Reconcile count results and adjust inventory

After the results of a manual count are entered into Sage Intacct and the count is marked as complete, it's time to reconcile any count variances that might exist and adjust the inventory quantity and valuation, accordingly.

You can review the system-suggested adjustments for count variances, edit the adjustments, and post system-generated Inventory Control adjustment transactions to automatically update the inventory quantities and valuation on the Reconcile cycle count page.

To view a list of your cycle counts, go to Inventory Control > All > Cycle counts .

Reconciliation overview

After a cycle count is completed, the Reconcile cycle count page shows the difference between the on-hand quantity that was captured at the start of the count and the actual quantity that was counted, both undamaged and damaged, for each item.

Differences in system-recorded on-hand quantities and the counted quantities and the existence of damaged quantities are flagged as needing adjustment. You can accept the suggested adjustments or edit them. When you post the adjustments, Inventory Control adjustment transactions are automatically generated to update the inventory quantities and valuation.

The adjustment transactions that are generated have these system transaction definitions, which are created when cycle counts is enabled on the Configure Inventory Control page:

• SYS-CC Adjustment Decrease—ONHAND quantity and value decrease
• SYS-CC Adjustment Increase—ONHAND quantity and value increase
• SYS-CC Adjustment Damaged—DAMAGED quantity increase

Understanding damaged quantity adjustments

When there’s damaged quantity, quantity is moved from ONHAND to DAMAGED. The damaged quantity is a minus included in the suggested Quantity on hand (QOH) adjustment and a plus in the suggested damage quantity adjustment. Two transactions are generated to move the damaged quantity. The damaged quantity is either reflected in an SYS-CC Adjustment Decrease transaction or in an SYS-CC Adjustment Increase (where it's subtracted from the total to increase the ONHAND quantity and value).

Reconcile a count

The Reconcile details section provides a summary of the number of suggested adjustments. While you want to analyze the lines marked with adjustments in the Review and edit adjustments section, you also want to review the lines that are in balance.

1. Go to Inventory Control >All > Cycle counts .

   The Cycle counts list appears.

2. Find the cycle count you want to reconcile.
3. Select More actions > Reconcile at the end of the row.
   The Reconcile cycle count page appears.
4. Check for non-zero values in the Suggested QOH adj and Sug damage quantity adj fields.
   • Suggested QOH adj: A negative value indicates the quantity on hand needs to be decreased and a positive value indicates the quantity on handy needs to be increased.
   • Sug damage quantity adj: The value is always positive to indicate the damaged quantity needs to be increased. The value is included in as a negative number in the value for the suggested QOH adjustment.
5. Assess whether the quantity on hand that was captured in Sage Intacct when the count was started (Qty on hand) has been affected by any subsequent activity that might change the suggested adjustment quantities.
   You can open the details for the line item and check the following fields:

   • End Qty on hand
   • Interim QOH activity
6. Depending on your analysis, edit the values in QOH Adjustment and Damage qty adj, if necessary. These fields default to the values in Suggested QOH adj and Sug damage quantity adj.
7. In Review comments, enter the reason that you accepted or changed the suggested adjustment quantity. If you or others go back and view the reconciliation, this explains the change.
8. Enter or edit the values in Unit cost, as appropriate.
9. When you finish analyzing each line and are ready to adjust the inventory quantities and valuation, select Post adjustment.

   System-generated Inventory Control adjustment transactions are automatically created and posted. The adjustments that are created reference the count ID.

   While you cannot edit or change the adjustment transactions, you can view them to see the details. Check these transaction types:

   • SYS-CC Adjustment Decrease
   • SYS-CC Adjustment Increase
   • SYS-CC Adjustment Damaged

1. Go to Inventory Control >All > Cycle counts .

   The Cycle counts list appears.

2. Next to the cycle count you want to reconcile, select Reconcile.
   

   The Reconcile cycle count page appears.

3. Check for non-zero values in the Suggested QOH adj and Sug damage quantity adj fields.
   • Suggested QOH adj: A negative value indicates the quantity on hand needs to be decreased and a positive value indicates the quantity on handy needs to be increased.
   • Sug damage quantity adj: The value is always positive to indicate the damaged quantity needs to be increased. The value is included in as a negative number in the value for the suggested QOH adjustment.
4. Assess whether the quantity on hand that was captured in Sage Intacct when the count was started (Qty on hand) has been affected by any subsequent activity that might change the suggested adjustment quantities.
   You can open the details for the line item and check the following fields:

   • End Qty on hand
   • Interim QOH activity
5. Depending on your analysis, edit the values in QOH Adjustment and Damage qty adj, if necessary. These fields default to the values in Suggested QOH adj and Sug damage quantity adj.
6. In Review comments, enter the reason that you accepted or changed the suggested adjustment quantity. If you or others go back and view the reconciliation, this explains the change.
7. Enter or edit the values in Unit cost, as appropriate.
8. When you are finish analyzing each line and are ready to adjust the inventory quantities and valuation, select Post adjustment.

   System-generated Inventory Control adjustment transactions are automatically created and posted. The adjustments that are created reference the count ID.

