Overview

The process starts by selecting the "Reset Inventory" option. This action is available from the Shipping > Inventory screen, by clicking on the "Actions" button and selecting "Reset Inventory". When this action is performed all the "Physical Inventory" scanned status from all the inventory boxes in the Shipping > Inventory screen is cleared.

The system also offers the option of clearing rack positions (number of racks or locations). However, this option is not recommended for companies that handle inventories with more than 1000 items. This option is recommended when the warehouse is condensed and boxes are moved from rack to rack when performing the inventory count. 

After reseting the "Physical Inventory" status in the system, the physical scanning takes place by using the Inventory option from the scanner. Boxes already sold in an order with a future date but not marked as shipped warehouse (SW) can also be scanned. This process usually takes place at the end of the day.

Once the process starts, the system will mark the box as Scanned (a check mark on the "Physical Inventory" column will appear) or as Discrepancy on the Discrepancies Report, based on certain rules.

1. The system will look for the box scanned with the gun to see if it exists or not in the system's inventory. If it doesn't it will save that box as a discrepancy.
2. If the box is found, but it is still on the staging area, the box is saved as a discrepancy and shown on the Discrepancies Report as "Staging Area".
3. If the box found belongs to an order, the system validates the order's date:
   
   
   • If it is an order where some boxes were previously shipped (Scanned as shipped warehouse), the system looks for another box with the same lot number marked as RW (received warehouse) but not shipped. If the system finds a box available with the same lot number, the swap is made in the system's inventory and the box found will be marked as scanned and a check mark will appear under the "Physical Inventory" column. If a box with the same lot number is not available it is marked as a discrepancy and will appear on the Discrepancies Report.
     
     

   • If the order is an order for the actual date or for a future date, the system will mark the box as scanned in the "Physical Inventory" column as it should be in the warehouse as the order's date is not a date that has passed yet and therefore, would not have been shipped by the warehouse (SW).

Once the scanning process is finished. The Discrepancies Report can be run, the report will show two basic sections:

• Inventory Items: Shows the details of all the boxes that are in the system's inventory, but were not scanned with the scan gun in the physical inventory process. 
• Physical Overage: Shows the details of all the boxes that were scanned physically but were not in the system's inventory.

After running the report, the ideal is for no discrepancies to come up on the report. However, if discrepancies are found, each case should be analyzed and treated separately.