About overview of stocktaking options

By using Visma.net ERP, you can create as many stocktaking types or types of stocktaking counts as you need using the Stocktaking types (IN208900) window.
A stocktaking type may describe a stocktaking that is performed periodically, such as a full stocktaking or a stocktaking performed at a specific warehouse for particular stock items.
The definition of each stocktaking type includes the following:

• What method is used to generate the list of stock items for counting
• Whether the stocktaking should be always performed at a particular warehouse or can be performed at any warehouse

The particular list of items is generated when you prepare the stocktaking sheets for the stocktaking of the selected type using the Prepare stocktaking (IN504000) window.

Using Visma.net ERP, your company can create a stocktaking system by using a combination of full stocktaking and cycle counting that best fits its policies and goals. You can perform stocktaking counts based on different generation methods.

In this article you will find a description of the following alternatives for doing this.

• Counting the full stocktaking
• Counting by item class
• Counting by cycle and by cycle stocktaking frequency
• Counting by movement class and by associated stocktaking frequency

• Counting by ABC code and by code stocktaking frequency

• Counting specific stock items

If you select the Full stocktaking generation method in theStocktaking types (IN208900) window, the resulting stocktaking document includes all stock items available in the specified warehouse, in all locations or only selected ones and lot or serial numbers.

Counting all the items in the warehouse is a time-consuming procedure generally performed during a planned closing.
All movements of inventory involved in counting should be stopped during counting, and no transactions are released during counting.

Depending on how you have defined item classes, you may decide to perform counts by item class.
For example: One item class may include your company's most valuable items, which you stock more frequently.

If you select the By item class method in the Stocktaking types (IN208900) window, you can choose the class on the Item class selection tab, which appears once you select this method. You can create a type for each item class.

You can create stocktaking cycles using theStocktaking cycles (IN208700) window.
Stocktaking cycles are used to group different stock items for counting by your chosen criteria. For each cycle, you specify the frequency of counts (by the counts-per-year value) performed for items of the cycle. Once all items are assigned to cycles, you can organise stocktaking counting by cycles.

Variations

The By cycle generation method has two variations, depending on whether you specify a cycle or select the By frequency check box on the Stocktaking cycle selection tab, which appears when you choose this generation method.

The following table describes this:

IF	THEN
you specify a cycle in the Cycle ID field and clear the By frequency check box,	only the items assigned to a particular cycle will be included in the stocktaking.
you select the By frequency check box and do not specify a cycle,	the items of all cycles for which counting is due based on the frequency associated with their cycles will be included.

Steps to include all items

To ensure that no items will be skipped during the stocktaking counts, follow these steps:

• Perform an initial full stocktaking.
• Conduct counts in one of these ways:
  • As often as specified for each cycle in your system (by the counts-per-year value).
    
  • At a frequency defined by the largest number of counts per year among all cycles.

By the largest number of counts - an inclusive count frequency

When you create the stocktaking type, select the By frequency option, and when you are preparing the stocktaking document, only items that are due for counting by their cycle frequencies will be included. In this case, a stocktaking document can include items of more than one cycle, if the counts-per-year values for different cycles are factors of the largest count-per-year value.

Multiple studies show that the more often a product is received or shipped, the less accurate its availability data becomes.
Thus, it may be reasonable to conduct more counts for items with higher turnover rates.
In Visma.net ERP, you define movement classes using the Movement classes (IN208600) window and assign items to classes either on a permanent basis or by using their turnover rates during the specified turnover period. This is done in the Stock items window under the General information tab.

Variations

The By movement class generation method has two variations, depending on whether you specify a movement class or select the By frequency check box on the Movement class selection tab (which appears when you choose this generation method).

The following table describes this:

IF	THEN
you specify a movement class in the Movement class ID box and clear the By frequency check box,	only the items assigned to a particular movement class will be included.
you select the By frequency check box rather than specifying a movement class,	all the items of all classes, for which counting is due based on the frequency associated with the movement class, will be included.

Once items are assigned to movement classes, you can organise counting by movement classes in the following way:

• Perform an initial full stocktaking count.
• Conduct counts in one of these ways:
  • By creating a type for each movement class and performing counts of each type at the frequency defined for the movement class.
  • By creating a type with the By frequency check box selected for the By movement class generation method.

