A physical count is not only a quantity exercise
A physical inventory confirms what exists in the warehouse, but the real value is in the explanation of differences. If the company only replaces software quantities with counted quantities, it may hide receiving errors, unrecorded deliveries, theft, breakage or duplicate item codes.
A useful inventory count process gives management and the accountant a clear bridge between physical reality and the books.
Prepare before the count
Preparation decides the quality of the count. Before the counting day:
- freeze or control movements during the count;
- clean item codes and units of measure;
- identify warehouses and zones;
- print or export count sheets;
- separate damaged, expired or blocked items;
- assign teams and reviewers;
- define how differences will be approved.
The count should not start while receipts, deliveries and transfers are still moving without control.
Count by zone and responsibility
Each team should count a defined zone. A second person should review high-value or sensitive items. The count sheet should identify the item, location, counted quantity, unit, count date and person responsible.
For products with lots, expiry dates or serial numbers, quantity alone is not enough. The count must preserve traceability.
Analyze differences before posting adjustments
Differences should be reviewed before validation. Common explanations include:
- receipt entered in the wrong warehouse;
- delivery made but not posted;
- wrong unit conversion;
- item created twice;
- customer return not recorded;
- supplier return not updated;
- breakage or expiry not documented.
Posting a global adjustment without cause may make the quantity look correct, but it does not fix the process.
Review value, not only quantity
A count confirms quantities. It does not automatically confirm value. After the count, review zero-cost items, abnormal costs, obsolete stock and damaged products. Then connect the count to stock valuation.
This is important for SCF reporting, margin analysis and year-end closing.
What DZ Compta should keep
DZ Compta should keep the counted quantity, old system quantity, difference, adjustment reason, validation user and date. This history helps the next inventory because the team can see which items regularly create differences.
Official reference
FAQ
Should all items be counted at the same time?
Not always. A full annual count can be combined with cycle counts for high-value or fast-moving products.
Can the warehouse correct quantities directly?
Corrections should require a reason and validation. Otherwise the company loses the explanation behind the difference.
Evidence to keep
A physical inventory is successful when the company can explain the gap, correct the cause and keep a clear audit trail, not only when the final quantity looks clean.