Learn how to perform and update an annual inventory.

1. Confirm that the following transactions are updated if the stock has been removed from the warehouse shelf and therefore will not be counted:

   • Inventory Control Job Requisitions Transaction Update

   • Work Order Create AR Invoices and AR Data Entry Invoice/Credit memo Sales Journal update

   • Order Processing Invoices

2. To provide current quantity information for all items, print a summary Items-on-Hand Valuation Report

   Physical Inventory Counts

3. On the Site Map screen, click Inventory Control > Data Entry > Physical Inventory.
   The Physical Inventory screen displays.
4. Click the Set Status button.
   The Physical Inventory Status Update screen displays.
5. In the Warehouse field, enter the code associated with the warehouse in which you will conduct the annual inventory, use the drop-down menu to select from a list of available warehouse codes, or press Enter to accept the software default of ALL.
6. Select the Continue option and then click OK. This freezes the inventory in the selected warehouse so people can't add or remove items during the annual inventory process.
7. On the Physical Inventory screen, click the Count Sheet button.
   The Physical Count Sheet Printing screen displays.
8. In the Warehouse field, enter the code associated with the warehouse in which you will conduct the annual inventory, use the drop-down menu to select from a list of available warehouse codes, or press Enter to accept the software default of ALL.
9. In the Item location and ABC class fields, press Enter to accept the software default of ALL.
10. Click Print. Use the Physical Inventory Item Count Sheet during the inventory's counting process.
11. Once the inventory count is complete, click Inventory Control > Data Entry > Physical Inventory.
    The Physical Inventory screen displays.
12. Click the Count Entry button.
    The Physical Count Data Entry screen displays.
13. In the Warehouse field, enter the code associated with the warehouse in which you conducted the annual inventory, use the drop-down menu to select from a list of available warehouse codes, or press Enter to accept the software default that defaults from the warehouse selected on the Physical Inventory Status Update screen in step 3.
14. In the Item code field, enter the code associated with the first inventory item on the Physical Inventory Item Count Sheet or use the drop-down menu to select from a list of available inventory item codes.
15. In the Count field, enter how many of the selected inventory item were counted during the physical inventory.
    Note: If you enter a duplicate item number, the Physical Count Adjustment window displays. Use this window to record additional amounts of the item.
16. Press Enter.
    The cursor returns to the Item code field.
17. Repeat steps 12-14 for all remaining inventory items that were included in the count.
18. Click OK until you return to the Physical Inventory screen.

    Physical Inventory Reports

19. Click the Reports button. The Physical Inventory Reports screen displays.
20. Confirm that all three report checkboxes are selected and then click Preview or Print.

    • The Count Transaction Listing shows the numbers counted during the physical inventory. Use the Selections window associated with the Count transaction listing checkbox to determine the order in which the items will display on the listing.

    • The Physical Inventory Exception Report shows items that received a zero count during the physical inventory.

    • The Physical Inventory Variance Report shows only items that have a discrepancy between the total that was recorded during the physical inventory and the total amount in Spectrum's records.

21. If there are no problems on the reports, click the Update button on the Physical Inventory screen. If there are problems on the reports, return to the warehouse and recount the item, input any differences in Count Entry, and then re-run the reports until the reports are correct.
22. On the Physical Inventory File Update screen, select Continue and then click OK.
23. On the Inventory Transaction Report screen, clear all checkboxes except for the Adjustments checkbox and then click Preview or Print.
24. On the Inventory Transaction Update screen, select Continue and then click OK.
25. On the Inventory G/L Summary Print screen, click Print or Preview to update the quantities to the General Ledger.
26. On the Inventory G/L Summary Update screen, select Continue and then click OK.
27. Return to the Physical Inventory screen and then click the Clear Status button.
28. On the Physical Inventory Clear screen, select Continue and then click OK.
    This allows inventory to flow in and out of the warehouse that was frozen in steps 3-4.