1. Make sure all items that affect QOH are fully processed.  This includes:

1. Hold Orders – Inventory has already been downcounted, either finalize or delete your hold orders.  If you do not want to do either, then pull the stock so it is not included in the count.
2. Unposted Receiving or Receiving not entered.  Enter/post receiving, or set the product aside so they are not included in your count.  This includes “Transfer” purchase orders, which are used between multiple locations.
3. Unposted In Store Use or Component Use entries.
4. Remember that Consignment Inventory is technically your inventory, though it is not in your store.  Do not include consignments with your physical counts.  You will need to run consignment reports to validate what is out on consignment.  Consignments do not affect General Ledger, since the inventory is yours.
5. Process all Voids for the day’s business, so QOH does not reflect these as downcounted.
6. Any POS Transfers between stores that have not shipped should also be considered.  A finalized transfer has downcounted one store and upcounted the other.

2. Print an Inventory Value Report (Inventory Reports Menu) prior to counting the inventory.  This will give you a 'before' picture of your inventory value.  You may want to use the 'Z' option when prompted for Show QOH.  This would suppress printing part numbers with 0 QOH, reducing the length of the report.  We recommend NOT printing totals only.

3. Print Physical Inventory Count Sheets (Inventory Reports Menu) for Mfr or Mfrs being counted.  If you want to have the expected count print on the sheets along with a line for writing in the counts, choose the Detail option.  Summary will not print an expected count.

4. Prior to actual entry of QOH through QOH Entry Program (Inventory Utility Menu, Quantity On Hand), you may want to run Zero QOH program (same menu).  This will eliminate the possibility of parts with incorrect QOH being skipped over during the entry process.  This can be done by Mfr if you are only counting one line.  If you choose not to do this, make sure that you correct any parts that show incorrect QOH during the next step.

5. Enter the QOH through the QOH Entry Program.  Hint: Pressing <Enter> will automatically bring up the next part, you do not have to enter a '+'.

6. If desired, run a QOH Audit Report to show changes made to inventory during the entry process in the above step.  This would help to find gross keying mistakes.  If you did not clear the QOH in step 4, it will also show the previous value of each part’s QOH.

7. Run a second Inventory Value Report to get an 'after' picture of your inventory value.

8. If you are using the General Ledger, you may need to make a journal entry to adjust your inventory value in the General ledger based on the difference in the 2 Inventory Value Reports.  Remember again, Consignments will not be part of the QOH counts, and will not be reflected in the Inventory Value reports.  Consignment inventory is, however, reflected in your GL Inventory value.