Performing Year-End Physical Inventories (Paper Counts)

How to perform year-end physical inventories, including guidance on creating counts in Flexe and using paper count lists. 

IN THIS TOPIC

• Creating Counts
  • Create a Full Physical Count
  • Create a Locations-Based Count
• Generating Count Lists
• Paper Counting Process
• Validating Counts

Year-end physical inventory counts involve a multi-step process, completed both in the Flexe web platform and using Flexe-generated count lists. 

Note: If your warehouse uses Flexe mobile devices, use the guidance in Performing Year-End Physical Inventories (Mobile) instead. 

Before you start

Keep in mind that all inbounds and outbounds should be temporarily suspended during year-end physical inventory counts. 

This means that you should not be completing any of this activity until counts are fully completed in the system. Working on anything that impacts inventory will invalidate the year-end physical inventory, and you will need to restart the entire process.   

To learn more about how to get ready for year-end physical inventories, go to Preparing for Year-End Physical Inventories. 

Creating Counts

You can create year-end physical inventory counts from the Cycle Counts page in Flexe. The process differs depending on the number of reservations you have with Flexe.  

• If you have only one reservation, refer to Create a Full Physical Count (Single Reservations)
• If you have multiple reservations, refer to Create a Locations-Based Cycle Count (Multiple Reservations)

Create a Full Physical Count (Single Reservations) 

You can use the Full Physical Count feature in Flexe to create cycle counts for all countable locations at your warehouse. This feature allows you to break counts up into sections so multiple users can work on them. 

Note: Do not use the Full Physical Count feature if you have multiple reservations with Flexe. You’ll instead need to Create a Locations-Based Count. 

To create a full physical count in Flexe: 

1. Open Cycle Counts from the left menu, then select Create Cycle Count. 

2. From the New Cycle Count page, select Full Physical Count. 

3. Enter the number of counts you want to create. 

In the window that opens, use the Number of counts to create section to enter how many individual counts you want to create. It can be helpful to break up counts by the number of staff members who will actually do the counting. 

Once you enter a number, the system shows the estimated amount of locations that will be included in each count. 

Note: You can have a maximum of 150 locations in a single count. If you exceed this maximum, you'll get an error message with guidance on how many counts you'll need to enter to proceed. 

4. Enter the reference ID. 

Use the Reference ID section to add a reference ID. This will help you keep track of all of the counts included in the year-end physical inventory. 

Make sure to use the following format: 

[YEAR] [Shipper/Customer Name] YEPI

Example: 2022 Flexe YEPI

5. Select Create.

This takes you back to the main Cycle Counts page, where you can review all the counts you just created. The status of the counts will show as Pending, and you can find the reference ID you entered under Reference.

6. Click on the cycle count ID and select Start button on the upper right to start the count.

Create a Locations-Based Count (Multiple Reservations)

If you have multiple reservations with Flexe, you’ll need to count by locations. You can select specific locations, or enter a range of locations to include in the count. 

To create a locations-based cycle count in Flexe: 

1. Open Cycle Counts from the left menu, then select Create Cycle Count. 

2. Select the locations to be counted. 

First, make sure the Count By dropdown at the top of the page is set to Location.

You can then select all the locations that need to be included in the count. Add locations one-at-a-time by selecting the "add" icon next to each one.

Or, use the +Select a range of locations option to add multiple locations within a specified range. 

Enter the first location in the range under Start at, and the last location under End at (Example: A01 - A88). 

Note: Make sure to enter actual location names. The Start at and End at text boxes will start suggesting relevant location results after you enter at least three characters.

Select Add to cycle count to add all the locations within the range to the count. 

3. Select Count Selected. 

Once you’ve added all the locations to be included in the count, select Count Selected. 

In the window that opens, you can review a list of all the selected locations. Use the Number of counts to create section to enter how many individual counts you want to create. It can be helpful to break up counts by the number of staff members who will actually do the counting. 

Once you enter a number, the system shows the estimated amount of locations that will be included in each count. 

Note: You can have a maximum of 150 locations in a single count. If you exceed this maximum, you'll get an error message with guidance on how many counts you'll need to enter to proceed. 

4. Enter the reference ID. 

Use the Reference ID section to add a reference ID. This will help you keep track of all of the counts included in the year-end physical inventory. 

Make sure to use the following format: 

[YEAR] [Shipper/Customer Name] YEPI

Example: 2022 Flexe YEPI

5. Select Create.

This takes you back to the main Cycle Counts page, where you can review all the counts you just created. The status of the counts will show as Pending, and you can find the reference ID you entered under Reference.

6. Click on the cycle count ID and select Start button on the upper right to start the count.

Generating Count Lists

Once counts are in progress, you can generate and print out a count list for each one. These lists are what warehouse staff will use when completing the physical count, to track locations and record counted items. 

To generate a count list in Flexe: 

1. Open Cycle Counts from the left menu, then select the count. 

2. Select Generate Count List. 

Select the Generate Count List option at the top of the page to download the count list in a printable CSV file. 

