Physical Inventory Process

The Physical Inventory allows the Parts department to ensure that the value of the inventory is current and accurate. Follow these steps to perform your next Physical Inventory Process.

1. Set the sorting parameters
2. Make Filter Selections
3. Clean up locations and costs
4. Finalize the Setup
5. Perform Physical Inventory Count
6. Perform Variance and adjust counts as needed
7. Print the Valuation Report
8. Update the system inventory

Setting/Sorting Parameters

Navigate to: Parts > Physical Inventory > Physical Inventory Process

• Click the [New] button in the Action Ribbon.
• In the New Parts Physical Inventory parameters window, determine what will and will not be included in the count by using the available filter selections (see below). 

• Start Date - Defaults to today’s date and time. Use the calendar and clock tools to edit. Most printed reports will refer to this Start Date as the created date. 
• Inventory Type 
  • Full - Includes all part locations. (Sometimes referred to as the Annual Physical Inventory Count.)
  • Fastest Moving - Limits the count to higher volume parts or only parts that have had sales within a date range. Parts that have had no sales within the defined date range will be excluded.
    
  • Perpetual - Select Perpetual to conduct smaller, more frequent counts. Selecting Perpetual narrows the count by setting a percentage of part numbers within the specified location range. Enter a percentage, and VUE will calculate the number of parts to be selected at random. Enter the number of parts to count, and VUE will calculate the percentage.

• Manufacturers - Select the part Manufacturers to include in the count. 
• Locations - Regardless of the Inventory Type, defining bin locations is required. Use the drop-down to select the bin locations to include:
  • Set Range - Available for inventory type Full or Fastest Moving. Allows selection of bin locations between a starting and ending location. Select the Starting Location and Ending Location from the provided drop-downs.
  • Set Range and Percentage - Selecting the Perpetual inventory type enables you to narrow the count further by setting a percentage of the selected location range. Select Starting Location and Ending Location from the drop-down. Enter the percentage of the locations you want to be included in the count. 
  •  Select All - This selection includes all bin locations and permits the deselection of individual bins.
  • Select None - Clears the location range and permits individual bin selection.
• Part Types - Select Part Types to include parts as defined in Parts Inventory > Parts Type. General Parts include parts that do not have a defined part type in the part record
  • Include Parts with 0 On-Hand Qty - Check the box to include.
    
  • Exclude Parts with No Location - Check the box to exclude.

• Parts - This parameter is available for Fastest Moving and Perpetual Inventory counts only. This is the percentage of part numbers within the location range identified. Enter the percentage of bin locations to be included in this count, and VUE will calculate the number of parts. Alternatively, enter the number of parts you want to include, and VUE will calculate the percentage.

• Date Range- Available when Fastest Moving is selected as the inventory type. It allows you to set a Start and Stop 

• Apply Weighted Randomness -This checkbox is only available when Perpetual has been selected as the inventory type. Selecting Weighted Randomness gives parts that haven't been counted better odds of being counted.
• Description - By default, VUE assigns an ID number to the count and records the date created. This field will appear on printed reports for future reference. This field is editable with a maximum field length of 50 characters.
• Index - Select the appropriate index. This selection will govern the sort sequence of the Count Pad. The needs of each dealership vary greatly. Compare sorting options of the available indexes to find the best fit. Contact Dominion DMS Support for further assistance in selecting a special index. 
• Show Recommended Indexes Only - Indexes that are not recommended may be removed from the dropdown by checking this box. Recommended Indexes include any index matching a manufacturer in your OEM list
• Count Cores - By checking this box, part numbers with dirty cores are added to Count Pads, Status, and Count tabs so that Count Pads provide for the collection of on-hand dirty core quantities.
• Show On-Hand Quantity - Check this box to print on-hand quantities on Count Pads.
• Perform a Second Count - This option allows the user to perform a second count of the physical inventory.
• Show Count When Reprinting - By checking this box, subsequent Count Pad printing will include counts for previously entered items.
• Page Break on Location Change - Select this option to limit the number of bin locations per page when printing the Count Pad. Not selecting this option produces no page breaks. Pagination will be system generated for full pages
• Characters to Determine Break - Identifies which character in the Bin Location label governs each page break. Only available when Page Break on Location Change has been selected.

Summary Totals located at the bottom of the screen include:

• Total Parts - This is the sum of parts Included on Count Pad + Excluded from Count Pad.
• Filtered Parts - Number of parts remaining with current parameter filters applied.
• Included on Count Pad - Number of parts remaining after parameters applied and after any further narrowing by setting Inventory Type to Perpetual and specifying a percentage of locations within the range to be picked at random
• Excluded from Count Pad - Number of parts excluded due to filter selection. Included + Excluded = Total Parts.
• Blue hyperlinks - The totals shown in blue are links to records that need to equal ZERO and should be reviewed before finalizing the physical count. Use these hyperlinks to go directly to potentially problematic parts records.
  
