About Inventory Count Settings

Inventory Count Settings are the rules governing the process of counting physical items (SKUs) in inventory. These rules contain information about how many times you need to count certain items and what counts and/or dollar amounts are considered acceptable (if they don't correspond to the inventory totals in the IDI platform).

Inventory Count Settings are usually set at the global location level since they rarely change.

To configure Inventory Count Settings:

• From the Inventory Count Settings window

  

  either click Inherit Inventory approval plan from 'global' to inherit settings,

  OR

  Click Override Inventory approval plan Settings to make changes.

  Note

  If you're on the Inventory Count Settings for Global window, there are no inherit nor override options.

• Make any changes to the following fields.

  • Note

    Maximum Iterations - Maximum iterations represents the total number of times that the inventory count may be performed. If this value is set to 3, and the first count does not meet the variance, then 2 additional counts can be done, if necessary. Even if a count fails the variance check, a Manager Override can be applied in order to bypass the subsequent iterations.

  • Maximum Variance % (Number of items) - The Max Variance % (Number of items) is the maximum number of items per SKU by which a count can be off. A percentage variance of more than the setting will cause the Inventory Count to fail for that item. This is calculated at the time that the user enters the counted values at the item level. It is designed to keep the number of ‘items in flux’ to a minimum. (Items in flux are generally those items that are currently in a customer's hands and cannot be counted, but are not yet sold).

  • Max Variance Amount ($) - The Maximum Variance Amount is the dollar value of the difference between the manual count and the system count for a specific item. This is calculated by (Count – System) * Unit Cost (or Average Cost).

    • Nonserialized items are verified at the status level (new, used, etc.).

    • For Serialized Items, a dollar variance of more than the setting will cause the Inventory Count to fail for that item. This is calculated at the time that the user enters the counted values at the item level. This is designed to keep the number of ‘items in flux’ to a minimum. (Items in flux are generally those items that are currently in a customer's hands and unable to be counted, but not yet sold).

  • Recount Products Outside of Variance Only - Check this box to indicate if only those products that are out of the recount variance need to be counted again.

  • Count Discontinued Items - Check this box if items that are classified as discontinued needed to be included in an inventory count. (Normally, if you are allowing discontinued items to be sold, you would want to count them.)

• Click Save to keep your changes.