A cycle count is an inventory management technique where a small subset of inventory, at a specific location, is counted on a regular basis (eg. daily or weekly).
Cycle count methodology
Maintainly uses a proprietary algorithm to select which materials are included in any given cycle count. The basis of the methodology is:
Inventory items that are interacted with more frequently are counted more often. Frequency of usage is prioritised over quantity used.
The value of an inventory item does not influence how often it is counted.
Tracking iterations of cycle counts per inventory item ensures that, over time, all materials will be counted.
Cycle count set-up
Before running cycle counts, you must first define how many inventory items will be counted each time a cycle count is performed. This can be done by either specifying a fixed number of different materials or by nominating a percentage of materials that exist at that store, which will be counted each time a cycle count is run at that store.
To set the number of inventory items in a single cycle count:
Navigate to Inventory > Stores;
Click the store to modify;
In the cycle count field, enter the total number of materials or the percentage of the total number of different inventory items (specifically at that store), that are to be counted in a single cycle count;
Click Save.
Perform a cycle count
For best results, perform cycle counts at a regular, predefined interval — such as daily, weekly, or monthly.
Cycle counts can be created at the time of the cycle count taking place, or created in advance (eg. by an Administrator) and given a pending status until the cycle count is completed.
To conduct a cycle count:
Navigate to Inventory > Cycle Counts;
Click New cycle count;
Select a store from the dropdown;
Click Create. A cycle count will be created with a list of materials that are to be counted, per the Maintainly algorithm.
For each material, enter the current stock quantity that was counted;
Click Complete (or Complete & Approve, if the appropriate permission exists);
NOTE: If there is a difference between the current inventory level and the counted quantity, a manual stock adjustment will not occur until the cycle count has been approved by a user with the necessary permission. See below.
Approving a cycle count
Any difference between current inventory levels and a cycle count quantity will result in a manual stock adjustment. Any discrepancy between current inventory levels and the counted quantity triggers a stock adjustment, which is applied only once the cycle count is approved.
Approved cycle counts and their inventory adjustments cannot be undone. Any errors must be corrected with a separate manual stock adjustment to ensure transactions are fully documented.
To approve a cycle count:
Navigate to Materials > Cycle Counts;
Click the advanced filter icon;
Set the Status to Complete to view only those cycle counts that are awaiting approval;
Click the cycle count that is to be approved;
Make any quantity modifications as desired, then click Approve.