Cycle Count Creation

Creating a cycle count includes specifying schedules, approvals, parameters, items, item categories, and classes to include in a cycle count. Use the Create Cycle Count and Manage Cycle Counts tasks from the Inventory work area to create and manage your cycle counts.

You can perform cycle counts using ABC classes or PIM item categories as criteria for your cycle count.

Note: To create a cycle count using item categories from the Product Information Management work area, you must first enable the Perform Cycle Count Based on Item Category feature in the Setup and Maintenance work area.

The process includes seven train stops:

• Enter primary details

• Define schedules and approvals

• Define parameters

• Define item categories

• Define items in item categories

• Define classes and items

• Review

Enter Primary Details

On the Create Cycle Count: Enter Primary Details page, choose the subinventories to include in the cycle count. Also, specify ABC assignment groups and ABC assignment group synchronization options.

To create a cycle count using item categories from PIM, select the Enable cycle count by item category check box.

You can automatically add items to a cycle count by selecting an ABC assignment group. In this case, all of the ABC assignment group's items are added to the cycle count.

Here's how to use the Synchronize Count Classes and Items with ABC Group fields.

Field	Definition
ABC Assignment Group	Select an ABC assignment group to associate items and item classes with the cycle count. These items and item classes assigned in the ABC assignment group are automatically brought into the cycle count.
Synchronization Mode	When you select an ABC assignment group, you can select a synchronization mode to determine how changes to the ABC Assignment group synchronize with cycle count classes and items. Append changes: Use when adding items to a cycle count. During synchronization, only the new items are added to the ABC assignment group and cycle count. Complete: Use during the initial creation of a cycle count. During synchronization, the entire contents of the designated ABC assignment group replace whatever is currently in the cycle count tables. Whether you add, remove, or change classifications of items in the ABC assignment group, when in Complete mode, all changes that occur in the assignment group are reflected in the cycle count upon synchronization. None: No synchronization takes place.
Delete Additional Items	Select this check box if you're using the Append Changes synchronization mode and you want to delete items that have been recently removed from the ABC assignment group.

Note: Clicking the Next button is the trigger for synchronization of the ABC assignment group and the cycle count.

Define Schedules and Approvals

On the Create Cycle Count: Define Schedules and Approvals page, define the schedule for the cycle count. Also, specify whether and when approval is required for variances between the actual counted quantity and on-hand quantity.

Let's look at the fields for schedules.

Fields	Definition
Automatically Schedule	Select this check box to automatically schedule the cycle count.
Frequency	Specify the frequency of scheduling. This determines how often to generate a count schedule. Weekly: Account schedule generates that includes all items due for counting in the next 1 week. Daily: One count schedule generates for every day. The schedule includes only those items that are due for counting on that day. By period: The schedule generates count sequences based on the calculation - the number of items assigned to the class, multiplied by the number of counts per year, divided by the number of working periods in a year. The calculation uses 13 working periods as defined in the Quarterly Type field on the time schedule used for the cycle count.
Workday Schedule	Select the calendar to use for scheduling.
Last Scheduled Date	Date the cycle count was last scheduled.
Next Scheduled Date	Date the cycle count has to be scheduled next.

Note: The scheduling program updates the values for the Last Scheduled Date and Next Scheduled Date. You can edit the Next Scheduled Date. These fields apply only if you enable automatic scheduling.

Let's look at the fields for approvals.

Fields	Definitions
Approval Required	Select whether or not approval is required for the cycle count.
Approval Type	Determine the level of approval required for the cycle count. Always: Every count sequence where the count quantity doesn't match system quantity requires an approval. If there isn't a discrepancy between the count quantity and system quantity, no approval or on-hand updates for the item are required. If out of tolerance: Approval is required only when the quantities differ from system quantities beyond the tolerances stipulated.
Positive and Negative Quantity Tolerance Percentages	Enter the percentage variances of count quantity to on-hand quantity beyond which adjustments are held for approval.
Positive and Negative Adjustment Value Tolerance	Enter the positive and negative adjustment values beyond which adjustments are held for approval.

