Friday, March 30, 2012

Cycle Counting
Contents
Introduction to Cycle count
System Reference
User Responsibilities
Ownership
Prerequisites
Steps for ABC Analysis
1 Create a ABC compile
! "enerate ABC descendin# $alue report
% &efine ABC Classes
' &efine ABC Assi#nment "roups
( Associate Classes and Assi#nment "roups
) Assi#n Items to Classes
* Update Item Assi#nment (if required)
+ "enerate ABC Assi#nment Report
C,C-. COU/0I/"
Cycle Countin# &efinin#
1 Scope and Control 0ab
1 Serial and Schedule 0ab
1 Ad2ustment and ABC 0ab
Assi#n ABC Classes to Cycle Count
Cycle Count Items
Cycle Count Scheduler
Perform 3ull Cycle Count
"eneratin# Cycle Count -istin#
.nterin# Actual 4uantities
Appro$in# the ad2ustments
Introduction to Cycle count
Cycle Counting is:
Performed periodically to ensure accuracy of inventory quantities & values.
Frequency of counting item may be based on the classification of items.
1. Example:
o Class items shall be counted ! times a year
o Class " items shall be counted # times a year
o Class C items shall be counted once in a year
method of ta$ing inventory that does not require the inventory organi%ation to
shut do&n in order to count actual inventory items.
System Reference
'racle (nventory: "C Codes
"C Compiles.
"C Classes.
"C ssignment )roups.
(nventory* +ision 'perations ,-./: Counting 0 Cycle Counting > Cycle Counts
User Responsibilities
1he store2s in3charge is responsible for:
.etting up the cycle count parameters and scheduling.
1he store2s person is responsible for:
Printing cycle count requests.
Performing the item counting.
Entering actual item counts.
4esolving inventory discrepancies in the database &ith Finance department.
Ownership
1he 5ead of 6aterial2s 7epartment is responsible for ensuring that this document is
necessary* reflects actual practices and supports company policy.
Prerequisites
(tem classification shall be done ,by finance and material dept/
Frequency of counting shall be decides ,by 6aterial dept/
.ystem setup shall be done ,by 6aterial 8 (1/
Steps for ABC Analysis
1. Creating a "C compile.
2. )enerating "C descending value report.
3. 7efining "C Classes.
4. 7efining "C ssignment )roup.
5. ssociating classes and assignment group.
6. ssigning items to classes.
7. -pdating item assignment.
8. )enerating the "C assignment report.
1 Create a ABC compile
1he "C compile ran$s all the items in your inventory based upon compile criteria. 1his
ran$ing is used to assign classes to your items.
Compile Criterion:
"C analysis is done based on the value of consumptions. "ut initially till next 9 months
from the date of 'racle implementation it &ill be based on .toc$3in3hand value. 6oving
ahead it &ill be shifted to Consumption base.
Current on3hand
quantity
-se the current on3hand quantity of inventory. ssign the sequence number by
descending quantity.
Current on3hand
value
-se the current on3hand quantity of inventory times the cost for the cost type. ssign
the sequence number by descending value.
5istorical usage
value
-se the historical usage value ,transaction history/. 1his is the sum of the transaction
quantities times the unit cost of the transactions for the time period you specify. ssign
the sequence number by descending value.
5istorical usage
quantity
-se the historical usage quantity ,transaction history/ for the time period you specify.
ssign the sequence number by descending quantity.
5istorical number of
transactions
-se the historical number of transactions ,transaction history/ for the time period you
specify.
ssign the sequence number by descending number of transactions.
Forecasted usage
value
-se the forecasted usage value based on the forecast quantity calculated and the cost
type you specify. ssign the sequence number by descending value.
Forecasted usage
quantity
-se the forecasted usage quantity. ssign the sequence number by descending
quantity.
Previous cycle count
ad:ustment quantity
-se the previous cycle count ad:ustment quantity. 'racle (nventory sums the value of
all cycle count ad:ustments since the last "C compile date. ssign the sequence
number by descending quantity.
Previous cycle count
ad:ustment value
-se the previous cycle count ad:ustment transaction value. 'racle (nventory sums the
value of all cycle count ad:ustments since the last "C compile date. ssign the
sequence number by descending value.
64P demand usage
quantity
-se the 64P demand usage quantity. 'racle (nventory sums the 64P gross
requirements for the 64P plan you specify. ssign the sequence number by
descending quantity.
