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    Review and Approve an Inventory Count
    • 29 Aug 2024
    • 10 Minutes to read
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    Review and Approve an Inventory Count

    • Updated on 29 Aug 2024
    • 10 Minutes to read
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    Article summary

    This is a part of the Inventory Counts feature in the Smart Ops Release. Click here to learn more about the Smart Ops Release.

    After creating and entering in quantities for a new inventory count, the entry user can review any alert flags that appeared as a count was entered by clicking the Review button. Alert flags demonstrate that a discrepancy exists between this count and the last count. 

    Once the count is reviewed and discrepancies are updated, then the entry user can mark the count as complete, which will lock the user out of making additional edits. Users with approval abilities can then review the final count and update it if needed by once more unlocking the count and making the necessary changes. When the count is finalized, it can then be approved.

    Important Note on Updating Inventory Count Templates

    Before updating an inventory count template, ensure that all counts using that template are completed and/or approved. If a template is edited while it is in use, then it will be updated to reflect the structure of the In Progress count when that count is marked as completed and/or approved.

    Reviewing an Inventory Count

    Inventory counts will need to be reviewed before marking the count as Approved. To initiate the review process, select the desired inventory count and then click Review from the Inventory Count sidesheet header. This will reload the sidesheet into the inventory count review.

    Inventory Count Review Sheet

    Field

    Description

    1

    General Information

    This header includes general information about the inventory count template used for that location, including the name of the team member who took the count and the date the count was made. This section can be expanded or collapse by clicking the expand/collapse arrow icon.

    2

    Upload Files

    This enables any other relevant documentation to be added to the count if desired. Accepted File Types include PDF, PNG, or JPG.

    3

    Variance Review Tab

    From this tab, users can review Actual or Theoretical Variances that the system has identified in the Inventory Count. This allows for users to quickly identify discrepancies without having to run AvT reports. To read more about the Variance Review tab, click here.

    4

    Count Entry Tab

    This tab lists the count and enables the user to correct any necessary count amounts. Users can refresh costs or add items to the count from this tab. Alert flags will be displayed on this screen for a quick view into any abnormalities in the count and can even be filtered via the alerts filter.

    5

    Storage Details Tab

    This tab is for informational purposes only and displays all items and the details about their entry, regardless of Storage Location. This tab looks back at the last time the exact same template was used to determine the variance. This tab can easily be exported via the Excel icon . Details include the following:

    • Current Qty – Total quantity entered for Inventory Item in the Storage Location

    • Current $ Cost – Dollar cost for the Inventory Item at time of count

    • Current $ Total – Current Qty x Current $ Cost

    • Prev Qty – Previous count quantity from the last count with the same template

    • Prev $ Cost – Previous dollar cost from the last count with the same template

    • Prev $ Total – Prev Qty x Prev $ Cost

    • Qty Variance – Difference between the Current Qty and Prev Qty

    • $ Variance – Difference between the Current $ Total and Prev $ Total

    6

    Item Details Tab

    This tab lists the actual Accounting Transaction and looks at the last time the item was counted to find its true net change. This tab can be filtered by Alert Flags and can easily be exported via the Excel icon . Details include the following:

    • Current Qty – Total quantity entered for the Inventory Item in all Storage Locations

    • Current $ Cost - Dollar cost for the Inventory Item at time of count

    • Current $ Total - Current Qty x Current $ Cost

    • Prev Qty - Previous count quantity from the last count with the same template

    • Prev $ Cost - Previous dollar cost from the last count with the same template

    • Prev $ Total - Prev Qty x Prev $ Cost

    • Adjustment – Inventory adjustment amount to be posted to the Cost Acct and Inventory Acct for the inventory item

    • Cost Acct – Cost GL Account

    • Inventory Acct – Inventory GL Account 

    • Flag – Any inventory count alerts for the Inventory Item 

    7

    Distribution Tab

    This tab will only appear when GL Posting is toggled on and includes the account number, the amount debited and credited, and the corresponding location and legal entity. This tab can easily be exported via the Excel icon .

    8

    Refresh Cost

    This will refresh the cost to the most accurate cost in the system for every item in the list.

    9

    Search Bar

    This enables the User to filter for a specific Item on any tab.

    10

    QTY / $ Toggle

    Users can toggle between viewing the Variance Review tab details by QTY or based on the current dollar cost. Read more about completing variance review, here.

    11

    Review Actual and Review Theoretical

    These notices allow Users to toggle between the Actual and Theoretical Inventory Variances. When Green, these have been reviewed. Learn more, here.

    12

    Grid Functions

    The variance review table has the following smart grid functions:

    • - Create and save table views.

    • - Show, hide, or rearrange grid columns.

    • - Export the grid to a .csv file.

    • - Refresh the grid data.

    13

    GL Posting

    This toggle enables the Inventory Template to post to the General Ledger when toggled on. If toggled off, the Inventory Count will not have an impact on the General Ledger.

    14

    Approve Button

    Clicking this button will lock any role from editing the count. While the Complete button can be clicked as an extra step before approval, it does not have to be marked as Completed to be Approved. Once clicked, the status of this count will be labeled as approved in the inventory count listing.

    When clicked, the Unapprove button will take its place.

    15

    Unlock Button

    This signifies that the entry user has reviewed and marked the count as complete, which locks them and any other entry user from editing the count. Once Complete is clicked and this Unlock button is displayed, the status of this count will be labeled as completed in the inventory count listing, signifying that it is ready to be reviewed and approved. Clicking Unlock will reopen the count for edits

    The Unlock button is only available to Users with Approval access.

