Step 1
Plan the scope and movement cut-off
Decide which products and locations will be counted, and assign clear counting areas. Set a cut-off for receipts, sales and transfers. If movements cannot stop, record them separately so the count can be reconciled to the same point in time.
- Prepare a count list with SKU, location and unit.
- Separate damaged, returned and reserved stock where relevant.
- Document the cut-off time and who counts each area.
Step 2
Count using a consistent unit
Count unopened cartons and loose pieces carefully, using the product’s agreed stock unit. Avoid relying on the expected system quantity while counting. Record inaccessible items or uncertain counts for a second pass.
- Count each storage area once and mark it complete.
- Convert packs to stock units using verified pack sizes.
- Recount large or unexpected differences independently.
Step 3
Investigate and approve adjustments
Compare counts with the quantities at the cut-off. Look for missed deliveries, unrecorded sales, location mistakes and unit conversions. Post approved corrections using the available adjustment workflow and retain a reason for each one.
- Calculate counted quantity minus recorded quantity.
- Check recent transactions before changing the record.
- Save the count, investigation and adjustment reference.
Worked example
Example: a carton conversion error
The record shows 60 pieces, while the count finds 4 cartons of 12 and 8 loose pieces: 56 pieces. The difference is −4. Check receipts, dispatches and pack sizes before recording an adjustment.
Illustrative example; use your own transaction data.
Frequently asked questions
What is the difference between a stocktake and cycle counting?
A stocktake can cover the full inventory at one time. Cycle counting checks selected products or areas on a rotating schedule, allowing more frequent review of priority items.
Should I adjust every difference immediately?
Recount and investigate significant differences first. A missed transaction may need correction in its source record instead of an unexplained stock adjustment.