What is Cycle Count?
Cycle Counting is a method of auditing inventory accuracy by counting a small subset of items at regular intervals, rather than shutting down operations for an annual wall-to-wall stocktake.
Cycle Count Schedule
A items (high value): count monthly or more frequently. B items: quarterly. C items: annually. This concentrates counting effort where inaccuracy has the greatest financial impact. Over a year, all items get counted at least once, providing continuous accuracy improvement.
Cycle Counting in ERPNext
Use the Stock Reconciliation document in ERPNext for cycle counts — enter physical count for the selected items and warehouse, and ERPNext shows the variance. Submit to post adjustment entries. Run cycle counts per warehouse section to avoid disrupting operations.
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