64P demand usage
value
-se the 64P demand usage value. 'racle (nventory sums the 64P gross
requirements for the 64P plan you specify. 1he value is derived from the item cost
type you choose in the "C compile form. ssign the sequence number by descending
value.
;ogin to 'racle.
.elect <(nventory* +ision 'perations ,-./=
.elect <"C C'6P(;E=.
.elect M1 organi%ation
.elect New button on the form.
Complete <7efine "C Compile= form.
Enter a -nique name for "C compile.
'ptionally* enter a description of the "C compile.
Content .cope
o (f you select <Organization= ran$ing &ill be done for all the items defined for your
current organi%ation even those &ith %ero cost and %ero quantity.
o (f you select <Subinventory < ran$ing &ill be done for all those items for &hich
you have defined an (tem8 .ubinventory relationship. (n this case you can also
select specific subinventory defined in system.
+aluation .cope
o 4an$ing must be done at the organi%ation level if you did not select a
.ubinventory in the Content .cope field. (f you only &ant to include items in a
subinventory but you &ant the ran$ing to be done based on the organi%ation &ide
ran$ing* select <'rgani%ation=.
o (f you select <.ubinventory= than only those quantities &hich are lying in specified
subinventory &ill be considered. >uantities lying in other then specified
subinventory &ill not be considered.
Compile Specification
Criterion
Cost ype defaulted as per setup* !orecast depends on criterion* i.e. if forecast*
must select forecast* "lan Name# !rom $ate and o $ate are required for some
specific criterion.
.ave your &or$
Execute the Compile
o Clic$ the compile button and then a concurrent program &ill get fired.

(f needed compile results can be printed
'pen output of ?Compile "C analysis2 to vie& Compile 4esult
+erify that compile "C analysis is completed &ith a status of @ormal.
@ote: s this is in test system &e got only AB! items in this compile but in actual &e &ould be
much more.
! "enerate ABC descendin# $alue report
.elect the "C descending value report.
Clic$ the vie& output button to vie& output.
1a$e Print if required.
% &e'ne ABC Classes
-se your o&n terminology to determine &hat are commonly used as "C classes.
7efine class names that suit your business environment.
@avigation: (nventory* +ision 'perations ,-./ 0 "C Codes 0 "C Classes
Enter Class @ames and description
.ave your &or$
( &e'ne ABC Assi#nment "roups
"C assignment groups associate "C classes &ith an "C compile. Cou assign item
to "C classes &ithin a particular group. 1his allo&s you to assign items to different "C
classes in different group.
For example* suppose you define "C groups <Cycle Counting= and <Planning=. Cou can
define different "C classes to these t&o groups. Cou can then assign an item to a
different "C class in each group. 1his allo&s you to prioriti%e item differently for Cycle
Counting and Planning.
@avigation:
(nventory* +ision 'perations ,-./: "C Codes 0 "C ssignment )roups
Complete the %&C %ssignment 'roups form. 'n a blan$ line fill the follo&ing
information.
Enter a unique "C group name.
ssociate Compile @ame and save
) Associate Classes and Assi#nment "roups
Choose classes to use &ith assignment group
ssign ran$ing to the classes &ithin an assignment group.
"C )roup Class ssignment
.elect your assignment group from the list. Clic$ the 'roup Class button.
%&C 'roup Class %ssignment &indo& &ill get open.
Complete the %&C 'roup Class %ssignment form.
Priority: Enter the sequence number in &hich classes are ordered. @umber <1= is
the most important* number <#= is second* and so for.
.elect the class names you defined.

* Assi#n Items to Classes

ssignment may be made based upon follo&ing criterion.
1. .equence @umber
2. (tems Percent
3. (nventory +alue
4. +alue Percent
'pen %&C %ssignment 'roups &indo&.
.elect your assignment group from the list.
Clic$ the %ssign (tem button.
%ssign %&C (tems &indo& &ill get open.
s numbers of items in the compile are very less* here &e are ta$ing AB items in Class *
next 1BB items in Class " and rest in Class C.
(n real business scenario it might be different* it could be based on the value.
Example:
1op (tems having DAE of value is considered as Class item.
@ext (tems having 1BE of value is considered as Class " item.
nd rest of the items &ould be considered as Class C item.
.pecify the cutoff point for each "C class. Each "C class must have at least
one item assigned to it* and all items in the "C compile must be assigned to an
"C class. Cou can use any of the follo&ing fields to determine the cutoff point.
