FAQs: Why is it important to complete at least one full physical each period?
Q: Why is it important to complete at least one full physical each period?
A: It's important to have one full physical inventory per period where all inventory items are counted—rather than separate smaller ones (cycle counts) —for the following reasons:
#1 Accurate Valuation and Reporting
A single comprehensive physical ensures all inventory is counted at once, giving a consistent snapshot of on-hand values. Splitting items into separate inventories can lead to double-counting or omissions, which skews cost of goods sold (COGS), shrink, and financial reports.
#2 Prevents Overlap and Gaps
Running multiple inventories increases the risk of:
- Items being missed (never counted in either inventory)
- Items being counted twice (counted in both physicals)
If an item is included in multiple physical counts, the most recently committed physical takes precedence. The item’s on-hand quantity is updated to match the count from that latest physical.
Both of these risks lead to discrepancies between expected and actual on-hand quantities.
#3 Aligns with Accounting and Audit Practices
Most accounting teams expect a single inventory event per reporting period. This supports clear audit trails and ensures that shrink or adjustments are tied to the correct fiscal window.
Having one comprehensive physical inventory per period keeps your inventory, accounting, and reporting in sync. Splitting items across multiple physicals creates gaps and overlaps that are hard to catch later.
Here’s why one full count is the safer practice:
- Clean financial cut-off: A single physical ties every on-hand adjustment to the same close date, so Cost of Goods Sold and ending inventory values flow cleanly into your month-end (or quarter-end) financials.
- Accurate shrink analysis: Variance reports only tell the full story when all items are counted together. If you split counts, shrink from one group can mask overstock in another, making root-cause analysis unreliable.
- No double-count or missed-count risk: Separate physicals invite timing errors—items sold between counts can be recorded twice or not at all. One event eliminates that window.
- Simpler reconciliation and audit trail: You post a single adjustment batch and attach one signed count packet. Auditors (and future-you) have a clear, self-contained record.
- System integrity in Yellow Dog Inventory: YDI re-calculates on-hand values when a physical is finalized. Running multiple events in the same period can overwrite each other, leading to unexpected negative on-hands or backdated cost changes.
- Efficient use of labor and devices: Planning, training, and barcode scanning routines are easier to schedule once. Teams stay focused, and you minimize store disruption.
- Faster recovery from errors: If a recount is needed, you reopen one event, fix the count, and close it again—no cross-checking which physical covers which item set.
In short, one full physical per period gives you an accurate snapshot and a single source of truth, while multiple partials add complexity without adding value.
Q: When should I complete a full physical inventory?
A: The recommended frequency of full physical inventories for each client type are:
- Food and Beverage: At least monthly with every two weeks being ideal.
- Retail: At least yearly with more frequent intervals such as every 6 months being ideal.
- Concessions: A full physical should be completed monthly. This includes the stands end of month and warehouse physicals so comprehensive facility reporting can be provided.
The more frequently a full physical inventory is completed, the sooner you can identify and correct errors, resulting in more accurate reporting.
Related Articles
How to create a Full Physical Inventory
This document will review the full physical process – from creating and committing to reading the Detailed Physical Inventory Report. Creating a Physical Inventory 1. From within Yellow Dog select Physical Inventories under Physical Inventory 2. ...Physical Inventory Process for Venue Warehouses
Physical Inventory Checklist One Day Before Physical Inventory ☐ Step 1: Complete all Pre-Inventory Preparations Day of Physical Inventory ☐ Step 2: Count Warehouse Using Handheld with Count XL (Step 2A if alternatively using Count Sheets) ☐ Step 3: ...End of Month Process Checklist - FnB (Physical Inventory)
Getting Ready for End-of-Month Physical Inventory? Ensure a smooth, accurate, and efficient inventory count by following our End of Month Process Checklist. It’s your go-to guide for staying organized and on track.FAQs: What's the Different Between a Full Physical and a Cycle Count?
Q: What is the difference between a Full Physical and a Cycle Count? A: The table below compares the primary differences between a Full Physical and a Cycle Count: Full Physical Cycle Count Includes all items in the store. Includes a sub-set of items ...What is a Cycle Count in a Physical Inventory?
Deprecated Documentation This article applies only to legacy versions 376 and prior. Cycle Counts allow users to complete a physical inventory for a subset of inventory items. What is the difference between a Full Physical and a Cycle Count? Full ...
Popular Articles
How To: Find Your Yellow Dog Inventory Version
Understanding which version of Yellow Dog Inventory you're using is essential when exploring new features, as some enhancements and functionalities are specific to certain versions. All client types can benefit from knowing their Yellow Dog Inventory ...How do I use Par & Re-Order Points?
What is a Reorder Point? The minimum quantity you would like inventory of the item to be before ordering more. Items must go below this level to trigger reorder. Items set to 0 will not reorder until you go into negative stock. This is not ...Tips & Tricks: How do I download and install drivers for my Zebra Printer?
**As a note: Admin rights will be required to complete this task. If you do not have admin rights on your PC, please contact your IT for assistance** ZD410 Desktop Printer Support Site 1. Navigate to Drivers: 2. Select Zdesigner V. 5 Driver for ...How To: Swap the On-Hand/Parent Size (Edit Base Unit)
When managing items with multiple sizes, it’s essential to configure them correctly. The on-hand/parent size should always represent the base unit or smallest measurement, while additional sizes should be created for purchasing or counting sizes. If ...Food and Beverage Core Features User Manual
The Food & Beverage Core Functions User Manual is your key to understanding the potential of Yellow Dog. Whether you're a first-time user or a seasoned pro, this detailed manual will help you understand how to best utilize your Yellow Dog Inventory ...