Set Inventory Count in NS

Jira code:- TOUC-169

This article contains the instructions to do inventory count in NetSuite. How to record the count and how the item record can be set.

Inventory Count feature supports improved tracking of inventory and tighter control over assets. When this feature is enabled, you can enter regular periodic counts of on-hand item quantities to maintain inventory accuracy. Keeping an accurate item count can help reduce required safety stock, which lowers your overhead costs. To use this feature first, define the Next Count Date and your intended Count Interval in days on an item record. NetSuite then uses this information to calculate when that item needs to be counted.

  • Creating Calculated Inventory Counts – Use NetSuite’s calculated list of items to create one or more inventory counts that are due.
  • The Create Inventory Count page shows a list of items that are due to be counted. Check the box in the Select column next to each item you want to count or check the All Items box to count all items that meet your specified criteria. When you click Submit, the inventory count is recorded.
  • Creating Manual Inventory Counts – Manually create an individual inventory count for an item.

You can create an inventory count in two ways:

After an inventory count is created, click Start Count on the record to begin the process. NetSuite takes a snapshot of the on-hand count of the items to be counted. After a manual count of items has been completed in the warehouse, the count data can be entered in NetSuite using the Inventory Count form. Click Edit on the count and enter the number of items on hand. You can edit and change the count data on a count form multiple times until the count is marked Complete. When the inventory count transaction status is set to Started, a snapshot of the inventory on hand quantity is taken from the system for comparison. If you continue to process inventory changes while the counting activities are occurring, please note these changes. Please include these changes when you enter the Count Quantity into the inventory count transaction. A completed count can be reviewed to be approved or rejected. A rejected count must be counted again by the warehouse manager. An approved count generates variances to account for any quantity differences between the original snapshot and the final count.

For items using calculated inventory counts, when you return to the item record of an item you have completed a count for, the Inventory subtab shows count data, including the last count date and next count date. The Advanced Bin/Numbered Inventory Management feature must be enabled to support inventory counts of serialized or lot numbered items.

To enable inventory count:

  1. Go to Setup > Company > Setup Tasks > Enable Features (Administrator).
  2. Click the Items & Inventory subtab.
  3. Check the Inventory Count box.
  4. Click Save.

To set up preferences:

  1. Go to Setup > Accounting > Preferences > Accounting Preferences (Administrator).
  2. Click the Items/Transactions subtab.
  3. In the Default Inventory Count Account field, choose the default account you want to show in the Inventory Count Account field on item records. This account is used to post inventory count variances to. This is typically an expense account.
  4. Click Save.

you want NetSuite to calculate inventory count information for an item, you need to set up the item record to do so.

To set up an item record for inventory count:

  1. Go to Lists > Accounting > Items > New (Administrator).
  2. Click Edit next to the name of an inventory or assembly item.
  3. On the item record, click the Purchasing/Inventory subtab.
  4. On the Purchasing/Inventory subtab, click the Locations subtab.
  5. In the Next Count Date field, enter the date of the next planned inventory count for this item. NetSuite will use this date to calculate when a count is required.
  6. In the Count Interval field, enter the total number of days between required counts. For example, if you enter 30, NetSuite calculates the date a count is required based on 30 day intervals.
  7. Optionally choose an inventory Classification. You can sort the list to create inventory counts based on classifications you select in this field.
  8. Click Save.

After the count date and interval are recorded for an item, NetSuite uses them to calculate when a count is required. When a new count is due to be recorded, it shows in the list on the Create Inventory Count page.

After the count date and interval are recorded for an item, NetSuite uses them to calculate when a count is required. When a new count is due to be recorded, it shows in the list on the Create Inventory Count page.

To create calculated inventory counts:

  1. Go to Transactions > Inventory > Create Inventory Count (Administrator).
  2. Select a location.
  3. Enter or select a Count Start Date.
  4. This filters the list to show only items that require a count on or after the date entered in this field.
  5. Enter or select a Count End Date.
  6. This filters the list to show only items that require a count on or before the date entered in this field.
  7. Optionally choose a Item classification to filter the list.
  8. Check the Count Bin Rows With Zero Quantity box to include in the list items with an on-hand count of zero.
  9. Check the Sort Rows by Bin box to sort the item list by bin number instead of by item number. This can be useful to count all items in a specific area of a warehouse.
  10. Select an account to post variances to. This is typically an expense account.
  11. You can choose an account to show in this field by default.
  12. Check the box in the Select column next to each item you want to count.
  13. If you use bin management, an item does not appear in the list if it uses bins and has no prior transaction history.
  14. Click Submit. When you click Submit, the inventory count transaction is recorded, but not started.