Se)uence: Cou can enter the sequence number from the "C 7escending +alue
4eport for the last item to be included in each "C class. 1his
value &ill be automatically calculated if you choose to assign
classes by another method.
(nventory *alue: Cou can enter the cumulative value from the "C 7escending +alue
report for last item to include in each "C class. 6aximum value
is automatically calculated. 1his maximum value is restricted to
the total inventory value compiled and displayed in the 1otal
Compiled +alue Field.
+ (tem: Cou can enter the percent of number of items compiled from the "C
7escending +alue report to include in each class. 1his value is
automatically calculated if you choose to assign classes by
another method.
+ *alue: Cou can enter the percent of total compile value from the "C 7escending
+alue report to include in each class. 1his value is automatically
calculated if you choose to assign classes by another method.
%ttention: (t is possible to have several items in the "C compile &ith Fero +alue. (f
any item &ith %ero value is in a class other than the last class* you
may only assign item using .equence
For the inventory value* E item and E value field* if the value entered does not exactly
match any item* the first item &ith value greater than the value entered is ta$en.

ssign (tem
o Clic$ the %ssign button.
o Clic$ the 'G button.
request is generated* press 'G.
Chec$ the request status.
+ Update Item Assi#nment (if required)
!in, -our %&C %ssignment
)o to %&C %ssignment 'roups &indo&.
.elect your ssignment )roup from the list.
Clic$ the .p,ate (tem button if required.
.p,ate %&C (tem %ssignment screen &ill appear.
1o enter a ne& item assignment.
o Clic$ the @e& 4ecord button on the toolbar.
o (n the blan$ record* enter the item number and "C class.
1o edit the class of a specific item.
o Find the item number in the list or use find to search for an item number.
o -se the list of values to select a ne& class for the item.
.ave your &or$ and close the &indo&.
, "enerate ABC Assi#nment Report
@avigation
(nventory* +ision 'perations ,-./: 4eports 0 "C and Counting
.elect %&C an, Counting
Submit a New /e)uest screen &ill open.
.elect .ingle /e)uest and press O01
%&C an, Counting /eport form &ill open.
/e)uest
-se the list of +alues to find the name of report <"C assignments report

Complete the "arameter form
%&C 'roup: -se ;ist of +alues to select "C ssignment )roup
Sort Option: -se the list of +alues to select the sort order for the report
Press 'G button.
Clic$ Submit button on "C and Counting 4eports.
C-C./ COU01I0"
Cycle Counting consists of:
Cycle Counting 7efining
)enerating Cycle Count ;isting
Entering ctual >uantities
pproving d:ustment
Cycle Counting $efining
@avigation:
(nventory* +ision 'perations ,-./: Counting: Cycle Counting0
Cycle Count .elect New
Enter a unique name for the cycle count.
Enter the calendar to use for this cycle count.
1his calendar is used to determine the days on &hich to automatically schedule
cycle count.
d:ustment ccount
Scope an, Control ab
Enter the .cope and Control information for your cycle count.
Count Controls
'ptionally* enter the date on &hich the cycle count becomes inactive.
;ate 7ays: Enter the number of &or$days that can pass after the date the count
request &as generated* before a schedule count becomes a late count.
.tarting .equence :
7efault to 1. Cou may leave this default or enter the number to use as
starting number in the next count request generator. 1he count sequence
number uniquely identifies a particular count and is used in ordering the
cycle count listing.
-nscheduled Entries
'ptionally* specify &hether you can enter counts for items that are not
scheduled to be counted.
7isplay .ystem >ty
.elect this field to display system on3hand quantities during count entry.
%utomatic /ecounts
.elect to automatically assign a status of /ecount to out of tolerance counts and include
them in next cycle counting.
6aximum
(f you selected automatic recounts* enter the maximum number of times
inventory can generate an automatic recount request. 'nce this number is
reached the ad:ustment must be approved or re:ected.
Count Subinventories
7efaults to %22. Cou may leave this default or select S"3C(!(C1 (f you choose
<.pecific= subinventories* you can navigate to the .ubinventory region and select the
subinventories to include in the cycle count.
Serial an, Sc4e,ule ab
.elect .erial & .chedule 1ab. nd complete the form.
