Physical Inventory Checklist

A PDF Version of the article is available for downloading and printing at the bottom of the article.

1. Perform the physical count. Write counted balances on the count sheets.

• Do not allow inventory to move from an area until it is counted and marked on the count sheets.

• Do not allow any material to be received, removed or transferred until the inventory counts are completed and audited. We are trying to get a snap shot at a certain point of time, and if any materials are moving, we won’t get the right picture.

• Don’t forget to check for any materials stored off site in another warehouse, outside container or at a vendor location (sometimes the mills will store a truck load of carpet or pad until the client calls for it – it has already been Received and paid for, it is just not inside the warehouse)

• Verify that any goods on consignment are not counted by mistake

2. Once all inventories have been counted, perform the following procedures to double check:

• Visually scan the physical inventory to ensure that all rolls and items have been marked as counted.

• Scan the count sheet for any inventory that has not been counted.
  • Investigate as to why the inventory was not counted.
    • Did you miss it, fail to mark it as counted or is it missing?

3. Once you are satisfied the count is complete, begin the adjustments process in RFMS.
   • Go to either Roll or Item inventory
   • Find the incorrect record
   • Use the adjustments button (hammer and screwdriver) to fix the quantity.
     • At this point all discrepancies should have been investigated.

4. Printout the adjustments report.
   • Scan for obvious keypunch errors.
   • Review total adjustment amount for reasonableness.

5. RE-PRINT the inventory value reports. This is  the counted, reconciled inventory value