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: Create Physical Inventory and Import Sessions
☐ Step 4: Review Variances
☐ Step 5: Re-Count High Variance Items and Correct in Physical
☐ Step 6: Commit Physical Inventory
☐ Step 7: Review Post-Commit Reporting
☐ Step 8: Send to Corporate
STEP 1: Complete all Pre-Inventory Preparations
(See Exhibit A for more details)
1. Determine date and time for physical inventory
2. Organize warehouse
3. Prepare handhelds
4. Review and enter waste
5. Review purchasing
6. Confirm events are reconciled
7. Identify negative on hand items and resolve
8. Identify plan for problem items tracking
STEP 2: Count Warehouse Using Handhelds with Count XL
(See Exhibit B for more details)
*If alternatively using Count Sheets to complete warehouse counts see Step 2A.*
1. Log into Count XL on handheld.
Required info: Client ID, employee number, password
2. Add session name, select store, and click the “+” icon to create new session.
3. Add counts by scanning barcodes. (See Exhibit C if an item does not scan)
4. Finalized session once counting is completed by selecting the cloud icon at the top right.
STEP 2A: Count Warehouse Using Count Sheets
This step overviews how to complete inventory counts using count sheets and should be used as an alternative to using handhelds to complete physical inventory counts.
1. Create count sheets (see Exhibit D)
2. Print count sheets.
3. Count inventory and record on count sheets.
4. Add counts as session in the Yellow Dog Database (see Exhibit E).
STEP 3: Create Physical Inventory and Importing Sessions
(See Exhibit F for more details)
1. In the Yellow Dog database, navigate to Physical Inventory/Physical Inventories and click “Create New Physical Inventory”.
2. Click to highlight the store and hit Select.
3. Verify the option to “Add active items for store X, filtered by vendor or level (recommended)” is selected then click Next.
4. Confirm that all vendors and levels are included and that the “Skip items with zero on hand” checkbox is deselected then click Next.
5. Choose the “Select All X Items” button and click Next.
6. Select the option to “Add counts from a Session.” and click Next.
7. Click the “selected” box next to session that should be included in the physical inventory. Once the correct sessions are selected click Next.
8. Choose the “Select All X Items” button and click Next.
9. Enter the description and set the Effective Date/Time set the of the physical.
STEP 4: Review Variances
1. Click “Reports…” and run the “Resulting On Hand by Item (for items on the physical only)” report.
2. Sort the report from highest variance cost to lowest.
STEP 5: Re-Count High Variance Items & Correct In Physical
1. Assign employee to recount high variance items and report any updated counts.
2. Correct any counts in the physical inventory.
STEP 6: Commit Physical Inventory
1. After all variances are addressed, commit the physical inventory.
STEP 7: Review Post-Commit Reporting (See Exhibit E)
1. Run and review the recommended Inventory reports listed below.
2.Detailed (Select by Physical Inventory) – This report provides a detailed look at all items counted in the Physical Inventory.
3. Resulting On Hand by Item – This report provides the on-hand values for the entire store, including items that were not counted in the Physical Inventory.
STEP 8: Send to Corporate
1. Email the Detailed (Select by Physical Inventory) and Resulting On Hand by Item Reports to the required teams or individuals.
Physical Inventory for the Warehouse is now Complete!
EXHIBIT A – Pre-Inventory Best Practices
When should physical inventories be completed?
Physical Inventories should be completed on a predetermined schedule and take place outside or business hours.
How do I prepare the warehouse for physical inventory?
Confirm all products are neatly organized in their designated area and clearly labeled with barcodes. Empty boxes and debris should be removed from the area.
What steps should be taken to ensure handhelds are prepared for the physical inventory?
· Charge all handhelds
· Verify Count XL is installed
· Assign handhelds to employee
· Verify employees have login information (Client ID, employee number and password).
When should waste be entered?
All waste should be tracked and entered as a manual adjustment at least one day prior to the physical inventory.
What purchasing documents should be reviewed?
Verify that all received inventory has been entered as a receipt or invoice and that all transferred inventory has been accepted.
Where do I review event status to confirm they are reconciled?
Review the Stand Sheets/Stand Reconciliation module to verify events status are either reconciled or closed.
How to review items for negative on hands?
Run the Inventory/On Hand/by Item, Zero on Hand (86 List) report and filter to include only negative on hands.
What are good solutions for tracking problem items?
Processes can include a problem table to place items and/or a worksheet to record problem item information (item description, barcode, quantity).
EXHIBIT B – How to Use Count XL
How do you log into Count XL?