Serial Control Option
Count
.elect the count option to determine &hether to exclude seriali%ed items from the
cycle count , @ot llo&ed/* create one count request for each serial number
, 'ne per 4equest /* or create multiple serial details in a count request , 6ultiple
per 4equest /.
7etail
>uantity & .erial @umbers: .erial number & quantity are required and are
+alidated &hen entering ad:ustment.
>uantity 'nly: .erial number entry is optional if the count quantity
6atches the system quantity* regardless of &hether the serial
numbers match. (f you do not enter serial number* the count is
mar$ed as completed. nd no ad:ustments are performed. (f you
do enter serial numbers* both quantity and serial numbers are
validated &hen determining &hether ad:ustments are required.
d:ustment
d:ust if Possible: (f a discrepancy exists bet&een a count quantity & a system
quantity or if the entered serial numbers do not correspond
to the serial number already in the specified location* then
the system &ill attempt to ma$e ad:ustment if the
ad:ustment variance & value are &ithin tolerances. 1hese
ad:ustments consists of receipt & issue of the appropriate
serial numbers to & from the specified location and are
applicable only to instances in &hich ne& serial numbers
or shipped serial numbers are counted.
4evie& ll d:ustments: @o automatic ad:ustments are attempted.
7iscrepancy
.elect the discrepancy option to indicate &hether an ad:ustment is attempted
&hen a count includes a serial number already assigned to the same item
else&here in the system.
(f you turn automatic sc4e,uling on# enter t4e following information
%uto Sc4e,ule
.elect to automatically schedule this cycle count.
Frequency: .elect <$aily=. 1his information is used along &ith the count
frequency of each cycle count class* &hen performing automatic cycle count
scheduling. 1he value you enter here dictates the &indo& of time &ithin &hich
you can enter the count against schedule buc$ets.
Count Fero >uantity: 7etermine &hether to automatically generate requests to
count items &ith an on3hand quantity of %ero.
;ast 7ate: 7isplay the last date this cycle count &as automatically scheduled.
@ext 7ate: ;eave blan$ or enter the date of the first &or$day ,6onday/ for the
next schedule interval &hen this cycle count is scheduled.
%,5ustment an, %&C ab
.elect d:ustment & "C tab and complete the form.
%pproval
4equired
7etermine &hen the approval is required for ad:ustments.
@ever: d:ustment transactions are automatically posted &here entered Counts
differ from system balance.
(f 'ut 'f 1olerance: d:ustment transactions are not automatically posted for
the counts outside a specified approval tolerance. Cou must approve
such ad:ustment before posting.
l&ays: Cou must approve all cycle count ad:ustments* regardless of tolerance
level before it is posted.
olerances
Enter one or more of the follo&ing tolerances.
>ty +ariance: Enter the percentage variance of count quantity to
'n3hand quantity beyond &hich ad:ustments are held for
approval.
d:ustment +alue: Enter the ad:ustment values beyond &hich
ad:ustments are held for approval.
5it86iss nalysis: Enter the percentage variance of count quantity
to on3hand quantity beyond &hich a count entry is
considered as a miss for hit8miss reporting.
%&C (nitialization 6 Optionally7
Enter the "C group name on &hich to base the cycle count item initiali%ation or
update.
'ption: Choose one of the follo&ing
@one: 7o not change to the list of cycle count items.
,4e/initiali%e: -se the "C group you specified to load all
(tems & their "C assignments into the list of items
to include in your cycle count. (f you already had
items defined for your cycle count* this action
deletes existing information & reloads the items
from the "C group.
-pdate: -se the "C group you specified to insert ne&
cycle count item.
(f you choose -pdate option:
(ndicate &hether to update classes. (f an item2s "C class assignment in the
"C group you specified is different from the cycle count class this item is
assigned. 1he cycle count class is updated for the item &ith the "C assignment
in the specified "C group.
(ndicate &hether to delete unused item assignment that are no longer referenced
in the specified "C group.
.ave your &or$.
4e3query the records to ensure the re3initiali%ation has occurred. Hait for Fe&
minutes then select 4un from query menu. (f the status field does not display
<Completed= &ait for fe& more minutes then 4un the query again.
%ssign %&C Classes to Cycle Count
Enter "C classes to include in your cycle count.
Clic$ on Class button
Complete the Cycle Count classes form
@ames of the "C classes appear in this field. 1hese names &ere determined in
the "C assignment group.
Counts per Cear: Enter the number of times per year you &ant to count each item
in this class.
pproval +ariance: 'ptionally* enter positive or negative tolerances. (f you do not
enter tolerances* a value entered in the cycle count &indo& is used.
