Physical Inventory Count

OBJECTIVE

The Physical Inventory Count function is used to adjust the maestro* inventory to match the physical count on any given date. Prior to transferring the physical inventory count the user must ensure that all Receipt of Goods and Sales in maestro* are transferred up to the date of the actual inventory count. Once the physical inventory count adjustment is transferred, the quantities in maestro* will reset to actual counted quantities, then receipt of goods and sales after count date can be transferred.

When the physical inventory is transferred, maestro* generates a project-to-project transfer transaction, if necessary, and assigns the project and general ledger accounts identified in the group or activity specified in Configuration – Purchasing, Inventory section, in the Inventory (project/activity/group) and Physical Inventory Adjustment (project/activity/group) groups to generate the transaction.

PREREQUISITES

ICONS

Physical Inventory Count Icons

Only the icons specific to this window are defined in the table below.
Icon	Title	Used to
	Complete the breakdown table	Complete the breakdown gris with the catalogue items that correspond to the Filter Parameters.
	Reset column “Actual Qty” to zero.	Reset to zero the values in the Actual – Qty column. NOTE: This icon is only available for users with Administrator rights (Security Mangement). It will not be displayed for users who only have User rights.
	Inventory Inquiry	Opens the Catalogue Inquiry option.
	Import an Excel File	Opens the Import an Excel File utility program.

Summary

Process the physical inventory
- 1st Method: Update inventory quantities
- 2nd Method: Reset the inventory to zero and then enter the quantities on hand
Enter a physical inventory count

Steps

maestro* > Purchasing > Inventory > Processing > Physical Inventory Count

maestro* > Purchasing > Maintenance > Inventory Closing > Physical Inventory Count

Process the physical inventory

There are two methods for processing the physical inventory:

1st Method: Update inventory quantities

This method must be used in the following cases:

You only want to correct the discrepancies between the actual quantities on hand and the quantities in maestro*;
The average cost in maestro* is generally correct;
The general ledger balances (or almost balances) with the inventory backup;
The information in the Reservation Number or Identification (Serial Numbers) fields is generally accurate and requires little or no correction.

When transferring the physical inventory count, maestro* creates a transaction comprising two parts:

Part one: maestro* reverses the quantities in inventory at the average cost.
Part two: maestro* enters the new inventory quantities at the unit price specified in Configuration.

These two transactions will be visible in the History tab of the Catalogue Inquiry option.

2nd Method: Reset the inventory to zero and then enter the quantities on hand

This method can be used in the following cases:

You want to reset the inventory to zero (quantity and average cost) and start over;
The average costs in maestro* are mostly incorrect;
The general ledger does not balance at all with the backup inventory;
The information in the Reservation or Identification (Serial Numbers) fields is inaccurate and must be deleted.

This procedure should only be used if you are sure you want to delete the entire inventory from maestro* before entering the actual quantities on hand.

For the procedure, refer to the Resetting the Inventory how to document.

Enter a physical inventory count

Enter the required information in the Detail tab:

Field

Description

Date

Date on which inventory is taken.

NOTE: Maestro* enters the working date by default.

Status

The choices are: Entered and Confirmed.

NOTE: Only transactions with the Confirmed status can be transferred. It is important to only use this status when there are no more changes to be made to the transaction.

Reference

Identifies the physical inventory count.

NOTE: This field can be used as a filter when the Variances List is produced.

Field	Description
Date	Date on which inventory is taken. NOTE: Maestro* enters the working date by default.
Status	The choices are: Entered and Confirmed. NOTE: Only transactions with the Confirmed status can be transferred. It is important to only use this status when there are no more changes to be made to the transaction.
Reference	Identifies the physical inventory count. NOTE: This field can be used as a filter when the Variances List is produced.

Complete the Filter Parameters section according to requirements.

We recommend entering values in this section, because it is impossible to stop processing during step 3 - Complete Breakdown Table. The processing time varies based on the number of items in the catalogue, and can be long.

Field

Description

Item Type

Used to select by item type from Define Item Types.

Category

Used to select by item category from Define Categories.

Site

Used to select by site from Define Sites.

Location

Used to select the location (row or shelf) for which inventory is taken.

Include Items with Serial Numbers

Displays items with serial numbers in the grid, if the box is checked.

NOTES: If checked, items with serial numbers are displayed in the grid and the user can check whether they are actually in inventory and make any necessary adjustments.

If not checked, items with serial numbers are not processed when taking the physical inventory. They remain in inventory and cannot be changed.

WARNING! If the box is checked and the inventory is reset by clicking the Reset Column Actual Qty to Zero icon, maestro* deletes all serial numbers from inventory and they will have to be re-entered.

