How to Perform a Physical Inventory Count in Sage 100

Summary

To perform a physical inventory in Sage 100, you must take a physical count, record the results, and update any variances.

Notes:

Physical Count calculates the inventory adjustment with the following logic:
- Physical Count of Items (Becomes Ending Balance) – Starting Balance (Frozen Items) = Inventory Adjustment.
- For example, if the system at the time of the count shows you have 8 on hand and you count only 5, it will make an adjustment of -3 to the quantity on hand.

Open Inventory Management, Period End, Inventory Negative Tier Report.
Generate the report to identify over-distribution tiers for LIFO/FIFO items.
If needed, enter adjustments to clear negative tiers.
Open Inventory Management, Period End, Inventory Negative Tier Adjustment, and correct negative tiers.
Open Inventory Management, Utilities, Remove Zero Quantity Costing Tiers.
Enter the date to remove on or before.
Set the Inventory Management accounting date for posting to the General Ledger.

Open Inventory Management, Physical Count, Physical Count Variance Register.
Preview and confirm the message: “Data is not selected for report printing.” This means the system didn’t freeze items.
If using count cards, repeat for Count Card Variance Register.
If a register prints/previews, review the listed counts. When prompted, “Do you want to update the Count Card Entries to Physical Count Entry?” select No to edit/delete count cards.
Open Inventory Management, Physical, Physical Count Worksheet.
Select Print Worksheet and Freeze Items or Freeze Items Only.
Choose on-hand quantities, item ranges, product lines, and warehouses to count. Click Print/Preview.
Freezing items creates a record of on-hand quantities as of the freeze time.
(Optional) Print an Inventory Valuation Report for records.

Notes:

Freezing the Items is the starting balance at that point in time.
If you wish to start over, you can Unfreeze and then Freeze. This will refresh the Starting Balance for the items selected for the inventory count.
Freezing the Inventory is a snapshot at that moment of time. If you receive or ship out items after the freeze, it does not change the frozen quantities on the Physical Count Worksheet. If you want those quantities captured, you will need to Unfreeze and then Freeze again.

Count the actual quantities in stock and record them on the worksheets.
Enter the actual count using Physical Count Entry.
Enter the count even if it matches the worksheet; otherwise, the system assumes the count is zero.
Enter counts as of the freeze time. If items ship after the freeze but before entry, they count as if they hadn’t shipped.
(Optional) Back up the Inventory Management data files.

Print the Physical Count Variance Register.
Review and adjust as needed. Reprint and update when ready.
Print the Daily Transaction Register and update the variance amounts to the General Ledger.
(Optional) Print another Inventory Valuation Report.