Implementing Manufacturing and Materials Management: From Empty Plant to Costed Work Order · Module 11 · Inventory Management
Cycle counting
Lesson 114 of 188 · 16 min
Cycle counting means counting a portion of inventory continuously, rather than shutting the plant to count everything. It is how accurate warehouses stay accurate. ABC classification means counting high-value or high-movement items more often, with classes driving count frequency. Tolerances and approval: a variance within tolerance posts automatically; beyond it requires approval. That threshold is a control decision, made with the controller — the third time this course has said to get the controller in the room. Then build: define an ABC classification, create a cycle count with class frequencies and tolerances, generate count sequences, enter counts — one within tolerance and one outside — approve the exception, and show the resulting adjustment and its accounting. The adjustment is an accounting entry. Every count variance changes the balance sheet. That is why approval thresholds exist. Recount before adjusting large variances. The first count is often wrong. Build it into the…
The full lesson is part of the course
The video, the complete written lesson and the module quiz are included in Implementing Manufacturing and Materials Management: From Empty Plant to Costed Work Order, with a certificate on completion and a fourteen-day refund window.