How To: Create a Full Physical Inventory

How To: Create a Full Physical Inventory

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

Permissions: 
  1. 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 and devices are charged, and application is up to date.
 

  1. In Yellow Dog, 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: 
    1. Select all Vendors & Levels 
    2. Ensure Skip items with zero on hand is unchecked 
    3. Select Next 
     6. Review the item preview page: 
    1. Items flagged as problem items (Missing SKU, Vendor, level, etc.) 
    2. Select Remove Problem Items to continue adding remaining items 
    3. Tip:  Note the issue so you can correct and later re-add these items 
    4. Remove and items that should not be included 
    5. Select Select all Xyz items 
   7. If counts are ready, import them now. Other select Skip 
      Note: you can add counts later - see 'Adding Counts' 
  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, will include 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, or 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 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.

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:

    • Required fields: SKU/UPC and Quantity

    • Select your file using the browse icon.

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

    • 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



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