Physical inventory count
In one sentenceCounting the items actually present in the warehouse or branch on a set date, to compare them with the recorded balances and record the differences.
Simply put
However accurate the system, you must count by hand from time to time: goods get damaged, entries are mistyped, and theft happens. A physical count reveals these.
It may be a full count at year end, or a partial count of a group of items every month. What matters is stopping movement on the items during the count and documenting the result.
Example
A spare parts store stops selling on Friday morning, divides the warehouse into zones, and each team counts its zone; the quantities are then compared with the system balance, and items with differences are reviewed before the adjustment is approved.
Don't confuse it with
Periodic inventory systemThe periodic system is a complete accounting system, while a physical count is a counting exercise you need under both systems.
in FullScreen ERP
The Stocktaking app lets you count by scanning barcodes with a phone instead of paper lists, and quantities are recorded directly as you scan. Stocktaking app