Understanding Cycle Counts

A cycle count is the item-based method of counting inventory. You record data, such as item numbers, descriptions, and locations on printed inventory count sheets, which you later use to update the online inventory records.

You can use a cycle count to:

• Group items to be counted at specific intervals throughout the year.

• Track variances.

• Reduce costs and backorders.

You can use a cycle count in conjunction with a tag count to ensure accuracy. You also can use these programs to indicate that counted quantity is on certain existing license plates.