---
title: "Generate an Inventory Count Using Theo on Hand"
slug: "generate-an-inventory-count-using-theo-on-hand"
description: "Auto-populate an inventory count using Theoretical on Hand quantities with the Generate Qty button to save time between counts."
updated: 2026-05-14T21:52:34Z
published: 2026-05-14T21:52:34Z
canonical: "docs.restaurant365.com/generate-an-inventory-count-using-theo-on-hand"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://docs.restaurant365.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Generate an Inventory Count Using Theo on Hand

This article is part of entering [Inventory Counts](/doc/docs/inventory-counts-overview-security) and covers generating an Inventory Count using Theoretical on Hand.

When necessary, users can generate an inventory count using **Theo on Hand**. When this feature is used, the system uses the calculated **theoretical usage** for items to estimate the inventory on hand.

There are instances when inventory counts must be conducted multiple times within a short time frame, particularly in cases in which the end of the **operating calendar** and the end of a **posting period** are less than a week apart. Generating a count using the **Theoretical on Hand** allows greater efficiency in these scenarios, and the count variance is typically negligible. Users can utilize the calculated theoretical usage to enter the inventory count instead of conducting another full inventory count days later.

---

## Security

In addition to Edit and Create [Inventory Count permissions](/doc/docs/inventory-counts-overview-security#security), users must have the following permission:

- Food → Inventory Counts → Generate Using Theo on Hand

---

## Calculating Theo on Hand

Theo on Hand is the theoretical number of Items available in Inventory. This number is based on the [usage per $1000](https://docs.restaurant365.com/docs/usage-per-1000). Theo on Hand is approximated using historical Inventory Item Usage.

Read about how the [theo on hand value is calculated using item usage per $1000](https://docs.restaurant365.com/docs/usage-per-1000#theoretical-on-hand).

---

## Generating an Inventory Count Using Theo on Hand

To use the Theoretical Usage for an Inventory Count, first, [create a new Inventory Count](/doc/docs/inventory-counts-create-and-enter-an-inventory-count), then, follow these steps:

**1) Once the inventory count sheet is open, click the **Generate Qty** button at the top of the sheet.**

![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-8EO6FOIL.png)

**2) Click **Confirm** to confirm the quantity generation. This will auto-generate the inventory count for all the Items using the theoretical usage of the items. The storage locations on the count will each update to reflect 100% completion.**

![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-G0FBY5FM.png)

![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-DCURI5PJ.png)

**3) Once the storage locations are marked as complete, click the **Review** button to [review the inventory count before completing or approving it](/doc/docs/inventory-counts-review-and-approve-an-inventory-count).**

![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-R33YW6DN.png)

### Duplicate Items on a Single Count

When an item exists **twice** on the **same inventory count**, whether that is twice in the same storage location or in a different location but in the same count, the **Generate Qty** button will generate a qty only **once** for the item. The first storage location will get the value. The repeated items will be left at 0.

---

## Theo Generated Grid Column

The **Theo Generated** column can be added to the inventory counts grid. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-NBYEJOM5.png)

This column indicates whether or not an inventory count was entered using the **generate theo on hand** function.

- When marked as **Yes**, the Count was entered using the generated theo on hand function
- When marked as **No**, the Count was entered in manually

Access rights granted to users or user roles that dictate what actions they can perform within the system.