Understanding Auditing Outbound Inventory

To correct errors that occur when reporting consumption, you use the auditing process for outbound inventory consumption. You can review quantities details and enter the quantity physically available at your customer's location. 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 the Outbound Inventory Cycle Count reports to check variances that occurred when reporting consumption and can take measures to correct the errors.

The system calculates and displays the following variances in the reports:

• Variance in quantity measured in primary unit of measure

• Variance in quantity counted in secondary unit of measure

• Variance in amount