The tolerances are applicable for the entire cycle count. These tolerances are applied only when more specific tolerances at the item or ABC class aren't defined.

Define Parameters

On the Create Cycle Count: Define Parameters page, specify count parameters, serial number options, and count accuracy values for the cycle count.

Enter the required fields and save your count definition in order to enable the Define classes and Items stop enabled. This only applies if ABC assignment groups are selected.

Here are the fields for Count Parameters.

Field	Definition
Starting Count Sequence	Enter the sequence number to use as the starting number in the next count sequence generation. Inventory assigns count sequence numbers to stock keeping units. A keeping unit is a unique combination of an item, subinventory, locator, revision, and lot. If an item has several counts, each count is assigned a sequence number.
Maximum Days Before Late	Enter the number of workdays that can pass from the count generation date before a scheduled count is late. Count sequences not recorded within this number of days are marked as late counts in the Inventory Management work area.
Maximum Recounts	Enter the maximum times an out-of-tolerance count is automatically assigned recount status. When the recorded quantity exceeds system quantity beyond the stipulated tolerance, the count is automatically sent for recount without intervention from the inventory manager. If the number of recounts exceed the number specified here, but the deviation still exceeds the tolerance, the count is routed for approval.
Manual Counts Allowed	Select this check box to enable unscheduled counts by users.
Count Zero Quantity	Select this check box to generate blank count sequences for items with zero on-hand quantities. Note: This option is only applicable for items in which the item and subinventory relationships have been defined. When you select this check box, a count sequence is generated if zero quantity exists for that item in that subinventory.
Display Suggested Quantity	Deselect this check box to enforce blind counting. Blind counting ensures that actual physical counting is performed.
Serialized Items Allowed	Select this check box to generate count sequences for serial controlled items.

Use the Serial Number Option fields to enter parameters for serialized counts. You can enter these parameters only when you enable the Serialized Items Allowed check box in the Count Parameters section of the page.

This table defines the serial number option fields.

Field	Definition
Serial Numbers per Count	Select a value: Multiple: You can include multiple serial numbers in one count sequence. One: Generate a separate count sequence for each serial number.
Serial Number Adjustment	Select a value: Adjust if possible: If a serial number discrepancy exists between the count quantity and system quantity, or if the entered serial numbers don't correspond to the serial numbers already in the specified location, adjustments are attempted if the adjustment variance and value are within tolerances. Review all adjustments: Send all serial adjustments for approval.
Record Count Serial Numbers	Select this check box when serial numbers should also be counted if the actual and system quantities are the same. This is applicable only when multiple serial numbers are included in a count sequence.
Serial Discrepancy Allowed	Select this check box to permit a discrepancy in the actual location of a serial number. When selected, the application transfers the serial number to the recorded location.

For the Count Accuracy section, use the Positive Hit or Miss Percentage and Negative Hit or Miss Percentage fields to enter the deviation percentage range to evaluate a count as a hit or miss.

Define Item Categories

On the Create Cycle Count: Define Item Categories page, select the item categories from PIM to use in the cycle count. Also, specify your options for synchronizing item categories with items.

Note: This stop is available only if you select the Enable cycle count by item category check box on the Enter Primary Details page.

Define Items in Item Categories

On the Create Cycle Count: Define Items in Item Categories page, select the items to use in the cycle count.

Manually add items to a cycle count by searching for and selecting the desired individual items on this page. You can also enter the number of counts per year for the selected items.

Note: This stop is available only if you select the Enable cycle count by item category check box on the Enter Primary Details page.

Define Classes and Items

On the Create Cycle Count: Define Classes and Items page, select the ABC classes and items to use in the cycle count.

Manually add items to a cycle count by searching for and selecting the desired individual items on this page.

Review

On the Create Cycle Count: Review page, review the selections made on previous pages. You can click the Subinventories to Count link to display the subinventories to be included in the count.