Inventory Management | Cycle Counts & Adjustments
Cycle counts that don't freeze the warehouse.
Zone-based, ABC-class-based or item-category-based cycle counts. Only the cycled items lock; the rest of the warehouse stays operational. Adjustments post with reason codes. Full audit trail.
What the system does
Capability, input, output.
| Capability | Input | Output |
|---|---|---|
| ABC-class analysis | Item value + movement frequency | A, B, C class with cycle frequency |
| Cycle plan generation | Class + zone + schedule | Daily / weekly cycle list |
| Lock-on-cycle | Cycle event start | Cycled items locked; rest stays open |
| Variance flagging | Counted vs system stock | Per-item variance with reason picker |
| Adjustment posting | Approved variance + reason | GL posted; audit trail captured |
-
ABC-class analysis
- Input
- Item value + movement frequency
- Output
- A, B, C class with cycle frequency
-
Cycle plan generation
- Input
- Class + zone + schedule
- Output
- Daily / weekly cycle list
-
Lock-on-cycle
- Input
- Cycle event start
- Output
- Cycled items locked; rest stays open
-
Variance flagging
- Input
- Counted vs system stock
- Output
- Per-item variance with reason picker
-
Adjustment posting
- Input
- Approved variance + reason
- Output
- GL posted; audit trail captured
Compliance + integrations
Cycle counts the auditor accepts.
Cycle counts replace the year-end physical inventory for many Indian businesses. The auditor accepts the cycle-count evidence pack as long as the methodology, frequency, variance handling and audit trail are robust.
Regulations we work within
-
SSA 501 (Existence)
Cycle-count evidence produced in the form the inventory existence procedure expects.
-
Audit trail
Count, variance and reason code retained per cycle, so a programme can be shown to have run.
Connects to
- Barcode scanner Hand-held scan during count
- Xero Adjustment GL sync
Cycle Counts & Adjustments FAQ
What buyers ask.
Can cycle counts replace the year-end physical inventory?
Yes, where the methodology meets SA 501. Frequency, variance handling and the audit trail are what get tested. Agree the programme with your auditor before the year rather than presenting it after, which turns a negotiation into a formality.
What if the count is materially off?
Material variance (configurable threshold) triggers a re-count and supervisor review before any adjustment posts. The investigation captures the root cause (theft, damage, system error, location move). Repeat material variance escalates to the CFO.
How are reason codes used?
Reason codes (theft, damage, count error, location move, expiry write-off) drive both the GL coding (Inventory Shortage vs Inventory Loss) and the management reporting. The CFO sees variance by reason code per warehouse per quarter.
Run a cycle count across one zone, free.
Connect one warehouse. Set up an ABC plan in 5 minutes. Run a count across one zone. Watch the variance flag, the reason capture, the adjustment post, the audit trail close.