To enter new serial numbers, the Allow the entry of new identifications option must be checked. It can be accessed by clicking the Configuration icon in the physical inventory count screen.

Include Items with Reservation Numbers

Displays items with reservation numbers in the grid, if the box is checked.

An item with a reservation number is considered reserved (even if the reservation number has been used for other purposes).

NOTES: If the box is checked, items with reservation numbers will be displayed on separate lines. Actual on-hand quantities can be specified for each reservation. The user can delete a reservation by specifying an actual quantity of zero for a given reservation number.

If not checked, items with reservation numbers are not processed individually when taking a physical inventory. Their on-hand quantities are added to those for items without reservation numbers and are displayed on the same line, without being identified as such. If the actual quantity entered is less than the total quantity reserved, a warning message is displayed. Quantity adjustments will not affect the quantities reserved.

WARNING! If the box is checked and the quantities are being reset to zero by clicking the Reset Column Actual Qty to Zero icon, maestro* deletes all of the reservation numbers and they will have to be entered again.

This option should not be used to reset quantities to zero if you use the following options:

Procurement Management (CBN/MRP1);

Material Reservation;

Customer Orders with Procurement Management.

Include inactive items

Include the items in Inactive status to the breakdown grid. The box is checked by default.

Include only items without site and with quantity

Include only the items without site, but with a quantity in the breakdown grid, even if Site Validation is active in the inventory Configuration.

Include only items with a value without quantity

Include only items with a value but that are not in stock.

NOTE: This situation occurs when items are bought ar a certain price and transferred to another project at a lower price.

Field	Description
Item Type	Used to select by item type from Define Item Types.
Category	Used to select by item category from Define Categories.
Site	Used to select by site from Define Sites.
Location	Used to select the location (row or shelf) for which inventory is taken.
Include Items with Serial Numbers	Displays items with serial numbers in the grid, if the box is checked. NOTES: If checked, items with serial numbers are displayed in the grid and the user can check whether they are actually in inventory and make any necessary adjustments. If not checked, items with serial numbers are not processed when taking the physical inventory. They remain in inventory and cannot be changed. WARNING! If the box is checked and the inventory is reset by clicking the Reset Column Actual Qty to Zero icon, maestro* deletes all serial numbers from inventory and they will have to be re-entered. To enter new serial numbers, the Allow the entry of new identifications option must be checked. It can be accessed by clicking the Configuration icon in the physical inventory count screen.
Include Items with Reservation Numbers	Displays items with reservation numbers in the grid, if the box is checked. An item with a reservation number is considered reserved (even if the reservation number has been used for other purposes). NOTES: If the box is checked, items with reservation numbers will be displayed on separate lines. Actual on-hand quantities can be specified for each reservation. The user can delete a reservation by specifying an actual quantity of zero for a given reservation number. If not checked, items with reservation numbers are not processed individually when taking a physical inventory. Their on-hand quantities are added to those for items without reservation numbers and are displayed on the same line, without being identified as such. If the actual quantity entered is less than the total quantity reserved, a warning message is displayed. Quantity adjustments will not affect the quantities reserved. WARNING! If the box is checked and the quantities are being reset to zero by clicking the Reset Column Actual Qty to Zero icon, maestro* deletes all of the reservation numbers and they will have to be entered again. This option should not be used to reset quantities to zero if you use the following options: Procurement Management (CBN/MRP1); Material Reservation; Customer Orders with Procurement Management.
Include inactive items	Include the items in Inactive status to the breakdown grid. The box is checked by default.
Include only items without site and with quantity	Include only the items without site, but with a quantity in the breakdown grid, even if Site Validation is active in the inventory Configuration.
Include only items with a value without quantity	Include only items with a value but that are not in stock. NOTE: This situation occurs when items are bought ar a certain price and transferred to another project at a lower price.

Click the Complete Breakdown Table icon.
Save the physical inventory count transaction.
Print the Physical Inventory Count Report.
Select the previously saved transaction.
Select the Physical Inventory Count Report by clicking the Print icon.

The list is sorted by location.

Only the following columns are displayed on the report: Product (Product code), Description, Unit, Site, Location, Charact. (Characteristic), Identification, Qty in Stock (Inventory – Qty), Inv. Unit and Actual Qty.

It is possible to print extra empty lines on the report by indicating a number in the Number of Extra Lines to Print field of the window’s Configuration.

Take a physical inventory of material and complete the Actual Quantity column in the Physical Inventory Count report.
Select the previously saved transaction and complete the Breakdown section:

The items will be displayed in the same order in which they were printed on the report. Usually, the only column to be completed is: Actual Qty. The user can also change the Actual Unit Price (if necessary).