  
• Zero Cost - The number of parts that have no cost listed. The link opens a window of the part numbers with no cost. Each part number is a link to the Part Record. Click on each part number link to open a new tab, and edit the cost
  
  
• Multiple Locations - The number of parts with multiple locations. Each Part number is a link to that Part Record. This link opens a new tab allowing for editing the locations in each part record
• No Location - The number of parts with no location. Each part number is a link to the Part 
  Record. This link opens a new tab allowing for editing the part location. If included in the 
  count, parts with no location will be listed under the location name UNASSIGNED.
• Only Secondary Locations - The number of parts that have a secondary location and no primary location. The part number link opens a new tab to edit bin locations.
• Duplicates - Part numbers that have more than one part record for the same part number. This link opens a window including part number links to each part record. Deactivate unwanted records from the [More] button in the Action Ribbon. The part can be reactivated at a later date and will retain the part history.
• Negative On-Hand Quantity - Part numbers that have less than zero as on-hand quantities. The Include Parts with Zero On-Hand Qty parameter must be enabled and the number of locations must be more than zero in order to be a hyperlink.
• Zero On-Hand Quantity - Part numbers that have zero on-hand quantities. The Include Parts with Zero On Hand Qty parameter must be enabled and the number of locations must be more than zero in order to be a hyperlink.
• Save or Cancel - Click the [Save] button to establish the new count, or click the [Cancel] button to escape without saving. Once saved, you will have another opportunity to edit the parameter selections again before finalizing selections and beginning the physical counting.

Finalizing

Once you have saved the primary settings, Filter/ Sort and select an Active Inventory Count from the grid.

• Edit - Click the [Edit] button in the Action Ribbon. Review the report parameters again. Review 
  and adjust any blue summary totals as described above before finalizing the setup
• Finalize - No adjustments are permitted after clicking the [Finalize Setup] button in the Action Ribbon. Click [Finalize Setup] to open the counting screen. Once finalized, you may review but not edit the sort parameters by clicking the [Settings] button in the Action Ribbon. The Counting screen will open when you click [Finalize Setup].

Physical Inventory Counts

In Action Ribbon hover over Reports.

• Count Pad - Prints each part number by Bin Location. If the user selected the option to page break on Location change, a single sheet prints for each Bin Location. Without this selection, multiple bin locations can print on each page. 
• Bin Check Sheet - This report gives the user a place to check off bin locations as they are counted.
• Count #1 - The first physical count of the parts should begin. The actual number counted in each bin on the Count pads. 

  • Count #1 Tab - Enter the amount counted under the COUNT 1 tab in the Part Count field. Record the actual count quantity for each location.
    
    

  • When a Location display as UNASSIGNED, this means that the part number has a Bin Location without a Primary selection.

  • The count of UNASSIGNED locations should match the Only Secondary Location hyperlink from the Parts Physical Inventory Setting screen.

• Write-In - Once the user has selected the Count 1 tab, the Write-In action button will become active.
  

  • Location - Type in the Bin Location the part was found in.

  • Manufacturer - OEM of the part being typed in.

  • Part Number - Key in part number and click Search

    • If the part already exists in inventory and is on the count pad, the popup will inform the user and allow them to add to the on hand count.

• All Write-Ins are placed at the end of the count pad, and count screen, on page 9999.
• Print Count 1: Bins/Parts Not Counted - Print this report to identify any overlooked Bins in Count 1. This report lists any un-checked part numbers on the Status Tab.

• Count Pad - Print the Count pad again for Count #2 processing. Prints each part number by Bin Location. If the user selected the option to page break on Location change, a single sheet will print for each Bin Location. Without this selection, multiple bin locations can print on each page.

• Count #2 (If Perform a Second Count is selected during physical inventory creation.) - Complete the second physical count of the parts. Record the actual counted in each Bin on the Count Pad.

• Count #2 Tab (If Perform a Second Count is selected during physical inventory creation.) - Enter the amount under the COUNT 2 Tab in the Part Count field. Record the actual count quantity for each location.

• Reports - Print Count 2: Bins/Parts Not Counted (If Perform a Second Count is selected during physical inventory creation.) - Print this report to identify any overlooked bins in Count 2. This report will list any un-checked part numbers on the Status Tab.

• Status Tab - This Tab acts as a Check Sheet letting the user know what parts have been counted so the user can verify that all locations have been counted.

Adjust & Update Count Entries

• Status Tab - After Count 1 & Count 2 are entered, user will want to use the Status tab to verify there are no missing Locations that have not yet been counted/entered.

  

• Discrepancy Tab - This Tab includes parts where Count 1 did not match Count 2.

  
• Discrepancy Count Pad (If Perform a Second Count is selected during physical inventory creation.) - Print the Discrepancy Count Pad if needed for someone to go physically conduct a recount. Make corrections in either Count 1 or Count 2 Tab until no Discrepancies remain.
  
  

• Variance Report - Print the Variance report which will provide detail of all parts where the count is different between the entered count value and the current on-hand quantity in inventory. User should review and make any necessary changes prior to Update.

  • If the user checked the Count Cores option, then core count can be entered for core parts. Update inventory will update the core qty for these parts to match the entered values. When running the Variance report, any core qty difference between entered values and inventory values is included.

    
• Valuation Report - Print the Valuation to see the dollar values of the count verses what is currently in inventory. There is also a breakdown in value based on Part Types.

• Update - This will finalize the Physical Inventory Process. The user will be prompted indicating that Counts 1 and 2 are complete or only partially complete, along with the number of discrepancies that are unresolved before allowing the user to Update the inventory. The User will not be able to enter or modify counts after clicking “Yes”.