Physical Inventory Recordings are made from the Physical Inventory Order

In Business Central, you can run physical inventory counting through an inventory order where you create one or more recordings. This article walks through how the process works, from printing a counting document for your warehouse staff to posting the final adjustments. The recordings let you split a count across several people or locations and gather everything in a single physical inventory order.

You print a counting document directly from the recording. The document shows the location code and bin code to count, but it does not suggest quantities, so the person counting starts from a blank slate.

You enter the counted quantities back on the recording lines in Business Central. You can finish a recording when you are done, or leave it open and continue counting later.

You can attach many recordings to the same physical inventory order. When you post the order, Business Central adjusts the calculated quantities to match your counted quantities. All recordings must be finished before you can post.

Creating recordings on a physical inventory order

You start a physical inventory count by creating an inventory order, and within that order you create recordings. You can find a recording either from the main menu or directly from the physical inventory orders. One physical inventory order can hold several recordings, which is useful when you want to split the count across different people or areas.

Printing the counting document for warehouse staff

As a warehouse employee, you typically want a document to count from. You print that document directly from the inventory recording. It tells you which location code and which bin code to count.

The document does not suggest any quantities. You go out, count the items physically, and write down whatever you find. This keeps the count honest, since there is no expected number to anchor to.

Entering counted quantities back in Business Central

When you have finished counting, you return to Business Central and enter the counted quantities on the recording lines. You can do this yourself or have someone else do it. The quantity counted goes directly on each line.

If you are not done, you can leave the recording open, continue counting later, and come back to it. When everything is entered, you finish the recording. A finished recording stays in the system but is locked for changes unless you reopen it.

Tracking progress on the physical inventory order

Back on the physical inventory order, you can see the number of finished counting lines. This gives you an overview of how far the count has come across all the recordings attached to the order.

You can print the physical inventory order to see everything you have counted. The printout shows your recorded quantity next to the expected quantity, so you can spot any discrepancies right away. If the system expected 770 and you only counted 3, that mismatch tells you to go back out and recount.

Recounting and posting the inventory order

When you find a discrepancy, you can create a new recording and keep adding as many recordings as you need until you are confident in the numbers. There is no limit on how many recordings you attach to the order.

When you are done, you post the document. All recordings must be finished before you can post. Posting adjusts the expected or calculated quantities to your actual counted quantities. In the example above, posting creates a negative adjustment from the calculated 770 down to the actual 3.

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