By frequency based on the maximum counts per year

Make sure that the counts-per-year values are factors of the largest counts-per-year value. A stocktaking document in this case can include items of several movement classes, for which counts-per-year values are factors of the largest counts-per-year value.
Conduct counts at a frequency defined by the largest value of counts per year required for movement classes.

Example

Lets say you have defined three movement classes and that they have been set with the following counts per year value:

Movement class 1 - 4 counts per year

Movement class 2 - 2 counts per year

Movement class 3 - 1 count per year

During stocktaking, all movement class items are initially included. In the subsequent session, only items from movement classes 1 and 2 are included, since items in class 3 been accounted for to meet the required count (one count). This logical progression applies to all subsequent stocktakings.

If your company uses ABC codes to identify items critical to your business, select the By ABC code generation method to have counts performed based on the frequencies required for items with different codes assigned. ABC codes, created using theABC codes (IN208500) window, group items by their stock value in a specific warehouse in a specific period, based on period-to-date balances of appropriate inventory accounts. ABC codes divide items into groups that require different management and controls; for example, A code items, because of their high impact on the business, should be counted more often than items with other codes assigned.

Variations

The generation method for counting based on ABC codes has two variations, based on your specifications on the ABC code selection tab, which appears when you choose this generation method.

The following table describes this:

IF	THEN
you specify a code in the ABC code field and leave the By frequency check box clear,	only the items assigned to a particular ABC code will be included in the stocktaking.
you select the By frequency check box and don't specify an ABC code,	items with any code for which counting is due, based on the frequency associated with the ABC code, will be included in the stocktaking.

Once ABC codes are assigned to items, you can organise counting by ABC codes in the following way:

• Perform an initial full stocktaking.
• Conduct counts in one of these ways:
  • Create a type for each ABC code defined in the system (which has a specific frequency specified in the ABC codes (IN208500) window).
    Conduct counts for items assigned to every code with the appropriate frequencies.

By frequency based on the maximum counts per year

Make sure that the counts-per-year values for different codes are factors of the largest counts-per-year value.
Then, when you are preparing the stocktaking document, only items that are due for counting by their code frequency will be included.
A stocktaking document in this case can include items with different codes assigned, for which counts-per-year values are factors of the largest stocktaking-per-year value.

Example

Lets say you have defined the following counts per year values for the ABC codes:

A - 4 counts per year

B - 2 counts per year

C - 1 count per year

During stocktaking, all code items are initially included. In the subsequent session, only A and B code items are included since code C items been accounted for to meet the required count (one count). This logical progression applies to all subsequent stocktakings.

Optimal stock counting for most companies

Counting by ABC codes usually works best for maintaining accurate stocktaking counts because in most businesses, a small number of items generally accounts for the largest value of stock, and this method lets you count the high-value items most frequently.

By using the By item generation method, you can create stocktaking types that generate stocktaking lists for:

• items with a negative book quantity,

• randomly selected items,

• items selected by the date of previous counts, or

• particular items that you specify.

Select the appropriate Selection method on the Stock item selection tab, which appears when you choose this generation method.

The following table explains the specific types of counts:

Type of count	Items with negative book qty	Random items (up to)	Last count on or before	List of items
Context	Visma.net ERP can allow a negative inventory balance for items of specific item classes. The stocktaking may show positive values.	By using this option, you can also check the accuracy of the full stocktaking. The system generates the list of items for random counting.	You can create a stocktaking type, for a particular warehouse or any warehouse, that would generate the joint list of items that were counted a specified number of days ago or earlier.	In some cases, you may want to perform stocktaking for only particular items.
Items included	Items that have negative quantity at one or more locations.	Items selected at random up to the specified number of items.	Items counted the specified number of days ago are included in this list, regardless of what type of stocktaking the item was involved in earlier.	The specific items you list in the Items table.
Useful for	Checking the actual availability of items shown on the books with negative quantities.	Evaluating the accuracy of item availability data. You can also check the accuracy of the full stocktaking.	Setting up a schedule based stocktaking, or performing stocktaking that doesn't include items that have recently been counted.	For example, you may want to stocktake the most valuable items stored at a specific location every other day.
Procedure	Create a stocktaking type and specify that items should be selected for counting only if they have negative quantity at one or more locations.	Select the Random items (up to) selection method and then specify the number of items for counting.	Choose the Last stocktaking on or before selection method, and in the field that appears to the right of the option, specify the number of days.	To stocktake only particular items that you specify, select the List of items selection method and add items to the list.