   While you cannot edit or change the adjustment transactions, you can view them to see the details. Check these transaction types:

   • SYS-CC Adjustment Decrease
   • SYS-CC Adjustment Increase
   • SYS-CC Adjustment Damaged

Void a count

When you start to analyze a count, you might decide that the count results should not be used. You can mark the count as void to prevent it from being reconciled in the future and having any adjustments ever posted.

Select Void count to nullify a count.

Buttons

The following table describes the buttons that appear on the Reconcile cycle count page.

Buttons field descriptions

Field	Description
Post adjustment	Automatically generates the Inventory Control adjustment transactions that update the inventory valuation and move any damaged quantity from ONHAND to DAMAGED.
Void count	Nullifies the count and marks it as voided. Void a count when you decide the count results are not to be used.
Done	Returns you to the list of Cycle counts. Changes made in the Review and edit adjustment section are always auto-saved.

Field descriptions

The following table describes each field on the Reconcile cycle count page.

Summary section

Summary section field descriptions

Field	Description
Count ID	The record number for the cycle count. This field uses the numbering sequence defined in the Configure Inventory Control page.
Count description	Information about the cycle count that might be helpful in the future. The description is displayed in the Cycle counts list.
Count date	The date the count was marked as complete.
Warehouse	The warehouse in which items the items were manually counted.
Assigned to	The employee who was assigned to manually count the items.
Count status	A read-only field that displays the status of the count: Not Started: The count has yet to be marked as started. In Progress: The count has been marked as started, and the items in the count are in the process of being counted. Counted: The results of counting the items have been entered, and the count has been marked as complete. Reconciled: The count results have been analyzed to evaluate the differences between the actual quantities that were counted and the system-recorded quantities, and Inventory Control transactions adjustments have been made for any count variances, if accepted. The count has been reconciled and Inventory Control transactions adjustments have been made for any count variances, if accepted. Voided: The results of the count are not to be used, and the count has been marked as voided.

Reconcile details section

Reconcile details section field descriptions

Field	Description
Adjustments	The number of adjustments needed to update the inventory valuation for differences in quantity on hand.
Damage adjustments	The number of adjustments needed to move damaged quantity from ONHAND to DAMAGED.
Adjustment date	The date the automatically-generated Inventory Control adjustments transactions were posted.
Lines in count	The number of items that were in the count.
Lines skipped	The number of items in the count that were not counted.
Adjustment posting date	The GL posting date to use in the automatically-generated Inventory Control adjustment transactions.

Cycle count dimensions section

Cycle count dimensions section field descriptions

Field	Description
Dimension values	The dimensions set up for your organization.

Review and edit adjustment section

Review and edit adjustment section field descriptions

Field	Description
Item ID	The item ID for the item.
Item name	The name of the item.
Count status	A read-only field that displays the status of whether the item has been counted: Counted: Quantities were entered for the item. Skipped: The item was not counted and no quantities were entered.
Qty counted	The quantity that was counted and found to be undamaged.
Qty damaged	The quantity that was counted and found to be damaged.
QOH as of count start	The quantity that was on hand when the count was started.
Total counted	The total quantity that was counted, both undamaged and damaged.
Suggested QOH adj	The suggested quantity to adjust the ONHAND quantity by. A positive number indicates the ONHAND quantity needs to be increased. A negative number indicates the ONHAND quantity needs to be decreased. If there's damaged quantity (a value in Sug damage qty adj), that quantity is included in this value as a negative number.
Sug damage qty adj	The suggested quantity to move from being ONHAND to DAMAGED.
QOH adjustment	The actual quantity to adjust the ONHAND quantity by.
Damage qty adj	The actual quantity to move from being ONHAND to DAMAGED.
Unit cost	The estimated unit cost of the item based on current information. For QOH decreases, the value cannot be edited. For QOH increases, the value can be edited for average, FIFO, and LIFO cost items. If the adjustment changes the unit cost, this value is not updated. You can view the generated inventory transaction adjustment to see the actual value.
QOH adj value	The total value for the ONHAND adjustment. It's the QOH adjustment multiplied by the Unit cost.
Review comments	Explanation of why you accepted or changed the suggested adjustment quantities. It gives a reason for the action that you took for tracking purposes.
Units	The unit of measure for the item.
Cycle	The inventory cycle for the item.
Product line	The product line for the item.
Bin	The bin that contains the item. This read-only field appears if bin tracking is enabled on the Configure Inventory Control page.
Row	The row in which the bin is located. This read-only field appears only if bin tracking is enabled on the Configure Inventory Control page.
Aisle	The aisle in which the bin is located. This read-only field appears only if bin tracking is enabled on the Configure Inventory Control page.
Zone	The zone in which the bin is located. This read-only field appears only if bin tracking is enabled on the Configure Inventory Control page.
Serial no.	The serial number for the item. This read-only field appears only if serial number tracking is enabled on the Configure Inventory Control page.
Lot no.	The lot number for the item. This read-only field appears only if lot number tracking is enabled on the Configure Inventory Control page.
Adjustment reason	The description of why the quantity on hand might need to be adjusted when the counted quantity was entered.
Counted by	The employee who manually counted the item.
End qty on hand	The quantity on hand when the count was marked as complete.
Interim QOH activity	The quantity-on-hand activity between the start and the end of the count.