Cycle Counting in D365 for Finance and Operations Warehouse Management: Part 3

 
 
 
 

Part III:  Resolving Cycle Count Variances

Inevitably, variances will occur in inventory value during cycle count.  That is really the whole point of the cycle count.  These variances will need to be reviewed and processed for the new values to be accounted for in the inventory valuation. 

When cycle count work is performed by a worker who is not a cycle count supervisor (as indicated in the mobile device work parameters) and the counted value differs from the expected system value, the counting journal will not be posted.   This work must be reviewed and accepted for the journal to be posted.  This work can be found in the Warehouse Management>Cycle Counting>Cycle Count Work Pending Review.   If the worker is a cycle count approver the work will be completed immediately upon entering the cycle count in the mobile device.

In the scenario below, a cycle count was performed at location FL-001 and item A0001.  The on-hand quantity in 95 while the cycle count quantity came back as 100.  The worker who performed the cycle count is not a Cycle Count Supervisor.  Thus, the cycle count work can be found in Cycle Count Work Pending Review.

To review the work, follow the steps below.

  1. Go to Warehouse Management>Cycle Counting>Cycle Count Work Pending Review
  2. Select the work ID to review and click Cycle Counting in the Work tab.

D365 Cycle Counting Work ID Screenshot

  1. Review the on-hand and counted values.  Click Accept or Reject.  If accepted, the counting journal will be posted and the counted quantity will be reflected in inventory.  If rejected, the counting journal will be cancelled and the quantity will remain unchanged.

D365 Cycle Counting Transactions Screenshot

  1. A counting journal was posted because that is the journal specified for cycle counts in Warehouse Management Parameters> Cycle Counting as the default journal type.  You can view the posted journal in Inventory Management>Journal Entries>Item Counting>Counting.

D365 Cycle Counting Posted Journal Screenshot

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