3. Edit the count list as needed, then print it. 

Open the count list file once it downloads through your web browser.

First, make sure to resize the columns so that all text is visible. 

You can then edit the spreadsheet as needed:

• As a best practice, use the Cycle Count ID# row at the top to add the corresponding ID number for the count (which is listed on the count details page in Flexe).
• You can also use the Counted By row to add the warehouse staff member(s) who will be assigned to the count. 

After making changes as needed, print the spreadsheet. The sheets can then be divided among all warehouse staff participating in the count. 

Paper Counting Process 

Use the printed count lists generated in Flexe to track locations and record item quantities during the physical counting process. Each list includes all locations and expected items for the count, with blank columns to use for entering item quantities by unit of measure.   

Before you start

Keep in mind that each count list should be started and completed by the same staff member.

If not already entered, use the Cycle Count ID# row at the top of the sheet to record the ID number for the cycle count (this is listed on Cycle Counts page and in the count details).

Also make sure to use the Counted By row to record the name of the staff member completing the count.  

Paper Counting Process

To count items on using paper count lists: 

1. Go to a location on the count sheet. 

2. Find an item (SKU/LPN) in that location. 

3. Count all items, by unit of measure. 

Verify the quantity for each item. Then, use the Cartons and/or Eaches columns in the count list to record counted amounts.   

4. Add any additional items found under Notes. 

If you find any items at the location that are not included on the count list, add them in the Notes section.

Make sure to add as much detail as possible, including SKU/LPN numbers and the counted quantity. 

5. Submit completed count lists to warehouse management. 

Follow the steps above until all locations and items on the count list have been counted.

Make sure to submit all completed count lists to warehouse management or designated staff members so they can be reviewed and entered into the Flexe system.  

Entering Count Lists in Flexe

As warehouse staff members submit completed count lists, you can validate and input the results from the Cycle Counts page in Flexe. 

To enter count lists in Flexe: 

1. Open Cycle Counts from the left menu and select the count. 

Select Cycle Counts from the left menu to reopen Cycle Counts page. Then, refer to the Cycle Count ID# listed on the count sheet to find the corresponding count. 

From here, you can review items expected in each location. As you enter count results, the tracker at the top of each section shows your progress. Locations or items in green have been entered and counted; those in red have yet to be entered.

2. Select Edit. 

To start entering results from the count list, select the Edit option at the top of the page. 

3. Enter counted quantities for each location. 

Each location included in the count will have its own section on the page. In each section, you'll find a list of all items in the location, along with the expected quantities. 

Use the Counted Cartons and/or Counted Eaches text boxes to enter the counted quantities from the corresponding location on the count list. 

4. Once all results have been entered for the count, select Save. 

After you’ve entered everything from the count list, select Save to submit the results. 

This returns you to cycle count details page, where you can review and validate the count results you entered, as needed.

Note: Make sure to keep completed count sheet for your records. 

Validating Counts

As the count lists are entered into the system, you may need to further validate results or initiate required recounts.  

Checking for Required Recounts 

As count results are entered, make sure to review them for any items or locations that require a recount. The Difference column in the count details automatically calculates any variance between expected and counted quantities.

 A recount is recommended if the difference is greater than 5%. However, if the shipper requires a different variance threshold, make sure to use that instead.

Physical Recounts

You can manually recount specific items at a location, or recount the entire location. Once the recount is completed, select the Edit option on the cycle count details page to make adjustments, as needed.

Use the text boxes or arrows to update counted values. Then, select Save to enter the changes. 

Creating a New Cycle Count for Recounts

If needed, you can create a new cycle count to complete the recount process: 

1. Select Cycle Counts from the left menu, then select Create Cycle Count. 

2. Select the locations that need to be recounted. 

First, make sure the Count By dropdown at the top of the page is set to Location.

You can then use the "add" icon to select each location that needs to be recounted. You can also search for a specific location by entering the location name in the Filter by Location text box at the top of the page. 

3. Select Count Selected, and enter the number of counts to create. 

Once you’ve added all locations to be included in the recount, select Count Selected. 

Then, use the Number of counts to create section to enter how many individual counts you want to create.

Note: You can have a maximum of 150 locations in a single count. If you exceed this maximum, you'll get an error message with guidance on how many counts you'll need to enter to proceed. 

4. Enter a reference ID for the recount.

Use the Reference ID section to add a reference ID to track the recounts.

For recounts, the reference ID should have the following format:

2022 [Shipper Name] YEPI RECOUNT

5. Select Create, then start the count(s) from the Cycle Counts page. 

Select Create to create the recount. 

Once created, the status of the count(s) will show as Pending on the main Cycle Counts page. Select the count(s) to open the details, and select Start. Then select Start Cycle Count to confirm. 

Once started, you can generate and print a count list for the recount(s). To learn more go to Generating Count Lists and Paper Counting Process. 

After you've completed all recounts and re-validated everything, you can proceed with reviewing and completing the year-end physical inventory. To learn more, go to Reviewing & Completing Year-End Physical Inventories.