---
title: "Phase 3: Inventory"
slug: "phase-3-inventory"
description: "Ops Phase 3: build inventory count templates, train managers, and align beginning balance with accounting calendar. Timeline: 2–3 weeks."
updated: 2025-08-26T17:00:26Z
published: 2025-08-26T17:00:26Z
canonical: "docs.restaurant365.com/phase-3-inventory"
---

> ## 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.

# Phase 3: Inventory

Phase 3 focuses on the setup of Inventory Templates and the taking, reviewing, and approving of Inventory Counts. In a periodic inventory system, performing accurate Inventory Counts is crucial to obtaining accurate Cost of Goods Sold.

### Phase Goals

- [Inventory Count Template](/doc/docs/inventory-counts-create-and-edit-an-inventory-template) built for all Locations
- Managers trained on how to [perform inventory](/doc/docs/inventory-counts-create-and-enter-an-inventory-count)
- Admin team understands the [first count beginning balance](/doc/docs/beginging-balances-inventory-count) process
- Alignment with Accounting Processes, including creating the Fiscal versus Operational Calendar, when you should take counts, when all invoices should be approved for Item Costing, etc.
- Establish [DWM Tasks](/doc/docs/daily-weekly-monthly-quarterly-tasks-accounting-operations) for Inventory
- Timeline: 2-3 weeks

### Advanced Topics

- Take at least test count
- Review the [Actual vs Theoretical Analysis](/doc/docs/actual-vs-theoretical-analysis) report

### What is coming up in the next phase?

- How to [build recipes](/doc/docs/recipe-flow-and-build-out)
- POS Menu Item to [Recipe Mapping](/doc/docs/mapping-recipes-to-menu-items)
- Menu Profitability Reports

### Additional Resources

- [Combined Fiscal and Operational Calendars](/doc/docs/fiscal-and-operational-combined-setting)
- [{{ glossary.R365}}-red-app-inventory-counts-overview" target="_blank" translate="no">Inventory Counts conducted on the R365 Red App](/doc/docs/<span class=)
- [Review and approve Inventory Counts](/doc/docs/inventory-counts-review-and-approve-an-inventory-count)
- Reporting:
  - [Operations Reporting Essentials](/doc/docs/reporting-essentials)
  - [Actual vs Theoretical Analysis](/doc/docs/actual-vs-theoretical-analysis)
  - [Actual vs Theoretical Analysis - Troubleshooting Variances](/doc/docs/actual-vs-theoretical-analysis-troubleshooting-variances)
  - [Profit and Loss](/doc/docs/profit-and-loss)

POS (Point of Sale)

A system used by businesses to process sales transactions and manage customer payments. Connected to R365 through a [POS integration](/doc/docs/pos-integration-overview).

Structured documents that provide insights and summaries of various operational metrics and financial data.

## Related

- [Phase 2: Item Management and Transactions](/phase-2-item-management-and-transactions.md)
- [Phase 1: Items In](/phase-1-items-in.md)
- [Phase 4: Recipes](/phase-4-recipes.md)
- [Phase 3: Money Out](/phase-3-money-out.md)
- [Phase 4: Accounting Cutover](/phase-4-accounting-cutover.md)
- [Accubar Count Imports](/accubar-count-imports.md)
- [What items are being counted on my Inventory Count Templates?](/what-items-are-being-counted-on-my-inventory-count-templates.md)
- [Classic: Using Multiple Count UofMs](/classic-using-multiple-count-uofms.md)
- [Inventory Counts: Using Multiple Count U of Ms](/inventory-counts-using-multiple-count-u-of-ms.md)