Physical Inventory Counting Cont...

Entering Physical Inventory Tag Counts:
 
Use the tags that you generated to record your physical counts. If we use default tags for your physical inventory, you can automatically query all tags and fill in the counts. You can also query a subset of your tags by any combination of tag number, item, revision, subinventory, locator, lot, and serial number. We would use this partial tag query feature if you prefer to enter your counts by location or item, or for a particular tag number range.

If we use any blank tags in your physical inventory, you can query up the tags by tag number. You can then enter the necessary item, revision, sub-inventory, locator, lot, and serial number information, as well as the actual count quantity and the name of the employee who performed the count.

If we enable dynamic tag entry for your physical inventory, you can enter counts for any item and stock–keeping unit combination without a pre–generated tag number. 
Navigation: Physical Inventory ->Tag Counts
 
Adjustments and Approvals:

Oracle Inventory uses the counts you enter for your tags to determine if your items need quantity adjustments; and if so, whether you need to approve them.

1. If you set your approval option for your physical inventory to not require for adjustments, you are ready to process your adjustments.

2. If you set your approval option to require for adjustments out of tolerance, Oracle Inventory holds for approval all tags with counts that are outside the limits of the quantity variance or adjustment value tolerances.

3. If you set your approval option to require for all adjustments, Oracle Inventory holds all counts for approval. 
Void Tags:
 
It is important for auditing purposes to track the status of each physical inventory tag. Therefore, if you do not use one or more of the tags Oracle Inventory generates, you should void them in the Physical Inventory Tag Counts window. A voided tag is not reported as a missing tag in the Physical Inventory Missing Tag Listing.

If we generated a certain number of blank tags at the beginning of your physical inventory, and ended up not using all of them, you would void the unused tags. When you run the Physical Inventory Missing Tag Listing for the whole range of tags you initially generated, the unused ones are accounted for and appear as missing tags. If you void a default tag, (i.e. a tag that identifies a stock–keeping unit for which there is system on–hand quantity), Oracle Inventory adjusts the quantity in that location to zero. This indicates that you did not use the tag in question, presumably because the stock–keeping unit corresponding to the tag did not exist.

Entering and Voiding Physical Inventory Tag Counts

Navigate to the Physical Inventory Tag Counts window.

1. Enter the physical inventory.

2. Enter the employee that performed the physical inventory in the Default Counter field. Oracle Inventory uses this value as the default for the Counted By field of each tag.

3. Enter or query the tag numbers for which to enter counts using one of the following options:

Choose the Find button. Choose Yes or No to query all tags. If you choose No, you can either enter tag numbers individually or use the Find feature on the Query menu to query a subset of tags.

Enter tag numbers individually. You can enter existing tags individually. When you enter a tag number the item information for that tag appears.

Use the Find feature on the Query menu. You can query a subset of tags matching the search criteria you enter in the find window.

You can search by any combination of tag number, item, revision, sub-inventory, locator, lot, serial number, or tag status. With tag status you can find voided or missing tags.

4. Enter counts for default tags: Since you generated default tags the item, revision, sub-inventory, locator, lot, and serial number information for each item is displayed. You enter the count Quantity, unit of measure (UOM), and Counted By information.

5. Enter counts for blank or dynamic tags

Enter the item associated with the tag.

Enter the revision of the item. You can enter a value here if the item is under revision quantity control.

Enter the subinventory in which you counted the item.

Enter the locator associated with the subinventory. You can enter a value here if the item is under locator control.

Enter the count quantity (number counted) for the tag.

Enter the count unit of measure (UOM).

Enter the name of the employee who counted the item (Counted By).

Enter the lot number associated with the item. This entry is required if the item is under lot number control.

Enter the serial number associated with the item. This entry is required if the item is under serial number control.

6. Voiding Physical Inventory Tags: We can void tags that you deliberately discarded during the physical inventory. Voiding tags allows you to account for all tags; thus, any tag numbers that appear on the missing tag report are actually missing.

Approving Physical Inventory Adjustments:

Approval Tolerances:

Oracle Inventory supports two types of physical inventory approval tolerances. For each type, you can specify a positive and a negative limit. When a particular physical inventory tag count entry results in an adjustment that exceeds any one of these limits, you have a physical inventory adjustment that exceeds approval tolerances. Based on the approval option you chose when you defined your physical inventory, this adjustment is or is not held for approval.

If you decide that approval is required for adjustments out of tolerance you must enter at least one positive or negative value for one type of approval tolerance. The quantity variance tolerance is a user–defined limit for the difference between the system–tracked on–hand quantity and the actual tag count quantity. You express positive and negative quantity variance tolerances as percentages of the system on–hand quantity. You enter these percentages when defining your physical inventory.

The adjustment value tolerance is a user–defined limit for the total value of a physical inventory adjustment:

Adj value = (system on–hand qty – actual count qty) x current cost

where Current cost is the cost at inventory snapshot.

You express positive and negative adjustment value tolerances as amounts in your functional currency. You enter these tolerances when defining your physical inventory. 
Approving Physical Inventory Adjustments
 
Navigation: Physical Inventory ->Approve Adjustments

You can view, reject, or approve physical inventory adjustments pending approval. The adjustments you can view from this window are determined by the approval option you defined for your physical inventory. If you approve a particular adjustment, the Process Physical Inventory Adjustments Program adjusts your inventory balance by that quantity. If you reject an adjustment, Oracle Inventory does not change the system on–hand quantity.

Notes: 1. Even after saving a count as approved/or rejected we can change the quantity in TAG count till the physical inventory adjustment is processed. Example: we entered quantity 1 for item001 in tag count window and then saved it as approved in approve PI adjustment window. We can again go back and change the quantity of item001 and save it. If we rebury the item in adjustment window then it would be shown in none status though previously we had saved it as approved.

Processing Physical Inventory Adjustments

After you finish entering all your tag counts and approving those adjustments that need approval, you can submit the process that automatically posts your physical inventory adjustments. Oracle Inventory automatically creates a material transaction adjusting the item quantity and debiting or crediting the adjustment account you specify for your physical inventory.

If the count of an item matches the snapshot system on–hand quantity, there is no adjustment transaction posted.

Once you run the adjustment program for your physical inventory, Oracle Inventory does not allow new tag generation or any further updates of tag counts. You are no longer able to make any changes to that physical inventory.

Due to the irreversible nature of this program, Oracle Inventory posts no physical inventory adjustments if you have any adjustments that are still pending approval. You must approve or reject all of your adjustments before you can process them.

You can preview your adjustments before actually posting them by running the Physical Inventory Adjustments Report. You can run the actual adjustment program after you have used the report to verify your tag quantities and the value impact of your adjustments.

Once the process "Perform physical inventory Adjustments" is complete one can verify the physical inventory adjustment material transactions and corresponding distribution accounting in material distribution window. 
Purging Physical Inventory Information:

Use this form to purge a physical inventory definition from the database. Oracle Inventory deletes all information associated with the physical definition. However, the purge does not affect any adjustments or adjustment transactions made using the physical definition. Those adjustments are not changed. You can also purge just tags if you made a mistake and want to start over.