Year-End Inventory Count and Reconciliation

Owned by Joseph Wall (Deactivated)
02 26, 2019

Issue/Symptom/Question

What is the yearend Inventory reconciliation process in PENTA?

"In the current system, we would to do all our counts by the time I close December, then once I closed December (when no users were in the system), the Warehouse Manager would run all the warehouses and then we would reconcile that to the GL as of 12/31/17.  Would an SQL be useful for this process?"

Applies To

PENTA for Windows

Inventory (IC) - Warehouse Transactions

Physical Inventory Count

Resolution/Fix/Answer

In PENTA, the year-end process is as follows:

  1. Go to the Physical Inventory Count window
  2. Enter the Warehouse to count, the date (likely 12/31 so the adjustments post at year end), and click the All Products button
  3. Repeat for other Warehouses to count
  4. Close the window
  5. Print the Inventory Audit Count report
    1. Decide if the # of units PENTA has should be shown (recommendation is to not show the On-Hand)
    2. Enter the Warehouse, or run report with Warehouse blank so all Warehouses selected in step 2 print

  6. Count the inventory in the Warehouse and mark the number counted on the report
  7. Go back in the Physical Inventory Count window and query the Warehouse Id counted
  8. Click on the Product Count Detail tab to enter the actual items counted
  9. If there is a variance between PENTA's On-Hand and Actual, provide the reason code.  Variance Reason is required prior to posting, so best to enter when keying in actual and a variance exists
  10. Once Actual Unit Count Entry is complete, Post the adjustments and run the Inventory Subledger Report to support the General Ledger Balance

PENTA will debit/credit the Inventory Adjustment Account associated with the Warehouse, depends if the inventory amount is increasing or decreasing.

Note: PENTA doesn't require that all products in the warehouse go through a physical count.  The Actual Number to count is controlled using the Add Products Due button.

If counting less than All Products, during step 2, the Add Products Due button can be used to delete products that should Not be entered (after clicking All Products) or type in Product Ids that should be counted only (not clicking All Products button).

Note: If a Warehouse has had a count started but not finished, that Batch # will need to be deleted to be able to load the products into a new batch.  In other words, the Product Id can only show in one Physical Count Batch per Warehouse at a time.  PENTA prevents the same Product Id from being "open" for a count at the same time in the same warehouse.