· Open Count XL
· Enter the Client ID
· Enter Username
· Enter Password
· Select Log In
How do you create a session?
· Enter the name of the session
Ex. Amanda H. Retail Warehouse Women’s Clothing 5.27.23
· Select the store
· Click the “+” button at the bottom
How do I add counts in Count XL?
Scan barcodes by holding the blue buttons on the side of the handheld. If your handheld has a pistol grip, push the trigger to scan.
How do you manually add counts to an item in the session?
· Press and hold the item to launch the actions box.
· Select Edit.
· Enter the count in the calcuator and press the green arrow to save.
Why is an item that was recently created or updated not scanning?
If an item was added to the Yellow Dog database or the UPC was recently added to the item in YD Mobile while the session on Count XL was active complete the following steps to reload items:
· Click the icon
· Select
· Click to return to the session
What happens when a session is finalized?
A session is finalized by clicking the cloud icon. Finalizing
a session will remove the session from the handheld and
send the session to the Yellow Dog database.
How do I add more counts to a session after I have already finalized a session?
· In the Yellow Dog database navigate to Physical Inventory/Sessions.
· Click to highlight the session and select the Force Recount Button.
· Log into Count XL on the original handheld the session was created on.
· The session will be available for the user to make any necessary adjustment and finalize.
EXHIBIT C – Adding UPC to Items using YD Mobile
1. Open and log into YD Mobile. Do NOT close or log out of Count XL.
2. Select UPC Check
3. Scan UPC
4. Click “Lookup Item and Assign”
5. Search for Item
6. Check box for item
7. Select “Add Selected Items”
8. In Count XL use the icon at the bottom right to open setting.
9. Click “Redownload Items” then select back to navigate back to the session. The item will now be scannable.
10.
EXHIBIT D – Creating and Printing Count Sheets
Prior to the Physical Inventory, count sheets based on inventory locations should be created. To create counts sheets:
1. Navigate to Physical Inventory/Count Sheets
2. Select “Create New Count Sheet”
3. Select store for the count sheet.
4. Add a description for the count sheet. Count sheets will be based of item location.
Ex. A1 T-Shirts
5. Click “Add Item”
6. Use the Level drop down to filter items or use the search to use key words.
7. With an item selected in the list, select CRTL+A to highlight all item in the list or alternatively use the “Select” box to choose items individually. Once items are selected click “Select” to pull items into the count sheet.
8. Confirm all required items are added to the count sheet and click “Save and Close”
9. After all count sheets are created. Select “Print X Count Sheets”
EXHIBIT E – Creating Sessions from Count Sheets
1. Navigate to Physical Inventory/Session.
2. Select “Create New Session”.
3. Choose the store.
4. Check “Select from other options.” and click Next.
5. Choose “Add items from a Count Sheet (Store Specific) and click Next
6. Check the box for the count sheet that counts are being entered for and select next.
7. Click “Select All X Items”
8. Name the Session ensuring that the session is easily identifiable.
Ex. Arena Warehouse T-Shirts Amanda D. 7.7.23
9. With the printed count sheet in front of you, copy over counts into the session by entering counts into the “Counted” fields.
10. Once completed click “Save and Close” then counting creating session until all count sheet counts have been entered.
EXHITBIT F - Physical Inventory Q&A
Why are sessions missing when I am adding sessions to the physical inventory?
The session has not been finalized on the handheld. Have the user who counted finalize the session in the Count XL app.
What filters are available in the Physical inventory editor?
· Sort by: Provides several options to sort items by. The variance sorting options are helpful during a preliminary review of variance.
· Show only items with no count: Filter to only items with no counts and is important during a preliminary review to confirm all stocked inventory was counted.
· Show only items with variances: will filter to only items with variances.
·
Hide All Locations: will remove the location columns from the physical inventory.
What variance reports should I run prior to committing the physical inventory?
· Physical Inventory Worksheet
If multiple team members are taking part in the review, the physical inventory worksheet can be printed and divided among members to review item variances.
· Resulting on Hand Reports
The Resulting on Hand Reports can be run from within the physical inventory by clicking “Reports…”
How do I investigate variances within Yellow Dog?
To investigate a variance, review the item’s Item History Report. The item history report can be ran within the physical inventory by highlighting an items and selecting “Item History Report for” or by using the “Reports..” button. Large variances are most often caused by miscounting, missing sales or purchasing.
How are inaccurate counts updated in the Physical Inventory?
· Find the item in the physical inventory editor.
· Click inside the count cell under the session column where the miscount occurred and update count to correct value.
· Add notes in the Notes field to record any changes.