Physical Counts are an essential process that helps you compare the system’s local on-hand balance with the actual balance in the warehouse. This ensures data accuracy and allows you to identify and reconcile any discrepancies found during the count.
Physical Count
The Physical Count process in Edara consists of four main stages:
Note: The steps below describe the Physical Count process when batch numbers are not used.
If you use batch numbers, please refer to the article: Physical Count with Batch Numbers.
First: Creating the Physical Count Document
Go to “Warehouse”.
Open the “Physical Counts” page.
Click on “Add New Physical Count”.
Enter the main count details:
Count description.
Warehouse to be counted (only one warehouse per document).
Count owner: the user who has permission to close the document.
Modified date users who have permission to edit the count date.
Show balance users who have permission to view the count results after closing.
Note: You can count the entire warehouse in one document or count a specific group of items such as a classification, especially when dealing with a large number of stock items.
Second: Entering the Actual Quantities
Search for the stock item(s) you want to count.
Click on “OK”.
Enter the actual balances (The default quantity is set to zero when selecting any item from the search screen).
Click on “Save”.
Note: You can use the barcode to search for stock items. Once the “” icon is activated, the quantity on the same line is increased each time the barcode is scanned.
By default, the count date for each line is suggested based on the date it was recorded in the document. You can modify the count date for all lines in bulk as follows:
Click on the date field of any item.
Click on the “Bulk change” icon.
Select date and time.
Click on “Apply to All”.
Notes:
The count of stock items that use multiple units of measurement must be entered in the main unit, where it is compared with the Local balance.
There are three save options available while working: “Save”, “Save & Exit”, and “Save & New”. It is recommended to click on “Save” periodically to avoid losing data in case of power or internet interruption
“Edara” allows you to enter Physical Count using Excel.
Third: Closing the Count Document and Calculating Differences
Once the actual balances are entered, you can close the Physical Count document to compare the actual and Local balances.
Note: It is recommended to perform the count while sales and transfers are paused.
If you must work in parallel, start by counting stock items that may be transferred or sold first.
In this case, a stock item may appear on multiple lines with different dates. When closing the document, the system compares the actual balance with the Local balance using the oldest count date recorded for this stock item to ensure accurate comparison and avoid the impact of later transactions.
Go to the “Warehouse” module.
Open the “Physical Count” page.
Click on “Get All Physical Counts” to display all count documents.
Click on the document you want to close.
Click on the edit icon “🖉”.
Click on “More Actions”.
Click on “Close Count”.
Notes:
Only the Count owner has permission to close or delete the document.
After closing the count document, the system compiles each stock item in a single line to clearly show the variance and uses the oldest count date for comparison.
The variance appears after closing the count document in two ways: either by clicking on the document and then clicking on “View Details,” or by clicking on the document and then clicking on the “Edit” icon.
Fourth: Settling Shortages or Surpluses
After closing the Physical Count document, you will encounter one of the following cases for each stock item:
Case 1: The actual balance equals the Local balance. In this case, no action is required.
Case 2: The actual balance is greater than the Local balance (inventory surplus).
In this case, you need to record the increase by creating a receive supplies document (RS) or receive transfer (RT) matched with Issue Transfers (IT) to settle a shortage from another warehouse.Case 3: The actual balance is less than the Local balance (inventory shortage).
In this case, you need to record the shortage by creating an Issue Offering document (IO), or an Issue Transfers (IT) if the shortage corresponds to a surplus of the same stock item in another warehouse.
Creating Adjustment Documents
Open the “Physical Counts” page.
Click on “Get All Physical Counts” to display all Physical Count documents.
Click on the required Physical Count document.
Click on the Edit icon “🖉”.
Select the stock item.
The suggested adjustment documents (RS / IO / IT) will appear.
Note: You can filter shortage or surplus stock items using the filter by condition to select them all at once and create a single document in bulk.
Select the appropriate document type (RS / IO / IT) from the suggested options.
Select the second party for the adjustment document: “Other” for receive supplies document (RS) or issue offering (IO). “Receiving Warehouse” for Issue Transfers (IT).
Note: When creating a receive supplies (RS) document, a screen will appear to select the cost calculation method. Choose either “Average Cost” or “Last RS Price”, as appropriate, to ensure accurate adjustment.
Click on “Save”.
Notes:
The adjustment document type depends on the value of the following equation:
Variance = Local balance – Actual BalanceIf the result is positive (Local balance is greater than Actual balance), this indicates a shortage, and you can choose IO or IT as appropriate.
If the result is negative (Actual balance is greater than Local balance), this indicates a surplus, and you should choose RS.
If you select a document type that does not match the stock item status (shortage/surplus), the system will display a warning and prevent you from proceeding.
The adjustment document linked to each stock item appears directly in the corresponding row on the Physical Count screen.
A Physical Count document can only be deleted if all of the following conditions are met:
The document is not closed.
The document is not linked to any adjustment documents.
Deletion can only be performed by the Count owner.
If you encounter any challenges or have questions during these processes, you can contact our technical support team, who are ready to assist you at any time.