Your personnel may not be performing counts often enough, but there seems to be a misunderstanding of how the physical count process works and what should appear on the reports and registers.

The reports associated with the physical will never indicate the on-hand quantity, they will show the frozen quantity. This is by design because the count process isn't intended to bring a halt to all inventory operations and is flexible enough to coordinate counts in a number of ways. This means the register will indicate discrepancies in the frozen quantity of the warehouse/location/lot/item and the count of that item.

The count process will adjust the quantities, as well as the associated net value of those adjustments once the batch is posted. I specify "net value" because the count could indicate the item location has changed within the warehouse and in that scenario there is no value adjustment as long as the item(s) were frozen in the different locations.

The general count process is: select the count items, freeze quantities, process counts, post. The rest of the reports help you identify items frozen but not counted with Missing Count Cards, transactions against items after they were frozen in the Reconciliation Report and variances that exceed the percentage defined for the item in Maintain Inventory using the Discrepancy Report. Once the count has been reconciled, you post the batch to record the changes to inventory quantity and valuation, as well as the rollup to GL.

The on-hand quantity for an item is irrelevant in this process because your items could be in multiple warehouse locations and you could have used multiple restriction criteria for your count (see Select Count Items). Those restrictions could place your items in a zone, aisle, bin, pallet, etc. that excludes some locations in which the item may reside.

As for the register, it again will indicate the variances that will affect inventory and GL upon posting of the batch.

Once the batch is posted, any changes to inventory quantities will be indicated in the various reports, interfaces and BI views like Stock Status (real-time inventory), Inventory Valuation (inventory-centric history) and Inventory Transaction (transaction-centric history). The Inventory Transaction interfaces will allow you to view the transactional detail of the quantity and valuation changes committed by the physical after it has been posted. You can select the transaction type along with the date or transaction number to restrict the results.

This is very informative and helpful, Contefication. Thank you for the time and effort you put into this thoughtful reply.

This is very informative and helpful, Contefication. Thank you for the time and effort you put into this thoughtful reply.