validated when determining whether adjustments are required.

·         Adjustment:

Adjust if Possible:    If a discrepancy exists between a count quantity & a system quantity or if the entered serial numbers do not correspond to the serial number already in the specified location, then the system will attempt to make adjustment if the adjustment variance & value are within tolerances. These adjustments consists of receipt & issue of the appropriate serial numbers to & from the specified location and are applicable only to instances in which new serial numbers or shipped serial numbers are counted.

Review All Adjustments: No automatic adjustments are attempted.

·         Discrepancy:

Select the discrepancy option to indicate whether an adjustment is attempted when a count includes a serial number already assigned to the same item elsewhere in the system.

If you turn automatic scheduling on, enter the following information

Auto Schedule:

• Select to automatically schedule this cycle count.
• Frequency: Select “Daily”. This information is used along with the count frequency of each cycle count class, when performing automatic cycle count scheduling. The value you enter here dictates the window of time within which you can enter the count against schedule buckets.
• Count Zero Quantity: Determine whether to automatically generate requests to count items with an on-hand quantity of zero.
• Last Date: Display the last date this cycle count was automatically scheduled.
• Next Date: Leave blank or enter the date of the first workday (Monday) for the next schedule interval when this cycle count is scheduled.

·         Adjustment & ABC Tab:

Approval:

·         Required: It determines when the approval is required for adjustments.

Never:    Adjustment transactions are automatically posted where entered Counts differ from system balance.

If Out Of Tolerance:    Adjustment transactions are not automatically posted for the counts outside a specified approval tolerance. You must approve such adjustment before posting.

Always: You must approve all cycle count adjustments, regardless of tolerance level before it is posted.

·         Tolerances: Enter one or more of the following tolerances.

·         Qty Variance: Enter the percentage variance of count quantity to On-hand quantity beyond which adjustments are held for approval.

• Adjustment Value: Enter the adjustment values beyond which adjustments are held for approval.
• Hit/Miss Analysis: Enter the percentage variance of count quantity to on-hand quantity beyond which a count entry is considered as a miss for hit/miss reporting.

ABC Initialization (Optional):

• Enter the ABC group name on which to base the cycle count item initialization or update.

·         Option:

None: Do not change to the list of cycle count items.

(Re)initialize: Use the ABC group you specified to load all Items & their ABC assignments into the list of items to include in your cycle count. If you already had items defined for your cycle count, this action deletes existing information & reloads the items from the ABC group.

Update:    Use the ABC group you specified to insert new cycle count item.

If you choose Update option:

Indicate whether to update classes. If an item’s ABC class assignment in the ABC group you specified is different from the cycle count class this item is assigned. The cycle count class is updated for the item with the ABC assignment in the specified ABC group.

Indicate whether to delete unused item assignment that are no longer referenced in the specified ABC group.

Save the form once the above details are defined

• Re-query the records to ensure the re-initialization has occurred. Wait for Few minutes then select Run from query menu. If the status field does not display “Completed” wait for few more minutes then Run the query again.

Step 2: Assign ABC Classes to Cycle Count

Enter ABC classes to include in your cycle count.

• Click on Class button

Complete the Cycle Count Classes form

• Names of the ABC classes appear in this field. These names were determined in the ABC assignment group.
• Counts per Year: Enter the number of times per year you want to count each item in this class.
• Approval Variance: Enter positive or negative tolerances. If you do not enter tolerances, a value entered in the cycle count window is used. (Optional)
• Save your work & close the cycle count classes window.

Step 3: Define the Cycle Count Items

To define Cycle count Items

• Click on Item button
• This form displays the cycle count items. You may verify an item’s class & specify an approval variance for specific item
• Save your work & close Cycle Count Item window & Cycle Count window.

Step 4: Cycle Count Scheduler:

• Choose Cycle Count Scheduler from Tools menu.
• Complete Cycle Count Schedule Parameter

• Click the OK button again.

Step 5: Perform Full Cycle Count:

• Select Perform Full Cycle Count from the tools menu.
• Enter the Parameters
• Use the list of values to enter your cycle count name in the parameters fields next to cycle count listing.
• Click Option button.
• Select Save All Output Files & press OK button.
• Press Submit button on Perform full cycle count screen. Click OK & close all windows.

Step 6: Generating Cycle Count Listing:

Navigation:

India Local Inventory Responsibility > Reports > ABC and Counting : ABC and Counting Report

• Complete ABC and Counting report form.
• Run the “Cycle Count Listing” Report with suitable parameters
• Click OK button.
• Select the report to automatically run periodically

Step 7: Entering Actual Quantities

Navigation:
India Local Inventory Responsibility > Oracle Inventory > Counting > Cycle Counting > Cycle Counting Entries

• Query the cycle count to be performed.
• To enter scheduled counts.
• Count Quantity

Enter the quantity that is counted for each item. Inventory uses this quantity with the specified unit of measure to determine the value of cycle count adjustment.

• Save your work and it will get submitted for approval.

Step 8: Approving the adjustments

• Approver shall take appropriate action and save the response/s .

Accounting Entry for Cycle Count after Adjustment:

Action	Debit	Credit
If Physical Counted Qty > System On hand Qty	Inv Valuation A/c @ current average cost	Adjustment A/c @ current average cost
If Physical Counted Qty < System On hand Qty	Adjustment A/c @ current average cost	Inv   Valuation A/c @ current average cost