Cycle Counts
Cycle counting is a process where inventory is counted in small samples over a period of time. This is an auditing method that helps ensure more accurate inventory in a timely manner. The Sandbox cycle count keys on products that have a higher movement and dollar amount by creating a product classification.
Product Classification
On a weekly basis products are assigned a class of A, B, C, or D by using the last 12 months of inventory movements and sales of the product.
- 12 Months Inventory Movements - represents any event movement of inventory, usually through a receipt or sale.
- 12 Months Sales - sales revenue from POS, Sales Invoices, and Returns.
Each product is scored on these two metrics as a percentage compared to the sum of all products. For example, if Widget X had 100 movements and the total movements of all products was 1000 then Widget X would be scored as 10%. Same is done for dollar amount. A weighted score is then created for the each product using a percentage of the movement score and sales score. The default is 80% movement and 20% sales. The weighted score is then used to classify products as A, B, C, or D. This is based on the sum of the weighted scores totaling class percentages. The default class percentages are below. Class A represents the top products where the sum of the weighted score totals 20% of the total of all products.
- Class A - Top 20%
- Class B - Next 15%
- Class C - Next 60%
- Class D - Final 5%
The classification of products, with movements/sales and current count, can be accessed from the Inventory Cycle Count Class report.
Cycle Count Dashboard
The cycle count dashboard will keep track of the inventory counting progress. Coloured status bars and gauges will let you know quickly how you are doing. The gauge on the right let's you know if you are on track. The needle pointing to the red section shows the count is behind schedule by 1229 products. The number of working days left and the number of products to complete count is detailed below.
Also at the top of the dashboard are two status bars; the top one shows where the count is based on the date and the bottom is for the status of your cycle count progress. Green is on time, yellow is behind by less than 10%, and red is more than 10% behind schedule.
The cycle count dashboard provides a summary of products counted by class.
- Qualified Products: number of products in each class
- Requirement: average number of times product needs to be counted
- Counts Performed: number of products counted in fiscal cycle
- Counts Required: number of products to be counted to fulfill class count requirement
- % of Counts Performed: count status of each class
Starting a Cycle Count
At the top right of the cycle count dashboard, the current fiscal year is selected along with a button to 
. Clicking on the button will bring up the count parameters window.
- Select the Storage Location for the count
- Choose the number of products to count. By default this will be the number of products per day required to complete the overall count with the number of days remaining, but can be adjusted by;
- Drag the slide bar to selected number, or
- Use the arrows at the end of the slide bar to increase or decrease
- Click Create Count
Interactive Demo: Creating a Cycle Count
Note: All cycle metrics include all count types; manual, category, storage location, exception.
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