Physical Inventory

 Oracle Inventory provides a fully automated physical inventory feature. Physical inventory is a periodic reconciliation of system on-hand balances with physical counts in inventory. 

Physical inventory can be performed, whenever there is a need to verify the accuracy of system on-hand quantities. This can be done for entire organization or for particular sub inventories within an organization. Accurate system on-hand quantities are essential for managing supply & demand, maintaining high service levels, effective planning, minimizing inventory investment and for audit purpose. 

Physical inventory and cycle counting can both be a part of annual program to manage and improve inventory record accuracy. 

1.Define Physical Inventory

2.Take a Snapshot of system On–hand quantities

3.Generate Physical Inventory Tags 

4.Enter Counts 

5.Approve or Reject Physical Inventory Adjustments

6.Post Adjustments 

Transaction Process Flow

Unlimited number of physical inventories can be defined and maintained to count selected portions of inventory or total inventory. A physical inventory is identified by a unique name. 

To define physical inventory navigation is Inventory -> Counting -> Physical Inventory -> Define Physical Inventory Enter a unique physical inventory name in the name fieldSelect approval requirements for the adjustment. Options available are 

 Always: Requires approval for all physical inventory adjustments. Adjustments program cannot be run  until all the adjustments are approved.

If out of tolerance: Quantity and / or Value adjustment tolerances can be entered. Adjustments exceeding tolerances must be approved before running the adjustment program. 

Never: Allow any adjustment to post without approval. 

Adjustment value = (Actual count - System count) x Item costSelect the scope of physical inventory 

 Determines whether the physical inventory is for all subinventories of the organization or for one or more specific subinventories. Enter only quantity-tracked subinventories

Indicate whether to allow dynamic entry of tags 

Determines whether manually created tags can be entered. If the option is not to allow dynamic tag      entry all tags must generated before the use.  

Then Click on Snapshot. This will run the “Freeze physical inventory concurrent” Automatically .We never do any Transaction after stocks get FreezedGENERATE PHYSICAL INVENTORY TAGS 

Physical inventory tags are used to record the count of inventory items. Tags are referred by its alphanumeric identification code. Oracle Inventory can automatically generate tag numbers that can be used to enter inventory counts. Tags can be generated only after snapshot is completed.

 Click on Tags

 It will take to the following form

 Give Starting Tag Number .Then click on Generate 

System will Run “Generate physical inventory tags” concurrent Automatically

ENTER COUNTS 

After Generated the Physical Inventory Enter the Physical Count Manually

Navigation for enter Counts: Inventory -> counts -> Physical Inventory -> Tag Counts

Query the Physical Inventory and Click FindClick on YesEnter the quantities and save the record.Approve or Reject Physical Inventory Adjustments

Navigation : Inventory: Counting: Physical Counting: Approve Adjustment 

Click on Approve All or Reject All .Then Save itClick on "Approve " or "Reject"Post Adjustments

For post adjustment Re Query the Physical Inventory

Goto : Tools  : Lunch Adjustments Select the Adjustment Account  .Click on Launch AdjustmentsSystem will Run “Perform physical inventory Adjustments” Concurrent Automatically