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3 Methods for Doing Annual Inventory Counts in Dynamics AX

Do you run conduct an annual wall-to-wall inventory count? If so, you’ve probably wondered “What’s the best method for doing this within Dynamics AX?”

Multiple Options for Inventory Counts

Normally, we recommend you use the Cycle Count journal to enter and post your physical inventory but if you are using counting groups and last counted dates, this can cause discrepencies.

Using the Tag Journal

Tag Journal Feature

If you are using tags for your inventory count, you can use the tag journal to first control your counts.  How you organize the tag journals is a business decision.  Keep in mind that a tag journal becomes a cycle count journal, once it is posted.  No transactions are created for lines in a tag journal.

The following are some suggestions for its use:

  1. Create the tag journal lines in advance, with the tag numbers, and flag the tags as “missing.”  In this way you can control which tags have not been accounted for when they are returned.
  2. Create journals by either warehouse or zone or rack, depending on your set up and change the description on each so you know which tags and journal are for which areas.
  3. Consider using Excel, if you want to scan your information and upload the tags into a tag journal.

Once the lines are transferred to the Counting Journal and posted, the items will be marked in Cycle Count History, as being counted.  The next time it will be eligible for counting will depend on the set up on the counting group.

Using the Movement Journal

Movement Journal Feature

If you are using scanners to process your inventory, you may want to consider using the movement journal.  By setting up a journal with a pre-defined offset account, your Finance team can monitor what specifically occurred while processing / posting the inventory.  As well, this journal will generate transactions as lines are placed into the journal.  Initially, you will need to write down all of your physical inventory, prior to scanning the inventory back in.  A report of the written off inventory would serve as a check list for what inventory is “missing” once the counting is completed.

Using the Cycle Count Journal

Cycle Count Journal

You can directly create a cycle count journal for ALL items within your warehouse.  The same principles would apply to cycle count history in that the system will mark the date, from the line, as the last counted date.  If you are using counting groups and last counted date to generate your cycle count data, it may not be conducive to use a cycle count journal posting since it will affect the last counted date.

You can use the cycle count journal, up to the point of reconciliation and then export the lines that need to be adjusted, into another journal, such as movement, and make the adjustments there.  By using the value found in the “Quantity” column of the journal, this would serve as the amount that needs to be adjusted (+ / -).

If you are a manufacturer struggling with inaccurate inventory, schedule a call with one of our team members today.

Genie EngelsWritten by Genie Engels
Senior Manager – Specialized Services, mcaConnect