.ave your &or$ & close the cycle count classes2 &indo&.
Cycle Count (tems
1o define Cycle count (tems
Clic$ on (tem button
1his form displays the cycle count items. Cou may verify an item2s class & specify
an approval variance for specific item
.ave your &or$ & close Cycle Count (tem &indo& & Cycle Count &indo&.
Cycle Count Sc4e,uler
Choose Cycle Count Sc4e,uler from 1ools menu.
Complete cycle count schedule parameter
.elect (nclude Control )roup (tems and clic$ 'G
Clic$ the 'G button again.
"erform !ull Cycle Count
.elect "erform !ull Cycle Count from the tools menu.
Clic$ the 'G button again.
.elect "erform !ull Cycle Count from the tools menu.
Parameters
-se the list of values to enter your cycle count name in the parameters fields
next to cycle count listing.
Clic$ Option button.
.elect Save %ll Output !iles & press O0 button.
s &e selected frequency as 7aily* schedule this program on 7aily basis at suitable time.
Press Submit button on "erform full cycle count screen. Clic$ 'G & close all
&indo&s.
'enerating Cycle Count 2isting
@avigation:
(nventory I (nventory* +ision 'perations ,-./ : 4eports 0 "C and Counting* .ingle
4equest 'G : "C and Counting 4eport
Complete "C and Counting report form.
@ame
-se the list of values to find the name of report* <Cycle Count ;isting=
Complete the parameter form.
Cycle Count @ame: -se the list of values to select the name of cycle count.
.tart 7ate: 7efaults to today2s date
End 7ate: 7efaults to today2s date
(nclude 4ecounts only: (ndicate &hether to print the listing for recounts only
,<Ces=/ or all items ,<@o=/
.ubinventory: -se the list of values to select a specific subinventory to count or
leave blan$ for all subinventories. .uggest to $eep it blan$
7isplay .erial @umber
;eave as default value.
Clic$ 'G button.
.elect the report to automatically run periodically
Clic$ the .chedule button.
.elect Periodically
Complete the .chedule form.
3ntering %ctual 8uantities
@avigation:
(nventory I (nventory* +ision 'perations ,-./: Counting 0 Cycle Counting 0 Cycle
Counting Entries
>uery the cycle count to be used.
1o enter scheduled counts.
Count >uantity
Enter the quantity that you counted for each item. (nventory uses this
quantity &ith the specified unit of measure to determine the value of cycle
count ad:ustment.
.ave your &or$ and it &ill get submitted for approval.
%pproving t4e a,5ustments
pprover shall ta$e appropriate action and save the response8s .
Posted by &.5endra "ul$e
-abels6 Oracle In$entory 7I/58
1 comment:
1
Jasmine Hue 3ebruary !)9 !:1% at +6!' P;
<i &a$endra9
I=m usin# .>Bi? 11i Recently we facin# an issue at cycle count @e encounter that the
settin#s of include ?ero count9 does not worA well if we did not assi#n the item into the
respecti$e subin$entory 0his is apart of the setup 0he symptom is system do schedule
the item with ?ero quantity to be count9 howe$er that item does not appear at the cycle
count report So we always ha$in# problem that the count item is less than the actual
scheduled
0herefore now we are worAin# on to assi#n the item into the subin$entory /ot sure this
will handle well in R1!
0hanAs9
Basmine
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Cycle Countin#
N !:11 7118
o N /o$ember 7!8
o N October 718
o N Au#ust 718
o N Buly 718
o N Bune 718
o N ;ay 7!8
o N ;arch 718
o N 3ebruary 7!8
N !:1: 71!8
o N &ecember 718
o N September 718
o N Au#ust 7!8
o N ;ay 7!8
o N April 718
o N ;arch 7!8
o N 3ebruary 7!8
o N Banuary 718
N !::O 71%8
o N /o$ember 7%8
o N Au#ust 7%8
o N Bune 7!8
o N ;ay 7!8
o N 3ebruary 7%8
N !::+ 71)8
o N &ecember 718
o N /o$ember 7!8
o N October 7%8
o N September 718
o N Au#ust 718
o N ;ay 7'8
o N April 718
o N ;arch 718
o N 3ebruary 718
o N Banuary 718
N !::* 7'8
o N &ecember 718
o N September 718
o N April 7!8
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