Stock Adjustment via Cycle Count SOP

Purpose

This standard operating procedure defines how to correct on-hand stock in ERPat. The only approved way to change a quantity that is wrong is through a Cycle Count, because it records the system figure, the counted figure, and the variance, then posts the correction as a traceable movement. Never delete a completed receipt or transfer to fix a quantity.

Intended roles

• Warehouse operators and counters capture the physical counts.
• Inventory supervisors and warehouse managers plan the count, review variances, and give the final approval that posts adjustments to inventory.

Every person involved needs the Warehouse permission.

Standard procedure

1. Plan the count. Open Warehousing, then Cycle Counts, and select Add. Choose the warehouse, the count date, and the count type (ABC, Full, Random, or Location). Assign a counter and add notes. Save. A count number is generated and the status is Planned.
2. Generate the count sheet. Open the planned count and select Generate Count Items. The current on-hand quantity for each location is captured as the system quantity, and the count moves to In Progress. Generate the sheet only once, on a planned count, to avoid duplicate lines.
3. Count the stock. The counter physically counts each line and enters the quantity counted. The variance against the system quantity, and its value, are calculated automatically. Each counted line is marked Counted.
4. Review variances (approval checkpoint). A supervisor reviews the counted lines and the variance summary. Investigate any large or unexpected differences before proceeding. Recount questionable lines while the count is still in progress, because a line cannot be recounted once it has been adjusted.
5. Approve the adjustments. When the supervisor is satisfied, select Approve Adjustments. Every counted line with a non-zero variance is posted to inventory, an Adjustment movement is recorded for each, and the count status becomes Approved. Approval can only run once.

Controls and data-quality reminders

• Counting and approval should be done by different people so the correction is independently reviewed.
• The approval step is final and posts to on-hand stock. Confirm the counted figures before approving, as an approved count cannot post its adjustments again.
• Lines with zero variance need no adjustment and leave stock unchanged.
• Every posted correction creates an Adjustment entry in Stock Movements, giving a permanent record of who changed what and by how much.
• Freeze or avoid other stock activity in the counted locations while a count is in progress so the system figure does not drift.

Escalation

If a variance is large, repeats across counts, or cannot be explained, hold the approval and escalate to the warehouse manager. Use the Stock Movements audit trail to trace recent receipts, transfers, and adjustments for the affected items before deciding how to proceed. Only approve once the cause is understood and documented in the count notes.