Preparing and Executing Full Physical Inventory

Donlyn Figenbaum

Updated December 12, 2023 18:59

These instructions are for the completion of a Full Physical Inventory. Spot and cycle counts do not constitute a FULL inventory in the Avail system.

Good preparation will help ensure a trouble-free inventory.

In ETMS: Transit Assets/ Custom Legacy Transit Asset Menu/Custom Inventory Menu/ click on #15 FIN Reports, #6 FIN5 Reports.

There are several reports to run before you create the Inventory Book. These will identify issues with Parts, like parts with no warehouse or Product Code. Run these reports and make any corrections BEFORE you begin the actual Inventory counting process. If you do not have these reports, please contact Avail Support.

IMPORTANT: Before beginning any physical inventory, all receipts should have been entered and updated, all work order materials updated, any adjustments entered and updated, and fuel updates or readings.
Nothing should be entered into the program while the full Physical Inventory is being done.

To start physical inventory:

Create a folder for the Inventory so all reports can be stored in the same place. It is recommended that you save all reports here as PDF AND Excel (Excel for the auditors).

Create an Extended Price Book and save it in PDF form AND Excel. This will allow for before and after comparisons and audits. The extended price book is run from Transit Assets/Parts Management/Inventory Reports/ Inventory Reports.

Again, save this Extended Price Book as a PDF and in Excel. When ready to create the book and begin the counts, select Physical Inventory.

Select or enter the following:

Count Date	This defaults to the current date but can be changed.
Select Sort Order	Choose sort order from each dropdown list (see example below)

Make sure Cycle Count and Spot Check are NOT checked. Choose options in Select Type.
Click Create Inventory Book.

Results after Create Inventory Book has been selected:

If desired, select Print Book. A hard copy (see the following example) can be printed to write down counts during the inventory process. It can also be saved as a PDF file.

Once the book is created, you can re-sort existing records. Update the Select Sort Order fields to alter the sort order. Then click Re-sort Inventory Book to achieve the desired sort results.

NOTE: if any parts have been added or altered, they will not be displayed here. These will only show the inventory at the time the book was created.

You can exit Physical Inventory if needed - no data will be lost.

You can now scan the inventory using the bar code scanner, or the parts can be counted manually and noted on the printed pages. Once all items have been scanned, or counted and entered, proceed with the following.

Open Physical Inventory. The current book with all items counted is ready for review. Every line must have an entry, even if it is a 0 (zero). Click Show Details to review the details.

Once all counts are entered, select Deviation Report to review all items, or check Deviations only to review only items with deviations.

Review the Deviation Report carefully for any missing or incorrect data (see example below).

Go back to the Physical Inventory book and make any necessary changes or corrections (see example below). Reprint the Deviation Report and review it again. Repeat the process until all inventory items are accounted for correctly.

Now, run a 2^nd extended price book. The grand total of the extended cost should be the same amount as the first extended price book. This ensures no one has done any updating in the system since the book was created.

Run the second set of reports in ETMS from Transit Assets/ Custom Legacy Transit Asset Menu/Custom Inventory Menu/ click on #15 FIN Reports, #6 FIN5 Reports.
There are several reports to run after the counting is done but before updating. Run the reports, and make any corrections BEFORE you update Inventory.

Run the final deviation report, saving the pdf in the folder you created at the beginning.

IMPORTANT: All items in the book must have a count to update. If any item was not counted and left blank, the physical inventory will not update. If the count was zero, a zero must be entered in the Physical Count field for the item.

Now, all changes and corrections to inventory have been made, and the final deviation report run and saved. Click Physical Inventory Update to initiate the update to correct inventory quantities, update the last count date, and create the deviation journal entries in the General Ledger.

Once the update is successful, the current inventory book will no longer be available, the file will be cleared.

At this time, run a final Extended Price Book and save (in PDF form and as an Excel file). One can be printed for audit purposes if desired. The difference between this Extended Price book and the first one should be the amount of your final deviation report.

Now, processes can be restarted – purchase orders, work order updates, inventory adjustments, etc.
Good luck!

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