If you need to count inventory in Business Central, you have more than one way to do it. The right approach depends on whether you use bin codes and warehouse functionality, and on whether you are doing a planned count or a quick ad-hoc adjustment. This article explains the options for the classic inventory setup, where you count by location.
If you use bin codes and warehouse functionality, you must use warehouse counting journals. That is a separate process covered elsewhere.
If you use the classic inventory functionality with locations, you have two main strategies for counting a specific item. For a planned count, use the Physical Inventory Journal. It calculates the expected quantity, which you print and hand to the warehouse staff so they can count the physical stock. You then enter the actual counted quantity, and Business Central posts the difference as a positive or negative adjustment.
For a quick correction, use the Item Journal. You cannot enter a manual line directly in the Physical Inventory Journal, so when you simply need to adjust stock without a formal count, the Item Journal is the right place. There you can post a positive or negative adjustment on a specific item and location directly.
Counting inventory when you use bin codes and warehouse functionality
If your inventory uses bin codes, meaning you run the warehouse functionality, you have to use warehouse counting journals for both ongoing and ad-hoc counting. This is a different process from the classic location-based counting and is handled separately.
Two strategies for counting items by location in classic inventory
If you are not using bin codes and instead count by location, you have two ways to handle the count of a specific item. The choice depends on whether you are doing a structured count or a quick adjustment.
Using the Physical Inventory Journal for planned counts
The Physical Inventory Journal is the tool for structured counting, such as your annual counts. You enter the item number, and the journal calculates the expected quantity based on what the system thinks is in stock. You print this out and give it to the warehouse staff, who walk around and count the actual item.
When they return, you enter the actual counted quantity. Business Central then creates a positive or negative adjustment based on the difference between the expected and the counted quantity.
Using the Item Journal for direct positive or negative adjustments
You cannot enter a line manually in the Physical Inventory Journal. If you just need to make a quick correction because something happened in the inventory, you use the normal Item Journal instead.
In the Item Journal you can post a positive or negative adjustment directly. For example, you can make a negative adjustment to withdraw three pieces of an item on a specific location and post it straight away.
Choosing the right journal for your counting need
The difference comes down to what you actually need. Use the Physical Inventory Journal when you want the system to calculate expected quantities and you are doing a real count. Use the Item Journal when you just need to correct the stock with a direct adjustment. The key is to pick the journal that matches the task.
Q&A
Which journal do I use to count inventory if I use bin codes?
If you use bin codes and warehouse functionality, you must use warehouse counting journals for counting your inventory.
How do I do a planned inventory count in classic inventory?
Use the Physical Inventory Journal. Enter the item number, let it calculate the expected quantity, print the list for the warehouse staff to count, then enter the actual counted quantity. Business Central posts the difference as a positive or negative adjustment.
Can I enter a manual line in the Physical Inventory Journal?
No. You cannot enter a line manually in the Physical Inventory Journal. For manual adjustments, use the normal Item Journal instead.
How do I make a quick stock adjustment without a full count?
Use the Item Journal. There you can post a positive or negative adjustment on a specific item and location directly, for example to withdraw three pieces, and then post it.