Understanding: The Cycle Count Alternative

The best way to cycle count is to count the same number of items each day and at the same time each day. The goal is to count your “A” items 4 times a year. The “A” items should be those item that are about 80% of the total inventory value and 20% of the total items. Consider creating your own cycle count schedule then instead of using the cycle count transaction, use the inventory adjustment transaction. The item balance is changed at the time the transaction is keyed. The transaction list can be used for the reconciliation process.

Baan uses the company calendar in the following modules to determine the start and end dates for planned orders:

• Master Production Scheduling
• Material Requirements Planning
• Capacity Requirements Planning
  (All three combined in a single planning module for Baan V and LN)
• Shop Floor Control

The calendar provides the valid working days, number of shifts per day and the number of hours in a day.

Baan allows for a single calendar for the whole company or for a calendar for each work center.

Understanding: The Cycle Count Transaction

If you rely on BPCS to provide you with a cycle count list, the number of items could vary from day to day from a few items to count, to several. So the person doing the cycle counting may spend a few minutes to a few hours counting items. After the cycle count is complete, the balances are not changed until the reconciliation is complete. This process could take some time before the balances are changed.

The cycle count transaction process is similar to the physical inventory transaction process.