Documentation

Stock Counts & Cycle Counting Guide

Verify physical inventory against system records and reconcile variances.

Watch: Stock Counts & Cycle Counting Guide (8 min)

What is Stock Counting?

Stock counting (also called cycle counting or physical inventory) is the process of physically counting items in your warehouse and comparing them to the system's recorded quantities. This ensures inventory accuracy and helps identify discrepancies caused by theft, damage, miscounting, or system errors.

Stock count list showing various statuses
View all stock counts with their current status
Best Practice

Regular cycle counts (counting a portion of inventory frequently) are more effective than annual full counts. They minimize disruption and catch errors earlier.

Count Types

Type Description When to Use
Full Count Count all items in a warehouse or location Year-end inventory, after major discrepancies
Partial Count Count specific categories, products, or locations Regular cycle counts, spot checks, high-value items

Count Visibility Modes

The system can show or hide expected quantities during counting:

Comparison of blind and guided counting modes
Choose between blind or guided counting modes
Mode Description Pros/Cons
Blind Count System quantities are hidden from counter More accurate (no bias), but slower
Guided Count System quantities are shown to counter Faster counting, but may introduce confirmation bias
Configurable Choose visibility per count Flexibility for different scenarios

Stock Count Workflow

Every stock count follows this workflow:

Stock count workflow showing status progression
Stock counts progress through these stages
  1. Create Count
    Status: Draft
    Create a new stock count, select the warehouse, count type, and optionally filter by category or bin location.
  2. Start Count
    Status: In Progress
    The system captures current system quantities for all items. Counting can now begin.
  3. Record Counts
    Status: In Progress
    Enter the physical count for each item. The system calculates variance automatically.
  4. Submit for Approval
    Status: Submitted
    Once all items are counted, submit for manager review.
  5. Approve or Reject
    Status: Approved or Rejected
    Manager reviews variances and approves or rejects the count. Rejected counts return to Draft for recounting.
  6. Post Adjustments
    Status: Posted
    Approved counts are posted, creating stock adjustment movements to reconcile system quantities.
Auto-Approval

Counts with total variance below the configured threshold (e.g., 2%) may be auto-approved without manager review.

Creating a Stock Count

Animated demo of creating a stock count
Creating a new stock count step by step
  1. Navigate to Stock Counts
    Go to Inventory > Stock Counts from the navigation menu.
  2. Click "Create Count"
    Open the new stock count form.
  3. Select Warehouse
    Choose the warehouse where counting will take place.
  4. Choose Count Type
    • Full Count: All items in the warehouse
    • Partial Count: Specific items only
  5. Set Filters (Partial Count Only)
    For partial counts, filter by:
    • Product category
    • Bin location
    • Specific products
  6. Set Visibility Mode
    Choose whether counters can see system quantities.
  7. Schedule (Optional)
    Set a scheduled date for the count.
  8. Save
    The count is created in Draft status.

Recording Counts

Animated demo of recording physical counts
Recording physical counts for each item
  1. Start the Count
    From the count details page, click Start Count. This captures system quantities.
  2. Open Record Count View
    Click Record Counts to enter physical counts.
  3. Enter Physical Quantities
    For each item:
    • Enter the counted quantity
    • Variance is calculated automatically
    • Add notes for significant variances
  4. Save Progress
    You can save and return later. Partially counted items are preserved.
  5. Submit When Complete
    Once all items are counted, click Submit for Approval.
Important

Do not receive or ship goods during an active count. This can cause discrepancies between the captured system quantities and actual stock.

Understanding Variance

Variance is the difference between counted quantity and system quantity:

Variance calculation display
Variance shows differences between expected and counted quantities
Variance Meaning Common Causes
Positive (+) More items found than expected Receipts not recorded, returns not processed, previous count error
Negative (-) Fewer items found than expected Theft, damage, issues not recorded, shipping errors
Zero (0) Count matches system Accurate records

Variance Percentage

Variance percentage = (Counted - System) / System × 100

Example: System shows 100, counted 95 → Variance = -5 (-5%)

Stock Count Status Reference

All stock count statuses
Stock count status badges and their meanings
Status Badge Description Actions Available
Draft Draft Count created, not started Edit, Start, Cancel
In Progress In Progress Counting in progress Record Counts, Submit, Cancel
Submitted Submitted Awaiting approval Approve, Reject
Approved Approved Approved, ready to post Post
Rejected Rejected Returned for recount Edit, Resubmit
Posted Posted Adjustments applied View only
Cancelled Cancelled Count cancelled View only

Troubleshooting

Large Unexplained Variances

  • Verify all pending receipts have been processed
  • Check for unrecorded transfers between locations
  • Review recent adjustments and write-offs
  • Look for items in wrong bins or locations
  • Consider a recount for high-value items

Cannot Start Count

  • Ensure no other active count for the same warehouse
  • Verify you have permission to start counts
  • Check that the warehouse is not locked

Next Steps

Stock Movements

Understand how count adjustments appear in movement history.

Settings

Configure auto-approval thresholds and count defaults.