Background: Physical Inventory Update

Use the Physical Inventory Update (HCU) program to update on-hand inventory balances based on deviations recorded in Inventory Deviation Listing (HDL) and update the general ledger if you have inventory interfaced to the GL. See Overview: Interfacing Inventory to GL and Road Map for more information.    

This topic has these subtopics:

When to Update
Preview and Final Update
Other Updates

When to Update

You can update when the cycle is complete. This means that you entered counts for all items in the cycle, using either the Physical Count Entry (HCE) or Alternate Physical Count Entry (HAE) program. Then you printed the Inventory Deviation Listing (HDL). If you change a count quantity after you print the listing, you must reprint it.  

When you run the Physical Inventory Update, the program either increases or decreases the system on-hand by the deviation quantity. The Inventory Deviation Listing shows the difference between the system on hand at time of count entry and the count entered.

If you cannot complete your count entry in a timely manner and need to continue doing business, you need to keep a record of sales order, transfer, and picking confirmations that occur after you entered the item's count. After you run Physical Inventory Update, you may need to run the Material Issues and Adjustments (IMI) program make manual adjustments to inventory for post-count transactions.

Preview and Final Update

When you print the Physical Inventory Update, these documents print in this order:

Seq

Document

Comments

1

Preview update

Review to be sure that it is correct.

2

Preview journal

If these options are selected:

  • Print journal after register? option in the System Options Maintenance (XM) program (GL Journal Options)

  • Print GL jrnl in preview mode? run time option in this program

3

Final update

If this option is selected:

  • Allow final reg upd? for this user in the User Maintenance (UIM) program

4

Final journal

If these options are selected:

  • Allow final reg upd? for this user in the User Maintenance (UIM) program

  • Print journal after register? option in the System Options Maintenance (XM) program (GL Journal Options)

The update includes this information:

  • Cycle number followed by Annual if this is an annual physical inventory count

  • Branch

  • Requested by

  • Line or tag number

  • Item number

  • ABC class

  • Standard unit cost

  • Quantity on hand

  • Physical inventory quantity: Count entered

  • Deviation quantity: Qty on hand - Physical inventory quantity

  • Deviation cost: Standard unit cost x Deviation quantity

  • The program prints *** VOIDED *** if you clicked Void in the Physical Count Entry (HCE) program. *** VOIDED *** does not print if you clicked Void to void a tag in the Alternate Physical Count Entry (HAE) program.

  • Stocking unit of measure

  • Item description

  • Warehouse

  • Bin location

  • Control number

These totals print:

  • Net change: Beginning cost - Ending cost

  • Number of items qty increased: Count entered is greater than the system on-hand

  • Number of items qty decreased: Count entered is less than the system on-hand

  • Number of items at zero cost: Items have no cost

  • Beginning cost of the items counted: Standard unit cost x Qty on hand

  • Upward revision value: Standard unit cost x Deviation quantity for items whose quantity increased

  • Downward revision value: Standard unit cost x Deviation quantity for items whose quantity decreased

  • Ending cost: Beginning cost + Upward revision value - Downward revision value

Other Updates

The program also updates the new balance displayed by the Material History Inquiry (MHI) program. If the new count does not match the existing on-hand balance, the item is added to the MRP "Action" file for processing in the next planning run.