Breakdown section:

Field

Description

Product code

Inventory code from the Catalogue Management option.

Description

Description of the item.

Unit

Conversion unit.

NOTE: The unit varies based on the factor entered for the item in the Catalogue Management option.

Site

Site on which the item is located.

Location

Actual location of the item in maestro*.

Characteristics

Item characteristic.

Identification

Item identification.

NOTES: For items managed by serial number, this field represents the serial number of the item.

If the Allow the entry of new identifications box is checked in the window’s Configuration, it is possible to enter serial numbers that do not already exist in maestro* in this column.

Reservation Number

Reservation number for the item.

NOTES: If several reservation numbers are assigned to an item, maestro* displays them on multiple lines, indicating the applicable reservation number for each of them.

Reservation numbers that does not already exist cannot be manually entered.

Other Locations

Other locations associated with the item in maestro*.

Inventory – Qty

Quantity in stock in maestro*.

Inventory – Inv. Unit

Inventory unit of measurement associated with the item in Catalogue Management.

Inventory – Unit Price

Average cost of the item in stock.

Inventory – Stock Value

Total value of the item in stock.

Actual – Qty

Actual quantity after the physical inventory count.

Actual – Unit Price

Actual unit price of the item. The material will be put back into inventory at this price.

This unit price is displayed based on the Unit Prise select. for Inventory Adjust and Transfers setting. This setting is available in Configuration – Purchasing, Inventory section.

Actual – Amount

Actual amount of the item in stock.

Difference – Qty

Difference between the Actual – Qty and Inventory – Qty fields.

Difference – Amount

Difference between the Actual – Amount and Inventory – Stock Value fields.

Deleted Automatically

Indicates, for information purposes, that the item has been deleted automatically after using the Delete all quantities of items not in the import file option in the Excel import operation.

Field	Description
Product code	Inventory code from the Catalogue Management option.
Description	Description of the item.
Unit	Conversion unit. NOTE: The unit varies based on the factor entered for the item in the Catalogue Management option.
Site	Site on which the item is located.
Location	Actual location of the item in maestro*.
Characteristics	Item characteristic.
Identification	Item identification. NOTES: For items managed by serial number, this field represents the serial number of the item. If the Allow the entry of new identifications box is checked in the window’s Configuration, it is possible to enter serial numbers that do not already exist in maestro* in this column.
Reservation Number	Reservation number for the item. NOTES: If several reservation numbers are assigned to an item, maestro* displays them on multiple lines, indicating the applicable reservation number for each of them. Reservation numbers that does not already exist cannot be manually entered.
Other Locations	Other locations associated with the item in maestro*.
Inventory – Qty	Quantity in stock in maestro*.
Inventory – Inv. Unit	Inventory unit of measurement associated with the item in Catalogue Management.
Inventory – Unit Price	Average cost of the item in stock.
Inventory – Stock Value	Total value of the item in stock.
Actual – Qty	Actual quantity after the physical inventory count.
Actual – Unit Price	Actual unit price of the item. The material will be put back into inventory at this price. This unit price is displayed based on the Unit Prise select. for Inventory Adjust and Transfers setting. This setting is available in Configuration – Purchasing, Inventory section.
Actual – Amount	Actual amount of the item in stock.
Difference – Qty	Difference between the Actual – Qty and Inventory – Qty fields.
Difference – Amount	Difference between the Actual – Amount and Inventory – Stock Value fields.
Deleted Automatically	Indicates, for information purposes, that the item has been deleted automatically after using the Delete all quantities of items not in the import file option in the Excel import operation.

Click Save.
View the list in the Variance Report option.
Click Transfer.

If you entered actual quantities that differ from the quantities presumed to be in inventory, or if you have changed the actual unit price of certain items, maestro* will create an adjustment transaction comprising two parts:

Part one: Maestro* reverses the quantities in inventory at the average cost.

Part two: Maestro* enters the new inventory quantities at the unit price specified in Configuration.

These two transactions will be visible in the History tab of the Catalogue Inquiry option.

Since these are Inventory to Project Transfer transactions, the reversal quantities are positive and the actual quantities are displayed as negative quantities.

To determine how the inventory has been processed after quantities are reset to zero, refer to the Resetting the Inventory how to.

Inventory can be counted manually by entering the codes of items for which the inventory is being taken in the table. When entering the item code, maestro* enters the stock quantities for the code. Maestro* also takes filters into account for manual entries.

It is possible to import the physical inventory by clicking the Import an Excel File icon.