    16

    Context Menu

    The context meu includes the following actions:

    • Export Count Sheet -This will export the count sheet to Excel so that entries can be made on the home computer and then imported back into the system.

    • Import Count Sheet - This will import the count sheet into the count sidesheet.

    • Print- The following print options are available:

      • Print Count Sheet

      • Print Count Review (this is the Stock Count Quantities Report)

      • Print Transaction Summary

    • Share Email Link - This will share a link to the Inventory Count in a pre-formatted modal.

    • Delete- This will enable the User to delete the Count.

      When the count is marked as 'Approved', the delete option will not be available.

    Count Entry Tab

    Review the items entered on the count from the Count Entry tab. 

    Count Entry Tab Functions

    The Count Entry tab allows users to view count alerts, refresh counts, and add items to the count if necessary. 

    Field

    Description

    1

    View All

    Click to view all the items entered in the count without filters.

    2

    Alerts Filter

    Click to filter for items that were marked with an alert flag. These alerts include the following:

    • Less than Half - This will display if the entry is half or less of the item entry from the last count

    • Twice as Much- This will display if the entry is double or more of the item entry from the last count.

    • Assume Zero - This will display when the system entered a zero-quantity because the item was missing from the current count but was present on the last count.

    • 0 Quantity - This will display when 0 was entered for this count but had a quantity entered in the last count..

    3

    + Add Item

    This button will enable the User to search for a specific item to add to the Inventory Count. A prompt will appear asking whether the item should be added to the Template. Clicking Count and Template will add the item to the template for the current and future counts while Count Only would only include the item in the current count. 

    Count Entry Tab Grid

    The Count Entry tab grid is sorted by storage locations and lists the item counted along with the following information about the item:

    • Item Name

    • Item Cost per unit

    • UofM 1

    • UofM 2

    • UofM 3

    • Total Cost based on the Item Cost per unit

    Clicking an Item Name will open its Purchase Item Form directly to the Item Cost tab with the Location set to reflect that of the Inventory Count.

    Review Inventory Count

    When reviewing an Inventory Count, ensure to review the following areas to assist in resolving count issues:

    1

    Review Actual/Theoretical Variances. Review any inventory count variances to quickly view and address count discrepancies

    Some users may be required to review actual/theoretical if the Require Inventory Variance Review setting is enabled. To learn more, click here.

    2

    Refresh Cost. If invoices are in progress at the time the count was started, ensure that all invoices are entered and approved and then click Refresh Cost in the inventory count review screen to update the costs.

    3

    Review Each Amounts. Sort the Unit of Measure 1 column from highest to lowest and then lowest to highest to find the items that have a higher or lower entry amount, respectively, than expected. Repeat this for each Unit of Measure column and compare these entry amounts alongside their UofMs listed to ensure that AP invoices have been entered correctly.

    4

    Filter the Review Tab for Alerts. Review the listed alerts to determine where potential errors were made. This could be an incorrectly entered amount or a skipped entry.

    5

    Add New Items. Ensure that any new items purchased for the first time since the last count have been added to this inventory count template.

    6

    Verify Proper Account Assignment. Navigate to the Distribution tab and review that the inventory count GL accounts match the cost GL accounts. If these do not match, open the Item Details tab and search for items that have been assigned to the same cost and inventory GL accounts.

    If GL Accounts are not one-to-one, such as meat cost and meat inventory GL accounts, but are one-to-many, such as meat cost to food inventory GL accounts, compare the total lines impacting the inventory accounts in the grid to the net adjustment rather than the full distribution total.

    7

    Compare Against the Balance Sheet. Run the balance sheet for the date and location of the inventory count and then click the Total value for inventory to view the GL account detail of those accounts. These balance sheet values should match the printed Count Review or Stock Count Quantity report where the beginning balance value should match the Previous Amt, the total value should match the End value, and the Adjustment should match the Adjustment, respectively. Reasons for a mismatch include:

    1. Items dropped off.

    2. Items are assigned to an inventory account for the Cost Account field, meaning purchases are being marked as inventory.

    3. If more than one inventory count template is used per store for end period inventory, ensure all items only exist on one of these templates.

    4. Counting inventory should be the only transaction that impacts inventory asset accounts. Journal entries should not be entered to account for things that were not counted in inventory; otherwise, the balance sheet will no longer match the inventory count.

    8

    Optional: Run the Actual versus Theoretical Report. Run the AvT report to look for any variances that grew over the count cycle, or increased in amount without the explanation of purchases. These will be displayed in red in the Actual column and include items that were either counted incorrectly or an invoice or other transaction that is missing in the system.

    Editing Item Counts

    After clicking Review, item counts can be updated on both the Count Entry tab as well as the Item Details tab. 

    Once the Inventory Count has been completed, item counts can no longer be updated. To update item counts, the inventory count will need to be unlocked. 

    Count Entry tab

    On the Count Entry tab, counts for the Item can be updated within a single storage location.

    1. Click the current count for the desired UofM. This will open inline editing. 

    2. Update the count.

    3. Press Enter or Tab on the keyboard or click anywhere on the sidesheet. Changes made are automatically saved. 

    Item Details tab

    On the Item Details tab, counts can be updated for the Item across all storage locations. 

    1. Click the line for the desired Item. This will open the storage location quantities form.

    2. Click the count that needs to be updated.

    3. Update the count.

    4. Click DONE to close the form. Changes are automatically saved. 

    Users can also adjust the Item Details grid and save Table Views if necessary to view the Items Grid as desired.

    Approve Inventory Count

    After reviewing all alert flags and updating the count where necessary, users with approval abilities can then approve the count by clicking the Approve button in the top right corner of the sidesheet.

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