Physical Inventory: Basic Steps

How do I? | Physical Inventory Overview

Basic

Note: Only one workstation can be working in the physical inventory at any one time.

These are the basic steps to complete a physical inventory. Use the links on this page for specific instructions to complete a step.

1. Select Start Physical Inventory from the Inventory menu.

   (Pro Headquarters) Enter the Store for which you are entering counts.

2. Physically count item quantities on hand using one or both of these methods:

- Print a Store Count Worksheet and take it with you through the store recording counts. Select Run a Report PI Worksheet from the I Want to menu. Modify the report as necessary to display and group your items in a manner that makes sense for counting in your store.

- Use the optional QuickBooks-approved physical inventory scanner to go through your store scanning item bar codes and entering counts. Since the physical inventory scanner is portable, you can move freely around your store and scan thousands of items in one session. (physical inventory scanner sold separately)

3. Transfer your counts to Point of Sale by:

- Using the Add Counts by Hand option. This is usually the fastest manual way to enter counts, even if an item is counted several places in the store on different worksheets. Enter an item identifier (UPC, alternate lookup, or item number) and then the count, pressing <Enter> after each entry. Point of Sale consolidates multiple entries and then transfers the counts to the Physical Inventory window.

- Entering counts directly in the Counted column on the Physical Inventory window. This is convenient for entering a small number of items or items that are grouped together, but may be time consuming if the same items are scattered throughout your store. Tip: Filtering or sorting the list on this window can help make entry of counts faster.

- Upload counts from the portable scanner.

3. Review your counts and the totals summary displayed on screen and, if applicable, select the Set all items not counted to zero. This setting ensures that all inventory items for which no physical count was entered are zeroed out when you update inventory.

4. Select Apply Changes to Inventory to update your inventory on-hand quantities with the counted quantities.

Notes:

- You can choose Save & Continue at anytime to pause in your physical inventory. After saving you can exit and return later to finish. Choose Continue Physical Inventory from the Inventory menu to resume.

- If transactions affecting the quantity of previously counted items occur during a physical inventory, the items are flagged on the Physical Inventory window and you are alerted. You should recount these items.

- If you have entered counts but wish to cancel them and start again, select Clear Counts and Restart from the I Want To menu.

- If your computer loses power or crashes during a physical, Point of Sale retains the counts you have entered to that point and automatically recovers them for you.

- If necessary, you can select Print Tags from the Print menu to create new tags for items as counting.

- (Pro) If you use multiple units of measure for some of your items, read the specific instructions for counting them.