Cycle Count in Advanced Inventory

Learn how to use Cycle Count in QuickBooks Enterprise to keep your inventory up to date.

If you use QuickBooks Online, check out Fix negative inventory issues in QuickBooks Online.

Inventory data is critical to many businesses, but the process to keep it updated can be complex and time consuming. You can use Cycle Count, with a mobile scanner, to simplify and shorten the time to keep your inventory info up to date.

What is a Cycle Count?

A cycle count is a way to manage your stock without the disruption and time involved in a total inventory count.

Create a cycle count

1. Go to Inventory and select Cycle Count.
2. Select Create new cycle count.
3. Select Site (if appropriate).
4. Select Find & Select Items, then use Find to identify the items for the cycle count. You can also search by custom fields which to filter multiple items at once.
5. Select the checkbox next to the items you want to count, then select Add Selected Items.
   Your cycle count form will show.
   • If a single item is in more than one bin location, a separate line (task) will show for each bin location for that item.
   • Each cycle count is limited to 5000 tasks, so if the total items exceed 5000, delete items until you are at or below the limit.
   • Upon creation, cycle counts get split automatically into groups of 200 line items, so if you select a 400 item+bin combination line items, you will see 2 cycle counts created.
6. Assign to a specific warehouse person if desired.

Start a cycle count

If you are using a mobile inventory device:

1. Select Send to device. You'll be advised the count has been created successfully.
2. The warehouse person will locate the item and bin for each line and scan the items, continuing until all items have been counted.
3. Select Send to QuickBooks and the counts will show on your dashboard. You may need to refresh the dashboard to see the most current information.

If you are using a paper process:

1. Select Send to Excel. You'll be advised that the count has been created successfully.
2. Print the report and the warehouse person will locate the item and bin for each line, counting and entering the totals on the paper form.
   Note: This part of the task can also be done using a tablet or other electronic device.
3. When the count is complete, you'll need to enter the count for each item/bin on the spreadsheet unless an electronic device was used.
4. Go to the dashboard and select Import from Excel. Follow the instructions and your counts will now show up on the dashboard.
5. You can also manually enter the counts on the dashboard and select Save.

• If there are no discrepancies, the status of your cycle count will change to Complete.
• If there are discrepancies, the status of your cycle count will change to Pending Review.

Resolve discrepancies

QuickBooks will automatically adjust your inventory count and values for you for any count discrepancies.

1. On the dashboard, select Batch Actions, then Adjust Quantity/Value on Hand.
2. You’ll receive a pop-up screen with some information, select OK.
3. An adjustment window will open with all identified discrepancies. To accept all changes, select Save & Close.

After accepting any adjustments, you’ll be returned to the dashboard. The adjustment doesn't update your dashboard. You can manually close the cycle count once your adjustments are complete and there are no more changes to be made.

Close a cycle count

Closing a cycle count means you're completely done with it and don't want to make any more edits.

1. On the dashboard, select the cycle count lines to close.
2. Go to Batch Actions, then select Mark as Closed.

Frequently asked questions

How do I make cycle counts disappear from the dashboard?

Cycle counts will drop off the dashboard 30 days from the last update.

What are the Batch Actions?

• Export to Excel - creates spreadsheet than can be printed or used electronically for a count
• Adjust Quantity/Value on Hand - triggers the inventory adjustment window where you can review and approve adjustments.
• Mark as Closed  - Indicates you are finished with that cycle count. After closing, you can't make additional edits.

What do the different statuses mean?

• Open - a cycle count that is currently in process.
• Pending review - This status is automatically assigned when the quantity counted and the QuickBooks inventory count don't match.
• Complete - This status is automatically assigned when the quantity counted and the QuickBooks inventory count match.
• Closed - No additional work needed.