How To: Create a Full Physical Inventory

How To: Create a Full Physical Inventory

End user  ·  Yellow Dog Inventory 2026

 WHY IT'S IMPORTANT

Regular physical inventories help maintain accurate on-hand quantities and ensure reports reflect true inventory valuation.

 PREREQUISITES

Permissions

     View and edit Physical Inventories

System preparation

For the most accurate count, complete the following reviews:

TASK

TIMING

PURPOSE

Review sales

5 days before

Ensure all sales are pulled in and processed.

Review purchasing

3 days before

Confirm receipts, invoices, and transfers are committed.

Review manual adjustments

2 days before

Verify waste, damages, production adjustments, etc. are submitted.

Review handheld devices

1 day before

Ensure users can log in, devices are charged, and the application is up to date.

 STEP BY STEP

Create the Physical Inventory

1.   In Yellow Dog Inventory, go to Physical Inventory > Physical Inventories.

2.   Select Create New Physical Inventory.

3.   Highlight the store where the physical count will occur, then select Select.

4.   Ensure Add active items for store X, filtered by vendor or level (recommended) is checked. Select Next.

5.   On the Add Items From screen:

a.    Select all Vendors & Levels.

b.    Ensure Skip items with zero on hand is unchecked.

c.     Select Next.

6.   Review the item preview page:

a.    Items flagged as problem items (missing SKU, vendor, level, etc.) are shown.

b.    Select Remove Problem Items to continue adding the remaining items.

c.     Tip: Note the issue so you can correct and later re-add these items.

d.    Remove any items that should not be included.

e.    Select Select all [vendor] items [confirm exact button label] .

7.   If counts are ready, import them now. Otherwise, select Skip.

Note: You can add counts later — see Adding Counts to a Physical Inventory, below.

8.   The Physical Inventory Editor opens with all selected items.

Physical Inventory Editor overview

FIELD

DESCRIPTION

Store

Store where the physical count is performed.

Physical Inventory Number

Auto-generated number; editable with permission.

This Physical is a Cycle Count

Indicates a cycle count; does not update the store's Close Out date.

Description

Auto-filled with month and year; editable with permission.

Status

Shows the current status and, if committed, includes the user and timestamp.

Effective Date/Time

Date and time the count will be applied—typically when counting finished.

Sort By

Sort items by SKU, description, reference, count sheet order, variance, etc.

Show only Items with no counts / with Variances

Filters items for review or worksheet printing.

Flag

Filters by specific flags; option to hide flag columns.

Add Items

Add items omitted during creation, or re-add corrected problem items.

Add Items From

Add items using a wizard (from a CSV, par levels, purchasing document, etc.).

Import Counts From

Import counts after the Physical is created.

Remove Item

Remove items from this Physical.

Edit Item

Open the Item Editor directly.

Item History Report

View item history for the selected item and store.

Add/Rename/Remove Column

Manage custom counting columns.

Update Totals

Refresh item data; useful after making adjustments that need to be applied to this Physical.

Save / Save & Close

Save work.

Print Worksheet

Print worksheets for recounts based on current filters.

Reports

Access Physical Inventory reporting. Reports update after commit.

Commit

Finalize the Physical. Total Counted becomes the new on-hand amount.

Editor columns

Each item row in the editor shows the following count and variance columns:

COLUMN

DESCRIPTION

Reference

Data entered in the item Reference field, if any, is listed here.

On Hand Counted

Manual counts, or adjustments to counts from sessions, are entered here.

Child Items Counted

If the item is a base unit and has related purchasing/counting sizes that were counted, those values are listed here.

Recipes Counted

If the item is an ingredient in batch recipes that were counted, those values are entered here.

Total Counted

The sum total of all counts for the item, including sessions, child items, and recipes.

Variance Cost %

The percentage difference between what the system expected and what was counted.

Adding Counts to a Physical Inventory

If you already added counts during creation, skip to reviewing or committing.

Add counts from a session

1.   In the Physical Inventory Editor, select Import Counts From.

2.   Select Add counts from a Session, then Next.

3.   Select all relevant sessions for the store, then choose Next. There is no session limit.

4.   Review the preview and remove problem items if needed. Note issues so you can correct and manually re-add items later.

5.   A new column with the session name is added. Edit counts if needed.

Add counts from a CSV file

1.   In the Physical Inventory Editor, select Import Counts From.

2.   Select Add counts from an Excel, CSV, or Text File, then Next.

3.   Match file columns to Yellow Dog fields:

a.    Required fields: SKU/UPC and Quantity.

b.    Select your file using the browse icon.

c.     If the file has headers, check Data has a header row.

d.    Select Next.

4.   Review the preview, remove problem items, and correct as necessary.

5.   A new column with the file name is added. Edit counts if needed.

Reviewing Before Commit

Filters

     Sort By: Sort by variance (quantity or cost), descending, to identify high-impact items.

     Show Only Items with No Counts / With Variances: Quickly narrow your review list.

     Print Worksheet: Prints only filtered items for recounts.

Item History Report

Use the Item History Report to verify:

     Purchases

     Receipts / invoices

     Manual adjustments

     Sales

     Past physical inventories

To generate the report:

1.   Highlight an item.

2.   Select Item History Report.

This helps identify whether missing purchases or sales caused variances.

Setting the effective date and time

Set the effective date/time to when the counts were collected.

Recommendation: Perform counts outside business hours whenever possible.

Committing the Physical Inventory

When you are confident counts are accurate:

1.   Confirm the Effective Date & Time.

2.   Select Commit.

Once committed:

     Total Counted becomes the new on-hand quantity.

     Items without counts are set to zero.

Reports Available

Pre-commit

     Resulting On Hand by Item (Physical items only)

     Resulting On Hand by Item (all store items)

     Resulting On Hand by Department (Physical items only)

     A vs T by Item

     A vs T by Vendor

     A vs T by COGS Dept / Category

     Item History Report

Post-commit

     Detailed Variances Report

     A vs T by Item

     A vs T by Vendor

     A vs T by COGS Dept / Category

     Item History Report

 RELATED ARTICLES

     FAQs: What's the Difference Between a Full Physical & a Cycle Count

     Troubleshooting: Variances in a Physical

Last reviewed: July 2026  ·  Applies to: Yellow Dog Inventory 2026


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