After an inventory count is on record, it has an Open status and is a non-posting transaction.

To edit an inventory count:

  1. Go to Transactions > Inventory > Enter Inventory Count > List (Administrator).
  2. Click Edit next to the count you want to change.
  3. Make necessary edits to the record.
  4. Click Save.

Create manual inventory count

After the count date and interval are recorded for an item, NetSuite uses them to calculate when a count is required. When a new count is due to be recorded, it shows in the list on the Create Inventory Count page.

To create manual inventory counts:

  1. Go to Transactions > Inventory > Enter Inventory Count (Administrator).
  2. Select a location.
  3. Optionally enter a reference number for this transaction.
  4. Verify or select a date for this transaction.
  5. Choose an account to post inventory count variances to. This is generally an expense account.
  6. You can choose an account to show in this field by default.
  7. If you track departments or classes, optionally select them. (Note that this Class field is distinct from the inventory classification used for calculated inventory counts.)
  8. Optionally enter a memo for this transaction. Later you can search for this transaction using the text in this field.
  9. On the Items subtab, choose an item to count.
  10. Verify or select the bin for this item.
  11. Verify or select the unit for this item.
  12. Optionally enter a memo for this line item.
  13. Click Add.
  14. Repeat these steps for each item you want to count.
  15. Click Save.

When you click Save, the inventory count transaction is recorded, but not started. After an inventory count is on record, it has an Open status and is a non-posting transaction.

To edit an inventory count:

  1. Go to Transactions > Inventory > Enter Inventory Count > List (Administrator).
  2. Click Edit next to the count you want to change.
  3. Make necessary edits to the record.
  4. Click Save.

After an inventory count is recorded, you must complete these steps:

  1. Start the count to begin the process of recording count data.
  2. Edit the count record to enter count numbers for items.
  3. Complete the count to record the final number counted for each item on the count.
  4. Approve or reject the final count.

To start an inventory count:

  1. Go to Transactions > Inventory > Enter Inventory Count > List (Administrator).
  2. Click View next to the count you want to start.
  3. Click Start Count.
  4. When you click Start on an Open status inventory count, NetSuite takes a snapshot of the on-hand count of the items to be counted by bin and serial number. This data is recorded on the count.
  5. An inventory count with a status of Started can be reviewed and edited by the warehouse manager. Data in quantity fields can be edited, but items cannot be added to or deleted from the count.

To edit the count record:

  1. Go to Transactions > Inventory > Enter Inventory Count > List (Administrator).
  2. Click Edit next to the count you want to work with.
  3. Based on the physical count numbers taken in your warehouse, record the number actually counted in the Count Quantity field. Repeat this for each item you count.
  4. When the inventory count transaction status is set to Started, a snapshot of the inventory on hand quantity is taken from the system for comparison. If you continue to process inventory changes while the counting activities are occurring, record the changes and include them when you enter the Count Quantityinto the inventory count transaction.
  5. After entering data on a started count, click Save to come back and complete the count later.

To complete an inventory count:

  1. Go to Transactions > Inventory > Enter Inventory Count > List (Administrator).
  2. Click View next to the count you want to complete.
  3. Click Complete Count.
  4. Until an inventory count is completed, you cannot start a new inventory count for that item.

Two inventory adjustment transactions are created for the count:

  • One positive inventory adjustment (more on hand)
  • One negative adjustment (less on hand)

When you return to the item record of an item you have completed a count for, the Inventory subtab shows the following:

  • Last Count Date – Date when the last count occurred
  • Next Count Date – System calculated next date to enter an item count
  • Count Interval – Preset count interval

To approve or reject an inventory count:

After a count is Complete/Pending Approval, the supervisor can approve or reject the count entered.

  1. Go to Transactions > Inventory > Enter Inventory Count > List (Administrator).
  2. Click View next to the count you want to complete.
  3. Do one of the following:
    • Click Reject – The count status returns to Started and the warehouse manager must conduct another count.
    • Click Approve – The count is final and the status becomes Approved.

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