Physical Inventory Process

Overview of Physical Inventory

• Fully automated physical inventory 
• Reconcile system–maintained item on–hand balances 
• Actual counts of inventory. 
• Manage supply and demand 
• Maintain high service levels and planning production.

Maintaining Physical Inventory
Steps Involved:

• Define a physical inventory for your whole warehouse or  subdivisions within your warehouse.
• Take a snapshot of system on–hand quantities.
• Generate alphanumeric tags.
• Void unused or lost tags.
• Approve or reject physical inventory adjustments based on approval tolerances.
• Automatically post adjustments to inventory balances and general ledger accounts.
• Purge physical inventory information.

Defining a Physical Inventory

• You can define and maintain an unlimited number of physical inventories which are identified by a unique name you assign 

Taking Snap shot of Inventory Quantities

• Before you can generate tags for a physical inventory, you must take a snapshot of all system on–hand quantities for your items.
• The snapshot saves all current item on–hand quantities and costs.

Generating Physical Inventory Tags

• You can generate default or blank tags for your physical inventory
• Tag numbers may be alphanumeric
• you can increment only the numeric portion.

Physical Inventory Counts

• Use the tags that you generated to record your physical counts.

Void Tags

• Track the status of each physical inventory tag for auditing. 
• Void unused tags in the Physical Inventory Tag Counts window.

Entering and Voiding Physical Inventory Tag Counts

• After recording your physical counts you must enter the quantity for each tag. You can query tags for easy data entry.

Approving Physical Inventory Adjustments

• You can view, reject, or approve physical inventory adjustments pending approval.

Purging Physical Inventory Information

• Oracle Inventory deletes all information associated with the physical definition. 
• However, the purge does not affect any adjustments or adjustment transactions made using the physical definition.Those adjustments are not changed. 
• You can also purge just tags if you made a mistake and want to start over.